[x]
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
[
]
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
Delaware
(State
or other jurisdiction of
incorporation
or organization)
|
84-0916585
(I.R.S.
Employer Identification No.)
|
077
Ala Napunani Street, Honolulu, HI
|
96818
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer [ ]
|
Accelerated
filer [ ]
|
|
Non-accelerated
filer [ ]
|
Smaller
reporting company [X]
|
|
(Do
not check if a smaller reporting company)
|
PART
I – FINANCIAL INFORMATION
|
||
Cautionary
Note on Forward Looking Statements
|
3 | |
Item
1.
|
Financial
Statements
|
4 |
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
21 |
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
31 |
Item
4(T).
|
Controls
and Procedures
|
31 |
PART
II – OTHER INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
32 |
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
32 |
Item
3.
|
Defaults
Upon Senior Securities
|
32 |
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
32 |
Item
5.
|
Other
Information
|
32 |
Item
6.
|
Exhibits
|
32 |
SIGNATURES
|
33 |
●
|
our
financial position, business strategy and other plans and objectives for
future operations;
|
●
|
the
ability of our management team to execute its plans to meet its
goals;
|
●
|
our
ability to attract and retain
management;
|
●
|
our
growth strategies;
|
●
|
anticipated
trends in our business;
|
●
|
our
ability to consummate or integrate
acquisitions;
|
●
|
our
liquidity and ability to finance our operations and acquisition and
development activities;
|
●
|
the
timing, cost and procedure for proposed
acquisitions;
|
●
|
the
impact of government regulation in China and
elsewhere;
|
●
|
estimates
regarding future net revenues or
profits;
|
●
|
planned
capital expenditures (including the amount and nature
thereof);
|
●
|
estimates,
plans and projections relating to construction of facilities and the
acquisition of facilities or
businesses;
|
●
|
the
possibility that our acquisitions may involve unexpected
costs;
|
●
|
the
impact of competition;
|
●
|
general
economic conditions, whether internationally, nationally or in the
regional and local market areas in which we are doing business, that may
be less favorable than expected;
and
|
●
|
other
economic, competitive, governmental, legislative, regulatory, geopolitical
and technological factors that may negatively impact our businesses,
operations and pricing.
|
March
31, 2010
|
June
30, 2009
|
|||||||
Assets
|
(Unaudited)
|
(Audited)
|
||||||
Current
Assets:
|
||||||||
Cash
and equivalents
|
$ | 3,295,658 | $ | 82,854 | ||||
Accounts
receivable
|
- | 634,550 | ||||||
Inventories
|
1,711,719 | 998,600 | ||||||
Advanced
to suppliers, net
|
29,501,228 | 20,654,804 | ||||||
Prepayments
and other current assets
|
151,536 | 146,789 | ||||||
Total
Current Assets
|
34,660,141 | 22,517,597 | ||||||
Property,
Plant, Equipment and Breeding Stock, net
|
2,017,411 | 2,486,610 | ||||||
Total
Long-Term Assets
|
2,017,411 | 2,486,610 | ||||||
Total
Assets
|
36,677,552 | 25,004,207 | ||||||
Liabilities and
Equity
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
payable and accrued expenses
|
565,269 | 447,565 | ||||||
Customer
deposits
|
- | 4,270 | ||||||
Loans
payable, net
|
1,057,207 | 1,068,909 | ||||||
Convertible
note, net
|
552,605 | - | ||||||
Loans
from shareholders/officers, net
|
- | 11,024,211 | ||||||
Deferred
interest income
|
41,552 | 29,077 | ||||||
Other
current liabilities
|
23,952 | 64,593 | ||||||
Total
Current Liabilities
|
2,240,585 | 12,638,625 | ||||||
Total
Liabilities Equity
|
2,240,585 | 12,638,625 | ||||||
China
Swine Genetics Inc. Shareholders’ Equity:
|
||||||||
Preferred
Stock, $0.001 par value, 9,995,200 shares authorized,
|
||||||||
zero
shares issued and outstanding, respectively *
|
- | - | ||||||
Series
A Convertible Preferred Stock ,$0.001 par value, 4,800 shares
authorized,
|
||||||||
zero
and 4,646.05933 shares issued and outstanding, respectively
*
|
- | 5 | ||||||
Common
stock, $0.001 par value, 300,000,000 shares
authorized,
|
||||||||
20,091,112
and 68,584 shares issued and outstanding, respectively *
|
20,091 | 69 | ||||||
Additional
paid-in capital *
|
15,215,399 | 4,043,180 | ||||||
Additional
paid-in capital-stock warrant
|
1,794,281 | - | ||||||
Reserve
funds
|
3,405,859 | 1,874,970 | ||||||
Retained
earnings
|
12,974,020 | 5,295,496 | ||||||
Accumulated
other comprehensive income
|
741,039 | 720,415 | ||||||
Unearned
compensation
|
(13,680 | ) | - | |||||
Total
China Swine Genetics Inc. Shareholders’ Equity
|
34,137,009 | 11,934,135 | ||||||
Noncontrolling
Interest
|
299,958 | 431,447 | ||||||
Total
Equity
|
34,436,967 | 12,365,582 | ||||||
Total
Liabilities and Equity
|
$ | 36,677,552 | $ | 25,004,207 | ||||
*
As restated to show recapitalization and reverse split.
