Sino-Bon Entertainment (PINK:SIBO)

GeoProfile
Overview
GeoResearch
Message Board
Alerts Log
GeoWire Log
Third party data
Quote
Level II
Historical Prices
Options
Profile
Financials
Charts
News
Filings
Insiders

Thursday, May 3, 2012

Deal Flow

Item 1.01 Entry into a Material Definitive Agreement.

On April 27, 2012, Atlantic Investment (Group) Limited (“Atlantic Investment”), a company organized under the laws of Hong Kong and an indirect subsidiary of Sino-Bon Entertainment, Inc., a Nevada corporation (the “Company”), entered into that certain Equity Transfer Agreement (the “Danbom ET Agreement”) with Mr. Yuan Qihong, the Chairman of the Board of Directors of the Company (the “Board”) and also a majority shareholder of the Company, and Zhenjiang Renxin Management Consulting Co., Ltd., a company organized under the laws of the People’s Republic of China (“Zhenjiang”). Mr. Yuan is a majority shareholder of Zhenjiang.

In accordance with the Danbom ET Agreement, Atlantic Investment agreed to sell, transfer and assign to Mr. Yuan and Zhenjiang all of Atlantic Investment’s equity ownership in Jiangsu Danbom Electronic Technology Co. Ltd. (“Danbom ET”), a wholly foreign owned subsidiary of Atlantic Investment and a limited liability company incorporated under the laws of the People’s Republic of China (“PRC”), for RMB11,000,000 (approximately USD$1,751,953). Mr. Yuan will receive 4.5% of the equity interest in Danbom ET and Zhenjiang will receive 95.5% of the equity interest in Danbom ET.

Also on April 27, 2012, Atlantic Investment entered into that certain Equity Transfer Agreement (the “Danbom M&E Agreement”) with Mr. Yuan Qihong, wherein Atlantic Investment agreed to sell, transfer and assign to Mr. Yuan all of Atlantic Investment’s equity ownership in Jiangsu Danbom Mechanical & Electrical Co. Ltd. (“Danbom M&E”), a wholly foreign owned subsidiary of Atlantic Investment and a limited liability company incorporated under the laws of the PRC, for RMB44,120,000 (approximately USD$7,026,925). The sale of Danbom ET and Danbom M&E are collectively referred to herein as the “Sale Transactions.” The Danbom ET Agreement and the Danbom M&E Agreement are collectively referred to herein as the “Agreements.”

Danbom ET and Danbom M&E are PRC operating subsidiaries of the Company engaged in the design, manufacturing, research and development of entertainment equipment, namely automatic Mahjong tables, and the retail and wholesale sale of such entertainment equipment. The purchase prices set forth in the Agreements were based upon an independent valuation appraisal report commissioned by the Company’s Board. Both purchase prices are payable within six months of the execution of the Agreements.

In accordance with both Agreements, the Company’s Board has approved the terms of the contemplated Sale Transactions subject to and contingent upon receipt of approval from the Company’s shareholders at a duly called and noticed special meeting of shareholders to be held as soon as practicable.

In addition, the closing of the Sale Transactions is subject to approval from the PRC Ministry of Commerce and completion of registration of the equity transfer to Mr. Yuan & Zhenjiang, in the case of the Danbom ET Agreement, and to Mr. Yuan in the case of the Danbom M&E Agreement, with the PRC State Administration for Industry and Commerce. Upon the effective close of each of the Sale Transactions, Atlantic Investment will transfer all management right, decision-making right, personnel right, company seals, accounts and assets of Danbom ET to Mr. Yuan and Zhenjiang, and Atlantic Investment will transfer all management right, decision-making right, personnel right, company seals, accounts and assets of Danbom M&E to Mr. Yuan.

