WEB NEWS Comments & Business Outlook
CHINA CHANGJIANG MINING & NEW ENERGY CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED MARCH 31 , 2016 AND 2015
(Stated in US Dollars)
For the Three Months Ended March 31,
2016
2015
Unaudited
Unaudited
Sales revenue - related party
$
-
309,183
Cost of revenue
-
17,113
Gross Profit
-
292,070
Operating expenses
Administrative expenses
32,161
36,945
Depreciation
8,507
13,470
Amortization
97,861
104,300
Total operating expenses
138,529
154,715
Income (loss) from operations
(138,529 )
137,355
Other Income (Expenses)
Interest income
-
91
Interest expenses
(120
)
(314
)
Total Other Expenses
(120 )
(223 )
Income (loss) before tax
(138,649 )
137,132
Income tax expense (benefit)
-
-
Net (loss) income
(138,649 )
137,132
Net income (loss) attributable to:
Non-controlling interests
(7,288
)
1,615
Common Stockholders
(131,361
)
135,517
Other comprehensive income (loss)
Foreign currency translation adjustments
75,436
100,081
Total Comprehensive Income (Loss)
$ (63,213 )
237,213
Weighted average shares-Basic
64,629,559
64,629,559
Weighted average shares-Diluted
64,629,559
64,629,559
Earnings per share,
Basic
(0.00 )
(0.00
)
Diluted
(0.00 )
(0.00
)
Comments & Business Outlook
CHINA CHANGJIANG MINING & NEW ENERGY COMPANY, LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
(Stated in US Dollars)
For the Year Ended December 31,
2015
2014
Sales revenue - related party
$
16,718
1,247,273
Cost of revenue
9,253
68,340
Gross Profit
7,465
1,178,933
Operating expenses
General and administrative expenses
4,209,654
277,083
Depreciation
53,174
55,324
Amortization
411,717
416,527
Total operating expenses
4,674,545
748,934
Income (loss) from operations
(4,667,080
)
429,999
Other Income (Expenses)
Interest income
139
3,376
Interest expenses
(679
)
-
Other income (expense)
11,898
(4,330
)
Total Other Income (Expense)
11,358
(954
)
Income (loss) before tax
(4,655,722
)
429,045
Income tax expense (benefit)
-
-
Net income (loss)
$
(4,655,722
)
$
429,045
Net income (loss) attributable to:
Non-controlling interests
(154,847
)
5,353
Common Stockholders
(4,500,875
)
423,692
Other comprehensive income (loss)
Foreign currency translation adjustments
(666,202
)
(102,835
)
Total Comprehensive Income (Loss)
$
(5,321,924
)
326,210
Weighted average shares-Basic
64,629,559
64,629,559
Weighted average shares-Diluted
64,629,559
64,629,559
Earnings per share,
Basic
(0.07
)
0.01
Diluted
(0.07
)
0.01
Comments & Business Outlook
CHINA CHANGJIANG MINING & NEW ENERGY CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014
(Stated in US Dollars)
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2015
2014
2015
2014
Unaudited
Unaudited
Unaudited
Unaudited
Sales revenues - related party
$
304,983
$
303,014
$
926,521
$
915,274
Cost of revenues
16,777
16,968
51,131
51,255
Gross Profit
288,206
286,046
875,390
864,019
Operating expenses
Administrative expenses
30,068
77,680
105,070
179,199
Bad debt expense
-
46,374
-
46,374
Depreciation
13,207
13,785
40,249
41,731
Amortization
102,255
103,423
311,639
312,395
Total operating expenses
145,530
241,262
456,958
579,699
Income from operations
142,676
44,784
418,432
284,320
Other income (expenses)
Interest income
12
2,325
134
2,372
Interest expenses
(151
)
(100
)
(584
)
(666
)
Other expenses
4
(163
)
(488
)
(163
)
Total other income (expense)
(135
)
2,062
(938
)
1,543
Income before tax
142,541
46,846
417,494
285,863
Income tax expense
-
-
-
-
Net income
142,541
46,846
417,494
285,863
Net income (loss) attributable to:
Non-controlling interests
2,877
(3,036
)
6,594
(8,227
)
Common Stockholders
139,664
49,882
410,900
294,090
Other comprehensive loss
Foreign currency translation adjustments
(706,483
)
(618
)
(552,026
)
(128,304
)
Total comprehensive income (loss)
$
(563,942
)
$
46,228
$
(134,532
