Tsingyuan Brewery Ltd.

CIK:0001103120|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenues	$ 20,520,882	$ 18,525,985	$ 63,821,575	$ 32,869,038
Cost of goods sold	15,122,037	14,432,621	49,329,727	26,141,747
Gross profit	5,398,845	4,093,364	14,491,848	6,727,291
Operating expenses:
General and administrative expenses	196,773	121,943	948,402	331,690
Selling expenses	193,205	42,010	660,319	66,356
Total operating expenses	389,978	163,953	1,608,721	398,046
Income from operations	5,008,867	3,929,411	12,883,127	6,329,245
Other income (expense):
Interest expense	0	(3,328)	0	(189,788)
Interest income	3,951	5,519	8,997	149,983
Other income	243,554	46,161	757,229	98,147
Total other income (expense)	247,505	48,352	766,226	58,342
Income before income taxes	5,256,372	3,977,763	13,649,353	6,387,587
Income taxes expense	1,200,969	997,912	3,598,263	1,596,887
Net income	4,055,403	2,979,851	10,051,090	4,790,700
Other comprehensive income:
Foreign currency translation adjustment	362,558	280,664	861,941	339,089
Comprehensive income	$ 4,417,961	$ 3,260,515	$ 10,913,031	$ 5,129,789
Earnings per share - basic and diluted:
Weighted-average shares outstanding, basic and diluted	126,857,289	125,430,970	126,857,289	125,216,622
Earnings per share, basic and diluted	$ 0.03	$ 0.02	$ 0.08	$ 0.04

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 10,051,090	$ 4,790,700
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	840,038	722,799
Changes in operating assets and liabilities:
Accounts receivable	(1,899,067)	(3,138,953)
Advances to suppliers	(2,765,319)	0
Inventories	(1,880,128)	(2,728,772)
Restricted assets	0	0
Deferred tax assets	0	71,376
Accounts payables and accrued expense	2,028,107	(2,668,523)
Taxes payable	(74,976)	2,559,127
Advances from customers	511,870	278,740
Total adjustments	(3,239,475)	(4,904,206)
Net cash provided by/(used in) operating activities	6,811,615	(113,506)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances for long term assets	130,648	0
Purchases of plant and equipment	(802,371)	(526,671)
Construction in progress	(9,631,996)	0
Net cash used in investing activities	(10,303,719)	(526,671)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments to short-term loans	0	(6,601,725)
Due to related parties	0	3,902,649
Collection of related party receivables	2,584,330	0
Net cash provided by/(used in) financing activities	2,584,330	(2,699,076)
NET DECREASE IN CASH	(907,774)	(3,339,253)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	49,192	18,520
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	1,117,383	3,731,802
CASH AND CASH EQUIVALENTS, END OF PERIOD	258,801	411,069
Cash paid during the period for:
Interest paid	0	73,670
Income tax paid	3,640,765	1,129,062
Non-Cash Financing Activities:
Related Party Advance Contributed to Capital	$ 3,074,081	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current Assets:
Cash and cash equivalents	$ 258,801	$ 1,117,383
Accounts receivable	4,720,824	2,710,730
Advances to suppliers	2,875,143	62,949
Inventories	4,338,606	2,358,178
Other receivables	0	35,945
Total Current Assets	12,193,374	6,285,185
Plant and equipment, net of accumulated depreciation of $3,658,265 and $2,747,621 at September 30,2011 and December 31, 2010, respectively	17,734,559	17,462,287
Construction in progress	9,788,788	0
Intangible asset, net	1,690,427	1,442,271
Advance for long term assets	23,431	151,722
Total Assets	41,430,579	25,341,465
Current Liabilities:
Accounts payable and accrued expenses	2,447,293	346,798
Advances from customers	852,690	322,943
Taxes payable	2,990,469	2,978,635
Due to related parties	0	519,381
Total Current Liabilities	6,290,452	4,167,757
Stockholders' Equity:
Preferred stock, Series B - $0.001 par value, 1,000 authorized, no shares issued and outstanding)	0	0
Common stock ($0.0001 par value, 300,000,000 shares authorized, 126,857,289 shares issued and outstanding as of September 30, 2011 and December 31, 2010 respectively)	126,857	126,857
Additional paid in capital	14,065,434	11,012,046
Statutory surplus reserves	832,981	832,981
Retained earnings	17,207,042	7,155,952
Accumulated other comprehensive income	2,907,813	2,045,872
Total Stockholders' Equity	35,140,127	21,173,708
Total Liabilities and Stockholders' Equity	$ 41,430,579	$ 25,341,465