China Precision Steel, Inc.

CIK:0001044577|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Sales revenues	$ 5,187,462us-gaap_SalesRevenueNet	$ 11,866,008us-gaap_SalesRevenueNet	$ 10,928,152us-gaap_SalesRevenueNet	$ 23,631,395us-gaap_SalesRevenueNet
Cost of goods sold	7,946,483us-gaap_CostOfGoodsAndServicesSold	16,997,339us-gaap_CostOfGoodsAndServicesSold	16,486,344us-gaap_CostOfGoodsAndServicesSold	31,756,985us-gaap_CostOfGoodsAndServicesSold
Gross (loss)	(2,759,021)us-gaap_GrossProfit	(5,131,331)us-gaap_GrossProfit	(5,558,192)us-gaap_GrossProfit	(8,125,590)us-gaap_GrossProfit
Operating expenses
Selling expenses	19,088us-gaap_SellingExpense	49,583us-gaap_SellingExpense	39,786us-gaap_SellingExpense	80,751us-gaap_SellingExpense
Administrative expenses	512,425us-gaap_GeneralAndAdministrativeExpense	303,617us-gaap_GeneralAndAdministrativeExpense	771,998us-gaap_GeneralAndAdministrativeExpense	751,048us-gaap_GeneralAndAdministrativeExpense
Allowance for bad and doubtful debts	1,135,831us-gaap_ProvisionForDoubtfulAccounts	6,546,832us-gaap_ProvisionForDoubtfulAccounts	3,884,318us-gaap_ProvisionForDoubtfulAccounts	11,668,609us-gaap_ProvisionForDoubtfulAccounts
Depreciation and amortization expense	34,901us-gaap_DepreciationAndAmortization	40,500us-gaap_DepreciationAndAmortization	74,715us-gaap_DepreciationAndAmortization	88,642us-gaap_DepreciationAndAmortization
Total operating expenses	1,702,245us-gaap_OperatingExpenses	6,940,532us-gaap_OperatingExpenses	4,770,817us-gaap_OperatingExpenses	12,589,050us-gaap_OperatingExpenses
(Loss) from operations	(4,461,266)us-gaap_OperatingIncomeLoss	(12,071,863)us-gaap_OperatingIncomeLoss	(10,329,009)us-gaap_OperatingIncomeLoss	(20,714,640)us-gaap_OperatingIncomeLoss
Other income/(expense)
Other revenues	3,032us-gaap_OtherIncome	57,536us-gaap_OtherIncome	3,032us-gaap_OtherIncome	60,064us-gaap_OtherIncome
Interest and finance costs	(917,416)us-gaap_InterestExpenseOther	(944,656)us-gaap_InterestExpenseOther	(1,848,062)us-gaap_InterestExpenseOther	(1,881,547)us-gaap_InterestExpenseOther
Total other income/(expense)	(914,384)us-gaap_NonoperatingIncomeExpense	(887,120)us-gaap_NonoperatingIncomeExpense	(1,845,030)us-gaap_NonoperatingIncomeExpense	(1,821,483)us-gaap_NonoperatingIncomeExpense
(Loss) from operations before income tax	(5,375,650)	(12,958,983)	(12,174,039)	(22,536,123)
Provision for income tax
Current
Total income tax
Net (loss)	(5,375,650)us-gaap_NetIncomeLoss	(12,958,983)us-gaap_NetIncomeLoss	(12,174,039)us-gaap_NetIncomeLoss	(22,536,123)us-gaap_NetIncomeLoss
Other comprehensive income:
Foreign currency translation adjustment	(30,284)	322,392	94,136	468,599
Comprehensive (loss)	$ (5,405,934)us-gaap_ComprehensiveIncomeNetOfTax	$ (12,636,591)us-gaap_ComprehensiveIncomeNetOfTax	$ (12,079,903)us-gaap_ComprehensiveIncomeNetOfTax	$ (22,067,524)us-gaap_ComprehensiveIncomeNetOfTax
Basic (loss) per share	$ (1.37)us-gaap_EarningsPerShareBasic	$ (3.34)us-gaap_EarningsPerShareBasic	$ (3.10)us-gaap_EarningsPerShareBasic	$ (5.81)us-gaap_EarningsPerShareBasic
Basic weighted average shares outstanding	3,930,866	3,880,866	3,930,866	3,880,866
Diluted (loss) per share	$ (1.37)us-gaap_EarningsPerShareDiluted	$ (3.34)us-gaap_EarningsPerShareDiluted	$ (3.10)us-gaap_EarningsPerShareDiluted	$ (5.81)us-gaap_EarningsPerShareDiluted
Diluted weighted average shares outstanding	3,930,866	3,880,866	3,930,866	3,880,866

