SINO ASSURANCE INC.

CIK:0001116204|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011 (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues, net
Guarantee fee income	$ 1,774,588	$ 2,065,213	$ 3,138,456	$ 5,531,583
Interest income	152,480	27,725	248,408	58,270
Total revenues, net	1,927,068	2,092,938	3,386,864	5,589,853
Cost of revenue	(500,348)	(463,385)	(889,743)	(800,656)
Gross profit	1,426,720	1,629,553	2,497,121	4,789,197
Operating expenses:
Depreciation	(51,964)	(39,057)	(98,679)	(72,434)
Selling, general and administrative	(1,058,565)	(886,128)	(2,141,820)	(1,664,514)
Provision for guarantee losses	(101,528)	(129,840)	(147,886)	(320,074)
Total operating expenses	(1,212,057)	(1,055,025)	(2,388,385)	(2,057,022)
Income before income taxes	214,663	574,528	108,736	2,732,175
Income tax benefit (expense)	(24,944)	(145,801)	51,539	(666,560)
Net income	189,719	428,727	160,275	2,065,615
Other comprehensive income:
Foreign currency translation gain	8,509	192,185	54,562	262,352
Comprehensive income	$ 198,228	$ 620,912	$ 214,837	$ 2,327,967
Net (loss) income per share - Basic and Diluted	$ 0.00	$ 0.01	$ 0.00	$ 0.03
Weighted average number of shares outstanding - Basic and Diluted	60,200,000	60,200,000	60,200,000	60,200,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011 (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income	$ 160,275	$ 2,065,615
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	98,679	72,434
Loss on disposal of plant and equipment	1,548	1,356
Provision for guarantee losses	147,886	320,074
Deferred tax (benefit) expense	(155,976)	666,560
Changes in operating assets and liabilities:
(Increase)/decrease in guarantee fee receivable	18,878	(11,954)
(Increase)/decrease in prepayments and other receivable	(313,896)	(395,481)
Increase/(decrease) in accounts payable, trade	(93,354)	(28,143)
Increase/(decrease) in deferred revenue	584,290	442,339
Increase/(decrease) in income tax payable	(106,656)	(534,591)
Increase/(decrease) in accrued liabilities and other payable	(1,723,011)	(87,457)
Net cash (used in) provided by operating activities	(1,381,337)	2,510,752
Cash flows from investing activities:
Change in restricted cash, net of customer collateral	0	541,172
Proceeds from disposal of marketable securities	1,422,812	0
Receipts from loans receivable	2,436,402	16,510,824
Payment on loans receivable	(3,699,020)	(18,940,490)
Proceeds from disposal of plant and equipment	31,618	153
Purchase of plant and equipment	(268,534)	(157,325)
Net cash provided by investing activities	(76,722)	(2,045,666)
Effect of exchange rate changes in cash and cash equivalents	6,628	167,479
Net change in cash and cash equivalents	(1,451,431)	632,565
Cash and cash equivalents	1,544,199	7,074,893
Cash and cash equivalents	92,768	7,707,458
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 211,093	$ 534,591

CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2012 AND DECEMBER 31, 2011 (USD $)

Jun. 30, 2012

Dec. 31, 2011

Current assets:

Cash and cash equivalents

$ 92,768

$ 1,544,199

Restricted cash

24,499,286

20,930,970

Marketable securities

1,416,810

Guarantee fee receivable

29,507

48,154

Loans receivable, unsecured

12,035,582

10,716,525

Prepayments and other receivable

682,490

366,416

Total current assets

37,339,633

35,023,074

Non-current assets:

Plant and equipment, net

712,933

573,161

Total assets

38,052,566

35,596,235

Current liabilities:

Accounts payable, trade

52,411

145,103

Customer collateral

21,334,579

17,782,504

Deferred revenue, net

2,567,425

1,972,424

Amount due to a related party

64,461

64,130

Income tax payable

104,533

210,202

Deferred tax liabilities

1,071,923

1,221,740

Accrued liabilities and other payable

2,093,636

3,651,371

Total current liabilities

27,288,968

25,047,474

Commitments and contingencies

Stockholders' equity:

Common stock

60,200

^[1]

60,200

^[2]

Additional paid-in capital

2,970,045

Accumulated other comprehensive income

941,751

887,189

Statutory reserve

497,538

Retained earnings

6,294,064

6,133,789

Total stockholders' equity

10,763,598

10,548,761

Total Liabilities and Stockholders' Equity

$ 38,052,566

$ 35,596,235

[1]	Common stock, $0.001 par value; 200,000,000 shares authorized; 60,200,000 shares issued and outstanding, respectively for the period ended June 30, 2012.
[2]	Common stock, $0.001 par value; 200,000,000 shares authorized; 60,200,000 shares issued and outstanding, respectively for the period ended December 31, 2011.