)
$
157,559
Weighted average shares-Basic
64,629,559
64,629,559
64,629,559
64,629,559
Weighted average shares-Diluted
64,629,559
64,629,559
64,629,559
64,629,559
Earnings per share,
Basic
0.00
0.00
0.01
0.00
Diluted
0.00
0.00
0.01
0.00
Management Discussion and Analysis
Sales revenue
We generated total revenue of $304,983 for the three months ended September 30, 2015, compared with revenue of $303,014 for the three months ended September 30, 2014. Of the total revenue of $304,983, revenue of $299,594 was generated by land use right leasing, the other revenue of $5,389 was generated by solar PV energy. Both of the revenues for land use right leasing and solar PV energy are related party transactions. They are provided by Shaanxi Huanghe Bay Springs Lake Theme Park Ltd and Heyang County Huanghe Bay Resort Hotel Co., Ltd, respectively, both of which are companies whose controlling person is the same as the controlling person of the Company.
We achieved net income of $142,541 for the three months ended September 30, 2015, compared to net income of $46,846 for the three months ended September 30, 2014. The increase in net income was primarily due to decrease in administrative expense and bad debt expense for the three months ended September 30, 2015.
Comments & Business Outlook
CHINA CHANGJIANG MINING & NEW ENERGY CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 201 5 AND 201 4 (Stated in US Dollars)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2015
2014
2015
2014
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Sales revenue - related party
$
312,355
306,113
$
621,538
612,260
Cost of revenue
17,241
17,143
34,354
34,287
Gross Profit
295,114
288,970
587,184
577,973
Operating expenses
Administrative expenses
38,057
41,777
75,002
101,519
Depreciation
13,572
13,927
27,042
27,946
Amortization
105,084
104,480
209,384
208,972
Total operating expenses
156,713
160,184
311,428
338,437
Income from operations
138,401
128,786
275,756
239,536
Other Income (Expenses)
Interest income
31
23
122
47
Interest expenses
(119
)
(231
)
(433
)
(566
)
Other expenses
(492
)
-
(492
)
-
Total Other Expense
(580 )
(208 )
(803 )
(519 )
Income before tax
137,821
128,578
274,953
239,017
Income tax expense
-
-
-
-
Net income
137,821
128,578
274,953
239,017
Net income attributable to:
Non-controlling interests
2,102
(2,133
)
3,717
(5,191
)
Common stockholders
135,719
130,711
271,236
244,208
Other comprehensive income
Foreign currency translation adjustments
55,786
(2,162
)
155,867
(127,686
)
Total Comprehensive Income
$ 193,607
126,416
$ 430,820
111,331
Weighted average shares-Basic
64,629,559
64,629,559
64,629,559
64,629,559
Weighted average shares-Diluted
64,629,559
64,629,559
64,629,559
64,629,559
Earnings per share,
Basic
0.00
0.00
0.00
0.00
Diluted
0.00
0.00
0.00
0.00
Management Discussion and Analysis
Sales revenue
We generated total revenue of $312,355 for the three months ended June, 30, 2015, compared with revenue of $306,113 for the three months ended June 30, 2014. Of the total revenue of $312,355, revenue of $307,882 was generated by land use right leasing, the other revenue of $4,473 was generated by solar PV energy. Both of the revenues for land use right leasing and solar PV energy are related party transactions. They are provided by Shaanxi Huanghe Bay Springs Lake Theme Park Ltd and Heyang County Huanghe Bay Resort Hotel Co., Ltd, respectively, both of which are companies whose controlling person is the same as the controlling person of the Company.
We achieved net income of $137,821 for the three months ended June 30, 2015, compared to net income of $128,578 for the three months ended June 30, 2014. The slight increase in net income was primarily due to decrease in administrative expense for the three months ended June 30, 2015.
