CHINA GLOBAL MEDIA INC

CIK:0001450015|SEC Filings

Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement [Abstract]
Sales	$ 14,736,836	$ 16,279,823	$ 27,690,755	$ 31,318,399
Cost of sales	13,405,653	12,714,497	25,610,901	24,680,467
Gross profit	1,331,183	3,565,326	2,079,854	6,637,932
Operating expenses:
Selling, general and administrative expenses	740,773	682,401	1,777,119	1,391,297
Total operating expenses	740,773	682,401	1,777,119	1,391,297
Income from operations	590,410	2,882,925	302,735	5,246,635
Other income (expenses):
Interest expense, net	(94,715)	(4,015)	(175,413)	(7,048)
Non-operating income, net	108,897	7,767	591,692	114,574
Change in fair value of warrants liability	19,436	(18,155)	(4,987)	245,389
Total other income (expenses)	33,618	(14,403)	411,292	352,915
Income before provision for income taxes	624,028	2,868,522	714,027	5,599,550
Provision for income taxes	397,979	731,437	398,395	1,370,262
Net income	226,049	2,137,085	315,632	4,229,288
Less: net loss attributable to noncontrolling interest	(368)		(61,289)
Net income attributable to China Global Media, Inc.	226,417	2,137,085	376,921	4,229,288
Earnings per common share, Basic	$ 0.00	$ 0.05	$ 0.01	$ 0.09
Earnings per common share, Diluted	$ 0.00	$ 0.05	$ 0.01	$ 0.09
Weighted average number of common shares outstanding,Basic	48,891,256	47,485,700	49,340,949	47,264,706
Weighted average number of common shares outstanding, Diluted	48,891,256	47,485,700	49,340,949	47,315,337
Net income	226,049	2,137,085	315,632	4,229,288
Other comprehensive income Foreign currency translation adjustment	362,996	83,449	499,680	104,612
Total other comprehensive income	362,996	83,449	499,680	104,612
Total Comprehensive income	589,045	2,220,534	815,312	4,333,900
Less: Comprehensive loss attributable to the noncontrolling interest	(368)		(61,289)
Comprehensive income attributable to China Global Media, Inc.	$ 589,413	$ 2,220,534	$ 876,601	$ 4,333,900

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net Income	$ 315,632	$ 4,229,288
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	109,296	111,521
Change in fair value of warrants liability	4,987	(245,389)
Provision for registration rights liability		12,300
Changes in current assets and current liabilities:
Accounts receivable	(594,875)	(2,090,007)
Advance payments	252,376	462,077
Other current assets	(872,724)	(174,045)
Accounts payable and accrued expenses	(1,060,268)	(951,822)
Due to related party	1,670,822
Advances from customers	(3,521,118)	(3,878,753)
Income taxes payable	397,976	1,367,196
Other taxes payable	(49,110)	124,864
Other current liabilities	(206,723)	(7,090)
Total adjustments	(3,869,361)	(5,269,148)
Net cash used in operating activities	(3,553,729)	(1,039,860)
Cash flows from investing activities:
Advance payment for long-term investment	808,996
Loans made to unrelated parties	96,168	136,448
Due from related parties	791,556
Acquisition of property and equipment	(18,121)	(24,792)
Acquisition of intangible assets	(2,564,480)
Net cash provided by (used in) investing activities	(885,881)	111,656
Cash flows from financing activities:
Repayment of short-term bank loan	(961,680)
Proceeds from short-term bank loans	1,442,520
Net cash provided by financing activities	480,840
Effect of foreign currency translation on cash	47,555	12,742
Net decrease in cash and cash equivalents	(3,911,215)	(915,462)
Cash and cash equivalents-beginning	5,581,867	3,572,443
Cash and cash equivalents-ending	1,670,652	2,656,981
Supplemental schedule of non-cash activities:
Advances payment converted to intangible assets	1,804,753
Intangible assets contributed from minority shareholder	2,041,967
Capital lease payment made by a shareholder on behalf of the Company		35,560
Conversion of additional paid-in capital to common stock		4,000
Supplemental disclosure information:
Cash paid for interest	176,316	7,048
Cash paid for income taxes

Consolidated Balance Sheets (June 30, 2013 Unaudited) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 1,670,652	$ 5,581,867
Accounts receivable, net of allowance for doubtful accounts of $1,015,930 and $995,235 at June 30, 2013 and December 31, 2012, respectively	14,211,362	13,332,861
Advance payments, net	19,636,330	19,486,219
Loans receivable, net	1,071,196	1,144,595
Due from related parties	1,019,760	1,782,738
Bank loan security deposit	544,320	533,232
Other current assets	1,658,964	761,047
Total current assets	39,812,584	42,622,559
Property and equipment, net	2,897,036	2,928,299
Intangible assets, net	6,480,000
Advance payment for long-term investment		2,587,984
Total assets	49,189,620	48,138,842
Current liabilities:
Accounts payable and accrued expenses	1,086,131	2,114,957
Short-term bank loans	5,670,000	5,078,400
Due to related party	1,688,752
Advances from customers	1,354,475	4,813,291
Income taxes payable	8,297,069	7,734,001
Other taxes payable	2,996,730	2,984,311
Due to shareholders	198,866	198,889
Other current liabilities	218,821	419,738
Total current liabilities	21,510,844	23,343,587
Warrants liability	530,908	525,921
Total liabilities	22,041,752	23,869,508
Stockholders' equity:
Preferred stock, $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.001 par value, 99,000,000 shares authorized, 49,785,700 and 47,485,700 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively	49,786	47,486
Additional paid-in capital	3,417,541	3,419,841
Statutory reserve	1,001,993	1,001,993
Retained earnings	19,510,517	19,133,596
Accumulated other comprehensive income	1,166,098	666,418
Total stockholders' equity	25,145,935	24,269,334
Noncontrolling interest	2,001,933
Total liabilities and equity	$ 49,189,620	$ 48,138,842