WEB NEWS Comments & Business Outlook
China Modern Agricultural Information, Inc.
and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2016 and 2015
(UNAUDITED) (IN U.S. $)
Three Months Ended
Nine Months Ended
2016
2015
2016
2015
Revenues
Milk sales
$ 21,492,079
$
10,824,182
$ 56,576,754
$
36,532,288
Sales commission
4,844,348
5,353,361
15,051,808
12,535,223
Total revenues
26,336,427
16,177,543
71,628,562
49,067,511
Cost of goods sold
(15,821,031 )
(4,239,953
)
(39,112,813 )
(14,824,153)
Gross profit
10,515,396
11,937,590
32,515,749
34,243,358
Operating expenses
Selling and marketing
557,155
341,773
1,517,054
757,953
General and administrative
1,070,527
167,664
39,987,718
425,937
Total operating expenses
1,627,682
509,437
41,504,772
1,183,890
Operating income (loss)
$ 8,887,714
$
11,428,153
$ (8,989,023 )
$
33,059,468
See accompanying notes to the consolidated financial statements.
China Modern Agricultural Information, Inc.
and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME (LOSS) (CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2016 and 2015 (UNAUDITED) (IN U.S. $)
Three Months Ended
Nine Months Ended
2016
2015
2016
2015
Other income (expense)
Interest income on notes receivable
$ 140,404
$
165,475
$ 486,312
$
428,103
Loss on sale of cows
-
-
(103,913 )
(1,099,748
)
Other non-operating income
24,389
62,653
123,266
177,440
Total other income (expenses)
164,793
228,128
505,665
(494,205)
Income (loss) before income taxes
9,052,507
11,656,281
(8,483,358 )
32,565,263
Provision for income taxes
-
2,873,505
2,415,816
8,133,064
Net income before non-controlling interests
9,052,507
8,782,776
(10,899,174 )
24,432,199
Non-controlling interests
(5,637,682)
(88,053)
(12,771,911 )
(266,977)
Net income attributable to common stockholders
$ 3,414,825
$
8,694,723
$ (23,671,085 )
$
24,165,222
Comments & Business Outlook
China Modern Agricultural Information, Inc. and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 and 2014 (UNAUDITED IN U.S. $)
2015 2014
Revenues
Milk sales $ 15,954,007 $ 13,724,991
Sales commission 5,192,856 3,043,107
Total revenues 21,146,863 16,768,098
Cost of goods sold (8,760,384 ) (5,840,176 )
Gross profit 12,386,479 10,927,922
Operating expenses
Selling and marketing 428,024 191,388
General and administrative 38,249,414 121,734
Total operating expenses 38,677,438 313,122
Operating (loss) income (26,290,959
) 10,614,800
Other income and expenses
Interest income on notes receivable 199,914 108,420
Loss on sale of cows (34,818 ) -
Other non-operating income 55,508 53,230
Total other income 220,604 161,650
(Loss) income before provision for income taxes (26,070,355 ) 10,776,450
Provision for income taxes 2,464,645 2,778,055
See accompanying notes to the unaudited consolidated financial statements.
China Modern Agricultural Information, Inc. and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME (CONTINUED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 and 2014 (IN U.S. $) (UNAUDITED IN U.S. $)
2015
2014
Net (loss) income before noncontrolling interests
(28,535,000
)
7,998,395
Noncontrolling interests
(3,200,838 )
(90,466 )
Net (loss) income attributable to common stockholders
(31,735,838
)
7,907,929
Other comprehensive income
Foreign currency translation adjustment
(5,040,228
)
4,929
Total comprehensive (loss) income
$
(36,776,066
)
$
7,912,858
(Loss) earnings per common share, basic and diluted
$
(0.60
)
$
0.15
Weighted average shares outstanding, basic and diluted
53,100,000
53,100,000
Management Discussion and Analysis
Revenues
The revenue was primarily generated from sales of fresh milk and commissions on fresh milk sales by famers to whom we sold cows. We had total revenues of $21,146,863 for the three months ended September 30, 2015, an increase of $4,378,765 or 26%, compared to $16,768,098 for the three months ended September 30, 2014. Such increases were mainly driven by approximately $2.1 million commission revenue generated from the total 6,709 milk cows disposed by Yulong in November and December 2014 and the approximately $2.2 million milk sales due to the increase in number of adult cows.
Xinhua Cattle and Yulong Cattle are entitled to a tax exemption for the full Enterprise Income Tax in China due to a government tax preference policy for the dairy farming industry. Zhongxian Information is subject to an Enterprise Income Tax of 25% and files its own tax returns before January 16, 2015. On January 16, 2015, Zhongxian Information received a tax exemption notice from Harbin National Tax Bureau on its investment income from its subsidiaries. Jiasheng Consulting (the “WFOE”) is subject to an Enterprise Income Tax at 25% and files its own tax return before September 16, 2015. On September 16, 2015, Jiasheng Consulting purchased all of the registered equity of Zhongxian Information and the VIE structure was terminated. Under China tax law, Jiasheng Consulting is exempt from income tax on its investment income since September 16, 2015. The provision for income taxes was $2,464,645 and $2,778,055 for the three months ended September 30, 2015 and 2014, respectively, primarily representing the enterprise income tax on the income of Zhongxian Information. Net income (loss) before noncontrolling interests was $(28,535,000) and $7,998,395 for the three months ended September 30, 2015 and 2014, respectively, which represented a decrease in $36,533,395 or 457%. Originally we own 99% of Xinhua Cattle’s shares and our non controlling interest is only 1% of Xinhua’s net income. On July 16, 2015, as we transferred 100% of the issued and outstanding shares of Value Development to China Dairy, which is 60% owned indirectly by us through our wholly owned subsidiary, Hope Diary. The effect of this transaction was to reduce the interest in our operating company by 40%. As a result, net income attributed to the noncontrolling shareholders was increased from 1% to 40%. $3,200,838 and $90,466 was attributed to noncontrolling interest for the three months ended September 30, 2015 and 2014, respectively. Our net income (loss) attributable to the common stockholders of the Company was $(31,735,838) representing $(0.60) per share and $7,907,929 representing $0.15 per share for the three months ended September 30, 2015 and 2014, respectively.
