ANHUI TAIYANG POULTRY CO INC

CIK:0001394120|SEC Filings

Interim Consolidated Statements of Operations and Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues (note 19(b))	$ 10,547,792	$ 11,961,368	$ 16,062,642	$ 19,646,570
Cost of goods sold (note 7)	8,280,548	10,046,233	11,464,920	16,221,751
Gross Profit	2,267,244	1,915,135	4,597,722	3,424,819
Sales and marketing expenses	10,713	12,660	17,550	22,860
General and administrative expenses	846,436	651,276	1,904,890	1,317,498
Operating profit	1,410,095	1,251,199	2,675,282	2,084,461
Gain (loss) on change in fair value of derivative financial instruments (note 12)	(474,093)		435,900
Other income (note 18)	51,831	1,772,121	225,844	1,772,121
Subsidy income (note 15)	76,294	73,528	122,481	108,543
Interest expense, net (note 17)	(369,569)	(505,431)	(697,822)	(901,976)
Income before income taxes	694,558	2,591,417	2,761,685	3,063,149
Income tax expense (note 20)	314,635	97,556	694,440	97,556
Net income	379,923	2,493,861	2,067,245	2,965,593
Comprehensive income:
Net income	379,923	2,493,861	2,067,245	2,965,593
Foreign currency translation adjustment	354,433	74,840	586,522	77,230
Comprehensive income	734,356	2,568,701	2,653,767	3,042,823
Earnings per share:
Basic and diluted (note 16) (in Dollars per share)	$ 0.04	$ 0.38	$ 0.20	$ 0.45
Weighted average number of common shares outstanding:
Basic and diluted (note 16)	$ 10,440,033	$ 6,577,551	$ 10,228,845	$ 6,577,551

Interim Consolidated Statements of Cash Flows (USD $)	6 Months Ended
Interim Consolidated Statements of Cash Flows (USD $)	Jun. 30, 2011	Jun. 30, 2011	Jun. 30, 2010
Operating activities:
Net income for the period	$ 2,067,245	$ 2,067,245	$ 2,965,593
Items not affecting cash:
Depreciation and amortization		753,593	469,489
Gain on sale of assets		(19,736)	(877,874)
Amortization of debt discount		9,210	59,645
Imputed interest expense			10,102
Gain on change in fair value of derivative financial instruments		(435,900)
Trade accounts receivable		(242,167)	(2,345,448)
Inventories		(764,370)	(1,062,829)
Prepaid and other current assets		(1,551,235)	(913,125)
Due from related parties			391,295
Trade accounts payable and accrued expenses		(63,631)	(2,118,188)
Income tax payable		694,440	97,556
Due to related parties		(30,620)
Net cash provided by (used in) operating activities		416,829	(3,323,784)
Investing activities:
Cash proceeds from sale of fertilizer plant		(18,519)	2,048,371
Long term equity investment			(1,463,122)
Deposits against equipment and land use rights		(646,157)	(772,333)
Capitalized interest expense		(170,995)	(121,175)
Purchase of property and equipment		(584,578)	(2,644,147)
Net cash used in investing activities		(1,420,249)	(2,952,406)
Financing activities:
Repayments received (net of advances made) pursuant to loans receivable		998,757	(197,308)
Advances received (net of repayments made) pursuant to loans payable		(729,539)	1,222,671
Borrowings under bank loans payable		7,333,578	14,125,551
Repayments under bank loans payable		(8,099,088)	(8,178,852)
Borrowing under convertible loans payable			555,000
Capital investment, net of offering costs of $130,500 in 2011 and $Nil in 2010		1,019,500	10,000
Net cash provided by financing activities		523,208	7,537,062
Effect of exchange rate difference on cash and cash equivalents		(52,285)	7,180
Net increase (decrease) in cash and cash equivalents		(532,497)	1,268,052
Cash and cash equivalents, beginning of period		1,930,319	605,392
Cash and cash equivalents, end of period	1,397,822	1,397,822	1,873,444
Supplementary information:
Interest and finance charges paid		1,182,582	921,083
Fair value of shares allocated to warrant derivative at financing inception	$ 323,501	$ 323,501

Interim Consolidated Balance Sheets (USD $)	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 1,397,822	$ 1,930,319
Trade accounts receivable, net (note 3)	5,716,531	5,348,650
Loans receivable (note 4)	3,356,965	4,268,057
Inventories, net (note 5)	2,575,775	1,762,709
Prepaid and other current assets (note 6)	2,732,035	1,140,234
Proceeds receivable from sale of fertilizer plant (note 22(b))	928,361	889,174
Total current assets	16,707,489	15,339,143
Construction in progress (note 8)	6,218,864	5,634,476
Property, plant and equipment, net (note 8)	20,322,578	20,495,162
Land use rights (note 9)	10,842,762	10,660,988
Other long term assets (note 10)	2,451,202	1,808,384
Total assets	56,542,895	53,938,153
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable and accrued expenses (note 11)	3,421,613	3,413,393
Income tax payable (note 20)	1,397,538	703,098
Derivative financial instruments (note 12)	1,367,862	1,480,261
Other accounts payable (note 13)	3,567,447	4,542,855
Due to related parties (note 7)		30,249
Loans payable, current portion (note 14)	7,272,165	7,864,727
Total current liabilities	17,026,625	18,034,583
Loans payable, long term portion (note 14)	11,278,984	11,016,050
Total liabilities	28,305,609	29,050,633
Stockholders’ equity
Common stock, par value $0.001, 75,000,000 shares authorized, 10,440,033 and 9,865,033 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively (note 16)	10,440	9,865
Additional paid-in capital	12,914,779	12,219,355
Appropriated retained earnings (note 21)	1,353,912	1,353,912
Unappropriated retained earnings	12,221,279	10,154,034
Accumulated other comprehensive income	1,736,876	1,150,354
Total equity	28,237,286	24,887,520
Total liabilities and stockholders’ equity	$ 56,542,895	$ 53,938,153