In addition, in accordance with the Danbom ET Agreement, upon the effective close of the Danbom ET Agreement, any lawful debts or obligations, which have previously been disclosed to Mr. Yuan and Zhenjiang, will transfer to Mr. Yuan and Zhenjiang. Atlantic Investment will remain liable for any debts or obligations that are not disclosed to Mr. Yuan and Zhenjiang prior to the effective close of the Danbom ET Agreement.

In accordance with the Danbom M&E Agreement, upon the effective close of the Danbom M&E Agreement, any lawful debts or obligations, which have previously been disclosed to Mr. Yuan, will transfer to Mr. Yuan. Atlantic Investment will remain liable for any debts or obligations that are not disclosed to Mr. Yuan prior to the effective close of the Danbom M&E Agreement.

Further, in accordance with both Agreements, Atlantic Investment is responsible for taxes incurred in connection with the execution and enforcement of both Agreements by any parties to the Agreement. Under the Danbom ET Agreement, Mr. Yuan and Zhenjiang are responsible for any fees arising from any testimony, audit or change of registration relevant to the transfer of equity from Atlantic Investment to Mr. Yuan and Zhenjiang. Under the Danbom M&E Agreement, Mr. Yuan is responsible for any fees arising from any testimony, audit or change of registration relevant to the transfer of equity from Atlantic Investment to Mr. Yuan.

Permalink

Post a comment

Thursday, January 13, 2011

CFO Trail

On January 10, 2011, both Xiowei (Simon) Song, Chief Executive Officer and a Director of Sino-Bon Entertainment, Inc. (the “Company”), and Liang (Jacky) Yan, Chief Financial Officer and a Director of the Company, resigned from their positions as officers and Directors of the Company. Neither resignation of Mr. Song or Mr. Yan was a result of any disagreement with the Company on any matter relating to the Company's operations, policies or practices.

Permalink

Post a comment

Monday, November 15, 2010

Comments & Business Outlook

		September 30, 2010	September 30, 2009
	(Unaudited)			(Unaudited)

Sales, net	$	13,165,463		$	18,421,506
Cost of sales		(10,262,266	)		(14,485,298	)
Gross profit		2,903,197			3,936,208

Operating income/(expenses)
Other income		(2,914	)		12,266
Other expenses		(1,201	)		-
Selling, general and administrative expenses		(2,120,473	)		(1,801,406	)
Income from Operations		778,609			2,147,068

Other income/(expenses)
Interest income		18,007			22,160
Investment income		29			(4	)
Non operating income		61,418			39,068
Non operating expenses		(17	)		18
Interest expenses		(150,785	)		(120,576	)
Income before income tax		707,261			2,087,734

Income taxes		(162,703	)		(658,857	)

Net income	$	544,558		$	1,428,877

COMPREHENSIVE INCOME/(LOSS)
Net Income	$	544,558		$	1,428,877
Other Comprehensive Income
Foreign currency translation adjustment		121,529			(572	)
TOTAL COMPREHENSIVE INCOME	$	666,087		$	1,428,305

Earnings per share:
Basic	$	0.01		$	0.03
Diluted	$	0.01		$	0.03

Weighted average number of shares used in computing earnings per share:
Basic		50,000,000			50,000,000
Diluted		50,000,000			50,000,000

In September 2010, in order to maintain and keep expanding our sales market, we decided to recall a series of low-quality eight-outlet mahjong tables which was estimated to result in a reduction of net sales of approximately $3 million during the quarter ended September 30, 2010. The Company intends to direct more resources into research and development to produce new products with more added value and higher sales prices. The management believes that the Company’s net sales and net income should improve in the near future.