Comments & Business Outlook
China Modern Agricultural Information, Inc.
and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED june 30, 2015 and 2014 (IN U.S. $)
2015
2014
Revenues
Milk sales
$ 48,441,505
$
46,577,224
Sales commission
17,893,661
12,176,030
Total revenues
66,335,166
58,753,254
Cost of goods sold
(20,229,296 )
(21,544,372)
Gross profit
46,105,870
37,208,882
Operating expenses
Selling and marketing
1,146,798
764,176
General and administrative
783,468
879,976
Total operating expenses
1,930,266
1,644,152
Operating income
44,175,604
35,564,730
Other income and expenses
Interest income on notes receivable
618,263
537,737
Gain (loss) on disposal of properties
(1,104,345 )
1,031
Other non-operating income
226,543
149,185
Total other income (expenses)
(259,539 )
687,953
Income before provision for income taxes
43,916,065
36,252,683
Provision for income taxes
10,968,816
9,446,671
See accompanying notes to the consolidated financial statements.
China Modern Agricultural Information, Inc.
and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME (CONTINUED )
FOR THE FISCAL YEARS ENDED JUNE 30, 2015 and 2014 (IN U.S. $)
2015
2014
Net income before noncontrolling interests
32,947,249
26,806,012
Noncontrolling interests
(355,982 )
(285,569 )
Net income attributable to common stockholders
32,591,267
26,520,443
Other comprehensive income
Foreign currency translation adjustment
560,995
874,250
Total comprehensive income
$ 33,152,262
$
27,394,693
Earnings per common share, basic and diluted
$ 0.61
$
0.50
Weighted average shares outstanding, basic and diluted
53,100,000
53,100,000
Management Discussion and Analysis
The revenue was primarily generated from sales of fresh milk and commissions on fresh milk sales by famers to whom we sold cows. We had total revenues of $66,335,166 for the fiscal year ended June 30, 2015, an increase of $7,581,912 or 13%, compared to $58,753,254 for the fiscal year ended June 30, 2014. Such increases were mainly driven by approximately $6 million commission revenue generated from the total 6,709 milk cows disposed by Yulong in November and December 2014.
Xinhua Cattle and Yulong Cattle are entitled to a tax exemption for the full Enterprise Income Tax in China due to a government tax preference policy for the dairy farming industry. Zhongxian Information is subject to an Enterprise Income Tax of 25% and files its own tax returns before January 16, 2015. On January 16, 2015, Zhongxian Information received a tax exemption notice from Harbin National Tax Bureau on its investment income from its subsidiaries. Jiasheng Consulting (the “WFOE”) is subject to an Enterprise Income Tax at 25% and files its own tax return. The provision for income taxes was $10,968,816 and $9,446,671 for the fiscal years ended June 30, 2015 and 2014, respectively, primarily representing the enterprise income tax on the income of Zhongxian Information. Net income before non-controlling interests was $32,947,249 and $26,806,012 for the fiscal years ended June 30, 2015 and 2014, respectively, which represented an increase in $6,141,237 or 23%. As we own 99% of Xinhua Cattle’s shares, net income attributed to the non-controlling shareholders was $355,982 and $285,569 for the fiscal years ended June 30, 2015 and 2014, respectively. Our net income attributable to the common stockholders of the Company was $32,591,267 representing $0.61 per share and $26,520,443 representing $0.50 per share for the fiscal years ended June 30, 2015 and 2014, respectively.
Comments & Business Outlook
China Modern Agricultural Information, Inc.
and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2015 and 2014 ( UNAUDITED) (IN U.S. $)
Three Months Ended March 31,
Nine Months Ended March 31,
2015
2014
2015
2014
Revenues
Milk sales
$ 10,824,182
$ 11,708,023
$ 36,532,288
$ 33,705,777
Sales commission
5,353,361
2,998,975
12,535,223
9,172,655
Total revenues
16,177,543
14,706,998
49,067,511
42,878,432
Cost of goods sold
(4,239,953 )
(5,455,703)
(14,824,153 )
(15,152,704 )
Gross profit
11,937,590
9,251,295
34,243,358
27,725,728
Operating expenses
Selling and marketing
341,773
189,467
757,953
575,749
General and administrative
167,664
127,777
425,937
412,831
Total operating expenses
509,437
317,244
1,183,890
988,580
Operating income
11,428,153
8,934,051
33,059,468
26,737,148
Management Discussion and Analysis
Revenues
The revenue was primarily generated from sales of fresh milk and commissions on fresh milk sales by famers to whom we sold cows. We had total revenues of $16,177,543 for the quarter ended March 31, 2015, an increase of $1,470,545 or 10%, compared to $14,706,998 for the quarter ended March 31, 2014. Such increases were driven by approximately $2.5 million commission revenue generated from the total 6,709 milk cows disposed by Yulong in November and December 2014 although the average quantity of milk cows decreased by 761.
Xinhua Cattle and Yulong Cattle are entitled to a tax exemption for the full Enterprise Income Tax in China due to a government tax preference policy for the dairy farming industry. Zhongxian Information is subject to an Enterprise Income Tax of 25% and files its own tax returns before January 16, 2015. On January 16, 2015, Zhongxian Information received a tax exemption notice from Harbin National Tax Bureau on its investment income from its subsidiaries. Jiasheng Consulting (the “WFOE”) is subject to an Enterprise Income Tax at 25% and files its own tax return. The provision for income taxes was $2,873,505 and $2,263,883 for the quarters ended March 31, 2015 and 2014, respectively, primarily representing the enterprise income tax on the income of Zhongxian Information. Net income before noncontrolling interests was $8,782,776 and $6,842,229 for the quarters ended March 31, 2015 and 2014, respectively, which represented an increase in $1,940,547 or 28%. As we own 99% of Xinhua Cattle’s shares, net income attributed to the non controlling shareholders was $88,053 and $71,522 for the quarters ended March 31, 2015 and 2014, respectively. Our net income attributable to the common stockholders of the Company was $8,694,723 representing $0.16 per share and $6,770,707 representing $0.13 per share for the quarters ended March 31, 2015 and 2014, respectively.
Comments & Business Outlook
China Modern Agricultural Information, Inc.
and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2014 and 2013
(UNAUDITED) (IN U.S. $)
Three Months Ended Six Months Ended
2014 2013 2014 2013
Revenues
Milk sales $ 11,983,115 $ 11,250,331 $ 25,708,106 $ 21,997,754
Sales commission 4,138,755 3,071,640 7,181,862 6,173,680
Total revenues 16,121,870 14,321,971 32,889,968 28,171,434
Cost of goods sold (4,744,024 ) (5,249,225 ) (10,584,200 ) (9,697,001 )
Gross profit 11,377,846 9,072,746 22,305,768 18,474,433
Operating expenses
Selling and marketing 224,792 192,347 416,180 386,282
General and administrative 136,539 132,227 258,273 285,054
Total operating expenses 361,331 324,574 674,453 671,336
Operating income $ 11,016,515 $ 8,748,172 $ 21,631,315 $ 17,803,097
Management Discussion and Analysis
Revenues
The revenue was primarily generated from sales of fresh milk and commissions on fresh milk sales by famers to whom we sold cows. We had total revenues of $16,121,870 for the quarter ended December 31, 2014, an increase of $1,799,899 or 13%, compared to $14,321,971 for the quarter ended December 31, 2013. Such increases were driven by an increase of 449 milk cows compared to the same period in 2013 and approximately $1 million commission revenue generated from the total 6,709 milk cows disposed by Yulong in November and December 2014.
