MATCHES, INC.

CIK:0001426703|SEC Filings

Earnings Per Share

9 Months Ended

Sep. 30, 2012

NOTE 24 –Earnings per share

(a) The following table presents a reconciliation of actual basic and diluted earnings per share:

		For the Three Months Ended September 30,
		2012		2011
		(Unaudited)		(Unaudited)
Weighted-average shares of common stock outstanding Basic and diluted- actual		78,525,000		78,535,000
Net income /(loss) available for common shareholders	$	(1,291,390)	$	1,962,647
Basic and diluted earnings per share – actual	$	(0.02)	$	0.02

		For the Nine Months Ended September 30,
		2012		2011
		(Unaudited)		(Unaudited)
Weighted-average shares of common stock outstanding Basic and diluted- actual		78,525,000		78,525,000
Net income/ (loss) available for common shareholders	$	(2,602,906)	$	3,668,011
Basic and diluted earnings per share – actual	$	(0.03)	$	0.05

All share and per share data have been retroactively adjusted to reflect the recapitalization of the Company after the share exchange agreement.

(b) In the share exchange on December 22, 2010, the Company agreed to issue 170,948,684 shares of common stock. Due to a shortage of currently authorized shares, 70,000,000 shares were issued at the closing of this transaction. Therefore, the Company has 78,525,000 shares of common stock issued and outstanding as of September 30, 2012, and the remaining shares will be issued in the future. The following table presents a reconciliation of pro forma basic and diluted earnings per share which give the effect that the remaining shares to be issued as if the remaining shares had issued on the closing of this transaction. All share and per share data have been retroactively adjusted to reflect the recapitalization of the Company after the share exchange agreement.

		For the Three Months ended September 30,
		2012		2011
Pro Forma		(Unaudited)		(Unaudited)
Weighted-average shares of common stock outstanding Basic and diluted–pro forma		179,473,684		179,473,684
Net income/(loss) available for common shareholders	$	(1,291,390)	$	1,962,647
Basic and diluted earnings per share–pro forma	$	(0.01)	$	0.01

		For the Nine Months ended September 30,
		2012		2011
Pro Forma		(Unaudited)		(Unaudited)
Weighted-average shares of common stock outstanding Basic and diluted–pro forma		179,473,684		179,473,684
Net income/(loss) available for common shareholders	$	(2,602,906)	$	3,668,011
Basic and diluted earnings per share–pro forma	$	(0.01)	$	0.02

MATCHES, INC.AND SUBSIDIARIES - STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Net income before allocation to non-controlling interests	$ (2,602,906)	$ 3,664,745
Depreciation	1,684,386	1,565,901
Amortization of land use rights and land development	69,191	67,292
(Increase)decrease in restricted cash	(7,026,497)	901,882
(Increase)decrease in inventories	(1,685,867)	1,288,192
(Increase)decrease in prepaid expenses	(257,232)	(22,671)
(Increase)decrease amount due from related party	2,043,168
(Increase)decrease in loans to third parties	(857,995)
Increase(decrease) in notes payable	3,147,482	(3,096)
Increase(decrease) in trade accounts payable	(105,499)	(274,102)
Increase(decrease) in advances from customers	318,681	586,188
Increase(decrease) in income tax payable	(24,335)	221,898
Increase(decrease) in other payables	14,104	(1,372,057)
Increase(decrease) in amount due to shareholders		197,627
Net cash provided by/(used in) operating activities	2,421,681	2,601,876
Purchases of property plant and equipment	(170,122)	(2,535,832)
Loan to a third party	(7,578,150)
Net cash used in investing activities	(7,748,272)	(2,535,832)
Proceeds from bank loans	22,194,598	16,819,859
Repayment of bank loans	(17,283,287)	(19,537,350)
Net cash provided by/(used in) financing activities	4,640,630	(2,958,036)
Effect of foreign currency fluctuation on cash and cash equivalents	5,594	146,449
Net increase in cash and cash equivalents	(680,367)	(2,745,543)
Cash and cash equivalents- beginning of period	2,699,255	6,403,120
Cash and cash equivalents- end of period	2,018,888	3,657,577
Cash paid for interest expense	$ 1,783,040	$ 811,828

MATCHES, INC. AND SUBSIDIARIES - CONSOLIDATED BALANCE SHEETS (USD $)

Sep. 30, 2012

Dec. 31, 2011

ASSETS

Cash and cash equivalents

$ 2,018,888

$ 2,699,255

Notes receivable

3,461,016

4,333,150

Trade accounts receivable

8,223,126

8,897,224

Advance to suppliers

6,426,362

712,253

Inventories

4,672,493

2,973,942

Prepaid expenses

324,084

66,792

Total current assets

47,709,815

29,661,728

Deferred tax asset

857,114

Long term investment

355,226

353,512

Property plant and equipment, net

17,205,861

18,628,283

Land use rights and land development, net

4,126,287

4,175,170

Total Assets

70,254,303

52,818,693

Short-term bank loans

20,996,746

15,908,055

Long-term loan current portion

175,245

174,399

Notes payable

18,219,740

15,002,772

Trade accounts payable

666,309

767,977

Advances from customers

680,380

360,279

Income tax payable

24,193

Other payables

730,603

713,058

Amount due to shareholders

416,510

414,840

Capital lease payable-current portion

199,508

Total current liabilities

53,682,925

33,565,081

Long-term loan

129,460

303,235

Total Liabilities

53,812,385

33,868,316

Common stock

78,525

^[1]

78,525

^[1]

Common stock to be authorized and issued (see note below)

100,949

Additional paid-in capital

10,700,856

Retained earnings

1,323,877

3,926,783

Accumulated other comprehensive income

2,631,057

2,536,610

Total Matches, Inc. shareholders' equity

16,441,918

18,950,377

Total Equity

16,441,918

18,950,377

TOTAL LIABILITIES AND EQUITY

$ 70,254,303

$ 52,818,693

[1]

In December 2010, the Company agreed to issue 170,948,684 shares of common stock in a transaction of share exchange, due to a shortage of currently authorized shares, 70,000,000 shares were issued at the closing of this transaction. Prior to the share exchange, the Company had 8,525,000 shares of common stock issued and outstanding; see Note 1 and Note 20 for details