GC China Turbine Corp.

CIK:0001380528|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenues		$ 4,085,675		$ 27,144,543
Cost of sales		(3,092,019)		(20,441,050)
Gross profit		993,656		6,703,493
Operating expenses:
Selling and marketing expenses	(132,407)	(644,313)	(602,598)	(778,468)
Research and development expenses	(385,230)	(256,551)	(1,376,696)	(595,825)
General and administrative expenses	(1,625,592)	(475,243)	(8,221,091)	(1,530,934)
Loss on disposal of property, plant and equipment			(1,392,838)
Other operating income		152	291,119	23,534
Income (loss) from operations	(2,143,229)	(382,299)	(11,302,104)	3,821,800
Interest expense	(147,059)	(122,088)	(606,860)	(148,778)
Interest income	231,000	135,084	537,095	204,380
Other (expenses) income, net	(16,108)	(2,462)	(33,716)	3,135
Gain from change in fair value of warrant liability		335,746		807,154
Income (loss) before provision for income tax	(2,075,396)	(36,019)	(11,405,585)	4,687,691
(Provision) benefit for income tax	(95,882)	(64,950)	1,288,610	(1,311,034)
Income (loss) before equity investment loss	(2,171,278)	(100,969)	(10,116,975)	3,376,657
Equity investment profit (loss), net of tax	909	(5,428)	(13,281)	(5,428)
Net income (loss)	(2,170,369)	(106,397)	(10,130,256)	3,371,229
Net loss attributable to noncontrolling interest	93,946	42,529	100,732	90,185
Net income (loss) attributable to GC China Turbine Corp. shareholders	$ (2,076,423)	$ (63,868)	$ 10,029,524	$ 3,461,414
Earnings (loss) per share- basic	$ (0.03)	$ 0.00	$ (0.17)	$ 0.06
Earnings (loss) per share- diluted	$ (0.03)	$ 0.00	$ (0.17)	$ 0.04
Weighted average common share outstanding- basic	59,470,015	59,470,015	59,470,015	59,173,312
Weighted average common share outstanding- diluted	59,470,015	59,470,015	59,470,015	59,952,761

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
OPERATING ACTIVITIES:
Net income (loss)	$ (10,130,256)	$ 3,371,229
Adjustments to reconcile net income (loss) to net cash provided by/ (used in) operating activities:
Bad debt expenses	2,173,721
Depreciation of property and equipment	103,630	92,544
Amortization of intangible assets	2,519	136,515
Amortization of premium for convertible promissory note		(50,500)
Write-off of accounts receivable	4,550,764
Equity investment loss, net of tax	13,281	5,428
Gain from change in fair value of warrant liability		(807,154)
Share-based compensation	23,759
Disposal of property, plant and equipment	1,405,444
Changes in operating assets and liabilities
Decrease/ (increase) in accounts receivable	15,894,429	(15,219,131)
Decrease/ (increase) in inventories	(1,121,313)	(10,317,264)
Decrease in advance to suppliers	(815,801)	(61,973)
Decrease in other current assets	(114,053)	297,365
Increase in long-term accounts receivable	(1,611,696)	(1,584,702)
Increase in accounts payable	(147,177)	14,443,634
Decrease in notes payable	(567,127)
Decrease in prepayment for land use right	138,701	(731,931)
Increase/(decrease) in income tax payable	(1,288,504)	1,271,728
Increase/ (decrease) in other current liabilities	(4,098,038)	1,550,214
Net cash provided by (used in) operating activities	4,412,283	(7,603,998)
INVESTING ACTIVITIES:
Investment in equity investees		(103,079)
Purchase of property, plant and equipment	(1,467,029)	(605,986)
Purchase of intangible assets	(16,793)
Loan to related parties		(2,787,445)
Collection from related parties	462,335	467,033
Collection from a third party	120,797
Payment for business acquisition, net of cash acquired		(146,492)
Decrease in restricted cash	2,234,027	18,218
Decrease (increase) in term deposit	1,078,782	(1,044,603)
Net cash provided by (used in) investing activities	2,412,119	(4,202,354)
FINANCING ACTIVITIES:
Proceeds from short-term borrowings from related parties	11,560,788	173,000
Proceeds from short-term bank borrowings	4,623,351	8,953,740
Repayments of short-term borrowings to related parties	(7,378,910)
Repayments of short-term bank borrowings	(9,246,705)
Net cash provided by (used in) financing activities	(441,476)	9,126,740
Effect of exchange rate changes on cash and cash equivalents	212,425	39,021
NET CHANGE IN CASH AND CASH EQUIVALENTS	6,595,351	(2,640,591)
Cash and cash equivalents at the beginning of the period	1,788,138	3,803,446
Cash and cash equivalents at the end of the period	8,383,489	1,162,855
Supplemental cash flow information:
Cash paid for interest expense	630,085	148,778
Non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable	381,403	249,591
Conversion of promissory note		1,132,250
Business acquisition funded by amount due to related parties		$ 58,540

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 8,383,489	$ 1,788,138
Term deposit		1,056,972
Restricted cash	377,716	2,551,304
Accounts receivable, less allowance for doubtful accounts of $2,498,215 and $267,423 as of September 30, 2011 and December 31, 2010, respectively	37,480,664	58,182,615
Inventories	3,350,132	2,116,022
Advance to suppliers	3,281,838	2,349,826
Amount due from related parties	1,628,496	4,667,146
Prepaid expenses and other current assets	213,251	323,472
Deferred tax assets	96,705	92,794
Total current assets	54,812,291	73,128,289
Property, plant and equipment, net	4,300,256	3,314,939
Intangible assets, net	14,575
Prepaid land use right	236,786	363,108
Equity investment	101,261	110,176
Long-term accounts receivable	5,513,925	3,711,852
Deferred tax assets	145,881	139,982
Other assets	3,441	141,119
Total assets	65,128,416	80,909,465
Current liabilities:
Short-term borrowings	9,441,540	13,589,640
Accounts payable	13,497,640	13,086,475
Notes payable	5,856,356	6,175,208
Accrued expenses and other current liabilities	6,843,470	8,216,598
Income tax payable	2,070,542	3,249,273
Amount due to related parties	1,960,482	730,293
Total current liabilities	39,670,030	45,047,487
Warrant liability		85,889
Other long-term liabilities	1,143,160	2,609,269
Total liabilities	40,813,190	47,742,645
Contingencies
Common share (US$0.001 par value; 100,000,000 shares authorized, 59,470,015 shares issued and outstanding as of September 30, 2011 and December 31, 2010)	59,470	59,470
Additional paid-in capital	21,126,043	21,016,395
Retained earnings	992,626	11,022,150
Accumulated other comprehensive income	2,170,172	1,001,158
Total GC China Turbine Corp. shareholders' equity	24,348,311	33,099,173
Noncontrolling interest	(33,085)	67,647
Total equity	24,315,226	33,166,820
Total liabilities and equity	$ 65,128,416	$ 80,909,465