Xinhua Cattle and Yulong Cattle are entitled to a tax exemption for the full Enterprise Income Tax in China due to a government tax preference policy for the dairy farming industry. Zhongxian Information is subject to an Enterprise Income Tax of 25% and files its own tax returns. The provision for income taxes was $2,481,504 and $2,218,138 for the quarters ended December 31, 2014 and 2013, respectively, primarily representing the enterprise income tax on the income of Zhongxian Information. Net income before noncontrolling interests was $7,651,028 and $6,704,346 for the quarters ended December 31, 2014 and 2013, respectively, which represented an increase in $946,682 or 14%. As we own 99% of Xinhua Cattle’s shares, net income attributed to the non controlling shareholders was $88,458 and $68,771 for the quarters ended December 31, 2014 and 2013, respectively. Our net income attributable to the common stockholders of the Company was $7,562,570 representing $0.14 per share and $6,635,605 representing $0.12 per share for the quarters ended December 31, 2014 and 2013, respectively.
Comments & Business Outlook
China Modern Agricultural Information, Inc.
and subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED June 30, 2014 and 2013 (IN U.S. $)
2014
2013
Revenues
Milk sales
$
46,577,224
$
34,093,893
Sales commission
12,176,030
12,672,388
Total revenues
58,753,254
46,766,281
Cost of goods sold
(21,544,372
)
(17,242,365
)
Gross profit
37,208,882
29,523,916
Operating expenses
Selling and marketing
764,176
794,350
General and administrative
879,976
489,049
Total operating expenses
1,644,152
1,283,399
Operating income
35,564,730
28,240,517
Other income and expenses
Interest income on notes receivable
537,737
664,327
Gain (loss) on disposal of biological assets
1,031
(1,965
)
Government subsidies
-
191,677
Other non-operating income
149,185
151,874
Total other income
687,953
1,005,913
Income before provision for income taxes
36,252,683
29,246,430
Provision for income taxes
9,446,671
7,392,914
Management Discussion and Analysis
Revenues
The revenue per milk cow decreased to $4,804 for the year ended June 30, 2014 from $4,861 for the year ended June 30, 2013, a decrease of $57 or 1%. Such decrease was a result of the aging of the cows compared to the year ended June 30, 2013, but the decrease is slight.
The total revenue increased, the sales commissions, however, decreased caused by a decline in the daily milk production of the group of milk cows owned by the local farmers. The sales commissions from local farmers decreased by $496,358 or 4% to $12,176,030 for the year ended June 30, 2014 from $12,672,388 for the year ended June 30, 2013. We believe that the daily production of these milk cows have peaked and has begun to decline as the cows age.
Xinhua Cattle and Yulong Cattle are entitled to a tax exemption for the full Enterprise Income Tax in China due to a government tax preferential policy for the dairy farming industry. Zhongxian Information is subject to an Enterprise Income Tax of 25% and files its own tax returns. The provision for income taxes was $9,446,671 and $7,392,914 for the years ended June 30, 2014 and 2013, respectively, primarily representing the enterprise income tax on the income of Zhongxian Information. Net income before noncontrolling interests was $26,806,012 and $21,853,516 for the years ended June 30, 2014 and 2013, respectively, which represented an increase in $4,952,496 or 23%. As we own 99% of Xinhua Cattle’s shares, net income attributed to the minority interest shareholder was $285,569 and $213,796 for the years ended June 30, 2014 and 2013, respectively. Our net income attributable to the common stockholders of the Company was $26,520,443 representing $0.50 per share and $21,639,720 representing $0.41 per share for the years ended June 30, 2014 and 2013, respectively.
Comments & Business Outlook
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2014 AND 2013 (IN U.S. $)
Three Months Ended
March 31,
Nine Months Ended
March 31,
2014
2013
2014
2013
Revenues
Milk sales
$ 11,708,023 $ 8,419,547 $ 33,705,777 $ 24,165,322
Sales commission
2,998,975 3,078,318 9,172,655 9,553,298
Total revenues
14,706,998 11,497,865 42,878,432 33,718,620
Cost of goods sold
(5,455,703 ) (4,326,146 ) (15,152,704 ) (12,358,797 )
Gross profit
9,251,295 7,171,719 27,725,728 21,359,823
Operating expenses
Selling and marketing
189,467 193,053 575,749 598,592
General and administrative
87,351 102,582 307,067 268,162
Total operating expenses
276,818 295,635 882,816 866,754
Operating income
8,974,477 6,876,084 26,842,912 20,493,069
See accompanying notes to the consolidated financial statements.
Three Months Ended
March 31,
Nine Months Ended
March 31,
2014
2013
2014
2013
Other income and expenses
Other non-operating income
131,635 196,617 414,257 659,470
Other non-operating (expense)
- (37,157 ) - (125,699 )
Total other income
131,635 159,460 414,257 533,771
Income before income taxes
9,106,112 7,035,544 27,257,169 21,026,840
Provision for income taxes
2,263,883 1,751,619 6,628,162 5,349,748
Net income before non-controlling interests
6,842,229 5,283,925 20,629,007 15,677,092
Non-controlling interests
(71,522 ) (49,843 ) (206,218 ) (152,157 )
Net income attributable to common stockholders
6,770,707 5,234,082 20,422,789 15,524,935
See accompanying notes to the consolidated financial statements.
