Florida
(State
or other jurisdiction of
incorporation
or organization)
|
33-0961490
(I.R.S.
Employer
Identification
No.)
|
101
Xinanyao Street, Jinzhou District
Dalian,
Liaoning Province
(Address
of principal executive offices)
|
PRC
116100
(Zip
Code)
|
Registrant’s
telephone number, including area code (212)
232-0120
|
|
(Former
name or former address, if changed since last
report.)
|
Large
accelerated filer [
]
|
Accelerated
filer [
]
|
Non-accelerated
filer [
X
]
|
ITEM
1
|
FINANCIAL
STATEMENTS
|
4
|
ITEM
2
|
MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
|
11
|
ITEM
3
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
16
|
ITEM
4
|
CONTROLS
AND PROCEDURES
|
16
|
PART
II
|
17
|
|
ITEM
1
|
LEGAL
PROCEEDINGS
|
17
|
ITEM
1A
|
RISK
FACTORS
|
17
|
ITEM
2
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
20
|
ITEM
3
|
DEFAULTS
UPON SENIOR SECURITIES
|
20
|
ITEM
4
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
20
|
ITEM
5
|
OTHER
INFORMATION
|
20
|
ITEM
6
|
EXHIBITS
|
20
|
MARCH
31, 2007
(Unaudited)
|
SEPTEMBER
30,
2006
|
||||||
ASSETS
|
|||||||
CURRENT
ASSETS:
|
|||||||
Cash
|
$
|
102,685
|
$
|
103,817
|
|||
Accounts
receivable
|
-
|
2,013,529
|
|||||
Inventories
|
485,651
|
399.636
|
|||||
Prepaid
financial consulting expense
|
498,335
|
-
|
|||||
Due
from affiliated company
|
390,313
|
-
|
|||||
Other
current assets
|
13,166
|
20,943
|
|||||
TOTAL
CURRENT ASSETS
|
1,490,150
|
2,537,925
|
|||||
PROPERTY
AND EQUIPMENT, NET OF
|
|||||||
ACCUMULATED
DEPRECIATION
|
5,546,855
|
5,620,703
|
|||||
TOTAL
ASSETS
|
$
|
7,037,005
|
$
|
8,158,628
|
|||
LIABILITIES
AND STOCKHOLDERS=
EQUITY
|
|||||||
CURRENT
LIABILITIES:
|
|||||||
Accounts
payable
|
$
|
1,321,076
|
$
|
1,815,719
|
|||
Due
to affiliated company
|
-
|
344,136
|
|||||
TOTAL
CURRENT LIABILITIES
|
1,321,076
|
2,159,855
|
|||||
LONG-TERM
DEBT
|
331,520
|
323,363
|
|||||
STOCKHOLDERS’
EQUITY:
|
|||||||
Common
stock, $0.001 par value,
|
|||||||
100,000
shares authorized
|
|||||||
20,000,000
shares issued and outstanding
|
20,000
|
20,000
|
|||||
Additional
paid-in capital
|
3,738,900
|
3,738,900
|
|||||
Retained
earnings
|
1,255,708
|
1,682,842
|
|||||
Accumulated
other comprehensive income
|
369,801
|
233,668
|
|||||
TOTAL
STOCKHOLDERS’ EQUITY
|
5,384,409
|
5,675,410
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS=
EQUITY
|
$
|
7,037,005
|
$
|
8,158,628
|
|||
THREE
MONTHS ENDED
MARCH
31,
|
SIX
MONTHS ENDED
MARCH
31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
REVENUES
|
$
|
-
|
$
|
4,827,290
|
$
|
-
|
$
|
5,814,184
|
|||||
COST
OF SALES
|
-
|
3,598,146
|
-
|
4,325,889
|
|||||||||
GROSS
PROFIT
|
-
|
1,229,144
|
-
|
1,488,295
|
|||||||||
COSTS
AND EXPENSES:
|
|||||||||||||
General
and administrative
|
218,490
|
166,057
|
423,896
|
256,170
|
|||||||||
Interest
expense, net
|
-
|
2,128
|
3,238
|
2,128
|
|||||||||
TOTAL
COSTS AND EXPENSES
|
218,490
|
168,185
|
427,134
|
258,298
|
|||||||||
NET
INCOME (LOSS)
|
$
|
(218,490
|
)
|
$
|
1,060,959
|
$
|
(427,134
|
)
|
$
|
1,229,997
|
|||
BASIC
AND DILUTED EARNINGS
|
|||||||||||||
PER
COMMON SHARE
|
$
|
(0.01
|
)
|
N/A
|
$
|
(0.02
|
)
|
N/A
|
|||||
WEIGHTED
AVERAGE NUMBER OF
|
|||||||||||||
COMMON
SHARES OUTSTANDING
|
20,000,000
|
N/A
|
20,000,000
|
N/A
|
|||||||||
SIX
MONTHS ENDED MARCH
31,
|
|||||||
2007
|
2006
|
||||||
OPERATING
ACTIVITIES:
|
|||||||
Net
income (loss)
|
$
|
(427,134
|
)
|
$
|
1,229,997
|
||
Adjustments
to reconcile net income (loss) to net cash
|
|||||||
provided
by operating activities:
|
|||||||
Depreciation
|
236,330
|
263,367
|
|||||
Changes
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
2,045,622
|
-
|
|||||
Inventories
|
(76,861
|