Permalink

Post a comment

Sunday, July 18, 2010

Financials

SINO-BON ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009

	2010			2009
	(Unaudited)			(Unaudited)
Sales, net	$	24,889,677		$	3,944,763
Cost of sales		19,824,910			3,790,673
Gross profit		5,064,767			154,090

Operating income/(expenses)
Other income		80,931			-
Selling, general and administrative expenses		(1,453,385	)		(110,204	)
Income from Operations		3,692,313			43,886

Other income/(expenses)
Interest income		33,892			-
Investment income		5,493			-
Non operating income		109,913			14,624
Non operating expenses		(322	)		(366	)
Interest expenses		(92,162	)		(47,713	)
Profit before income tax		3,749,127			10,431

Income taxes		(937,385	)		-

Net income	$	2,811,742		$	10,431

COMPREHENSIVE INCOME
Net Income	$	2,811,742		$	10,431
Other Comprehensive Income
Foreign currency translation adjustment		1,061			(25,256	)
TOTAL COMPREHENSIVE INCOME	$	2,812,803		$	(14,825	)

Permalink

Post a comment

Saturday, May 22, 2010

Reverse Merger Activity

On May 7, 2010 Danbom became a public company via a reverse merger.

Company Snapshot:

Danbom is a leading designer, manufacturer and distributor of automatic Mahjong tables. see the following link for information on Mahjong: http://www.west-meet-east.com/mahjong.htm

Industry Snapshot:

China is the largest entertainment equipment manufacturer in the world and the compound annual growth rate of China’s entertainment equipment market was approximately 35% over the last five years. The total annual revenue of this sector in 2009 was over $2.2 billion.

"Although China’s entertainment equipment manufacturing industry is expected to be tremendous in its total scale, it is currently a fractured industry. The market is composed of a great number of small- and medium-sized manufacturers with an insignificant percentage of total market share and fewer sizable manufacturers with strong branding and long-term and loyal customers. It appears likely that leading entertainment equipment enterprises in China with powerful branding and efficient operating abilities will have enormous potential for growth in the coming decades."

Forecast of Automatic Mahjong Table Demand (number of units)

Source: Chinese Automatic Mahjong Table Association and CCID Consulting Co.,

Post Merger Share Calculation:

8,000,000: Pre reverse merger outstanding shares
17,000,000: Newl issued shares of Common Stock

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions: 25,000,000

Financial Snapshot:

Revenues have increased from $15,436,453 in fiscal year 2008 to $61,178,247 in fiscal year 2009, representing a growth rate of approximately 296%.
Net income for the fiscal year ended December 31, 2009 increased by $5,569,977, to $5,732,525 from $162,548 for the fiscal year ended December 31, 2008.

Permalink

Post a comment

Financials


	Year Ended December 31,						1/23/2007 -
	2009			2008			12/31/2007

Sales, net	$	61,178,247		$	15,436,453		$	8,725,979
Cost of sales		(50,203,706	)		(14,229,724	)		(8,233,775	)
Gross profit		10,974,541			1,206,729			492,204

Operating income/(expenses)
Selling, general and administrative expenses		(3,299,724	)		(791,573	)		(366,565	)

Income from Operations		7,674,817			415,156			125,639

Other income/(expenses)
Interest income		107,388			47,784			2,024
Other income		23,478			-			5,808
Non operating income		126,584			577			2,165
Non operating expenses		(10,187	)		(41,646	)		(1,330	)
Finance costs		(295,680	)		(170,967	)		(43,653	)
Profit before income tax		7,626,400			250,904			90,653

Income taxes		(1,893,875	)		(88,356	)		(46,593	)

Net income	$	5,732,525		$	162,548		$	44,060

COMPREHENSIVE INCOME
Net Income	$	5,732,525		$	162,548		$	44,060
Other Comprehensive Income
Foreign currency translation adjustment		14,396			(49,505	)		7,313
TOTAL COMPREHENSIVE INCOME	$	5,746,921		$	113,043		$	51,373

Permalink

Post a comment

Liquidity Requirements

We believe that our cash on hand and cash flow from operations will meet part of our present cash needs and we will require additional cash resources to meet our expected capital expenditure and working capital for the next 12 months. We may, however, in the future, require additional cash resources due to changed business conditions, implementation of our strategy to ramp up our marketing efforts and increase brand awareness, or acquisitions we may decide to pursue.

Permalink

Post a comment