Three Months Ended
March 31,
Nine Months Ended
March 31,
2014
2013
2014
2013
Other comprehensive income:
Foreign currency translation adjustment
(741,169 ) 307,656 154,672 417,407
Total comprehensive income
$ 6,029,538 $ 5,541,738 $ 20,577,461 $ 15,942,342
Earnings per common share, basic and diluted
$ 0.13 $ 0.10 $ 0.38 $ 0.29
Weighted average shares outstanding, basic and diluted
53,100,000 53,100,000 53,100,000 53,100,000
Management Discussion and Analysis
Revenues
Comments & Business Outlook
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2013 AND 2012 (IN U.S. $)
Three Months Ended
December 31,
Six Months Ended
December 31,
2013
2012
2013
2012
Revenues
Milk sales
$ 11,250,331
$ 8,078,427
$ 21,997,754
$ 15,745,775
Sales commission
3,071,640
3,224,415
6,173,680
6,474,980
Total revenues
14,321,971
11,302,842
28,171,434
22,220,755
Cost of goods sold
(5,249,225 )
(4,136,219 )
(9,697,001 )
(8,032,651 )
Gross profit
9,072,746
7,166,623
18,474,433
14,188,104
Operating expenses
Selling and marketing
192,347
201,890
386,282
405,539
General and administrative
96,162
79,799
219,716
165,580
Total operating expenses
288,509
281,689
605,998
571,119
Operating income
8,784,237
6,884,934
17,868,435
13,616,985
Other comprehensive income:
Foreign currency translation adjustment
468,467 100,899 895,841 109,751
Total comprehensive income
$ 7,104,072 $ 5,373,370 $ 14,547,923 $ 10,400,604
Earnings per common share, basic and diluted
$ 0.12 $ 0.10 $ 0.26 0.19
Other income and expenses
Other non-operating income
$ 138,277
$ 287,990
$ 282,622
$ 462,853
Other non-operating (expense)
-
(87,380 )
-
(88,542 )
Total other income
138,277
200,610
282,622
374,311
Income before income taxes
8,922,514
7,085,544
18,151,057
13,991,296
Provision for income taxes
2,218,138
1,764,705
4,364,279
3,598,129
Net income before noncontrolling interests
6,704,376
5,320,839
13,786,778
10,393,167
Noncontrolling interests
(68,771 )
(48,368 )
(134,696 )
(102,314 )
Net income attributable to common stockholders
6,635,605
5,272,471
13,652,082
10,290,853
Other comprehensive income:
Foreign currency translation adjustment
468,467 100,899 895,841 109,751
Total comprehensive income
$ 7,104,072 $ 5,373,370 $ 14,547,923 $ 10,400,604
Earnings per common share, basic and diluted
$ 0.12 $ 0.10 $ 0.26 0.19
Management Discussion and Analysis
Results of Operations Comparison of Three and Six Months Ended December 31, 2013 and 2012
Revenues
For the three months ended December 31, 2013, our revenue generated from natural milk sales was $11,250,331 which represented an increase of $3,171,904 or 39% compared to $8,078,427 for the three months ended December 31, 2012. For the six months ended December 31, 2013, our revenue generated from natural milk sales was $21,997,754 which represented an increase of $6,251,979 or 40% compared to $15,745,775 for the six months ended December 31, 2012. Two factors are considered to have primary led to such increases: First, the average milk selling price increased from $0.55 per kg to $0.56 per kg, an increase of $0.01 per kg or 2%; Second, the number of our milk cows increased by 2,562 from the same period of 2012.
The revenue per milk cow was $1,222 for the three months ended December 31, 2013 compared to $1,227 for the three months ended December 31, 2012, a slight decrease of $5. The revenue per milk cow was $2,442 for the six months ended December 31, 2013 compared to $2,443 for the six months ended December 31, 2012, a slight decrease of $1. The average quantity of milk cows increased to 9,209 and 9,008 for the three and six months ended December 31, 2013, respectively, from 6,585 and 6,446 for the three and six months ended December 31, 2012, respectively, an increase of 2,624 or 40% and 2,562 or 40%, respectively.
Net Income
Comments & Business Outlook
2013 Fourth Quarter Results
The company reported revenue of $46.7 million, compared to $29.8 million for the same quarter 2012.
The company reported EPS of $0.12, compared to $0.06 for the same quarter 2012.
Comments & Business Outlook
HARBIN, CHINA--(Marketwired - Jul 1, 2013) - China Modern Agricultural Information Inc. ("China Modern" or "the Company") (OTCQB : CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk and the sale of organic fertilizer, today announced that, Nova Advisors Inc. ("Nova"), an unrelated independent third party, has issued its opinion on China Modern's financial condition attesting that China Modern's financial statements have complied with United States (the "US") generally accepted accounting principles ("US GAAP") and has no false statements on the financial reports after its investigation. The due diligence opinion is distributed at http://www.hljzhongxian.com/zx/eng_zx/index_news_detail.asp?id=102.
From April 20, 2013 to May 4, 2013, Nova has entrusted Beijing Jingze Law Firm ("Beijing Jingze") to respectively visit the offices and breeding sites of domestic variable interest entities of China Modern, including Heilongjiang Zhongxian Information Co., Ltd. ("Heilongjiang Zhongxian"), and its subsidiaries�Heilongjiang Xinhua Cattle Industry Co., Ltd. ("Xinhua Cattle")�and Shangzhi Yulong Co., Ltd ("Yulong Cattle"). Beijing Jingze and Nova also interviewed the local Administration for Industry and Commerce ("AIC") officials, and independently obtained the audited business financial reports prepared under Chinese accounting standard filed by the above-mentioned entities following the Chinese legal procedures.
Nova also entrusted Wei Wei & Co., LLP ("Wei Wei") to review and compare the Form 10-K and 10-Q that China Modern filed with SEC in 2012, and the financial statements that the Company filed with Administration for Industry and Commerce of PRC ("AIC")
Based on the independent review of the financial reports by Wei Wei and Nova, they reached the conclusion that there is no significant difference between the Form 10-K and 10-Q that China Modern filed with SEC and the financial statements that the Company filed with AIC in 2012 (except the adjustments under different accounting standards). The independent due diligence shows that China Modern has complied with the related regulations on the financial disclosure under US GAAP and all the financial documents investigated in this report are true and correct.
Mr. Youliang Wang, the CEO of the Company, commented: "The due diligence report issued by Nova fully supports that financial data disclosed by the Company to the public is in conformity with regulatory requirements for public companies issued by SEC. In the future, we will seize favorable opportunities from rapid development of Chinese dairy processing industry and continue to adopt active operation management measures, to achieve sustainable growth and higher profit for investors and shareholders.
Comments & Business Outlook
CHINA MODERN AGRICULTURAL INFORMATION, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME (UNAUDITED )
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2013 AND 2012 (IN U.S. $)
Three Months Ended
March 31,
Nine Months Ended
March 31,
2013
2012
2013
2012
Revenues
Milk sales
$ 8,419,547 $ 6,425,656 $ 24,165,322 $ 12,778,783
Sales commission
3,078,318 2,980,377 9,553,298 6,725,530
Total revenues
11,497,865 9,406,033 33,718,620 19,504,313
Cost of goods sold
(4,326,146 ) (3,360,430 ) (12,358,797 ) (6,522,244 )
Gross profit
7,171,719 6,045,603 21,359,823 12,982,069
Operating expenses
Selling and marketing
193,053 188,529 598,592 413,296
General and administrative
102,582 102,015 268,162 267,515
Total operating expenses
295,635 290,544 866,754 680,811
Operating income
6,876,084 5,755,059 20,493,069 12,301,258
Three Months Ended
March 31,
Nine Months Ended
March 31,
2013
2012
2013
2012
Other comprehensive income:
Foreign currency translation adjustment
307,656 230,436 417,407 593,666
Total comprehensive income
$ 5,541,738 $ 4,795,609 $ 15,942,342 $ 14,636,215
Earnings per common share, basic and diluted
$ 0.10 $ 0.09 $ 0.29 0.31
Weighted average shares outstanding, basic and diluted
53,100,000 50,100,000 53,100,000 45,321,818
Comments & Business Outlook
HARBIN, CHINA--(Marketwire - Oct 29, 2012) - China Modern Agricultural Information Inc. ("the Company", "China Modern") (OTCBB : CMCI ), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk and the sale of organic fertilizer, today announced net income guidance of $ 5 million or earnings per share of $0.10 based on 53.1 million fully diluted shares outstanding for the 2013 fiscal first quarter ending September 30, 2012.
