Guangzhou Global Telecom (PINK:GZGTD)

Note

12/31/2012

12/31/2011

Sales

$

26,620,278

$

18,847,061

Cost of sales

25,889,207

18,426,846

Gross profit

731,071

420,215

Operating expenses

4,646

-

Administrative and general expenses

1,273,089

806,388

Total operating expense

1,277,735

806,388

Income (Loss) from Operations

(546,664)

(386,173)

Gain on disposal of a subsidiary

466,555

-

Other income

152,293

201,151

Interest income

65

15,461

Other expenses

(533)

(120,850)

Interest expense

(327)

-

Income before taxation

71,389

(290,411)

Income tax

17,847

(57,713)

Net Income (Loss)

$

53,542

$

(348,124)

Extra-Ordinary Gain on Forgiveness of Debt, Net of Tax

8

1,487,083

-

Net Earning After Tax

1,540,625

(348,124)

Other comprehensive income:

Foreign currency translation change

(375,429)

21,356

Comprehensive income:

1,165,196

(326,768)

Net income attributable to:

-minority interest

$

38,456

$

61,161

-the Company

1,502,169

(409,285)

$

1,540,625

$

(348,124)

Earnings Per Share

Basic

$

0.02

$

(0.02)

Diluted

$

0.02

$

(0.02)

Weighted Average Shares Outstanding

-Basic (adjusted for 1 for 10 reverse stock split)

72,571,557

15,351,147

-Diluted (adjusted for 1 for 10 reverse stock split)

72,571,557

15,351,147