Zhengzhou Shensheng Aluminum Foil Co., Ltd (0001483058)

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Friday, November 19, 2010

Form 10 RTO

On November 8, 2010 Zhengzhou Shensheng Aluminum Foil Co., Ltd became a public entity via a reverse merger transaction with a non-trading form 10 shell.

Company Snapshot:

Engaged in the production of aluminum foi.l

Industry Snapshot:

  • The output of aluminum foil production in China has increased dramatically over the past ten years.  This has mostly been driven by increasing demand from both Chinese and overseas markets. In 2009, aluminum foil manufacturers totaled more than 150 with an aggregate annual output of 1650 kilotons. Over the past 6 years, the aluminum foil output in China has grown at a rate of 25%. Since 2006, China has ranked as No.1 in terms of aluminum foil capacity and output.
 
 
  • In China the aluminum foil industry is very fragmented and numerous manufacturers exist with no dominant leader. The price is determined by the aggregate demand and supply of the industry. In 2009, there were nearly 150 different companies operating in the industry with an average output of 10 kilotons. In certain low value-added segments, competition is extremely intensive. The global financial crisis in 2008 results in a reshuffle of the industry. Many small manufacturers went out of business, and large and well-capitalized businesses gained shares in terms of volume.
  • The industry can be categorized into multiple product segments. Most of large producers focus on a few segments. Although fragmented as a whole, producers can take a leadership role in their respective segments. Chinese producers compete against each other on cost, R&D capabilities and improved engineering process which can enable them to gain market share in China as well as in the global industry. It is an industry with high entry barriers, which result mainly from the complexity of production technology and the large investment involved to begin operations.

Post Merger Share Calculation:

  •      100,000: Pre reverse merger outstanding shares
  • 10,000,000: Newly issued shares of Common Stock

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions: 10,100,000

Financial Snapshot:

  • During the year ended June 30, 2010 we generated $44,133,557 in revenues, compared to revenues of $17,053,296 during the year ended June 30, 2009.
     
  • For the year ended June 30, 2010 we generated net income of $1,154,321, compared to a net loss of $1,428,033 for the year ended June 30, 2009.

Financials
 
   
2010
   
2009
 
Sales revenue
  $ 44,133,557     $ 17,053,296  
Cost of goods sold
    42,001,203       18,002,345  
Gross Profit
    2,132,354       (949,049 )
 
         
 
 
Operating expenses
         
 
 
  Selling expenses
    397,170       149,515  
  General and administrative expenses
    576,494       330,135  
Total operating expenses 
    973,664    
479,650 
 
                 
Income (loss) from operations
    1,158,690       (1,428,699 )
  Interest income
    713       1,185  
  Bank charge
    (5,082 )     (519 )
 
         
 
 
Income (loss) before income tax
    1,154,321       (1,428,033 )
  Income tax
    -       -  
 
         
 
 
Net Income (Loss)
  $ 1,154,321     $ (1,428,033 )
 
         
 
 
Other comprehensive income
         
 
 
  Foreign currency translation adjustments
    15,176       8,570  
Total Comprehensive Income (Loss)
  $ 1,169,497     $ (1,419,463 )

Liquidity Requirements
We anticipate that we will meet our ongoing cash requirements by retaining income as well as through equity or debt financing. We plan to cooperate with various individuals and institutions to acquire the financing required to manufacture and distribute our products and anticipate this will continue until we accrue sufficient capital reserves to finance all of our expansion efforts independently.


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