Southern China Livestock

Sunday, May 23, 2010

Reverse Merger Activity

On March 31, 2010 Southern Livestock completed a reverse merger with a Form 10 shell. The company has yet to commence trading.

Company Snapshot:

Breeding, raising and selling live hogs.

Industry Snapshot:

China is the world’s largest hog producer and pork consumer and dominates the global pig meat market. According to statistics from the US Department of Agriculture, China produces 50% of all the pig meat production in the world.
China consumes over 450 million hogs a year. In terms of meat consumption in China, beef accounts for approximately 9%, poultry for approximately 21% and pork for approximately 65% of total China consumption, according to the National Statistics Bureau of China.
Urbanization and consequent growth of the middle class (estimated 250 million people in 2008) along with PRC policies protecting the swine industry reflect the importance of hog production as a social, economic and security issue for the consumer market in China. China has enacted a number of laws to induce swine production.
A growing middle class increases demand for pork products and helps long term price appreciation. While pork spot prices fluctuate, especially recently with the psychological effect of the “swine flu”, the overall long term price trends are expected to continue to move up in the foreseeable future

Post Merger Share Calculation: TBA

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions: TBA

Financial Snapshot:

Revenue increased approximately 23.5% to $11.3 million for the three months ending December 31, 2009 compared to the three months ending December 31, 2008, despite a decline in hog prices, due to an increase in the number of hogs sold.
Net income increased 15.9% to $2.1 million in for the three months ended December 31, 2009.
Revenue decreased approximately 15.4% to $32.1 millionfor the year ending September 30, 2009 comparing to the year ending September 30, 2008, mainly due to the outbreak of H1N1 influenza which affected the hog spot price and the hog breeding industry in general.
Net income decreased to 53.5% to $7 million for the year ending September 30, 2009.
See more financials

Financials

	Three months ended March 31,				Six months ended March 31,
	2010		2009		2010		2009

Sales	8,019,056		8,046,343		19,396,780		17,254,430
Cost of sales	6,881,663		5,977,973		16,350,349		13,259,158

Gross profit	1,137,393		2,068,370		3,046,431		3,995,272

Operating expenses:
Selling expenses	(755	)	(1,181	)	(6,520	)	(12,923
General and administrative expenses	(98,316	)	(153,060	)	(200,782	)	(288,576

Income from operations	1,038,322		1,914,129		2,839,129		3,693,773

Government subsidies	118,490		362,295		382,117		362,295
Other income	862		30,260		60,819		83,087

Profit before income taxes	1,157,674		2,306,684		3,282,065		4,139,155

Income taxes (note 6)	-		-		-		-

Net income	1,157,674		2,306,684		3,282,065		4,139,155
Less: net income attributable to the noncontrolling interest	23,457		45,984		66,271		82,748
Net income attributable to Expedite 4 Inc.	1,134,217		2,260,700		3,215,794		4,056,407

Other comprehensive income(loss)	3,888		(3,168	)	5,129		(40,458

Total comprehensive income	1,138,105		2,257,532		3,220,923		4,015,949

Earnings per share attributable to Expedite 4 Inc.’s common shareholders:

Basic	0.20		0.40		0.57		0.71
Diluted	0.20		0.40		0.57		0.71

Weighted average common shares outstanding

Basic	5,657,561		5,623,578		5,640,383		5,623,578
Diluted	5,657,561		5,623,578		5,640,383		5,623,578

Note: Shares do not include private placement events that were consummated in conjunction and following the reverse merger.