Comments & Business Outlook
CHINA CHANGJIANG MINING & NEW ENERGY CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED MARCH 31 , 2015 AND 2014
(Stated in US Dollars)
For the Three Months Ended
For the Three Months Ended
2015
2014
(Unaudited)
(Unaudited)
Sales revenue - related party (Note 9)
$
309,183
$
306,147
Cost of revenue
17,113
17,144
Gross Profit
292,070
289,003
Operating expenses
Administrative expenses
36,945
59,742
Depreciation
13,470
14,019
Amortization
104,300
104,492
Total operating expenses
154,715
178,253
Income from operations
137,355
110,750
Other Income (Expenses)
Interest income
91
24
Interest expenses
(314
)
(335
)
Total Other Expense
(223
)
(311
)
Income before tax
137,132
110,439
Income tax expense (benefit)
-
-
Net Income
$
137,132
$
110,439
Net income attributable to:
Non-controlling interests
1,615
(3,058
)
Common Stockholders
135,517
113,497
Other comprehensive income/(loss)
Foreign currency translation adjustments
100,081
(125,524
)
Total Comprehensive Income
$
237,213
$
(15,085
)
Weighted average shares-Basic
64,629,559
64,629,559
Weighted average shares-Diluted
64,629,559
64,629,559
Earnings per share,
Basic
0.00
0.00
Diluted
0.00
0.00
Management Discussion and Analysis
Sales revenue
We generated total revenue of $309,183 for the three months ended March 31, 2015, compared with revenue of $306,147 for the three months ended March 31, 2014. Of the total revenue of $309,183, revenue of $305,584 was generated by land use right leasing, the other revenue of $3,599 was generated by solar PV energy. Both of the revenues for land use right leasing and solar PV energy are related party transactions. They are provided by Shaanxi Huanghe Bay Springs Lake Theme Park Ltd and Heyang County Huanghe Bay Resort Hotel Co., Ltd, respectively, both of which are companies with the same controlling person as the Company.
We achieved net income of $137,132 for the three months ended March 31, 2015, compared to net income of $110,439 for the three months ended March 31, 2014. The increase in net income was primarily due to decrease in administrative expense for the three months ended March 31, 2015.
Comments & Business Outlook
CHINA CHANGJIANG MINING & NEW ENERGY CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(Stated in US Dollars)
For the year Ended December 31,
For the year Ended December 31,
2014
2013
Sales revenue - related party (Note 12)
$
1,247,273
$
1,211,397
Cost of revenue
68,340
67,838
Gross Profit
1,178,933
1,143,559
Operating expenses (income)
Administrative expenses
230,709
320,075
Bad debt expense
46,374
-
Depreciation
55,324
37,951
Amortization
416,527
414,416
Total operating expenses
748,934
772,442
Income from operations
429,999
371,117
Other Income (Expenses)
Interest income
3,376
13,840
Interest expenses
-
(1,015
)
Gain on written off of Notes payable
-
434,137
Allowance for long term investment
-
(183,429
)
Other expenses
(4,330
)
(9,608
)
Total Other Income
(954
253,925
Income before tax
429,045
625,042
Income tax expense (benefit)
-
-
Income on continuing operations
429,045
625,042
Income on discontinued operations
-
1,693,219
Net Income
$
429,045
$
2,318,261
Net income attributable to:
Non-controlling interests
5,353
697,791
Common Stockholders
423,692
1,620,470
Other comprehensive income/(loss)
Foreign currency translation adjustments
(102,835
)
437,576
Total Comprehensive Income
$
326,210
$
2,755,837
Weighted average shares-Basic
64,629,559
64,629,559
Weighted average shares-Diluted
64,629,559
64,629,559
Earnings per share,
Basic
0.01
0.04
Diluted
0.01
0.04
Management Discussion and Analysis
Sales revenue
We generated total revenue of $1,247,273 from continuing operations for the year ended December 31, 2014, compared with the revenue of $1,211,397 for the year ended December 31, 2013. The slight increase was due to new revenue of $26,908 for our solar PV business. There was no change for the RMB 7,500,000 annual rent revenue for the year ended December 31, 2014 and 2013.
