China Printing & Packaging, Inc.

CIK:0001422357|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Statement [Abstract]
Sales	$ 2,172,642	$ 3,300,748	$ 4,284,074	$ 5,513,794
Cost of sales	1,383,722	2,034,595	2,709,368	3,373,472
Gross profit	788,920	1,266,153	1,574,706	2,140,322
Selling, general and administrative expense	151,381	150,836	171,371	265,257
Research and development expense	1,108,630		1,108,630
(Loss) Income from operations	(471,091)	1,115,317	294,705	1,875,065
Interest income (expense)	2,201	(25,057)	2,211	(43,378)
Other income (expense)	145	21,822	(459)	21,534
Total other income (Expense)	2,346	(3,235)	1,752	(21,844)
(Loss) Income before income taxes	(468,745)	1,112,082	296,457	1,853,221
Income tax recovery (expense) (note 8)	112,903	(280,107)	(11,485)	(460,681)
Net (loss) income	(355,842)	831,975	284,972	1,392,540
Foreign currency translation adjustment	1,556	95,466	48,315	128,459
Comprehensive (loss) income	$ (354,286)	$ 927,441	$ 333,287	$ 1,520,999
Net income per common share
(Loss) Earnings per share - basic and diluted (in dollars per share)	$ (0.01)	$ 0.02	$ 0.01	$ 0.03
Weighted average common shares outstanding (in shares)	51,002,502	51,002,502	51,002,502	51,002,502

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 284,972	$ 1,392,540
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	75,396	72,007
Provision for doubtful accounts (written back)	(129,780)	(7,570)
Amortization of intangible assets	19,290	18,622
(Increase) decrease in current assets
Accounts receivables	775,528	(564,599)
Advances to suppliers	94,878	(40,158)
Prepaid expenses and other receivables	3,659	5,429
Inventories	(28,927)	15,668
Deferred income tax asset	(277,157)
Increase (decrease) in current liabilities
Accounts payable	111,152	(33,563)
Accrued expenses and other payables	(13,223)	(24,764)
Customer deposits
Income tax liabilities	2,804	105,972
Due to related parties	2,000	(300)
Net cash provided by operating activities	920,592	939,284
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment		(1,720)
Net cash (used in) investing activities		(1,720)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of bank loan		(540,631)
Proceed from bank loan		540,631
Advance from a director	(57,870)
Advance from a shareholder	1,130,100
Net cash provided by financing activities	1,072,230
Effect of exchange rate changes on cash and cash equivalents	6,508	16,764
Net change in cash and cash equivalents	1,999,330	954,328
Cash and cash equivalents, beginning balance	1,535,705	335,493
Cash and cash equivalents, ending balance	3,535,035	1,289,821
Cash paid during the three months for:
Income tax payments	285,838	183,272
Interest payments		$ 44,870

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents	$ 3,535,035	$ 1,535,705
Accounts receivable, net of allowance (note 3)	2,203,533	2,829,455
Other receivable	3,167	3,145
Advances to suppliers (note 4)	356,481	448,219
Prepaid expenses and deposit paid	3,049	6,661
Inventories (note 4)	213,838	183,626
Deferred income tax asset (note 8)	277,157
Total Current Assets	6,592,260	5,006,811
Property and equipment, net (note 5)	1,290,811	1,356,708
Intangible assets, net (note 6)	1,871,086	1,877,235
Total Assets	9,754,157	8,240,754
Current Liabilities
Accounts payable (note 4)	224,601	112,673
Accrued expenses and other payables	400,916	411,288
Income tax payable	164,353	160,426
Due to related parties (note 7)	21,553	77,020
Due to shareholder (note 7)	1,130,100
Total Current Liabilities	1,941,523	761,407
Total Liabilities	1,941,523	761,407
Stockholders' Equity
Common stock, $0.001 per value, 75,000,000 share authorized, 51,002,502 shares issued and outstanding at June 30, 2012 and December 31, 2011 (note 9)	51,003	51,003
Additional paid in capital	799,542	799,542
Statutory reserve (note 10)	1,666,390	1,666,390
Accumulated other comprehensive income	509,444	461,129
Accumulated retained earnings	4,786,255	4,501,283
Total Stockholder's Equity	7,812,634	7,479,347
Total Liabilities and Stockholder's Equity	$ 9,754,157	$ 8,240,754