FLSW.. $0.70
Forlink Software Corporation, Inc.
Consolidated Balance Sheets
(Expressed in US Dollars)
March 31, December 31,
2010 2009
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 1,206,815 $ 2,240,863
Accounts receivable 3,007,101 2,434,557
Other receivables, deposits and prepayments (Note 3) 1,257,227 687,413
Inventories (Note 4) 1,048,234 935,566
Deferred taxes assets 23,115 0
Total current assets 6,542,492 6,298,399
Property, plant and equipment (Note 6) 352,284 391,671
Long term investments (Note 7) 4,576,573 4,707,136
Total assets $ 11,471,349 $ 11,397,206
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 1,677,500 $ 1,193,643
Amounts due to stockholders (Note 5) 513,970 415,078
Customer deposits 1,619,210 1,329,203
Other payables and accrued expenses (Note 9) 373,929 535,668
Income tax payable 0 0
Other tax payable 0 727,097
Deferred taxes debt 65,663 38,992
Total current liabilities $ 4,250,272 $ 4,239,681
Commitments and contingencies
Non-controlling interest (Note 9) $ 137,745 $ 151,785
Stockholders’ equity
Common stock, par value $0.001 per share;
200,000,000 and 200,000,000 shares authorized;
4,966,173 and 4,966,173 shares issued and
4,651,173 and 4,651,173 shares outstanding, respectively $ 99,322 $ 99,322
Treasury stock (163,800 ) (163,800 )
Additional paid-in capital 10,195,693 10,195,693
Accumulated losses (4,136,275 ) (4,214,220 )
Accumulated other comprehensive income 1,088,392 1,088,745
Total stockholders’ equity $ 7,083,332 $ 7,005,740
Total liabilities and stockholders’ equity $ 11,471,349 $ 11,397,206
See accompanying notes to unaudited consolidated condensed financial statements.
2
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Forlink Software Corporation, Inc.
Consolidated Statements of Operations
(unaudited)
(Expressed in US Dollars)
Three Months ended
March 31,
2010 2009
Net sales 683,075 856,903
Cost of sales (364,832 ) (596,395 )
Gross profit 318,243 260,508
Selling expenses (223,160 ) (292,052 )
Research and development expenses (179,047 ) (113,403 )
General and administrative expenses (341,512 ) (217,413 )
Total operating expenses (743,719 ) (622,868 )
Operating profit/(loss) (425,476 ) (362,360 )
Income from equity method investee (22,182 ) (8,358 )
Income from cost method investee - 7,297
Interest income 2,220 4,037
Other income, net 512,899 81,672
Profit / (Loss) before tax 67,461 (277,712 )
Income tax 3,555 0
Minority interest (14,040 ) (15,407 )
Net profit/(loss) 77,946 (262,305 )
Profit/(loss) per share 0.02 (0.06 )
Weighted average common shares outstanding -basic and diluted 4,651,173 4,651,173
See accompanying notes to unaudited consolidated condensed financial statements.
3
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Forlink Software Corporation, Inc.
Consolidated Statements of Cash Flows
Increase in Cash and Cash Equivalents
(unaudited)
(Expressed in US Dollars) Three Months Ended
March 31,
2010 2009
Cash flows from operating activities
Net profit/(loss) $ 77,945 $ (262,305 )
Adjustments to reconcile net profit/(loss) to
net cash provided by/(used in) operating activities
Minority interest (14,040 ) (15,407 )
(Gain)/loss from write-off of property, plant and equipment
Depreciation of property, plant and equipment 45,411 65,162
Income from equity method investee
Loss from equity method investee 22,182 8,358
Dividend received from investee - (7,297 )
Effect of deferred taxes 3,560 23,271
Change in:
Accounts receivables (572,793 ) (28,718 )
Other receivables, deposits and prepayments (585,513 ) (462,748 )
Inventories (112,764 ) (314,560 )
Accounts payable 483,979 395,451
Amounts due to stockholders 98,934 17,464
Customer deposits 297,453 132,959
Other payables and accrued expenses (168,994 ) (73,644 )
Income tax payable - (16 )
Other taxes payable (727,023 ) (104,848 )
Net cash provided by/(used in) operating activities (1,151,662 ) (626,878 )
Cash flows from investing activities
Purchase of long term investment
Acquisition of property, plant and equipment - 5,934
Proceeds from disposal of long term investment - -
Dividend from investee 107,980 111,104
Net cash used in investing activities 107,980 117,038
Cash flows from financing activities
Repayment to short term borrowings - -
(Repayments to)/advances from stockholders - -
Proceeds from issuances of common stock under Plan 2002 - -
Net cash provided by financing activities - -
Effect of exchange rate changes 9,634 (51,270 )
Net increase/(decrease) in cash and cash equivalents (1,034,048 ) (561,110 )
Cash and cash equivalents at beginning of period 2,240,863 2,543,430
Cash and cash equivalents at end of period $ 1,206,815 $ 1,982,320
Supplemental disclosure of cash flow information
Income tax paid $ - -
Interest paid $ - $ -