The Projected Earnings of the First Quarter of 2013 Fiscal year The projected revenue for the three months ended September 30, 2012 is expected to be $10.9 million, an increase of 119% compared with $4.98 million for the same period of last year. The revenue is primarily generated from the sales of natural milk and natural milk sales commission from farmers to which China Modern sold cows. The revenue from natural milk selling and the sales commission from farmers are forecasted to be $7.7 million and $3.3 million, respectively. The gross profit is projected to be increased by $3.7 million or 110% to approximate $7.0 million. The projected net income is $5 million, an increase of about $2.4 million or 93%, compared to the same period of last year. The projected net profit margin will be
Comments & Business Outlook
FOR THE YEARS ENDED JUNE 30, 2012 AND 2011 (IN U.S. $)
2012
2011
Revenues
Milk sales
$ 19,812,585 $ 24,898,813
Sales commission
10,009,699 122,799
Total revenues
29,822,284 25,021,612
Cost of goods sold
(10,696,821 ) (11,931,849 )
Gross profit
19,125,463 13,089,763
Operating expenses
Selling and marketing
(619,307 ) (48,892 )
General and administrative
(1,673,261 ) (1,348,669 )
Total operating expenses
(2,292,568 ) (1,397,561 )
Operating income
16,832,895 11,692,202
Other income and expenses
Bargain purchase gain
5,721,596 -
Interest income on notes receivable
652,992 -
Gain on disposal of biological assets
254,934 142,562
Government subsidies
110,320 -
Other non-operating income
47,013 15,639
Total other income
6,786,855 158,201
Income before income taxes
23,619,750 11,850,403
Provision for income taxes
6,064,917 2,866,622
Net income before noncontrolling interests
17,554,833 8,983,781
Noncontrolling interests
(145,750 ) (130,597 )
Net income attributable to common stockholders
17,409,083 8,853,184
Comments & Business Outlook
HARBIN, CHINA--(Marketwire - May 21, 2012 ) - China Modern Agricultural Information Inc. ("the Company", "China Modern") (OTCBB : CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk and the sale of organic fertilizer, today releases the projected earnings for the fiscal year 2012 ended June 30, 2012. The forecasted net income will be increased by 86% year over year to $16.4 million or $0.35 per basic and diluted earnings per share.
Review of the First Three Quarters of Fiscal Year 2012 Revenue for the first three quarters of fiscal year 2012 was $19.5 million . It was increased by $2.3 million or 13%, compared to $17.2 million for the three quarters ended March 31, 2011. The gross profit was increased by $4.4 million or 52% to $13 million. The gross profit margin has been improved from 50% to 67% compared with the same period last year. The increases are mainly due to the adoption of a new business model. Under this special business model, it provides the company with a revenue stream for which it incurs very little direct costs and so the gross profit margin was remarkably improved.
On November 23, 2011, the Company successfully acquired 100% ownership of Shangzhi Yulong Cattle Industry Co., Ltd. A bargain purchase gain of $5.72 million was generated from this acquisition, which has been consolidated in the quarterly financial statements ended in Dec. 31, 2011.
For the three quarters ended March 31, 2012, net income was increased by $8.40 million or 149% to $14.0 million, compared to $5.7 million for the three quarters ended March 31, 2011. The net profit margin was increased from 33% to 72%. The earnings per share was increased from $0.14 to $0.31, an increase of $0.17 or 120%.
The Projected Earnings of the Fiscal Year 2012 The projected revenue for the year ended June 30, 2012 is forecasted as approximate $27.6 million, an increase of $2.6 million or 10% compared to $25.0 million for the year ended June 30, 2011. The revenues from sales of raw milk and the sales commission from farmers are forecasted as $18.3 million and $9.3 million respectively. The projected gross profit is $18.0 million, an increase of $5 million or 38% compared with the same period last year. The gross profit margin is projected to be increased from 52% to approximate 65%. The projected net income is $16.4 million, an increase of about $7.6 million or 86%, compared to the same period of last year. The projected net profit margin will be increased to 59% from 35%, and the earning per share is projected to be increased from $0.23 to about $0.35, an increase of 52% year over year.
Comments & Business Outlook
Financial results for the 2012 fiscal third quarter
Net income increased 149% to $14.0 million or $0.31 per basic and diluted earnings per share.
Revenue for the 2012 fiscal third quarter ended March 31, 2012 totaled $9.4 million, an increase of 38% as compared to $6.8 million for the same period the prior year.
Cost of goods sold for the 2012 fiscal third quarter ended March 31, 2012 was reduced to $3.36 million, which represented a decrease of $66,558 or 2% compared to $3.43 million for the same period of 2011.
Gross profit for the 2012 fiscal third quarter ended March 31, 2012 totaled $6.0 million, an increase of 79% compared to $3.4 million for the quarter ended March 31, 2011.
Mr. Youliang Wang, Chief Executive Officer of China Modern Agricultural Information, commented, "China Modern has been engaged in the breeding of livestock and in the production and sale of fresh milk since January 2005. Driven by the strong demand of raw milk in China, we saw the price of raw milk has kept rising. During the quarter ended March 31, 2012, the sales price of milk was increased by approximate 15% to approximate USD 0.50 per kg comparing with prior quarter. To offset the increasing cost of animal feed, the management team adopted a new business model since June 2011 which has dramatically decreased the operating costs and improved the profit margins. Our acquisition of Yulong Cattle in November 2011 further improved our capacity of milk production, which is an important driver for our revenue growth."
Mr. Wang, continued, "The demand for raw milk in China will stay strong in the next several years, which will be a key driver for our business growth. Combined with our new operating activities in place, I am confident China Modern will keep delivering strong both top-line and bottom-line growth."
