Form 10-Q for SHANDONG ZHOUYUAN SEED & NURSERY CO., LTD.
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19-Aug-2009
Quarterly Report
Item 2. Management's Discussion And Analysis Of Financial Condition And Results Of Operation:
The revenue in the second quarter of 2009 was $22,421, major generated from seed sale of $19,498, reduced from $541,636 of the same period of last year. The main reason of the revenue reduction is due to the sufficient storage of the corn seeds in the wholesale agencies. In the fourth quarter of 2008, the wholesale agencies of corn seeds already stored enough corn seeds for the sale of the past six months of 2009.
The total costs of sale were $13,891 compared with $357,982 of the same period of last year. The operation loss was ($165,088) compared with loss of ($63,015) of the same period of last year. The comprehensive loss was ($ 91,747) compared with loss of ($99,887) of the same period of last year.
The average loss per share was $0 compared with loss $0 per share of the same period of last year.
Liquidity and Capital Resources
On June 30, 2009, the company had cash and cash equivalent of $ 324,350 compared with $186,876 on June 30, 2008. The account receivable was reduced for $296,405, and the advance to suppliers increased $182,370 on
June 30 compared with those on March 31, 2009. The increase of the advance to suppliers was due to that the managers wanted to guarantee the seed suppliers for the rest of the year.
In past six months, the company paid interest of $5,110 for one manager's loan of $148,700.
Although, the Company has a working capital deficiency of $433,979 and $412,373 as of June 30, 2009 and December 31, 2008 respectively, the managers believe that it will meet its capital requirement in the rest of the year through generating income from operation and financial activities.