|
For The Three Months Ended
March 31,
|
For The Nine Months Ended
March 31,
|
||||||||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
||||||||||||||
Revenues
|
$ | 14,921,687 | $ | 7,740,915 | $ | 59,814,100 | $ | 34,139,865 | |||||||||
Cost
of Goods Sold
|
12,243,434 | 6,346,768 | 47,081,844 | 28,117,885 | |||||||||||||
Gross
Profit
|
2,678,253 | 1,394,147 | 12,732,256 | 6,021,980 | |||||||||||||
Operating
Expenses
|
|||||||||||||||||
Selling
expenses
|
523,272 | 238,140 | 1,880,582 | 1,143,009 | |||||||||||||
Bad
debt for advanced to suppliers
|
80,893 | 8,011 | 464,877 | 14,724 | |||||||||||||
General
and administrative expenses
|
441,349 | 82,784 | 740,927 | 368,720 | |||||||||||||
Total
Operating Expenses
|
1,045,514 | 328,935 | 3,086,386 | 1,526,453 | |||||||||||||
Income
From Operations
|
1,632,739 | 1,065,212 | 9,645,870 | 4,495,527 | |||||||||||||
Other
Income (Expenses or Losses )
|
|||||||||||||||||
Interest income
(expenses), net
|
(203,317 | ) | 1,053 | (201,497 | ) | (25,126 | ) | ||||||||||
Other income
(expenses), net
|
- | 1 | (6,451 | ) | 9,091 | ||||||||||||
Losses
on disposal of fixed assets
|
(9 | ) | (247,416 | ) | (107,789 | ) | (402,141 | ) | |||||||||
Losses
on disposal of inventories
|
(6,324 | ) | (74,787 | ) | (252,209 | ) | (216,239 | ) | |||||||||
Total
Other Expenses or Losses
|
(209,650 | ) | (321,149 | ) | (567,946 | ) | (634,415 | ) | |||||||||
Income
from Continuing Operations Before Income Taxes
|
1,423,089 | 744,063 | 9,077,924 | 3,861,112 | |||||||||||||
Income
Tax Provision
|
- | - | - | - | |||||||||||||
Net
Income Before Noncontrolling Interest
|
1,423,089 | 744,063 | 9,077,924 | 3,861,112 | |||||||||||||
Less:
Net loss attributable to the noncontrolling interest
|
(17,702 | ) | (145,314 | ) | (131,489 | ) | (253,831 | ) | |||||||||
Net
Income Attributable to China Swine Genetics Inc.
|
$ | 1,440,791 | $ | 889,377 | $ | 9,209,413 | $ | 4,114,943 | |||||||||
Earnings
Per Share:
|
|||||||||||||||||
-
Basic
|
$ | 0.07 | $ | 12.97 | $ | 0.87 | $ | 60.00 | |||||||||
-
Diluted
|
$ | 0.08 | $ | 0.04 | $ | 0.86 | $ | 0.21 | |||||||||
Weighted
Common Shares Outstanding *
|
|||||||||||||||||
-
Basic
|
20,087,080 | 68,584 | 10,589,708 | 68,584 | |||||||||||||
-
Diluted
|
21,150,961 | 20,027,167 | 10,944,335 | 20,027,167 |
*
As restated to show recapitalization and reverse
split.