Comments & Business Outlook
HARBIN, CHINA--(Marketwire - Apr 2, 2012 ) - China Modern Agricultural Information Inc. ("the Company") (OTCBB : CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk and the sale of organic fertilizer, today releases the projected earnings for the 2012 fiscal first nine months ended March 31st, 2012. The projected net income will increase 163% to $13.8 million or $0.31 per basic and diluted earnings per share.
Review of the First Two Quarters of Fiscal Year 2012 The revenue for the first two quarters of fiscal year 2012 is $10.1 million, and the gross profit is $6.9 million. The gross profit increased $1.77 million or 34% year over year and the gross profit margin has improved from 50% to 69%. The increases are mainly due to the adaption of a new business model. Under this unique business model, the company leases the cows to the farmers and generates the profit from both milk sale and commission, which dramatically lowered the cost of goods sold and remarkably improved the gross profit margin.
On November 23, 2011, the Company completed the acquisition of 100% stock equity of Shangzhi Yulong Cattle Industry Co., Ltd. and generated $5.72 million in net income, which has been consolidated in the quarterly financial statements ended in Dec. 31, 2011. The Company generated net income of $9.48 million during the first two quarters of fiscal year 2012, an increase of $5.78 million or 157% compared to the same period of last year. The earnings per share increased from $0.10 to $0.22, an increase of 120%. The acquisition is expected to increase fresh milk production capacity by 30,000 tons per year, and generate $12 million in revenue and $4 million in net income for the fiscal year 2012.
The Projected Earnings of the Third Quarter of Fiscal Year 2012 The revenue of the fiscal 2012 third quarter ended March 31, 2012 is projected to be approximately $9.4 million, an increase of $3.3 million or 54% compared to the same period of last year. The gross profit margin is projected to increase from 50% to about 64%. The main reason for this growth in gross profit is the acquisition of Yulong Cattle Industry Co., Ltd. and higher sales price of raw milk. The net profit of the fiscal year 2012 third quarter is projected to be about $4.3 million, an increase of $2.2 million or 101% year over year.
The projected revenue of the first three quarters of the fiscal year 2012 ended March 31, 2012 is about $19.5 million, an increase of $2.3 million or 14%, compared to the same period of last year. The projected gross profit is about $13 million, an increase of $4.4 million or 51%, compared to the same period of last year. The projected net profit is $13.8 million , an increase of about $8.6 million or 163%, compared to the same period of last year. The projected net profit margin will increase to 70% from 31%, and the earning per share is projected to increase from $0.13 to about $0.31, an increase of 136% year over year.
Comments & Business Outlook
Second Quarter 2012 Results
Revenue for the 2012 fiscal second quarter ended December 31, 2011 totaled $5.1 million, a decrease of 16% as compared to $6.1 million for the same period the prior year.
Net income for the fiscal second quarter ended December 31, 2011 totaled $6.9 million, an increase of 215% compared to $2.2 million for the 2011 fiscal second quarter ended December 31, 2010.
Earnings per share for the fiscal second quarter was $0.15, based on 43 million shares outstanding versus earnings per share of $0.06 for the 2010 fiscal second quarter, based on 36 million shares outstanding.
Acquisition Activity
Financial statement details of recent acquisitions:
SHANGZHI YULONG CATTLE INDUSTRY CO., LTD.
STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED JUNE 30, 2011 AND 2010
2011
2010
Revenues
$ 10,400,314 $ 5,599,168
Cost of goods sold
(5,729,791 ) (3,036,336 )
Gross profit
4,670,523 2,562,832
Operating expenses:
Selling and marketing
(122,667 ) (32,792 )
General and administrative
(235,407 ) (168,412 )
Total operating expenses
(358,074 ) (201,204 )
Operating income
4,312,449 2,361,628
Other income:
Non-operating income
160,867 -
Total other income
160,867 -
Income before provision for income taxes
4,473,316 2,361,628
Provision for income taxes
- -
Net income
4,473,316 2,361,628
Other comprehensive income:
Foreign currency translation adjustment
394,950 27,124
Total comprehensive income
$ 4,868,266 $ 2,388,752
Unaudited Pro Forma Condensed Consolidated Income Statements
For the three months ended September 30, 2011
(U.S. Dollars)
CMCI
Yulong Cattle
Pro Forma Adjustments
(A)
(B)
Debits
Credits
Pro Forma
Revenues
$ 4,975,926 $ 3,405,785 $ - $ - $ 8,381,711
Cost of goods sold
(1,600,684 ) (1,898,345 )
(J)
6,904 - (3,505,933 )
Gross profit
3,375,242 1,507,440 6,904 - 4,875,778
Operating expenses
(137,608 ) (45,146 )
(K)
16,426 - (199,180 )
Non-operating income
284,997 - - - 284,997
Income before income taxes
3,522,631 1,462,294 23,330 - 4,961,595
Provision for income taxes
871,769 - - - 871,769
Net income before noncontrolling interests
2,650,862 1,462,294 23,330 - 4,089,826
Noncontrolling interests
(35,557 ) - - - (35,557 )
Net income attributable to controlling interest
$ 2,615,305 $ 1,462,294 $ 23,330 $ - $ 4,054,269
Net income per Share, basic and diluted
$ 0.07 $ - $ - $ - $ 0.08
Weighted average shares outstanding, basic and diluted
41,100,000 - - 9,000,000 50,100,000
Unaudited Pro Forma Condensed Consolidated Income Statements
For the year ended June 30, 2011
(U.S. Dollars)
CMCI
Yulong Cattle
Pro Forma Adjustments
(A)
(B)
Debits
Credits
Pro Forma
Revenues
$ 25,021,612 $ 10,400,314 $ - $ - $ 35,421,926
Cost of goods sold
(11,931,849 ) (5,729,791 )
(J)
9,625 - (17,671,265 )
Gross profit
13,089,763 4,670,523 9,625 - 17,750,661
Operating expenses
(1,397,561 ) (358,074 )
(K)
19,077 - (1,774,712 )
Non-operating income
158,201 160,867 - - 319,068
Income before income taxes
11,850,403 4,473,316 28,702 - 16,295,017
Provision for income taxes
2,866,622 - - - 2,866,622
Net income before noncontrolling interests
8,983,781 4,473,316 28,702 - 13,428,395
Noncontrolling interests
(130,597 ) - - - (130,597 )
Net income attributable to controlling interest
$ 8,853,184 $ 4,473,316 $ 28,702 $ - $ 13,297,798
Net income per Share, basic and diluted
$ 0.23 $ - $ - $ - $ 0.28
Weighted average shares outstanding, basic and diluted
38,038,022 - - 9,000,000 47,038,022
Acquisition Activity
HARBIN, CHINA--(
Marketwire - Dec 1, 2011 ) - China Modern Agricultural Information Inc. (the "company") (
OTCBB : CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk and the sale of organic fertilizer, today announced the completion of its
acquisition of Shangzhi Yulong Co., Ltd ("Shangzhi Yulong"). The company has signed the merger agreement to transfer 100% equity interest of Shangzhi Yulong. The acquisition is expected to increase fresh milk production capacity by 30,000 tons per year to 110,000 tons, an increase of 38%, and generate
$13 million in revenue and
$5 million in net income for the 2012 fiscal year.
