China Electronics Holdings, Inc.

CIK:0001440770|SEC Filings

14. Earnings Per Share

9 Months Ended

Sep. 30, 2014

Components of basic and diluted earnings per share were as follows:

	Three Months Ended					Nine Months Ended
	September 30, 2014		September 30, 2013			September 30, 2014			September 30, 2013

Net Income/ (Loss)	$	2,085,200	$	(2,249,161	)	$	(2,914,738	)	$	(33,910,906	)

Original Shares of Common Stock		16,775,113		16,775,113			16,775,113			16,775,113
New Issuance of Common Stock		-		-			-			-
Basic Weighted Average Shares Outstanding		16,775,113		16,775,113			16,775,113			16,775,113

Addition to Common Stock from exercise of Warrant		-		-			-			-
Diluted Weighted Average Shares Outstanding		16,775,113		16,775,113			16,775,113			16,775,113

Earnings Per Share
- Basic	$	0.12	$	(0.13	)	$	(0.17	)	$	(2.02	)
- Diluted	$	0.12	$	(0.13	)	$	(0.17	)	$	(2.02	)

Weighted Average Shares Outstanding
- Basic		16,775,113		16,775,113			16,775,113			16,775,113
- Diluted		16,775,113		16,775,113			16,775,113			16,775,113

Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement of Cash Flows [Abstract]
Net Income/(loss)	$ 2,085,200	$ (2,249,161)	$ (2,914,738)	$ (33,910,906)
Adjustments to reconcile net income to net cash from operations:
Bad debt provision	565,700	2,339,300	3,898,386	2,595,368
Impairment loss for plant and equipment	0	2,855	0	268,677
Impairment loss for long-term assets held for sale	0	129,175	0	30,640,293
Inventory loss of lower cost or market value	0	0	1,662,099	0
Amortization and depreciation	5,549	6,994	16,466	287,819
Adjustment of pending and litigation accruals	(115,308)	0	(115,308)	0
Changes in operating assets and liabilities:
Accounts and other receivables	(2,858,444)	(4,708,166)	(7,150,206)	(6,877,070)
Inventories	(3,418,035)	(1,101,608)	(2,411,516)	(8,565,093)
Advance to suppliers	3,562,171	5,768,069	4,043,213	15,187,186
Prepaid expenses	0	111,354	226,204	(342,220)
Accounts payables and accruals	3,096	(108)	54,339	9,113
Unearned revenue	0	(383,966)	0	(372,891)
Net cash used in operating activities	(170,071)	(85,262)	(2,691,061)	(1,079,724)
Cash flows from investing activities
Payments for purchases of plant and equipment	0	0	(4,652)	0
Net cash used in investing activities	0	0	(4,652)	0
Cash flows from financing activities
Discontinued operations of subsidiary	0	0	0	(9,630)
Proceeds from bank loans	819,252	808,130	3,256,215	1,609,477
Repayments of bank loans	0	(808,130)	0	(1,609,477)
Loans to related party	(670,292)	0	(670,292)	0
Proceeds from related party loans		5,835		656,789
Net cash provided by financing activities	148,960	5,835	2,585,923	647,159
Effect of foreign currency translation on cash	23,012	80,920	133,555	489,794
Net increase/(decrease) of cash and cash equivalents	1,901	1,493	23,765	57,229
Cash and cash equivalents at beginning of periods	48,133	65,201	26,269	9,465
Cash and cash equivalents at end of periods	50,034	66,694	50,034	66,694
Supplementary cash flows information:
Interest received	1,038,706	2,034	1,038,768	472,485
Interest paid	64,926	33,236	141,848	124,211
Income tax paid	$ 0	$ 0	$ 0	$ 0

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 50,034	$ 26,269
Accounts receivable, net	5,753,290	1,099,118
Other receivable	2,142,590	3,544,942
Related party receivable	670,292	0
Inventory	6,198,758	5,449,341
Advance to suppliers	3,389,614	7,432,827
Prepaid expenses	0	226,204
Total current assets	18,204,578	17,778,701
Non-current assets
Property, plant and equipment, net	46,076	57,890
Security deposit	32,562	32,315
Total non-current assets	78,638	90,205
Total assets	18,283,216	17,868,906
Liabilities and Stockholders' Equity
Bank loans	3,256,215	0
Accounts payable and accrued expenses	107,107	203,316
Other payable	89,384	54,144
Total current liabilities	3,452,706	257,460
Total liabilities	3,452,706	257,460
Stockholders' equity
Preferred stock, $0.0001 par value; 50,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2014 and December 31, 2013 respectively	0	0
Common stock, $0.0001 par value; 150,000,000 shares authorized; 16,775,113 shares issued and outstanding as of June 30, 2014 and December 31, 2013 respectively	1,678	1,678
Additional paid-in capital	15,341,710	15,341,710
Statutory reserve	3,849,684	3,849,684
Accumulated deficit	(9,682,989)	(6,768,251)
Accumulated other comprehensive income	5,320,427	5,186,625
Total Stockholders' Equity	14,830,510	17,611,446
Total Liabilities and Stockholders' Equity	$ 18,283,216	$ 17,868,906