There was no income on discontinued operations for the year ended December 31, 2014, and income on discontinued operations was $1,693,219 for the year ended December 31, 2013. On December 30, 2013, the Company transferred all of the 60% equity of East Mining to its control person, Mr. Zhang Hong Jun and one of the other company shareholders, Mr. Wang Sheng Li, with a consideration of $885,696 (RMB 5,400,000). Each of the acquirers obtained 30% equity in this transaction.
Prior to this equity deal, East Mining transferred its mines exploration rights to Xunyang County Yongjin Mining Co., Ltd. with a consideration of $2,422,794 (RMB 15,000,000). The transaction was completed and the outstanding amount was settled as of December 31, 2013. The gain of $2,294,386 on disposal of mines consists of the considerations and the total of $128,408 for the related business tax and the surcharges.
We achieved a net income of $429,045 from continuing operations for the year ended December 31, 2014, compared with a net income of $625,042 for the year ended December 31, 2013. The decrease was mainly attributable to other income of $434,137 in writing off notes payable, for the year ended December 31, 2013. Although an allowance for long-term investment of $183,429 was provided for the year ended December 31, 2013.
Comments & Business Outlook
CHINA CHANGJIANG MINING & NEW ENERGY CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013
For the Three Months Ended September 30,
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
For the Nine Months Ended September 30,
2014
2013
2014
2013
Unaudited
Unaudited
Unaudited
Unaudited
Sales revenue - related party
$
303,014
$
303,091
$
915,274
$
904,814
Cost of revenue
16,968
16,973
51,255
50,670
Gross Profit
286,046
286,118
864,019
854,144
Operating expenses(income)
Administrative expenses
77,680
60,277
179,199
248,173
Bad debt expense
46,374
-
46,374
-
Depreciation
13,785
11,367
41,731
23,966
Amortization
103,423
103,449
312,395
308,825
Total operating expenses
241,262
175,093
579,699
580,964
Income from operations
44,784
111,025
284,320
273,180
Other Income (Expenses)
Interest income
2,325
39
2,372
12,920
Interest expenses
(100
)
(169
)
(666
)
(855
)
Other expenses
(163
)
(99
)
(163
)
(7,687
)
Total Other Income (Expense)
2,062
(229
)
1,543
4,378
Income(Loss) before tax
46,846
110,796
285,863
277,558
Income tax expense (benefit)
-
-
-
-
Income on continuing operations
46,846
110,796
285,863
277,558
Income(loss) on discontinued operations
-
(13,442
)
-
1,690,825
Net Income
$
46,846
$
97,354
285,863
$
1,968,383
Net income attributable to:
Non-controlling interests
(3,036
)
(8,150
)
(8,227
)
705,249
Common Stockholders
49,882
105,504
294,090
1,263,134
Other comprehensive income/(loss)
Foreign currency translation adjustments
(618
)
72,911
(128,304
)
317,307
Total Comprehensive Income
$
46,228
$
170,265
$
157,559
$
2,285,690
Weighted average shares-Basic
64,629,559
64,629,559
64,629,559
64,629,559
Weighted average shares-Diluted
64,629,559
64,629,559
64,629,559
64,629,559
Earnings per share,
Basic
0.00
0.00
0.00
0.03
Diluted
0.00
0.00
0.00
0.03
Management Discussion and Analysis
Sales revenue
We generated total revenue of $303,014 from continuing operations for the three months ended September 30, 2014, compared with revenue of $303,091 for the three months ended September 30, 2013. The revenue was from rent of land use rights for both of the periods and was a related party transaction.
We achieved net income of $46,846 from continuing operations for the three months ended September 30, 2014, compared to net income of $110,796 from continuing operations ($97,354 for both continuing and discontinued operations) for the three months ended September 30, 2013. The decrease in net income was primarily due to bad debt expense of $46,374 written off for the three months ended September 30, 2014.