|
|
For
The Nine Months Ended March 31,
|
|||||||
|
2010
|
2009
|
||||||
Cash
Flows From Operating Activities:
|
Unaudited
|
Unaudited
|
||||||
Net
Income
|
$ | 9,209,413 | $ | 4,114,943 | ||||
Adjustments
to Reconcile Net Income to Net Cash
|
|
|
||||||
Provided
by Operating Activities:
|
|
|
||||||
Depreciation
and amortization
|
378,429 | 653,668 | ||||||
Bad
debt expense
|
464,877 | 14,724 | ||||||
Welfare
fees adjustment
|
- | 10,128 | ||||||
Net
income attributable to noncontrolling interest
|
(131,489 | ) |
(253,831)
|
|||||
Losses
on disposal of fixed assets
|
107,789 | 402,141 | ||||||
Losses
on disposal of inventories
|
252,209 | 216,239 | ||||||
Consulting
fees adjusted from deferred
|
9,320 | - | ||||||
Interest
expenses for discount on convertible note
|
181,886 | - | ||||||
Changes
in Operating Assets and Liabilities:
|
|
|
||||||
Accounts
receivable
|
634,550 | (168,441 | ) | |||||
Inventories
|
(968,925 | ) | (994,567 | ) | ||||
Advanced
to suppliers
|
(9,290,385 | ) | (2,947,663 | ) | ||||
Prepayments
and other current assets
|
(4,640 | ) | 45,665 | |||||
Accounts
payable and accrued expenses
|
117,305 | 228,990 | ||||||
Customer
deposits
|
(4,270 | ) | - | |||||
Deferred
interest income
|
37,843 | - | ||||||
Other
current liabilities
|
(40,659 | ) | 19,781 | |||||
Net
Cash Provided by Operating Activities
|
953,253 | 1,341,777 | ||||||
|
|
|
||||||
Cash
Flows From Investing Activities:
|
|
|
||||||
Payment
for purchase of equipments
|
(34,574 | ) | (4,296 | ) | ||||
Payment
for construction in progress
|
- | (3,573 | ) | |||||
Proceeds
from sale of property and equipments
|
23,908 | 46,957 | ||||||
Payment
for loan to related parties
|
- | (14,406 | ) | |||||
Net
Cash (Used in) Provided by Investing Activities
|
(10,666 | ) | 24,682 | |||||
|
|
|
||||||
Cash
Flows From Financing Activities:
|
|
|
||||||
Proceeds
from loans payable
|
- | 494,905 | ||||||
Proceeds
from Convertible Notes
|
2,165,000 | - | ||||||
Proceeds
from discount on loans payable
|
(37, 843 | ) | - | |||||
Repayment
of loans payable
|
- | (1,501,157 | ) | |||||
Payments
for loans to shareholders/officers
|
(8,136 | ) | (85,677 | ) | ||||
Proceeds
the repayment of loans by shareholders/officers
|
151,262 | 84,571 | ||||||
Net
Cash Provided by (Used in) Financing Activities
|
2,270,283 | (1,007,358 | ) |
Net
Increase in Cash and Equivalents
|
3,212,870 | 359,101 | ||||||
Effect
of Exchange Rate Changes on Cash
|
(66 | ) | (15,781 | ) | ||||
Cash
and Equivalents at Beginning of Period
|
82,854 | 140,270 | ||||||
Cash
and Equivalents at End of Period
|
$ | 3,295,658 | $ | 483,590 | ||||
|
|
|||||||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
Interest
paid
|
$ | - | $ | 32,807 | ||||
Income
taxes paid
|
$ | - | $ | - | ||||
SUPPLEMENTAL SCHEDULE
OF NON-CASH INVESTING AND FINANING ACTIVITIES
|
||||||||
Inventories
transferred out to be breeding stock in fixed assets
|
$ | 4,802 | $ | 12,406 | ||||
Construction
in progress transferred out to be fixed assets
|
$ | - | $ | 128,763 | ||||
Majority
shareholder waive his right to the Company’s debt
|
$ | 11,169,236 | $ | - | ||||
Issued
shares for consulting service
|
$ | 23,000 | $ | - |
|
1.
|
Interim
Financial Statements:
|
|
2.
|
Organization
and Nature of Operations
|
|
3.
|
Basis
of Presentation
|
a.
|
Fiscal
Year
|
b.
|
Principle
of Consolidation
|
|
4.
|
Summary
of Significant Accounting Policies
|
a.
|
Use
of Estimates
|
b.
