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YASHENG GROUP, LTD.
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED December 31, 2007
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YASHENG GROUP, LTD.INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
PAGE |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
2 |
CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME (UNAUDITED) |
3 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) |
4 |
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(UNAUDITED) |
5 |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL
STATEMENTS |
6 |
YASHENG GROUP, LTD.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
December 31, |
December 31, |
|
2007 |
2006 |
ASSETS |
Current assets
Cash and cash equivalents |
$17,235,488 |
$ 17,230,949 |
Accounts receivable, net |
81,179,782 |
76,617,208 |
Inventories, net |
61,969,763 |
62,035,304 |
Other current assets |
7,597,008 |
7,643,456 |
Total current assets |
167,982,041 |
163,526,917 |
Property, plant and equipment, net |
1,317,625,574 |
1,264,481,614 |
Intangible assets, net |
17,381,173 |
17,381,173 |
Other assets |
60,599,177 |
60,251,050 |
Total other assets |
1,395,605,924 |
1,342,113,837 |
Total assets |
$1,563,587,965 |
$ 1,505,640,754 |
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses |
$90,354,205 |
$ 93,709,985 |
Accrued employee compensation and benefits |
7,851,976 |
8,145,447 |
Short-term loans |
45,392,022 |
46,715,676 |
Taxes payable |
9,185,073 |
9,186,645 |
Total current liabilities |
152,783,276 |
157,757,753 |
Long-term loans |
45,106,052 |
44,201,685 |
Other long-term liabilities |
3,198,407 |
3,290,794 |
Total long-term liabilities |
48,304,459 |
47,492,479 |
Total liabilities |
201,087,735 |
205,250,232 |
Minority interest |
134,403,403 |
136,867,818 |
Stockholders' equity
Common stock; US $1.00 par value; 800,000,000 shares authorized;
155,097,355 shares issued and outstanding |
155,097,355 |
155,097,355 |
Retained earnings |
1,072,999,472 |
1,008,425,349 |
Accumulated other comprehensive income |
- |
Total stockholders' equity |
1,228,096,827 |
1,163,522,704 |
Total liabilities and stockholders' equity |
$1,563,587,965 |
$ 1,505,640,754 |
The notes are an integral part of the unaudited consolidated financial statements.
YASHENG GROUP, LTD. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
| |
For the year
ended
December 31, |
For the year
ended
December 31, |
|
2007 |
2006 |
Income
Revenues |
$ 648,146,433 |
$ 648,054,466 |
Cost of goods sold |
531,379,340 |
532,057,792 |
Gross profit |
116,767,093 |
115,996,674 |
Operating expenses
Selling expenses |
11,082,519 |
11,039,687 |
General and administrative expenses |
21,619,278 |
21,960,483 |
Other operating expenses |
15,584,851 |
15,582,645 |
Total operating expenses |
48,286,648 |
48,582,815 |
Operating income |
68,480,445 |
67,413,859 |
Other income (expense)
Investment income |
323,797 |
319,787 |
Other income (expense) |
5,238,546 |
4,661,557 |
Total other income (expense) |
5,562,343 |
4,981,344 |
Net income before taxes |
74,042,788 |
72,395,203 |
Income tax expense |
7,968,829 |
7,968,551 |
Net income after taxes |
66,073,959 |
64,426,652 |
Minority interest in gain |
1,499,836 |
1,516,394 |
Net income |
$ 64,574,123 |
$ 62,910,258 |
Foreign currency translation adjustment |
- |
Comprehensive income |
$ 64,574,123 |
$ 62,910,258 |
EPS - basic |
$ 0.421 |
$ 0.41 |
PS - diluted |
$ 0.42 |
$ 0.41 |
E
The notes are an integral part of the unaudited consolidated financial statements. 4
YASHENG GROUP, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
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For the year
ended
December 31, |
For the year
ended
December 31, |
2007 |
2006 |
Cash flows from operating activities:
Net income |
$ 64,574,123 |
$ 62,910,258 |
Adjustments to reconcile net income to
net cash provided by operations:
Depreciation and amortization |
70,178,367 |
69,234,793 |
Non-cash compensation |
10,567,924 |