)
|
(3,816,623
|
)
|
|||
Prepaid
expenses and sundry current assets
|
(497,357
|
)
|
(365,860
|
)
|
|||
Accounts
payable
|
(507,110
|
)
|
3,506,846
|
||||
Accrued
expenses, taxes and sundry current liabilities
|
(29,125
|
)
|
55,455
|
||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
744,365
|
873,182
|
|||||
INVESTING
ACTIVITIES:
|
|||||||
Acquisition
of property and equipment
|
(23,167
|
)
|
(753,307
|
)
|
|||
NET
CASH USED IN INVESTING ACTIVITIES
|
(23,167
|
)
|
(753,307
|
)
|
|||
FINANCING
ACTIVITIES:
|
|||||||
Loan
from (payment to) affiliated company
|
(352,019
|
)
|
339.837
|
||||
Loan
to affiliated company
|
(390,313
|
)
|
-
|
||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
(742,332
|
)
|
339,837
|
||||
EFFECT
OF EXCHANGE RATE ON CASH
|
20,002
|
15,885
|
|||||
INCREASE
(DECREASE) IN CASH
|
(1,132
|
)
|
475,597
|
||||
CASH
- BEGINNING OF PERIOD
|
103,817
|
77,250
|
|||||
CASH
- END OF PERIOD
|
$
|
102,685
|
$
|
552,847
|
|||
Supplemental
disclosures of cash flow information:
|
|||||||
Cash
paid during the period for:
|
|||||||
Interest
|
$
|
3,238
|
$
|
2,128
|
|
Maintenance,
repairs and minor renewals are charged to expense when incurred.
Replacements and major renewals are
capitalized.
|
Seasonal
business
Due
to the seasonal nature of the Company’s business, the results of
operations for the six months ended March 31, 2007 are not necessarily
indicative of the anticipated results for the year ending September
30,
2007.
|
2
|
PROPERTY
AND EQUIPMENT
|
AMOUNT
|
LIFE
|
||||||
Machinery
and equipment
|
$ | 2,527,568 |
5-10
years
|
||||
Furniture,
fixtures and office equipment
|
20,418 |
5-7
years
|
|||||
Building
and building improvements
|
4,152,329 |
40
years
|
|||||
Automobile
|
27,526 |
5
years
|
|||||
6,727,841 | |||||||
Accumulated
depreciation
|
1,180,986 | ||||||
$ | 5,546,855 | ||||||
MARCH
31, 2007
|
SEPTEMBER
30, 2006
|
||||||
Current
assets
|
$
|
390,313
|
$
|
-
|
|||
Current
liabilities
|
$
|
-
|
$
|
344,136
|
7
|
RISK
FACTORS
|
Three
Months Ended
March
31,
2007
|
Three
Months Ended
March
31,
2006
|
||||||
Revenues
|
$
|
-
|
4,827,290
|
||||
Cost
of revenue
|
-
|
3,598,146
|
|||||
Gross
Profit
|
-
|
1,229,144
|
|||||
Total
Operating Expenses
|
218,490
|
168,185
|
|||||
Net
income (loss)
|
$
|
(218,490
|
)
|
$
|
1,060,959
|
Six
Months Ended
March
31,
2007
|
Six
Months Ended
March
31,
2006
|
||||||
Revenues
|
$
|
-
|
5,814,184
|
||||
Cost
of revenue
|
-
|
4,325,889
|
|||||
Gross
Profit
|
-
|
1,488,295
|
|||||
Total
Operating Expenses
|
427,134
|
258,298
|
|||||
Net
income (loss)
|
$
|
(427,134
|
)
|
$
|
1,229,997
|
As
of
March
31, 2007
|
As
of
September
30, 2006
|
Change
|
||||||||
Cash
and cash equivalents
|
$
|
102,685
|
$
|
103,817
|
$
|
(1,132
|
)
|
|||
Accounts
receivable
|
-
|
2,013,529
|
(2,013,529
|
)
|
||||||
Inventories
|
485,651
|
399,636
|
88,015
|
|||||||
Accounts
payable
|
(1,321,076
|
)
|
(1,815,719
|
)
|
494,643
|
|||||
Due
from affiliated party
|
-
|
(344,136
|
)
|
344,136
|
||||||
Total
current liabilities
|
$
|
(1,321,076
|
)
|
$
|
(2,159,855
|
)
|
$
|
838,779
|
31.1
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer
|
|
31.2
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer
|
|
32.1
|
Chief
Executive Officer Certification Pursuant to 18 USC, Section 1350,
as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
|
Chief
Financial Officer Certification Pursuant to 18 USC, Section 1350,
as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
China
Agro Sciences Corp.
|
||
|
|
|
Dated: June 19, 2007 | By: | /s/ Zhengquan Wang |
Zhengquan Wang |
||
President,
Director,
|
||
Chief Executive Officer, | ||
Chief Financial Officer | ||