North China Horticulture, Inc.

CIK:0001280821|SEC Filings

CONDESNED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net revenues	$ 2,714,384	$ 1,398,403	$ 7,897,455	$ 5,051,948
Cost of goods sold	1,102,311	304,621	2,208,694	1,019,162
Gross profit	1,612,073	1,093,782	5,688,761	4,032,786
Selling, general and administrative expenses	430,376	1,280,385	1,035,739	1,348,185
Share based consulting fee			2,625,008
Bad debt expenses	3,261,279		4,668,789
Net (loss) income	(2,079,582)	(186,603)	(2,640,775)	2,684,601
Other comprehensive income - foreign currency translation gain	57,449	149,684	248,213	121,121
Comprehensive (loss) income	$ (2,022,133)	$ (36,919)	$ (2,392,562)	$ 2,805,722
Basic and diluted (loss) earnings per share	$ (0.04)		$ (0.05)	$ 0.05
Weighted average number of shares	51,750,144	49,935,477	50,888,105	49,892,844

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 (loss) income	$ (2,640,775)	$ 2,684,601
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation	68,073	14,457
Provision for bad debt	4,668,789	180,223
Provision for inventory reserves	23,622
Share based consulting fee	2,625,008
Changes in operating assets and liabilities:
Accounts receivable	(8,249,390)	1,703,981
Inventories	(823,082)	(303,452)
Long term growing crops inventories	(1,971,950)
Due to outside parties		36,063
Deposit and Advance to suppliers	76,685	(585,320)
Prepaid rent and other current assets	(40,458)	(30,075)
Accounts payable	207,917	391,248
Accrued expenses and other payables	165,884	80,839
Deferred sales	2,115,577
Net cash (used in) provided by operating activities	(3,774,100)	4,172,565
Cash flows from investing activities:
Purchase of property and equipment	(2,420)	(108,929)
Purchase of land use right	(610,628)
Deposit to related party	716,497
Received from unaffiliated entities	3,216,960	(3,525,752)
Net cash provided by (used in) investing activities	3,320,409	(3,634,681)
Cash flows from financing activities:
Repayment and advances by officer	125,351	(413,089)
Due to outside parties
Due to employee
Contribution by former shareholder		1,291
Net cash provided by financing activities	125,351	(411,789)
Effect of exchange rate changes on cash	93,254	136,661
Net increase in cash and cash equivalents	(235,086)	262,747
Cash and cash equivalents, beginning of the period	240,719	11,300
Cash and cash equivalents, ending of the period	5,633	274,047
Supplemental disclosure of cash flow information:
Interest paid
Income tax paid
Non-cash investing and financing activities
Reclassification of deposit to Property and Equipment	$ 211,743

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 5,633	$ 240,719
Accounts receivable, net of allowance for doubtful accounts of $5,661,709 and $888,844 at September 30, 2011 and December 31, 2010, respectively	4,975,705	1,392,020
Inventories, net	2,029,285	1,199,099
Deposits and advances to suppliers	16,973	93,658
Prepaid rent and other current assets	156,628	116,170
Receivable from unaffiliated entities		3,143,307
Deposit to related party		727,722
Due from officer		81,668
Total current assets	7,184,224	6,994,363
Property and equipment, net	337,801	139,997
Land use right, net	620,208
Long term growing crops inventories	2,002,661
Deposit on greenhouse improvements		211,743
TOTAL ASSETS	10,144,894	7,346,103
Current liabilities
Accounts payable	235,206	27,289
Accrued expenses and other payables	269,344	103,460
Amount due to officer	43,683
Deferred sales	2,148,861
Total current liabilities	2,697,094	130,749
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $0.00001 par value; 51,750,144 and 50,000,139 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively	518	500
Additional Paid-in capital	2,639,840	14,850
Accumulated other comprehensive income	516,993	268,780
Retained earnings	4,290,449	6,931,224
TOTAL SHAREHOLDERS' EQUITY	7,447,800	7,215,354
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 10,144,894	$ 7,346,103