|
Foreign
Currency Translation
|
For
The Nine Months Ended March 31,
|
||||||||||
2010
|
2009
|
|||||||||
Assets
and liabilities
|
the
nine months ended rate of US
|
$ | 0.14650 | $ | 0.14634 |
/RMB
|
||||
Revenue
and expenses
|
average
rate of US
|
$ | 0.14644 | $ | 0.14624 |
/RMB
|
c.
|
Revenue
Recognition
|
d.
|
Income
Taxes
|
e.
|
Stock-Based
Compensation
|
f.
|
Basic
and diluted net income per share
|
g.
|
Cash
and Cash Equivalents
|
h.
|
Accounts
Receivable
|
i.
|
Inventories
|
j.
|
Bad
Debt Allowance
|
Years
|
|
Land
improvements
|
10
years
|
Leasehold
improvements
|
Lower
of term of lease or 5 years
|
Buildings
|
10
years
|
Machinery
and equipment
|
2
years to 10 years
|
Breeding
stock
|
3
years to 5 years
|
l.
|
Cost
of Sales
|
m.
|
Selling,
General and administrative Costs
|
n.
|
Fair
value of financial instruments
|
●
|
Level
1 inputs to the valuation methodology are quoted prices (unadjusted) for
identical assets or liabilities in active markets.
|
●
|
Level
2 inputs to the valuation methodology include quoted prices for similar
assets and liabilities in active markets, and inputs that are observable
for the asset or liability, either directly or indirectly, for
substantially the full term of the financial
instrument.
|
●
|
Level
3 inputs to the valuation methodology are unobservable and significant to
the fair value measurement.
|
|
5.
|
Inventories
|
March
31, 2010
|
June
30, 2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Raw
materials
|
$ | 48,820 | $ | 57,106 | ||||
Work
in progress
|
697,371 | 615,487 | ||||||
Finished
goods
|
965,528 | 326,007 | ||||||
Total
|
$ | 1,711,719 | $ | 998,600 |
For
The Nine Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
Inventory
turnover
|
34.74 | 19.54 |
|
6.
|
Advanced
to Suppliers, Net
|
March
31, 2010
|
June
30, 2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Advanced
to suppliers
|
$ | 31,053,737 | $ | 21,741,485 | ||||
Less:
Accumulated bad debt allowance
|
1,552,509 | 1,086,681 | ||||||
Advanced
to suppliers, net
|
$ | 29,501,228 | $ | 20,654,804 |
March
31, 2010
|
June
30, 2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Less
than 90 days
|
$ | 13,629,086 | $ | 7,042 | ||||
91days-180days
|
17,421,474 | 21,734,443 | ||||||
181days-365days
|
3,177 | - | ||||||
Total
|
$ | 31,053,737 | $ | 21,741,485 |
For
The Nine Months Ended March 31,
|
||||||||
2010
|
2009
|
|||||||
Advanced
to WangDa’ turnover
|
1.79 | 1.56 |
|
7.
|
Prepayments
and Other Current Assets
|
March
31, 2010
|
June
30, 2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Prepaid
rents
|
$ | 45,181 | $ | 46,263 | ||||
Advance
to employees
|
9,904 | 39,313 | ||||||
Other
receivable
|
96,451 | 61,213 | ||||||
Total
|
$ | 151,536 | $ | 146,789 |
|
8.
|
Property,
Plant, Equipment, and Breeding Stock,
Net
|
March
31, 2010
|
June
30, 2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Land
improvements
|
$ | 278,369 | $ | 278,173 | ||||
Leasehold
improvements
|
100,153 | 65,533 | ||||||
Buildings
and improvements
|
1,764,393 | 1,763,151 | ||||||
Machinery
and equipments
|
687,550 | 687,065 | ||||||
Breeding
stock
|
491,196 | 866,821 | ||||||
Sub-Total
|
3,321,661 | 3,660,743 | ||||||
Less:
Accumulated depreciation
|
1,304,250 | 1,174,133 | ||||||
Total
|
$ | 2,017,411 | $ | 2,486,610 |
9.