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities
Net (loss)	$ (12,174,039)us-gaap_NetIncomeLoss	$ (22,536,123)us-gaap_NetIncomeLoss
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	4,753,470	4,498,491
Allowance for bad and doubtful debts	3,884,318	11,668,609
Net changes in assets and liabilities:
Accounts, bills and other receivable	(2,429,702)	(5,418,079)
Inventories	1,068,450us-gaap_IncreaseDecreaseInInventories	731,172us-gaap_IncreaseDecreaseInInventories
Prepaid expenses	38,211	201,438
Advances to suppliers	3,742,297	(1,743,858)
Accounts payable and accrued expenses	3,114,246	5,204,609
Advances from customers	(2,551,631)	8,296,613
Taxes payable	196,329	(424,462)
Net cash (used in)/provided by operating activities	(358,051)	478,410
Cash flows from investing activities
Purchase of property, plant and equipment, including construction in progress	(121,679)	(80,759)
Net cash (used in) investing activities	(121,679)	(80,759)
Cash flows from financing activities
Repayments of short-term loans		(223,707)us-gaap_RepaymentsOfShortTermDebt
Net cash (used in) financing activities		(223,707)
Effect of exchange rate	39,627	(113,968)
Net (decrease)/increase in cash	(440,103)	59,976
Cash and cash equivalents, beginning of period	485,075	75,243
Cash and cash equivalents, end of period	$ 44,972	$ 135,219

Consolidated Balance Sheets (Unaudited) (USD $)	Dec. 31, 2014	Jun. 30, 2014
Current assets
Cash and cash equivalents	$ 44,972	$ 485,075
Accounts receivable
Trade, net of allowances of $7,340,278 and $4,932,970 at December 31 and June 30, 2014, respectively	2,228,463us-gaap_AccountsReceivableNetCurrent	2,668,263us-gaap_AccountsReceivableNetCurrent
Bills receivable	41,889us-gaap_ReceivablesNetCurrent	41,915us-gaap_ReceivablesNetCurrent
Other receivable	310,724us-gaap_OtherReceivablesNetCurrent	331,586us-gaap_OtherReceivablesNetCurrent
Inventories	9,269,288us-gaap_InventoryNet	10,344,070us-gaap_InventoryNet
Prepaid expenses	113,652us-gaap_PrepaidExpenseCurrent	151,850us-gaap_PrepaidExpenseCurrent
Taxes receivable	2,401,170us-gaap_IncomeTaxesReceivable	2,599,090us-gaap_IncomeTaxesReceivable
Advances to suppliers, net of allowance of $4,798,008 and $3,836,107 at December 31 and June 30, 2014, respectively	917,479us-gaap_AdvancesOnInventoryPurchases	5,627,470us-gaap_AdvancesOnInventoryPurchases
Total current assets	15,327,637us-gaap_AssetsCurrent	22,249,319us-gaap_AssetsCurrent
Property, plant and equipment
Property, plant and equipment, net	48,649,366us-gaap_PropertyPlantAndEquipmentNet	53,344,143us-gaap_PropertyPlantAndEquipmentNet
Construction-in-progress	412,425us-gaap_ConstructionInProgressGross	322,390us-gaap_ConstructionInProgressGross
Property, plant and equipment, total	49,061,791	53,666,533
Intangible assets, net	1,815,340	1,838,763
Goodwill	99,999us-gaap_Goodwill	99,999us-gaap_Goodwill
Total assets	66,304,767us-gaap_Assets	77,854,614us-gaap_Assets
Current liabilities
Short-term loans	27,715,781us-gaap_ShortTermBorrowings	27,732,760us-gaap_ShortTermBorrowings
Long-term loan - current portion	16,200,000us-gaap_LongTermDebtCurrent	16,200,000us-gaap_LongTermDebtCurrent
Accounts payable and accrued liabilities	15,334,294	12,281,346
Advances from customers	4,314,738us-gaap_CustomerAdvancesCurrent	6,870,575us-gaap_CustomerAdvancesCurrent
Income taxes payable	124,519us-gaap_AccruedIncomeTaxesCurrent	124,595us-gaap_AccruedIncomeTaxesCurrent
Total current liabilities	63,689,332us-gaap_LiabilitiesCurrent	63,209,276us-gaap_LiabilitiesCurrent
Long-term loan
Stockholders' equity:
Preferred stock: $0.001 per value, 500,000 shares authorized, no shares outstanding at December 31 and June 30, 2014, respectively
Common stock: $0.001 par value, 10,000,000 shares authorized, 3,930,866 and 3,880,866 issued and outstanding at December 31 and June 30, 2014, respectively	3,930us-gaap_CommonStockValue	3,880us-gaap_CommonStockValue
Additional paid-in capital	75,735,016us-gaap_AdditionalPaidInCapital	75,685,066us-gaap_AdditionalPaidInCapital
Accumulated deficit	(94,540,467)	(82,366,428)
Accumulated other comprehensive income	21,416,956	21,322,820
Total stockholders' equity	2,615,435us-gaap_StockholdersEquity	14,645,338us-gaap_StockholdersEquity
Total liabilities and stockholders' equity	$ 66,304,767	$ 77,854,614