Acquisitions
Comments & Business Outlook
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010 (UNAUDITED )
2011
2010
Revenues
Milk sales
$ 3,672,130 $ 4,286,020
Sales commission
1,303,796 -
Total revenues
4,975,926 4,286,020
Cost of goods sold
(1,600,684 ) (2,145,843 )
Gross profit
3,375,242 2,140,177
Operating expenses
Selling and marketing
(76,985 ) (6,095 )
General and administrative
(60,623 ) (71,795 )
Total operating expenses
(137,608 ) (77,890 )
Operating income
3,237,634 2,062,287
Other income
Non-operating income
284,997 1,290
Total other income
284,997 1,290
Income before provision for income taxes
3,522,631 2,063,577
Provision for income taxes
871,769 510,648
Net income before noncontrolling interests
2,650,862 1,552,929
Noncontrolling interests
(35,557 ) (20,984 )
Net income attributable to controlling interests
2,615,305 1,531,945
Other comprehensive income
Foreign currency translation adjustment
232,389 208,421
Total comprehensive income
$ 2,847,694 $ 1,740,366
Earnings per common share, basic and diluted
$ 0.07 $ 0.05
Weighted average shares outstanding, basic and diluted
41,100,000 35,998,000
For the quarter ended September 30
Change
2011
2010
Amount
%
Sales of natural milk
3,672,130
4,286,020
(613,890 )
(14 ) %
Sales commission
1,303,796 - 1,303,796 100 %
Total revenue
4,975,926 4,286,020 689,906 16 %
For the quarter ended September 30, 2011, the total revenue generated from natural milk selling was $3,672,130 which represented a decrease of $613,890 or 14% compared to $4,286,020 for the quarter ended September 30, 2010. The main reason caused the decrease was due to the decrease in number of milk cows, despite the increase in sales price of natural milk from RMB 2.25 to RMB 2.60 since August 1, 2011 which presented 41% or RMB 0.75 per kg increase in selling price comparing the selling price RMB 1.85 per kg for the quarter ended September 30, 2010. As we disposed a large number of milk cows to local farmers, the average number of milk cows for the quarter ended September 30, 2011 was decreased from 6,845 to 4,512 comparing the quarter ended September 30, 2010. Although during this covered quarter, we developed three new customers, Suihua Dongxing Dairy Co., Ltd, Heilongjiang Longxing Dairy Co., Ltd and Heilongjiang Nongken Delong Dairy Co., Ltd., we expect the revenue from natural milk selling will continue to decrease in the next quarter due to the changing of our operating model.
Liquidity Requirements
our capital resources are more than sufficient to fund our operations for the future as they are currently structured.
Over the long term, our expectation is that we will utilize our capital resources as well as any additional investments that we secure in order to expand operating activities. At the present time, however, we are able to operate profitably without significant additional investment. Moreover, our observation of the equity markets indicates that we would be unlikely to obtain financing on favorable terms at this time. Accordingly, our near term plan is to continue the program that we initiated during the past year, utilizing the resources available to us.
Comments & Business Outlook
CONSOLIDATED STATEMENTS OF INCOME
AND OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED JUNE 30, 2011 AND 2010
2011
2010
Revenues
$ 25,021,612 $ 14,357,334
Cost of goods sold
(11,931,849 ) (7,694,202 )
Gross profit
13,089,763 6,663,132
Operating expenses
Selling and marketing
(48,892 ) (156,589 )
General and administrative
(1,348,669 ) (445,301 )
Total operating expenses
(1,397,561 ) (601,890 )
Operating income
11,692,202 6,061,242
Other income and (expenses)
Non-operating income
158,201 7,642
Non-operating expenses
- (5,678 )
Total other income
158,201 1,964
Income before income taxes
11,850,403 6,063,206
Provision for income taxes
2,866,622 1,500,371
Net income before noncontrolling interests
8,983,781 4,562,835
Noncontrolling interests
(130,597 ) (61,721 )
Net income attributable to controlling interests
8,853,184 4,501,114
Other comprehensive income
Foreign currency translation adjustment
892,351 64,184
Total comprehensive income
$ 9,745,535 $ 4,565,298
Comments & Business Outlook
HARBIN, CHINA--(Marketwire - Sep 8, 2011 ) - China Modern Agricultural Information Inc. ("the Company") (OTCQB : CMCI) (PINKSHEETS : CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk and the sale of organic fertilizer, today announced that it has received a 3,500 ton order for raw milk from Qiqihar Heshan Dairy Co., Ltd, a producer of fresh raw milk with annual capacity of 50,000 tons. Based on the raw milk market price of $0.45 per kilogram, the total value of the order is approximately $1.59 million.
Mr. Youliang Wang, Chief Executive Officer of China Modern Agricultural Information, commented, "We are very pleased to enter into an agreement with our new customer and partner Qiqihar Heshan Dairy, a well known and respected producer of dairy products in China. With annual capacity of 50,000 tons, we expect this agreement to be only the beginning of a long term working relationship. This order further increases our market share in the raw milk production market and shows our ability to obtain new customers in the rapidly expanding Chinese agriculture sector. We look forward to establishing similar relationships with new customers in the near future as we work towards increasing our revenue base."
Comments & Business Outlook
HARBIN, China, Aug. 8, 2011 (
GLOBE NEWSWIRE ) -- China Modern Agriculture Inc. (OTCBB:CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information, announced that it has received an order from Heilongjiang Kendelong Dairy Co., Ltd. ("Kendelong Dairy" hereinafter), worth an estimated USD$1.4MM in gross revenues. According to the order, Kendelong Dairy shall purchase from the Company a total of 4,000 tons of raw milk at the price of USD$0.36/kg through December 31, 2011. This order is expected to further expand the dairy market share of China Modern Agriculture in Heilongjiang and promote the Company's sales of fresh milk. Through the first nine months of fiscal 2011, the Company increased gross revenues 64% over the same period in 2010, reaching USD$17,201,388 for the nine months of 2011.
Acquisitions
HARBIN, China, July 28, 2011 (GLOBE NEWSWIRE ) -- China Modern Agriculture Inc. (OTCBB:CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information, announced the presentation on acquisition of Shangzhi Yulong Cattle Co., Ltd. ("Shangzhi Yulong" hereinafter) .The presentation is available on the http://www.hljzhongxian.com/zx/eng_zx/news_3.asp?id=58 .