|
Loans
Payable, Net
|
Loans
payable, net
|
||||||||
March
31, 2010
|
June
30, 2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
On
December 1 and 16, 2005, the Company obtained loans in an aggregate amount
of RMB2.8 million (equivalent to $410,203 and $409,915 as of March 31,
2010 and June 30, 2009, respectively) and RMB0.7 million (equivalent to
$102,550 and $102,479 as of March 31, 2010 and June 30, 2009,
respectively) from Jiamusi Government Financial Bureau (“JGFB”) by pledging some
buildings in Huanan, which have a carrying value of approximately RMB2.6
million (equivalent to $380,840 ). The term of the debt was originally
from October 31, 2005 to 2007. Since the Company is an agricultural
enterprise and its business is supported by the Chinese government, these
loans do not bear interest, and the original due date was extended to
December 31, 2008, and has since been extended to December 31,
2010
|
$ | 512,753 | $ | 512,394 | ||||
On
April 20 and September 25, 2007, Sino-Canadian, obtained loans in an
aggregate amount of RMB1.5 million (equivalent to $219,751 and $219,597 as
of March 31, 2010 and June 30, 2009, respectively) and RMB0.5 million
(equivalent to $73,252 and $73,199 as of March 31, 2010 and June 30, 2009,
respectively) from TangYuan Government Financial Bureau (“TGFB”) by
pledging some buildings in Heijinhe, which have a carrying value of
approximately RMB5.1 million (equivalent to $747,032 ). The term of the
debt was originally from January 1, 2007 to December 31, 2008. Since the
Chinese government supports the Company’s business, these loans do not
bear interest and all of their due dates have been extended to December
31, 2010
|
293,003 | 292,796 | ||||||
On
May 9, 2007, the Company obtained a loan in an aggregate amount of RMB2
million (equivalent to $292,954 and $293,003 as of March 31, 2010 and June
30, 2009, respectively) from JGFB by pledging some buildings in Huanan,
which have a carrying value of approximately RMB1.5 million (equivalent to
$219,715). The term of the debt was originally from January 1, 2007 to
December 31, 2008. Since the government supports the Company’s business,
this loan does not bear interest and the due date had been extended to
December 31, 2009 by JGFB on June 16, 2008. Whereas, on
December 16, 2009, the due dates of these loans have been extended to
December 31, 2010
|
293,003 | 292,796 | ||||||
Total
loans payable
|
$ | 1,098,759 | $ | 1,097,986 | ||||
Less:
discount on loans payable
|
41,552
|
29,077
|
||||||
Total
loans payable, net
|
$ |
1,057,207
|
$ |
1,068,909
|
10.
|
Convertible
Note, Net
|
March
31, 2010
|
June
30, 2009
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Convertible
note
|
$ | 2,165,000 | $ | - | ||||
Less:
Discount on convertible note
|
1,612,395 | - | ||||||
Convertible
note, net
|
$ | 552,605 | $ | - |
|
11.
|
Loans
from Shareholders/Officers, Net
|
|
12.
|
Commitments
|
Contract
#
|
Sales
Contracts
|
Client’s
Name
|
Contract
Term
|
Sales
Quantities
|
||||
1
|
Merchandise
hogs sales
|
Beijing
Da Hongmen
|
from
September 28, 2009 to
September
28, 2010
|
120
thousand hogs
per
year
|
||||
2
|
Merchandise
hogs sales
|
Beijing
Fifth Meat Processing Factory
|
from
August 29, 2009 to
August
28, 2010
|
180
thousand hogs
per
year
|
||||
Sales
Price
|
Hog
Average Weight
|
Hogs
Quality
|
Penalty
|
|||||
1
|
Market
value in Beijing area
|
From
75 to 90kg
|
second
or/and third generation
of
merchandise hogs
|
1%
penalty if the merchandise hogs
delivered late
|
||||
2
|
Market
value in Beijing area
|
From
75 to 90kg
|
second
or/and third generation
of
merchandise hogs
|
1%
penalty if the merchandise hogs
delivered late
|
For
The Nine Months Ending March 31,
|
Amount
|
|||
2011
|
$ | 142,258 | ||
2012
|
6,064 | |||
2013
|
1,464 | |||
2014
|
1,464 | |||
2015
|
1,464 | |||
Thereafter
|
28,434 | |||
Total
minimum payments required
|
$ | 181,148 |
|
13.
|
Stockholders’
Equity
|
c.
|
Common
Stock
|
d.
|
Reverse
Stock Split
|
e.
|
Additional
Paid-In Capital
|
f.
|
Additional
Paid-in Capital Stock Warrant
|
g.
|
Shares
Base Compensation and Unearned
Compensation
|
|
14.
