CHINA RUITAI INTERNATIONAL HOLDINGS CO., LTD.

CIK:0000076348|SEC Filings

Consolidated Statements of Income and Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Sales	$ 10,955,475	$ 11,180,701	$ 32,264,476	$ 32,590,132
Cost of sales (See note below)	8,693,366	7,590,381	23,479,317	22,742,820
Gross margin	2,262,109	3,590,320	8,785,159	9,847,312
Operating expenses:
General and administrative expenses	648,200	436,218	2,029,978	936,328
Selling expenses	515,979	432,914	1,649,357	1,322,299
Total operating expense	1,164,179	869,132	3,679,335	2,258,627
Income from operations	1,097,930	2,721,188	5,105,824	7,588,685
Other income/(expense)
Interest income	1,027,060	267,465	1,205,441	834,077
Interest expense	(752,579)	(536,097)	(2,289,361)	(1,665,194)
Commercial leasing income	377,871	305,767	1,120,486	920,724
Cost of commercial leasing	(227,200)	(215,831)	(673,433)	(643,961)
Other income/(expense)	(3,754)	(9,812)	7,239	11,875
Total other income/(expense), net	421,398	(188,508)	(629,628)	(542,479)
Income before income tax expense	1,519,328	2,532,680	4,476,196	7,046,206
Income tax expense	401,816	633,170	1,231,651	1,756,548
Net income before allocation to non-controlling interests	1,117,512	1,899,510	3,244,545	5,289,658
Less: Net income attributable to non-controlling interests	11,545	18,995	32,816	52,696
Net income attributable to China Ruitai	1,105,967	1,880,515	3,211,729	5,236,962
Comprehensive income
Net income before allocation to non-controlling interests	1,117,512	1,899,510	3,244,545	5,289,658
Foreign Currency Translation Adjustment	316,636	440,007	1,025,527	610,963
Comprehensive Income	1,434,148	2,339,517	4,270,072	5,900,621
Less: Comprehensive income attributable to non-controlling interests	14,898	23,395	43,505	58,826
Comprehensive Income Attributable to China Ruitai	$ 1,419,250	$ 2,316,122	$ 4,226,567	$ 5,841,795
Earnings per share - Basic and diluted (in dollars per share)	$ 0.04	$ 0.07	$ 0.12	$ 0.20
Weighted average number of common shares outstanding-Basic and diluted (in shares)	26,000,000	26,000,000	26,000,000	26,000,000

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net income before allocation to non-controlling interests	$ 3,244,545	$ 5,289,658
Adjustments to reconcile net income before non-controlling interests to net cash used in operation activities
Depreciation	1,872,051	1,777,706
Amortization of land use rights	83,686	84,395
Bad debt provision	1,316,363	(239,125)
Loss on disposal of equipment	3,518	0
Stock based compensation	37,024	0
Changes in operating assets and liabilities:
Restricted cash	(14,448,202)	16,769,400
Accounts receivable	(4,712,792)	(3,659,692)
Notes receivable	(254,330)	5,696,019
Advances to suppliers	(2,250,276)	461,144
Inventories	(1,534,086)	757,691
Other receivables	(4,197,290)	(1,127,529)
Accounts payable	(763,410)	1,081,040
Notes payable	(11,066,708)	(25,007,000)
Other payables	(629,316)	1,212,374
Advances from customers	417,447	1,198,451
Income taxes payable	(3,168,666)	953,241
Net cash (used in)/provided by operating activities	(36,050,442)	5,247,773
Cash flows from investing activities:
Advanced payment to purchase equipment	(1,018,803)	(1,593,008)
Purchase of property and equipment	91,364	0
Net cash used in investing activities	(927,439)	(1,593,008)
Cash flows from financing activities:
Proceeds from bank loans	33,190,901	37,648,774
Repayment of bank loans	(34,727,943)	(25,880,774)
Proceeds from loan from a related party	31,048,263	0
Repayment of loan from a related party	(12,014,621)	(4,046,323)
Repayment of loan from employee	499,331	28,215
Net cash provided by financing activities	17,995,931	7,749,892
Effect of foreign exchange rate fluctuation on cash and cash equivalents	511,660	439,890
Net (decrease) increase in cash and cash equivalents	(18,470,290)	11,404,657
Cash and cash equivalents- beginning of period	25,286,619	10,174,528
Cash and cash equivalents-end of period	6,816,329	22,019,075
Supplementary disclosure of cash flow information:
Cash paid for interest expense	2,289,361	1,665,194
Cash paid for income tax	$ 4,397,898	$ 803,069

Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 6,816,329	$ 25,286,619
Restricted cash	25,274,142	10,254,394
Accounts receivable, net	9,699,960	4,896,665
Notes receivable	3,084,732	2,736,496
Advances to suppliers, net	2,270,509	1,171,477
Inventories	11,337,856	9,468,211
Other receivables, net	5,210,959	1,023,337
Due from related party	9,600,829	0
Total current assets	73,295,316	54,837,199
Property and equipment, net	14,287,803	14,014,923
Commercial leasing assets, net	37,612,060	37,079,584
Advance payment for equipment purchase	54,049	0
Land use rights, net	5,126,356	5,045,883
TOTAL ASSETS	130,375,584	110,977,589
LIABILITIES AND EQUITY
Short-term bank loans	37,480,084	42,339,454
Long-term loan, current portion	1,171,546	0
Accounts payable	7,167,471	7,691,017
Notes payable	4,373,770	15,124,474
Notes payable- related party	34,677,747	3,024,895
Advances from customers	1,134,199	687,408
Due to related party	0	2,526,474
Income tax payable	1,258,466	4,336,457
Other payables	3,360,023	3,872,549
Loan from employees	2,025,823	1,470,138
Total current liabilities	92,649,129	81,072,866
Long-term loan	3,514,636	0
Total Liabilities	96,163,765	81,072,866
Commitments and contingencies
Equity
Common stock ($.001 par value; 50,000,000 shares authorized authorized shares issued and outstanding 26,000,000 as of September 30, 2011 and December 31, 2010	26,000	26,000
Additional paid-in capital	2,945,195	2,908,171
Statutory reserve	1,369,652	1,369,652
Retained earnings	26,255,116	23,043,387
Accumulated other comprehensive income	3,278,887	2,264,049
Total China Ruitai Shareholders' Equity	33,874,850	29,611,259
Non-controlling interest	336,969	293,464
Total Equity	34,211,819	29,904,723
TOTAL LIABILITIES AND EQUITY	$ 130,375,584	$ 110,977,589