Comments & Business Outlook
CHINA CHANGJIANG MINING & NEW ENERGY CO., LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (Stated in US Dollars)
For the Three Months Ended
June 30,
For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
For the Six Months Ended
June 30,
2014
2013
2014
2013
Unaudited
Unaudited
Unaudited
Unaudited
Sales revenue - related party (Note 11)
$ 306,113 303,023 $ 612,260 601,723
Cost of revenue
17,143 16,970 34,287 33,697
Gross Profit
288,970 286,053 577,973 568,026
Operating expenses(income)
Administrative expenses
41,777 87,520 101,519 187,896
Depreciation
13,927 6,345 27,946 12,599
Amortization
104,480 103,426 208,972 205,376
Total operating expenses
160,184 197,291 338,437 405,871
Income from operations
128,786 88,762 239,536 162,155
Other Income (Expenses)
Interest income
23 2,157 47 12,881
Interest expenses
(231 ) (353 ) (566 ) (686 )
Other expenses
- (54 ) - (7,588 )
Total Other Income (Expense)
(208 ) 1,750 (519 ) 4,607
Income before tax
128,578 90,512 239,017 166,762
Income tax expense (benefit) (Note 12)
- - -
Income on continuing operations
128,578 90,512 239,017 166,762
Income(loss) on discontinued operations (Note 13)
- 33,304 - 1,704,267
Net Income
128,578 123,816 $ 239,017 1,871,029
Net income attributable to:
Non-controlling interests
(2,133 ) 13,491 (5,191 ) 713,399
Common Stockholders
130,711 110,325 244,208 1,157,630
Other comprehensive income/(loss)
Foreign currency translation adjustments
(2,162 ) 207,120 (127,686 ) 244,396
Total Comprehensive Income
$ 126,416 330,936 $ 111,331 2,115,425
Weighted average shares-Basic
64,629,559 64,629,559 64,629,559 64,629,559
Weighted average shares-Diluted
64,629,559 64,629,559 64,629,559 64,629,559
Earnings per share,
Basic
0.00 0.00 0.00 0.03
Diluted
0.00 0.00 0.00 0.03
Management Discussion and Analysis
Sales revenue
Net Income from continuing operations
Comments & Business Outlook
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
(Stated in US Dollars)
For the Year Ended December 31,
For the Year Ended December 31,
2013
2012
Sales revenue - related party (Note 12)
$ 1,211,397 $ 1,188,119
Cost of revenue
67,838 66,535
Gross Profitc
1,143,559 1,121,584
Operating expenses(income)
Administrative expenses
320,075 185,952
Depreciation
37,951 25,970
Amortization
414,416 407,262
Total operating expenses
772,442 619,184
Income from operations
371,117 502,400
Other Income (Expenses)
Interest income
13,840 169,150
Interest expenses
(1,015 ) (140 )
Gain on written off of Notes payable
434,137 -
Allowance for long term investment
(183,429 ) -
Other expenses
(9,608 ) (12,792 )
Total Other Income (Expense)
253,925 156,218
Income(Loss) before tax
625,042 658,618
Income tax expense (Note 13)
- -
Income on continuing operations
625,042 658,618
Income(loss) on discontinued operations(Note 14)
1,693,219 (43,111 )
Net Income
$ 2,318,261 $ 615,507
Net income attributable to :
Non-controlling interests
697,791 (2,377 )
Common Stockholders
1,620,470 617,884
Other comprehensive income/(loss)
Foreign currency translation adjustments
437,576 31,250
Total Comprehensive Income
$ 2,755,837 $ 646,757
Weighted average shares-Basic
64,629,559 64,629,559
Weighted average shares-Diluted
64,629,559 64,629,559
Earnings per share,
Basic
0.04 0.01
Diluted
0.04 0.01
Management Discussion and Analysis
RESULTS OF OPERATIONStotal revenue of $1,211,397 from continuing operations for the year ended December 31, 2013, compared with the revenue of $1,188,119 for the year ended December 31, 2012. The fluctuation was due to the appreciation of RMB against USD, as there was no change for the RMB 7,500,000 annual rent for the year ended December 31, 2013 and 2012.
net income of $2,318,261 for both continuing and discontinued operations for the year ended December 31, 2013, compared to a net income of $615,507 for the year ended December 31, 2012. The significant increase was primarily due to the gain from disposing our mines business in 2013, which was included in the item of income (loss) on discontinued operations.
