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CHINA GREEN, INC. (NASDAQ:CHGN)

All | Financials | Investor involvement | IPO Activity

Saturday, September 4, 2010

	Nine months ended March 31, 2010			Nine months ended March 31, 2009			Year ended June 30, 2009			Year ended June 30, 2008
	(unaudited) $			(unaudited) $			(audited) $			(audited) $

Revenue		10,583,682			8,647,436			11,676,141			9,282,281

Cost of services		(4,430,067	)		(3,906,102	)		(5,416,156	)		(3,942,076	)

Gross profit		6,153,615			4,741,334			6,259,985			5,340,205

General and administrative expenses		(902,452	)		(74,632	)		(2,674,837	)		(28,611	)

Income before taxation		5,251,163			4,666,702			3,585,148			5,311,594

Income tax		(60,448	)		(10,186	)		(72,056	)		-

Net income		5,190,715			4,656,516			3,513,092			5,311,594

Other comprehensive income - Foreign currency translation adjustments		(17,416	)		805,371			46,766			698,890

Total comprehensive income		5,173,299			5,461,887			3,559,858			6,010,484

Net income per share – basic and diluted		0.84			0.89			0.67			1.02

Weighted average number of shares outstanding during the period – basic and diluted		6,184,056			5,227,500			5,227,500			5,227,500

This increase in 2009 general and administrative expenses was mainly due to a $2,568,750 ($0.49 EPS) increase in provision for share-based compensation and a $50,063 increase in legal and professional fees we incurred in operations. The Company has entered into various stock-based compensation agreements to issue a total of 856,250 common shares to five individuals for management and consultancy services provided. These shares are valued at $3.00 per share in the Regulation S Private Placement. Although stock-based compensation will be part of our overall compensation scheme in the future, we do not expect large issuances, such as the above-mentioned amount, to occur on a regular basis.

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