10,112,034 |
Tax benefits from investments |
(323,797) |
(319,787) |
Minority interest |
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Changes in operating assets and liabilities:
Accounts receivable |
(4,562,574) |
(6,529,298) |
Inventories |
65,541 |
2,611,918 |
Other assets |
(21,000,957) |
(18,792,431) |
Accounts payable |
(24,621,377) |
(21,030,758) |
Accrued compensation and benefits |
(293,471) |
(195,608) |
Taxes payable |
1,572 |
16,335 |
Other liabilites |
(24,700,142) |
(22,868,838) |
;Net cash provided by operating activities |
69,885,209 |
75,148,618 |
Cash flows from investing activities:
Capital expenditures |
(69,785,180) |
(68,991,996) |
Proceeds from sale of investments |
323,797 |
319,787 |
Acquisitions |
Net cash used in investing activities |
(69,461,383) |
(68,672,211) |
Cash flows from financing activities:
Net proceeds from short-term borrowings |
37,406,512 |
37,312,204 |
Proceeds from sale of stock |
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Proceeds from (payments on) long-term loans |
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Debt retirement |
(37,825,799) |
(43,674,115) |
Net cash provided by financing activities |
(419,287) |
(6,361,911) |
Increase in cash and cash equivalents |
4,539 |
114,496 |
Effect of rate changes on cash |
Cash and cash equivalents, beginning of period |
17,230,949 |
17,116,453 |
Cash and cash equivalents, end of period |
$ 17,235,488 |
$ 17,230,949 |
Supplemental disclosures of cash flow information:
Cash paid for interest |
$ 13,003,137 |
$ 12,075,428 |
Cash paid for income taxes |
$ 2,012,574 |
$ 1,973,138 |
The notes are an integral part of the unaudited consolidated financial statements. 5
YASHENG GROUP, LTD. CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)
| |
Common
Shares |
Common
Stock |
Retained
Earnings |
Accumulated
Other
Comprehensive
Income |
Total
Stockholders'
Equity |
| Balance December 31, 2006 |
155,097,355 |
$ 155,097,355 |
$ 1,008,425,349 |
- |
$ 1,163,522,704 |
| Net income for period |
- |
- |
64,574,123 |
- |
64,574,123 |
Foreign currency
translation |
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|
|
|
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| Balance December 31, 2007 |
155,097,355 |
$ 155,097355 |
$ 1,072,999,472 |
- |
$ 1,228,096,827 |
The notes are an integral part of the unaudited consolidated financial statements. 6
YASHENG GROUP, LTD. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 7
YASHENG GROUP, LTD. A California corporation CERTIFICATION OF CHIEF EXECUTIVE OFFICER
I, Zhou Chang Sheng, certify that:
1. I have reviewed these financial statements of YaSheng Group, Ltd.;
2. Based on my knowledge, these financial statements do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by these financial statements;
3. Based on my knowledge, the financial statements, and other financial information included in these financial statements, fairly present in all material respects the financial condition, results of operations and cash flows of YaSheng Group, Ltd. as of, and for, the periods presented in these financial statements according to USGAAP.
Date: December 31, 2007
/s/ Zhou Chang Sheng Zhou Chang Sheng
Chief Executive Officer
YASHENG GROUP, LTD. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 8
YASHENG GROUP, LTD. A California corporation CERTIFICATION OF CHIEF FINANCIAL OFFICER
I, Hai Yun Zhuang, certify that:
1. I have reviewed these financial statements of YaSheng Group, Ltd.;
2. Based on my knowledge, these financial statements do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by these financial statements;
3. Based on my knowledge, the financial statements, and other financial information included in these financial statements, fairly present in all material respects the financial condition, results of operations and cash flows of YaSheng Group,
Date: December 31, 2007
/s/ Hai Yun Zhuang Hai Yun Zhuang
Chief Financial Officer
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