CHINA MARINE FOOD GROUP LTD

CIK:0001099977|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
REVENUE, NET
Processed seafood products	$ 9,798,962	$ 10,657,284	$ 21,461,384	$ 20,560,387
Marine catch	9,125,015	38,334,101	9,380,940	38,334,101
Algae-based beverage products	8,363,640	12,292,806	17,930,156	17,473,632
Revenues	27,287,617	61,284,191	48,772,480	76,368,120
COST OF REVENUE (INCLUSIVE OF DEPRECIATION AND AMORTIZATION)
Processed seafood products	(7,357,758)	(7,630,558)	(15,475,636)	(14,901,293)
Marine catch	(8,140,078)	(37,086,105)	(8,417,728)	(37,086,105)
Algae-based beverage products	(5,104,318)	(7,592,003)	(10,948,627)	(10,806,254)
Cost of revenue	(20,602,154)	(52,308,666)	(34,841,991)	(62,793,652)
GROSS PROFIT	6,685,463	8,975,525	13,930,489	13,574,468
OPERATING EXPENSES:
Depreciation and amortization	(625,998)	(695,145)	(1,244,732)	(1,391,215)
Sales and marketing	(6,981,939)	(8,698,313)	(11,762,739)	(13,279,562)
General and administrative	(843,994)	(1,208,921)	(1,585,627)	(1,747,062)
Stock-based compensation	0	0	0	(667,246)
Intangible assets impairment	(1,085,183)	0	(1,085,183)	0
TOTAL OPERATING EXPENSES	(9,537,114)	(10,602,379)	(15,678,281)	(17,085,085)
LOSS FROM OPERATIONS	(2,851,651)	(1,626,854)	(1,747,792)	(3,510,617)
OTHER INCOME (EXPENSES):
Subsidy income	0	15,866	0	15,866
Rental income	51,269	49,224	101,931	98,529
Interest income	8,446	28,672	17,919	61,721
Interest expense	(298,498)	(105,815)	(510,012)	(141,121)
LOSS BEFORE INCOME TAXES	(3,090,434)	(1,638,907)	(2,137,954)	(3,475,622)
INCOME TAX EXPENSE	0	0	(363,427)	(207,720)
NET LOSS	(3,090,434)	(1,638,907)	(2,501,381)	(3,683,342)
Less: net loss attributable to non-controlling interests	48	46	175	92
NET LOSS ATTRIBUTABLE TO CHINA MARINE FOOD GROUP LIMITED	(3,090,386)	(1,638,861)	(2,501,206)	(3,683,250)
Other comprehensive income:
- Foreign currency translation gain	1,896,626	63,579	2,601,090	894,172
COMPREHENSIVE (LOSS) INCOME	$ (1,193,760)	$ (1,575,282)	$ 99,884	$ (2,789,078)
Net loss per share attributable to China Marine Food Group Limited
- Basic	$ (0.10)	$ (0.06)	$ (0.08)	$ (0.12)
- Diluted	$ (0.10)	$ (0.06)	$ (0.08)	$ (0.12)
Weighted average shares outstanding
- Basic	29,722,976	29,697,976	29,722,976	29,697,976
- Diluted	29,722,976	29,697,976	29,722,976	29,697,976

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,501,381)	$ (3,683,342)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	1,696,938	1,539,539
Reversal of doubtful accounts	(116,389)	(56,906)
Intangible assets impairment	1,085,183	0
Changes in operating assets and liabilities:
Account receivable	23,277,782	11,381,301
Inventories	(29,360,127)	(19,083)
Prepaid expenses and other current assets	(2,211,707)	(201,768)
Accounts payable, trade	(769,697)	2,980,069
Income tax payable	(321,306)	(174,525)
Accrued liabilities and other payables	(1,036,362)	1,116,175
Net cash (used in) provided by operating activities	(10,257,066)	12,881,460
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment	(1,024,251)	(68,300)
Cash paid to construction in progress	0	(1,124,690)
Net cash used in investing activities	(1,024,251)	(1,192,990)
CASH FLOW FROM FINANCING ACTIVITIES:
Repayment of amount due to a shareholder	0	(3,567)
Proceeds from short-term borrowings	18,972,827	7,171,530
Repayment on short-term borrowings	(8,794,150)	(2,570,327)
Net cash provided by financing activities	10,178,677	4,597,636
NET CHANGE IN CASH AND CASH EQUIVALENTS	(1,102,640)	16,286,106
Effect of exchange rate changes in cash and cash equivalents	1,852,317	495,052
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	880,259	586,914
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,629,936	17,368,072
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes	1,406,832	382,245
Cash paid for interest	510,012	141,121
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING TRANSACTIONS
Transfer from construction in progress to property, plant and equipment	158,702	0
Accrual of property, plant and equipment	$ 27,095	$ 0

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 1,629,936	$ 880,259
Accounts receivable, net	30,884,459	54,045,852
Inventories	65,775,140	36,415,013
Prepaid expenses and other current assets	2,612,371	400,664
Total current assets	100,901,906	91,741,788
Property, plant and equipment, net	37,131,143	35,737,296
Land use rights, net	2,986,764	2,966,805
Construction in progress	0	158,702
Intangible assets, net	13,704,459	15,616,259
TOTAL ASSETS	154,724,272	146,220,850
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term borrowings	19,291,453	8,760,375
Accounts payable, trade	3,457,480	4,227,177
Income tax payable	0	321,306
Accrued liabilities and other payables	5,180,898	6,217,260
Total current liabilities	27,929,831	19,526,118
Commitments and contingencies (see Note 12)
Shareholders' equity:
Preferred stock, $0.001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2013 and December 31, 2012	0	0
Common stock, $0.001 par value; 100,000,000 shares authorized; 29,722,976 shares issued and outstanding as of June 30, 2013 and December 31, 2012	29,723	29,723
Additional paid-in capital	50,097,677	50,097,677
Statutory reserve	9,696,177	9,696,177
Accumulated other comprehensive income	15,547,308	12,946,218
Retained earnings	51,067,416	53,568,622
Total China Marine Food Group Limited shareholders' equity	126,438,301	126,338,417
Non-controlling interests	356,140	356,315
Total shareholders' equity	126,794,441	126,694,732
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 154,724,272	$ 146,220,850