|
Basic
and Diluted Earnings Per Share
|
For
The Three Months Ended
March
31,
|
For
The Nine Months Ended
March
31,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
Basic:
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net income for basic calculation
|
$ | 1,440,791 | $ | 889,377 | $ | 9,209,413 | $ | 4,114,943 | ||||||||
Denominator:
|
||||||||||||||||
Weighted average common shares
|
20,087,080 | 68,584 | 10,589,708 | 68,584 | ||||||||||||
Net
income per share — basic
|
$ | 0.07 | $ | 12.97 | $ | 0.87 | $ | 60.00 | ||||||||
Diluted:
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net
income for basic calculation
|
$ | 1,440,791 | $ | 889,377 | $ | 9,209,413 | $ | 4,114,943 | ||||||||
Effect
of dilutive securities issued
|
204,739 | - | 204,739 | - | ||||||||||||
Net income for diluted calculation
|
$ | 1,645,530 | $ | 889,377 | $ | 9,414,152 | $ | 4,114,943 | ||||||||
Denominator:
|
||||||||||||||||
Denominator
for basic calculation
|
20,087,080 | 68,584 | 10,589,708 | 68,584 | ||||||||||||
Weighted
average effect of dilutive securities:
|
||||||||||||||||
Convertible
debt
|
1,063,881 | - | 354,627 | - | ||||||||||||
Series
A convertible preferred stock
|
- | 19,958,583 | - | 19,958,583 | ||||||||||||
Denominator
for diluted calculation
|
21,150,961 | 20,027,167 | 10,944,335 | 20,027,167 | ||||||||||||
Net income per share — diluted
|
$ | 0.08 | $ | 0.04 | $ | 0.86 | $ | 0.21 |
|
15.
|
Concentration
of Business
|
Sold
to
|
Number
of
|
Percentage
of
|
||||
For
The Nine Months Ended March 31,
|
Major
Customers
|
Customers
|
Total
Sales Revenue
|
|||
2010
|
$ 59,020,984
|
2
|
98.67
%
|
|||
2009
|
$ 32,583,314
|
2
|
95.44%
|
c.
|
Major
Suppliers
|
Purchased
from
|
Number
of
|
Percentage
of
|
||||
For
The Nine Months Ended March 31,
|
Major
Suppliers
|
Suppliers
|
Total
Purchased
|
|||
2010
|
$ 47,410,096
|
1
|
99.88%
|
|||
2009
|
$ 28,040,578
|
1
|
99.66%
|
|
16.
|
Geographical
Risks
|
|
17.
|
Subsequent
Event
|
For
The Three Months
|
For
The Three Months
|
2010
Vs 2009
|
||||||||||||||||||||||
Ended
March 31, 2010
|
Ended
March 31, 2009
|
Increase/
(decrease)
|
||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||
Revenues
|
$ | 14,921,687 | $ | 7,740,915 | $ | 7,180,772 | 93 | % | ||||||||||||||||
Cost
of Goods Sold
|
12,243,434 | 82.1 | % | 6,346,768 | 82.0 | % | 5,896,666 | 93 | % | |||||||||||||||
Gross
Profit
|
2,678,253 | 17.9 | % | 1,394,147 | 18.0 | % | 1,284,106 | 92 | % | |||||||||||||||
Operating
Expenses
|
||||||||||||||||||||||||
Selling
expenses
|
523,272 | 238,140 | 285,132 | 120 | % | |||||||||||||||||||
Bad
debt for advanced to suppliers
|
80,893 | 8,011 | 72,882 | 910 | % | |||||||||||||||||||
General
and administrative expenses
|
441,349 | 82,784 | 358,565 | 433 | % | |||||||||||||||||||
Total
Operating Expenses
|
1,045,514 | 7.0 | % | 328,935 | 4.2 | % | 716,579 | 218 | % | |||||||||||||||
Income
From Operations
|
1,632,739 | 10.9 | % | 1,065,212 | 13.8 | % | 567,527 | 53 | % | |||||||||||||||
Other
Income (Expenses or Losses)
|
||||||||||||||||||||||||
Interest
(expenses) income, net
|
(203,317 | ) | 1,053 | (204,370 | ) | -19408 | % | |||||||||||||||||
Other
income (expenses), net
|
- | 1 | (1 | ) | -100 | % | ||||||||||||||||||
Losses
on disposal of fixed assets
|
(9 | ) | (247,416 | ) | 247,407 | -100 | % | |||||||||||||||||
Losses
on disposal of inventories
|
(6,324 | ) | (74,787 | ) | 68,463 | -92 | % | |||||||||||||||||
Total
Other Expenses or Losses
|
(209,650 | ) | (321,149 | ) | 111,499 | -35 | % | |||||||||||||||||
Income
from Continuing Operations Before Income Taxes
|
1,423,089 | 9.5 | % | 744,063 | 9.6 | % | 679,026 | 91 | % | |||||||||||||||
Income
Tax Provision
|
- | - | - | |||||||||||||||||||||
Net
Income Before Noncontrolling Interest
|
1,423,089 | 9.5 | % | 744,063 | 9.6 | % | 679,026 | 91 | % | |||||||||||||||
Less:
Net loss attributable to the noncontrolling interest
|
(17,702 | ) | (145,314 | ) | 127,612 | -88 | % | |||||||||||||||||
Net
Income Attributable to China Swine Genetics Inc.
