WEB NEWS CFO Trail
On May 25, Mr. Xin He submitted to the Board of Directors of China Transportation International Holdings Group Limited his
resignation as Chief Financial Officer and Treasurer of the Company, which became effective on May 25, 2011. Mr. He stated in his resignation letter that his resignation was not due to any disagreement with the Company.
Comments & Business Outlook
CHINA TRANSPORTATION INTERNATIONAL HOLDINGS GROUP LIMITED
For the Years Ended December 31,
2010
2009 (A)
Revenue
$ 22,017,470 $ 19,798,345
Cost of sales
(including depreciation of motor vehicles of $3,789,499 and $3,395,915 for the years ended December 31, 2010 and 2009, respectively)
13,226,942 12,274,580
Gross profit
8,790,528 7,523,765
Operating expenses
Selling and marketing expenses
42,169 71,527
General and administrative expenses
2,307,257 2,669,802
Loss on write off of property, plant and equipment
187,624 807,965
Total operating expenses
2,537,050 3,549,294
Operating Income
6,253,478 3,974,471
Other income (expense):
Interest income
886,286 624,563
Interest expense
(435,035 ) (464,657 )
Other income, net
909,478 1,246,340
Total other income
1,360,729 1,406,246
Income before provision for income taxes
7,614,207 5,380,717
Income taxes
1,444,176 695,295
Net income before attribution of non-controlling interests
6,170,031 4,685,422
Net loss/(income) attributable to non-controlling interests
6,177 (2,823 )
Net income attributable to the Company
$ 6,176,208 $ 4,682,599
Earnings per share
Basic and Diluted
$ 0.33 $ 0.32
Weighted common shares outstanding
Basic and Diluted
18,693,151 14,700,000
GeoTeam ® Note : 2010 vs. 2009 Adjusted EPS
Full Year: $0.34 vs. $0.37
Fourth Quarter: $0.13 vs. $0.10
Comments & Business Outlook
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2010
2009(A)
2010
2009(A)
Revenue
$ 4,883,197 $ 4,100,154 $ 16,722,611 $ 15,051,131
Cost of sales
(including depreciation of motor vehicles of $2,843,306 and $2,244,873 (for the nine months ended September 30, 2010 and 2009, respectively); and $1,091,121 and $846,564 (for the three months ended September 30, 2010 and 2009, respectively)
2,982,971 2,614,754 10,606,601 8,824,957
Gross profit
1,900,226 1,485,400 6,116,010 6,226,174
Operating expenses
Selling and marketing expenses
5,719 1,425 40,596 67,813
General and administrative expenses
739,650 516,588 2,269,284 1,987,875
Loss on write off of property, plant and equipment
48,443 61,606 76,440 837,041
Total operating expenses
793,812 579,619 2,386,320 2,892,729
Operating Income
1,106,414 905,781 3,729,690 3,333,445
Other income (expense):
Interest income
221,929 244,032 601,587 379,971
Interest expense
(149,536 ) (113,372 ) (383,518 ) (228,476 )
Other (expense) income, net
746,941 70,903 637,306 184,230
Total other income
819,334 201,563 855,375 335,725
Income before taxes
1,925,748 1,107,344 4,585,065 3,669,170
Income taxes
384,338 293,426 945,710 427,114
Net income before attribution of non-controlling interests
1,541,410 813,918 3,639,355 3,242,056
Less: Net (loss) income attributable to non-controlling interests
(4,057 ) 587 (6,147 ) 1,244
Net income attributable to the Company
$ 1,545,467 $ 813,331 $ 3,645,502 $ 3,240,812
Earnings per share
Basic and Diluted
$ 0.08 $ 0.06 $ 0.20 $ 0.22
Weighted common shares outstanding
Basic and Diluted
20,000,000 14,700,000 18,252,747 14,700,000
The Company intends to continue with its general strategies to build a road transportation network throughout China and expand extensively.
The Company intends to acquire or merge with an array of trans-provincial and trans-regional passenger transport companies and build the company to become the first choice for passengers.
The Company intends to build a multilevel passenger transport network and strive for expanding market.
The Company intends to boost urban public transportation and integrate urban and rural passenger transport business.
We are exploring opportunities to acquire other transportation companies to increase our bus lines. We currently have no agreements or commitments with respect to any material acquisitions or investments in other companies.
Liquidity Requirements
Our current business operations are primarily funded through the revenue generated by Yiyang Group’s road transportation services and through short term bank loans. Yiyang Group anticipates that the existing cash and cash equivalents on hand, together with the net cash flows generated from its business activities will be sufficient to meet the working capital requirements to sustain the current business operations for the next twelve months.
However, to expand:
Additional working capital will be required to engage in the business activities enumerated above. The Company anticipates raising the necessary funds to engage in the foregoing business activities through a private placement offering of the Company’s common stock. The foregoing business activities are goals of the Company. There is no assurance that the Company will be able to raise the necessary funds to complete any, or all, of the foregoing actions.
Reverse Merger Activity
On April 1, 2010 , China Transportation International Holdings Group Limited entered into a Share Exchange Agreement.
Company Snapshot:
Engaged in the business of public transportation services in the PRC.
Goals Snapshot :
In addition to maintaining its current business operations, over the next twelve months, Yiyang Group anticipates that it will focus on establishing itself as one of the preeminent providers of road transportation services in the PRC, and will focus on expanding its current business operations.
Replace and/or update some of its current transporting facilities
Develop high-end passenger transport services, including, but not limited to acquiring approximately 80 deluxe passenger coaches
Enhance the Yiyang Group’s status as a service provided in the tourism industry in the PRC by establishing tour passenger transport services specifically oriented towards tourism in the PRC
Add approximately two provincial level passenger traffic lines
Seek out strategic business combinations in the transportation industry in the PRC, including, but not limited to acquiring 1 county level passenger transport company.
Post Merger Share Calculation :
20,000,000: Pre reverse merger outstanding shares
14,700,000: Shares cancelled as part of the Share Exchange
14,700,000: Newly issued shares of Common Stock
GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions: 20,000,000
Financial Snapshot:
Revenues:
During the fiscal year ended December 31, 2009, Yiyang Group had operating revenues in the amount of $19,798,345 as compared to operating revenues of $17,226,574 during the fiscal year ended December 31, 2008.
Net Income:
During the fiscal year ended December 31, 2009, Yiyang Group had net income in the amount of $4,682,599 as compared to $3,669,695 for the fiscal year ended December 31, 2008.
Thus far we have not seen any evidence of a reverse split.