Comments & Business Outlook
Item 1.01. Entry into a Material Definitive Agreement.Item 2.01. Completion of Acquisition or Disposition of Assets. entered into Equity Transfer Agreements with each of Zhang Hong Jun, a director of the Company and owner of a controlling interest in the Company (holding 54.43% as of December 31, 2012), and Wang Sheng Li, a director and shareholder of the Company (holding 11.52% as of December 31, 2012), to sell Shaanxi Changjiang’s entire 60% interest in Shaanxi East Mining Co., Ltd., (“East Mining” and formerly referred to as “Dongfang Mining”) for a total consideration of $885,696(RMB5,400,000). The consideration payable to the Company was used to offset amounts owed to each of the acquirers. Each of the acquirers obtained a 30% equity in this transaction. The business registration procedures in the industrial and commercial bureau is in progress and is expected to be completed in March.
Comments & Business Outlook
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (Stated in US Dollars)
For the Three
Months Ended
June 30,
For the Three
Months Ended
June 30,
For the Six
Months Ended
June 30,
For the Six
Months Ended
June 30,
2013
2012
2013
2012
Unaudited
Unaudited
Unaudited
Unaudited
Sales revenue – related party (Note 8)
$ 303,023
296,289
$ 601,723
594,022
Cost of revenue
16,970
16,592
33,697
33,265
Gross Profit
286,053
279,697
568,026
560,757
Operating expenses(income)
Administrative expenses
91,260
30,583
207,085
88,305
Gain on disposal of asset (Note 9)
(16,376 )
-
(2,279,328 )
-
Depreciation
6,805
6,025
13,531
13,488
Amortization
103,426
101,127
205,376
202,747
Total operating expenses
185,115
137,735
(1,853,336 )
304,540
Income from operations
100,938
141,962
2,421,362
256,217
Other Income (Expenses)
Interest income
34,594
73
45,461
73
Interest expenses
(401 )
-
(830 )
-
Other expenses
(54 )
(240 )
(7,588 )
(12,761 )
Total Other Income (Expense)
34,139
(167 )
37,043
(12,688 )
Income(Loss) before tax
135,077
141,795
2,458,405
243,529
Income tax expense (benefit) (Note 10)
11,261
(899 )
587,376
(8,461 )
Net Income
$ 123,816
142,694
$ 1,871,029
251,990
Net income attributable to:
Non-controlling interests
13,491
3,308
713,399
(5,090 )
Common Stockholders
110,325
139,386
1,157,630
257,080
Other comprehensive income/(loss)
Foreign currency translation adjustments
207,120
(57,450 )
244,396
(50,272 )
Total Comprehensive Income
$ 330,936
85,244
$ 2,115,425
201,718
Weighted average shares-Basic
64,629,559 64,629,559 64,629,559 64,629,559
Weighted average shares-Diluted
64,629,559 64,629,559 64,629,559 64,629,559
Earnings per share,
Basic
0.00 0.00 0.03 0.00
Diluted
0.00 0.00 0.03 0.00
Comments & Business Outlook
FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
(Stated in US Dollars)
December 31
December 31
2012
2011
Sales revenue (Note 11)
$ 1,188,119 $ 2,744,624
Cost of revenue
66,535 153,699
Gross Profit
1,121,584 2,590,925
Operating expenses
Administrative expenses
241,376 374,388
Depreciation
27,456 35,046
Amortization
407,262 401,476
Total operating expenses
676,094 810,910
Income from operations
445,490 1,780,015
Other Income (Expenses)
Interest income
169,441 457
Interest expenses
(290 ) (1,344 )
Other expenses
(13,399 ) -
Total Other Income (Expense)
155,752 (887 )
Income(Loss) before tax
601,242 1,779,128
Income tax expense (Note 12)
14,265 (283,246 )
Net Income
$ 615,507 $ 1,495,882
Net income attributable to:
Non-controlling interests
(2,377 ) (485,788 )
Common Stockholders
$ 617,884 $ 1,010,094
Other comprehensive income/(loss)
Foreign currency translation adjustments
31,250 (300,991 )
Total Comprehensive Income