|
$ | 1,440,791 | $ | 889,377 | $ | 551,414 | 62 | % |
For
The Three Months Ended March 31
|
||||||||||||||||||||||||||||||||||||
2010
|
2009
|
2010
Less 2009
|
||||||||||||||||||||||||||||||||||
Quantities
(Capita)
|
Amount
|
Sale
%
|
Quantities
(Capita)
|
Amount
|
Sale
%
|
Quantities
(Capita)
|
Amount
|
Sale
%
|
||||||||||||||||||||||||||||
Commercial
Hogs Purchased From WangDa
|
85,294 | $ | 14,452,503 | 97 | % | 38,169 | $ | 6,993,419 | 90 | % | 47,125 | $ | 7,459,084 | 107 | % | |||||||||||||||||||||
Others
Hogs Raised By Us
|
2,227 | 469,184 | 3 | % | 4,666 | 747,497 | 10 | % | (2,439 | ) | (278,312 | ) | -37 | % | ||||||||||||||||||||||
Total
|
87,521 | $ | 14,921,687 | 100 | % | 42,835 | $ | 7,740,915 | 100 | % | 44,686 | $ | 7,180,772 | 93 | % |
Average
Unit Sales Price Per Capita
|
Basic
Change
|
|||||||||||
2010
|
2009
|
Per
Capita
|
||||||||||
Commercial
Hogs Purchased From WangDa
|
$ | 169.44 | $ | 183.22 | $ | (13.78 | ) | |||||
Others
Hogs Raised By Us
|
210.68 | 160.20 | 50.489 | |||||||||
Overall
Average Products
|
170.49 | 180.71 | (10.22 | ) |
Average
Unit Costs Price Per Capita
|
Basic
Change
|
|||||||||||
2010
|
2009
|
Per
Capita
|
||||||||||
Commercial
Hogs Purchased From WangDa
|
$ | 136.43 | $ | 148.99 | $ | (12.56 | ) | |||||
Others
Hogs Raised By Us
|
188.56 | 123.63 | 64.93 | |||||||||
Overall
Average Hogs
|
142.92 | 148.17 | (5.25 | ) |
For
The Nine Months
|
For
The Nine Months
|
2010
Vs 2009
|
||||||||||||||||||||||
Ended
March 31, 2010
|
Ended
March 31, 2009
|
Increase/
(decrease)
|
||||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||
Revenues
|
$ | 59,814,100 | $ | 34,139,865 | $ | 25,674,235 | 75.2 | % | ||||||||||||||||
Cost
of Goods Sold
|
47,081,844 | 78.7 | % | 28,117,885 | 82.4 | % | 18,963,959 | 67.4 | % | |||||||||||||||
Gross
Profit
|
12,732,256 | 21.3 | % | 6,021,980 | 17.6 | % | 6,710,276 | 111.4 | % | |||||||||||||||
Operating
Expenses
|
||||||||||||||||||||||||
Selling
expenses
|
1,880,582 | 1,143,009 | 737,573 | 64.5 | % | |||||||||||||||||||
Bad
debt for advanced to suppliers
|
464,877 | 14,724 | 450,153 | 3057.3 | % | |||||||||||||||||||
General
and administrative expenses
|
740,927 | 368,720 | 372,207 | 101.0 | % | |||||||||||||||||||
Total
Operating Expenses
|
3,086,386 | 5.2 | % | 1,526,453 | 4.5 | % | 1,559,933 | 102.2 | % | |||||||||||||||
Income
From Operations
|
9,645,870 | 16.1 | % | 4,495,527 | 13.2 | % | 5,150,343 | 114.6 | % | |||||||||||||||
Other
Income (Expenses or Losses)
|
||||||||||||||||||||||||
Interest
(expenses) income, net
|
(201,497 | ) | (25,126 | ) | (176,371 | ) | 702.0 | % | ||||||||||||||||
Other
income (expenses), net
|
(6,451 | ) | 9,091 | (15,542 | ) | -171.0 | % | |||||||||||||||||
Losses
on disposal of fixed assets
|
(107,789 | ) | (402,141 | ) | 294,352 | -73.2 | % | |||||||||||||||||
Losses
on disposal of inventories
|
