Jinhao Motor Co Common (PINK:GIMC)

Friday, August 13, 2010

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2009, 2008 and 2007

(In thousands of US Dollars, except share and per share amounts)


		2009			2008			2007
Sales (notes 9 and 25)	$	192,112		$	156,351		$	84,980
Cost of sales (note 25)		150,388			134,469			70,752
Gross profit		41,724			21,882			14,228
Other revenues		-			120			83
Selling expenses		(10,495	)		(2,909	)		(1,471	)
Research expenses (note 15)		(611	)		(720	)		(201	)
General and administrative expenses		(972	)		(664	)		(566	)
Operating income		29,646			17,709			12,073
Finance expense (note 5)		(332	)		(589	)		(531	)
Income before income tax		29,314			17,120			11,542
Income tax expense (note 6)		(3,598	)		(11	)		(144	)
Net income for the year		25,716			17,109			11,398
Other comprehensive income:
Unrealized (losses) gains on translating financial statements to reporting currency		(28	)		4,706			3,753
Comprehensive income	$	25,688		$	21,815		$	15,151

Earnings per share:
Basic and diluted	$	514		$	342		$	228

Weighted average number of common shares outstanding:
Basic and diluted (note 19)		50,000			50,000			50,000

Jinhao Power Holdings Limited

Consolidated Statements of Cash Flows

For the years ended December 31, 2009, 2008 and 2007

(In thousands of US dollars)


		2009			2008			2007
Cash flow from operating activities:
Net income for the year	$	25,716		$	17,109		$	11,398
Items not affecting cash:
Depreciation and amortization		4,217			3,596			3,117
Amortization of development costs		611			-			-
Warranty provision		17			-			-
Gain on disposition of equipment		-			(120	)		-
Deferred income tax		2,783			11			144
Changes in non-cash working capital items:
Trade receivables		20,771			(5,777	)		(5,658	)
Prepayments, deposits and other receivables		1,452			322			(490	)
Inventories		11,029			(427	)		(1,751	)
Due from related party		645			(888	)		-
Trade payables		3,538			(1,026	)		(3,631	)
Due to related parties		(143	)		144			(163	)
Customer deposits		(335	)		(2,175	)		(3,841	)
Income tax payable		815			-			-
Other payables and accrued liabilities		454			111			144
		71,570			10,880			(731	)