On July 10, 2011, China Modern Agriculture Inc. has entered into the Letter of Intent with Harbin Jinshangjing Technology Investment Co., Ltd., to purchase the 100% share equity of Yulong Cattle owned by Harbin Jinshangjing Technique Investment Co., Ltd. Both parties have agreed to sign formal Equity Acquisition Agreement within 90 days from the signing date of this Letter of Intent.
Yulong Cattle, located in Economic Development District of Shangzhi, Harbin, is a high-tech livestock company engaged in the breeding of caw and raw milk sales. It possesses a series of modern and advanced facilities and technologies that ensure the optimum fresh milk production. The acquisition of Yulong Cattle will further expand the cattle numbers and the production of milk in China Modern Agriculture, Inc.
Acquisition Activity
HARBIN, China, July 25, 2011 (GLOBE NEWSWIRE ) -- China Modern Agriculture Inc. (OTCBB:
CMCI.OB - News ), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information, announced that it has entered into a Letter of Intent with Harbin Jinshangjing Technology Investment Co., Ltd. ("Jinshangjing Company" hereinafter) on July 10 th , 2011, to purchase the 100% equity ownership of Shangzhi Yulong Cattle Co., Ltd. ("Shangzhi Yulong" hereinafter) held by Jinshangjing Company.
Because the appraisal value of the proposed transferred equity has not been ultimately confirmed, the final equity transfer price will be determined and stated clearly in the formal Equity Transfer Agreement. In accordance with the Letter of Intent, within 15 days from the signing date of this Letter of Intent, China Modern Agriculture shall pay an early security deposit of equity transfer to Jinshangjing Company with the total amount of RMB 14MM. The final Equity Transfer Agreement will be signed within 90 days from the signing date of this Letter of Intent.
The acquisition is expected to add approximately $4.5MM to the net profit for the year ending June 30, and the annual production capacity of fresh milk will be increased by about 30,000 tons.
Acquisition Activity
On July 10, 2011 (the “Execution Date”), our Chinese variable interest entity, Heilongjiang Zhongxian Information Co., Ltd., entered into
a letter of intent (the “Letter of Intent”) with Harbin JinShangjing Technology Investment Co., Ltd., a Chinese company (“Harbin JinShangjing”). Harbin JinShangjing is the sole equity owner of Shangzhi Yulong Cattle Co., Ltd., a Chinese company (“Shangzhi Yulong”). Subject to the terms and conditions of the Letter of Intent, within the term of the Letter of Intent (90 days after the Execution Date), the parties intend to execute a definitive equity transfer agreement (the “Definitive Agreement”) providing for the acquisition by the Company of 100% of the equity interests of Shangzhi Yulong (the “Proposed Acquisition”). The purchase price that the Company will pay for the Proposed Acquisition has not been agreed upon and is not provided in the Letter of Intent.
Comments & Business Outlook
HARBIN, China, June 29, 2011 (
GLOBE NEWSWIRE ) -- China Modern Agricultural Information, Inc. (OTCBB:CMCI - News), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information, announced that it has formally signed a Fresh Milk Supply Agreement with Anda City LongXing Dairy, worth an estimated
US$1.5MM in gross revenues. In accordance with the Agreement, LongXing Dairy shall purchase from the Company a total of
4,300 tons of fresh milk at the price of
US$0.355/kg through December 31, 2011. The purchase quantity is subject to 10% adjustment. The agreement is expected to further increase the fresh milk sales channels of China Modern Agricultural Information and expand the Company's market shares in Heilongjiang dairy industry. Through the first nine months of fiscal 2011, the Company increased gross revenues 64% over the same period in 2010, reaching
US$17,201,388 for the first nine months of 2011.
Comments & Business Outlook
HARBIN, China, May 16, 2011 (GLOBE NEWSWIRE ) -- China Modern Agricultural Information, Inc. announced that its revenue for the first nine months of fiscal 2011 increased 64% over the same period in 2010, reaching USD$17,201,388 for the first nine months of 2011. Net Income was up 94% and totaled USD$6,181,785 for the first nine months of fiscal 2011.
Nine Month
3rd Quarter
Revenue up Over 75% to $6.8 Million
Net Income of $2.0 Million or $0.05 Per Share
Comments & Business Outlook
HARBIN, China, May 10, 2011 (GLOBE NEWSWIRE ) -- China Modern Agricultural Information, announced that its operating income for the first six months of fiscal 2011increased 79% over the same period in 2010, reaching USD$4,974,925 for the first six months of 2011. Revenues were up 50% and totaled USD$10,395,602 for the first half of fiscal 2011. Please refer to www.sec.gov for the complete filing of the Company's earnings report.
Six Month
Revenue $10.3 Million
Operating Income of $4.9 Million or $0.12 per Share
2nd Quarter
Revenue up Over 75% to $6.1 Million
Operating Income of $2.9 Million or $0.07 Per Share
Reverse Merger Activity
On January 28, 2011 became a public entity via a
reverse merger transaction .
Company Snapshot:
Agricultural technology company which devotes itself to cow breeding
Post Merger Share Calculation :
9,535,000: Pre reverse merger outstanding shares
5,500,000: Shares cancelled as part of the Share Exchange
35,998,000: Newly issued shares of Common Stock
GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions: 40,003,000
Financial Snapshot : June Year End
2009 vs. 2008
Revenues:$ 14.4 million vs $11.7 million
Adjusted Net Income: $4.6 million vs. $3.7 million
Six Months 2010 vs 2009
Revenues: $10.4 million vs. $6.9 million
Adjusted Net Income: $4.1 million vs. $2.1 million
Pro Forma Valuation : using price and new share count
Trailing EPS: $0.17
Trailing P/E: 6.18
Financials
The following table sets forth information from our statements of operations for the years ended June 30, 2010, and 2009:
For the Years Ended June 30,
2010
2009
Net Revenue
$ 14,357,334 $ 11,747,815
Cost of Goods Sold
(7,694,202 ) (6,262,169 )
Gross profit
6,663,132 5,485,646
Operating expenses
(156,589 ) (42,608 )
(445,301 ) (541,363 )
(601,890 ) (583,971 )
Operating Income
6,061,242 4,901,675
Other income (expenses):
Non-operating Income
7,642 3,638
(5,678 ) (8,939 )
Total other expenses
1,964 (5,301 )
Income before income tax
6,063,206 4,896,374
Provision(benefit) for income tax
1,500,371 1,211,340
Net Income
$ 4,562,835 $ 3,685,034