(252,209 | ) | (216,239 | ) | (35,970 | ) | 16.6 | % | ||||||||||||||||
Total
Other Expenses or Losses
|
(567,946 | ) | (634,415 | ) | 66,469 | -10.5 | % | |||||||||||||||||
Income
from Continuing Operations Before Income Taxes
|
9,077,924 | 15.2 | % | 3,861,112 | 11.3 | % | 5,216,812 | 135.1 | % | |||||||||||||||
Income
Tax Provision
|
- | - | - | |||||||||||||||||||||
Net
Income Before Noncontrolling Interest
|
9,077,924 | 15.2 | % | 3,861,112 | 11.3 | % | $ | 5,216,812 | 135.1 | % | ||||||||||||||
Less:
Net loss attributable to the noncontrolling interest
|
(131,489 | ) | (253,831 | ) | $ | 122,342 | -48.2 | % | ||||||||||||||||
Net
Income Attributable to China Swine Genetics Inc.
|
$ | 9,209,413 | $ | 4,114,943 | $ | 5,094,470 | 123.8 | % |
For
the Nine Months Ended March 31
|
||||||||||||||||||||||||||||||||||||
2010
|
2009
|
2010
Less 2009
|
||||||||||||||||||||||||||||||||||
Quantities
(Capita)
|
Amount
|
Sale
%
|
Quantities
(Capita)
|
Amount
|
Sale
%
|
Quantities
(Capita)
|
Amount
|
Sale
%
|
||||||||||||||||||||||||||||
Commercial
Hogs Purchased From WangDa
|
323,514 | $ | 59,020,984 | 99 | % | 180,168 | $ | 32,583,314 | 95 | % | 143,346 | $ | 26,437,670 | 81 | % | |||||||||||||||||||||
Others
Hogs Raised By Us
|
5,920 | 793,117 | 1 | % | 10,313 | 1,556,551 | 5 | % | (4,393 | ) | (763,435 | ) | -49 | % | ||||||||||||||||||||||
Total
|
329,434 | $ | 59,814,100 | 100 | % | 190,481 | $ | 34,139,865 | 100 | % | 138,953 | $ | 25,674,235 | 32 | % |
Average
Unit Sales Price Per Capita
|
Basic
Change
|
|||||||||||
2010
|
2009
|
Per
Capita
|
||||||||||
Commercial
Hogs Purchased From WangDa
|
$ | 182.44 | $ | 180.85 | $ | 1.59 | ||||||
Others
Hogs Raised By Us
|
133.97 | 150.93 | (16.96 | ) | ||||||||
Overall
Average Hogs
|
181.57 | 179.23 | 2.34 |
Average
Unit Costs Price Per Capita
|
Basic
Change
|
|||||||||||
2010
|
2009
|
Per
Capita
|
||||||||||
Commercial
Hogs Purchased From WangDa
|
$ | 142.08 | $ | 148.99 | $ | (6.91 | ) | |||||
Others
Hogs Raised By Us
|
188.56 | 123.63 | 64.93 | |||||||||
Overall
Average Hogs
|
142.92 | 147.62 | (4.70 | ) |
Exhibit
Number
|
Description
of Exhibit
|
31.1*
|
Certification
of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),
promulgated under the Securities and Exchange Act of 1934, as
amended.
|
31.2*
|
Certification
of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a),
promulgated under the Securities and Exchange Act of 1934, as
amended.
|
32.1*
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (Chief Executive
Officer).
|
32.2*
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (Chief Financial
Officer).
|
China
Swine Genetics, Inc.
|
||
May
20, 2010
|
By:
|
/s/
Zhenyu Shang
|
Zhenyu
Shang
Chief
Executive Officer
(Principal
Executive Officer)
|
||
May
20, 2010
|
By:
|
/s/ Tongyu
Zhang
|
Tongyu
Shang
Chief
Financial Officer
(Principal
Financial and
Accounting
Officer)
|