China Energy CORP

CIK:0001335137|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (USD $)	12 Months Ended
	Nov. 30, 2012	Nov. 30, 2011
Revenues	$ 246,062,847	$ 157,686,054
Cost of revenues	(209,125,559)	(104,933,710)
Gross profit	36,937,288	52,752,344
Operating expenses:
Selling and marketing	9,134,905	7,189,263
General and administrative	7,529,404	5,991,372
Total operating expenses	16,664,309	13,180,635
Income from operations	20,272,979	39,571,709
Other income (expenses):
Finance expenses, net	(2,795,296)	(2,780,628)
Government subsidies	756,501	0
Non-operating income	1,559,574	1,699,053
Non-operating expenses	(287,018)	(281,440)
Income before provision for income taxes	19,506,740	38,208,694
Provision for income taxes	(7,203,424)	(10,573,467)
Net income (loss)	12,303,316	27,635,227
Other comprehensive income:
Foreign currency translation adjustment	2,205,864	2,891,182
Total comprehensive income	$ 14,509,180	$ 30,526,409
Net (loss) income per common share
Basic and diluted (In dollars per share)	$ 0.27	$ 0.61
Weighted average common shares outstanding
Basic and diluted (in shares)	45,060,000	45,060,000

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Nov. 30, 2012	Nov. 30, 2011
Cash flows from operating activities:
Net income	$ 12,303,316	$ 27,635,227
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Bad debt expenses	284,105	(45,199)
Depreciation and amortization	8,496,470	6,318,473
Stock-based compensation	4,857	1,550,421
Interest accrued on shareholder loans	396,481	275,916
Loss on disposal of property, plant and equipment	173	2,541
Changes in operating assets and liabilities:
(Increase) in restricted cash	(17,419)	(27,494)
(Increase) in accounts receivables	(1,891,298)	(11,573,458)
Decrease (increase) in other receivables	19,926,225	(20,470,669)
(Increase) in prepaid expense	(355,330)	(323,072)
(Increase) in advance to suppliers	(33,273,927)	(22,156,375)
(Increase) in inventories	(3,922,277)	(6,848,040)
(Increase) in loan to related party	(1,356,250)	0
Increase in deferred income	5,430,246	1,642,466
(Decrease) increase in accounts payable	(2,544,812)	6,915,326
Increase in advances from customers	2,262,158	5,043,073
(Decrease) increase in accrued liabilities and other payables	(3,211,163)	10,526,841
Net cash provided by (used in) operating activities	2,531,555	(1,534,023)
Cash flows from investing activities:
Purchase of property, plant and equipment	(5,936,892)	(12,858,682)
Increase in construction in progress	(124,261)	(798,685)
Proceeds from disposal of property, plant and equipment	0	5,744
Payments made on other long term assets	(912,739)	0
Loan to related party	(36,234,031)	0
Collection of notes receivable	0	14,679,099
Net cash (used in) provided by investing activities	(43,207,923)	1,027,476
Cash flows from financing activities:
Proceeds from short term bank loans	45,898,422	28,636,602
Principal payments made on short term bank loans	(29,406,644)	(9,864,061)
Proceeds from lease finance obligation	5,583,780	7,860,423
Repayment of lease finance obligation	(2,357,444)	(792,763)
Repayment of stockholder loans	(47,481)	0
Net cash provided by financing activities	19,670,633	25,840,201
Effect of exchange rate changes on cash	1,813,493	1,093,075
Net (decrease) increase in cash and cash equivalents	(19,192,242)	26,426,729
Cash and cash equivalents, beginning of year	31,007,269	4,580,540
Cash and cash equivalents, end of year	11,815,027	31,007,269
Supplemental disclosure of cash flow information
Cash paid for interest	2,122,808	2,040,166
Cash paid for income taxes	9,091,585	9,438,235
Supplemental disclosure of non-cash financing and investing activities:
Value of shares issued/transferred for consulting services	0	1,507,800
Service fee and refundable deposit borrowed under financing leases	$ 1,887,340	$ 1,891,526

CONSOLIDATED BALANCE SHEETS (USD $)	Nov. 30, 2012	Nov. 30, 2011
Current assets:
Cash and cash equivalents	$ 11,815,027	$ 31,007,269
Accounts receivables, net of allowance for doubtful accounts of $295,356 and $11,251, respectively	18,972,155	17,364,962
Other receivables	4,636,311	24,562,536
Inventories, net of reserve for write down to market of $210,672 and $0, respectively	14,018,922	10,096,645
Prepaid expenses	678,402	323,072
Advance to suppliers	60,837,720	27,566,516
Loan to related party	37,590,281	0
Total current assets	148,548,818	110,921,000
Fixed assets, net	67,758,295	62,937,747
Other assets:
Investment property, net of accumulated depreciation of $662,496 and $475,649, respectively	5,612,099	5,730,169
Mining right, net of amortization of $2,060,999 and $1,635,072, respectively	2,779,505	3,091,565
Restricted cash	590,961	573,542
Other long term assets	6,147,833	3,889,144
Total other assets	15,130,398	13,284,420
TOTAL ASSETS	231,437,511	187,143,167
Current liabilities:
Short term bank loans	46,575,122	29,138,242
Accounts payable	23,455,106	21,716,148
Advances from customers	12,584,079	10,321,920
Accrued liabilities	1,235,599	629,016
Other payables	9,310,598	13,111,017
Stockholder loans	10,034,579	9,452,712
Current portion of finance obligation	3,237,653	1,695,944
Current portion of deferred income	2,039,636	1,333,695
Total current liabilities	108,472,372	87,398,694
Non-current liabilities
Finance obligation, net of current portion	10,889,281	6,906,957
Deferred income, net of current portion	13,528,969	8,804,664
Total non-current liabilities	24,418,250	15,711,621
Total liabilities	132,890,622	103,110,315
Commitments and contingencies	0	0
Stockholders' equity:
Preferred stock: no par value; 5,000,000 shares authorized; none issued and outstanding shares	0	0
Common stock: $0.001 par value; 195,000,000 shares authorized; 45,060,000 shares issued and outstanding at November 30, 2012 and 2011, respectively	45,060	45,060
Additional paid-in capital	10,625,225	10,620,368
Retained earnings	68,859,933	56,818,378
Statutory reserves	9,294,616	9,032,855
Accumulated other comprehensive income	9,722,055	7,516,191
Total stockholders' equity	98,546,889	84,032,852
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 231,437,511	$ 187,143,167