Annual report pursuant to Section 13 and 15(d)

Condensed Parent Company Financial Information

v2.4.1.9
Condensed Parent Company Financial Information
12 Months Ended
Dec. 31, 2014
Condensed Parent Company Financial Information [Abstract]  
CONDENSED PARENT COMPANY FINANCIAL INFORMATION

NOTE 17 – CONDENSED PARENT COMPANY FINANCIAL INFORMATION

 

The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s China-based operating VIE’s and subsidiary exceed 25% of the consolidated net assets of Pingtan Marine Enterprise Ltd.

 

The condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries using the equity method. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.

 

PINGTAN MARINE ENTERPRISE LTD.
Condensed Parent Company Balance Sheets
             
    December 31, 2014     December 31, 2013  
ASSETS        
Cash   $ 399,849     $ 246,684  
Prepaid expenses     2,819       2,820  
Other receivable     64       -  
Investments in VIEs at equity     125,961,030       38,446,318  
Total current assets     126,363,762       38,695,822  
                 
Other assets                
Property, plant and equipment     25,289,869       26,347,285  
Total assets   $ 151,653,631     $ 65,043,107  
                 
LIABILITIES AND EQUITY                
Current liabilities                
Accrued liabilities and other payables   $ 21,345     $ 201,672  
Due to related parties     2,373,352       -  
Total liabilities     2,394,697       201,672  
                 
Shareholders' equity                
Ordinary shares ($0.001 par value; 225,000,000 shares authorized; 79,055,053 shares issued and outstanding at December 31, 2014 and 2013)     79,055       79,055  
Additional paid-in capital     117,525,377       117,525,377  
Retained earnings (accumulated deficit)     27,728,602       (57,241,553 )
Accumulated other comprehensive income     3,925,900       4,478,556  
Total shareholders' equity     149,258,934       64,841,435  
Total liabilities and equity   $ 151,653,631     $ 65,043,107  


 

 

PINGTAN MARINE ENTERPRISE LTD.

Condensed Parent Company Statements of Operations

 

    For the Years Ended December 31,  
    2014     2013     2012  
Revenues   $ -     $ -     $ -  
Cost of revenues     -       -       -  
Operating expenses:                        
General and administrative     (1,899,368 )     (2,225,543 )     -  
Total operating expenses     (1,899,368 )     (2,225,543 )     -  
Loss from operations     (1,899,368 )     (2,225,543 )     -  
Other income (expense)     82,855       117       -  
Loss attributable to parent only     (1,816,513 )     (2,225,426 )     -  
Equity income earnings of VIEs     87,577,218       101,271,882       108,774,696  
Net income   $ 85,760,705     $ 99,046,456     $ 108,774,696  


 

PINGTAN MARINE ENTERPRISE LTD.
Condensed Parent Company Statements of Cash Flows
                   
    For the Years Ended December 31,  
    2014     2013     2012  
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income   $ 85,760,705     $ 99,046,456     $ 108,774,696  
Adjustments to reconcile net income to net cash used in operating activities:                        
Equity in earnings of VIEs     (87,577,218 )     (101,271,882 )     (108,774,696 )
Changes in assets and liabilities:                        
Prepaid expenses     1       21,180       -  
Other receivable     (33 )     -       -  
Accrued liabilities and other payables     (198,075 )     201,654       -  
Due to related parties     23,352       -       -  
NET CASH USED IN OPERATING ACTIVITIES     (1,991,268 )     (2,002,592 )     -  
                         
CASH FLOWS FROM INVESTING ACTIVITIES                        
Investment payments to VIEs     -       (1,316,079 )     -  
NET CASH USED IN INVESTING ACTIVITIES     -       (1,316,079 )     -  
                         
CASH FLOWS FROM FINANCING ACTIVITIES                        
Cash acquired from VIEs     584,983       -       -  
Advances from related parties     2,350,000       -       -  
Payments made for dividend     (790,550 )     -       -  
Cash acquired in recapitalization     -       3,565,355       -  
NET CASH PROVIDED BY FINANCING ACTIVITIES     2,144,433       3,565,355       -  
                         
NET INCREASE IN CASH     153,165       246,684       -  
                         
CASH - beginning of year     246,684       -       -  
                         
CASH - end of year   $ 399,849     $ 246,684     $ -  


 

 

Notes to the Condensed Parent Company Financial Statements

 

Note 1. Basis of Preparation

 

The condensed financial information of the Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Company used the equity method to account for investments in its subsidiaries and variable interest entity.

 

Note 2. Investments in Subsidiaries and VIEs

 

The Company and its subsidiaries and variable interest entities were included in the consolidated financial statements where the inter-company balances and transactions were eliminated upon consolidation. For purpose of the Company’s stand-alone financial statements, its investments in subsidiaries and variable interest entities were reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries and variable interest entities were reported as equity in earnings of subsidiaries and variable interest entities in the accompanying parent company financial statements.

 

Note 3. Retained Earnings

 

The retained earnings in the Company’s stand-alone financial statements do not represent the distributable earnings of the Group as it includes the statutory reserve of its VIEs in PRC of $6,412,892 as of December 31, 2014 and 2013.