China Hefeng Rescue Equipment, Inc.

CIK:0001506215|SEC Filings

Consolidated Statements of Income and Other Comprehensive Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statements of Income and Other Comprehensive Income [Abstract]
Service revenue	$ 1,433,061	$ 978,533	$ 4,254,717	$ 2,426,623
Cost of services	(819,723)	(598,621)	(2,512,219)	(1,576,954)
Gross profit	613,338	379,912	1,742,498	849,669
Commission - manufacturers	2,498,815	2,063,860	7,540,044	5,558,882
Rental commissions - related party	152,087	64,739	444,670	128,770
Cost of commissions	(894,069)	(770,493)	(2,686,786)	(2,106,441)
Commission income - net	1,756,833	1,358,106	5,297,928	3,581,211
Gross profit and commission income - net	2,370,171	1,738,018	7,040,426	4,430,880
Operating expenses:
Selling and marketing	46,812	42,410	142,007	118,340
General and administrative	119,940	107,233	364,163	334,022
Total operating expenses	166,752	149,643	506,170	452,362
Income before provision for income taxes	2,203,419	1,588,375	6,534,256	3,978,518
Provision for income taxes	550,859	385,743	1,634,637	976,727
Net income	1,652,560	1,202,632	4,899,619	3,001,791
Noncontrolling interests	(80,936)	(57,863)	(240,035)	(144,010)
Net income attributable to common stockholders	1,571,624	1,144,769	4,659,584	2,857,781
Other comprehensive income:
Foreign currency translation adjustment	69,604	(7,301)	238,952	26,087
Total comprehensive income	$ 1,641,228	$ 1,137,468	$ 4,898,536	$ 2,883,868
Earnings per common share, basic and diluted	$ 0.05	$ 0.03	$ 0.14	$ 0.09
Weighted average shares outstanding, basic and diluted	33,600,000	33,600,000	33,600,000	32,579,556

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 4,899,619	$ 3,001,791
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation	16,072	17,576
Deferred income taxes	15,578	(21,048)
Change in operating assets and liabilities:
Decrease in accounts receivable	102,416	212,718
Decrease (increase) in prepaid expenses and other current assets	5,017	(8,655)
(Decrease) in accounts payable	(136,774)	(364,362)
(Decrease) increase in advances from customers	(3,125)	406,216
Increase in deferred revenues	177,749	232,921
Increase in taxes payable	95,236	166,389
Increase in accrued wages	356	5,803
Increase (decrease) in accrued expenses	1,503	(17,272)
Net cash provided by operating activities	5,173,647	3,632,077
Cash flows from investing activities:
Purchase of fixed assets	(677)	(1,610)
Cash flows from financing activities:
Collection of subscription receivable - Dragons Soaring		50,000
Proceeds from stockholder loans	36,500	25,131
Repayment of stockholder loans	(7,151)	(143,340)
Net cash provided by (used in) financing activities	29,349	(68,209)
Effect of exchange rate changes on cash	237,569	25,922
Net increase in cash	5,439,888	3,588,180
Cash, beginning	8,075,837	3,130,799
Cash, ending	13,515,725	6,718,979
Supplemental disclosure of cash flow information:
Cash paid for income taxes	1,537,146	845,814
Cash paid for interest

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash	$ 13,515,725	$ 8,075,837
Accounts receivable	227,640	330,056
Deferred income taxes	95,426	108,248
Prepaid expenses and other current assets	43,739	48,756
Total current assets	13,882,530	8,562,897
Fixed Assets	76,139	73,459
Less: accumulated depreciation	(71,409)	(53,688)
Fixed Assets, net	4,730	19,771
TOTAL ASSETS	13,887,260	8,582,668
Current liabilities:
Accounts payable	365,037	501,811
Advances from customers	151,218	154,343
Deferred revenue	610,739	432,990
Loans from stockholders	106,791	75,715
Accrued wages	109,507	109,151
Taxes payable	690,529	595,293
Accrued expenses	31,326	29,823
Total current liabilities	2,065,147	1,899,126
Commitments and contingencies
Stockholders' equity:
Common stock, $.0001 par; 300,000,000 shares authorized; 33,600,000 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	3,360	3,360
Additional paid-in capital	146,175	146,175
Retained earnings	10,756,907	6,097,323
Statutory reserve fund	35,031	35,031
Other comprehensive income	316,792	77,840
Stockholders' equity before noncontrolling interests	11,258,265	6,359,729
Noncontrolling interests	563,848	323,813
Total Stockholders' equity	11,822,113	6,683,542
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 13,887,260	$ 8,582,668