$ 646,757 $ 1,194,891
Weighted average shares-Basic
64,629,559 25,448,985
Weighted average shares-Diluted
64,629,559 25,448,985
Earnings per share,
Basic
$ 0.01 $ 0.06
Diluted
$ 0.01 $ 0.06
Comments & Business Outlook
FOR THE THREE & NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(Stated in US Dollars)
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
Notes
2011
2010
2011
2010
(Unaudited)
(Unaudited & Unreviewed)
(Unaudited)
(Unaudited & Unreviewed)
Sales revenue
10 $ 682,316 $ - $ 2,020,012 $ -
Cost of revenue
38,210 - 113,121 -
Gross Profit
644,106 - 1,906,891 -
Operating expenses
Administrative expenses
66,673 43,672 310,913 135,227
Depreciation
8,634 8,921 26,192 26,414
Amortization
99,807 103,623 295,481 306,823
Total operating expenses
175,114 156,216 632,586 468,464
Income from operations
468,992 (156,216 ) 1,274,305 (468,464 )
Other Income (Expenses)
Interest income
25 2 395 176
Interest expenses
(149 ) - (1,161 ) -
Other expenses
- -
Total Other Income (Expense)
(124 ) 2 (766 ) 176
Income (Loss) before tax
468,868 (156,214 ) 1,273,539 (468,288 )
Income tax expenses
11 88,331 - 191,253 -
Net Income (Loss)
380,537 (156,214 ) $ 1,082,286 $ (468,288 )
Net income attributable to:
-Non-controlling interests(loss)
114,462 (5,200 ) $ 364,766 $ (17,672 )
-Common Stockholders
266,075 (151,014 ) $ 717,520 $ (450,616 )
Other comprehensive income/(loss)
Foreign currency translation adjustments
202,905 133,602 (382,511 ) 188,669
Total Comprehensive Income
583,442 (22,612 ) $ 699,775 $ (279,619 )
Weighted average shares-Basic
28,910,359 3,774,625 12,245,275 3,774,625
Weighted average shares-Diluted
28,910,359 3,774,625 12,245,275 3,774,625
Earnings per share - Basic
0.01 (0.04 ) $ 0.09 $ (0.12 )
Earnings per share – Diluted
0.01 (0.04 ) $ 0.09 $ (0.12 )
Investor Alert
On January 5, 2011, Brock, Schechter & Polakoff, LLP (“BSP”) resigned as the principal independent accountant to audit the consolidated financial statements of China Changjiang Mining & New Energy Company, Ltd. (the “Company”) as of and for the fiscal year ended December 31, 2010. The Company’s Board of Directors accepted BSP’s resignation. During the years ended December 31, 2009 and 2008, and the subsequent interim periods, there was a disagreement between BSP and the Company, arising with regard to the filing by the Company of the September 30, 2010 Quarterly Report on Form 10-Q without prior approval by BSP. Further, BSP advised the Company that
(i) BSP’s report for the year ended December 31, 2008 contained a going concern paragraph and a scope limitation on the value of goodwill;
(ii) BSP’s report for the year ended December 31, 2009 contained a going concern paragraph and scope limitations for the value of goodwill and shares of stock; and
(iii) certain material weaknesses were noted by BSP:
(A) the Company does not have the internal controls necessary to develop reliable financial statements;
(B) the Company does not have sufficient knowledge of all the necessary financial statement disclosures that are required to be made in accordance with U.S. generally accepted accounting principles;
(C) the Company’s Board of Directors contained various members of management and was not independent; and
(D) the Company lacked an independent audit committee to oversee the external financial reporting process and the internal control over financial reporting as required by the Sarbanes-Oxley Act of 2002.
BSP further notified the Company, on January 14, 2011, that BSP believed that the Company’s failure to disclose the matters addressed in this Form 8-K in a timely manner constituted an illegal act .
