Annual report pursuant to Section 13 and 15(d)

Condensed Parent Company Financial Information

v3.6.0.2
Condensed Parent Company Financial Information
12 Months Ended
Dec. 31, 2016
Condensed Parent Company Financial Information [Abstract]  
CONDENSED PARENT COMPANY FINANCIAL INFORMATION

NOTE 16 – 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 subsidiaries’ and VIEs’ 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 and VIEs 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.

 

Condensed Parent Company Balance Sheets

 

    December 31, 2016     December 31, 2015  
ASSETS            
Current assets:            
Cash   $ 136,750     $ 171,329  
Other receivable     75,000       75,000  
Investments in subsidiaries and VIEs at equity     128,507,533       149,195,133  
Total current assets     128,719,283       149,441,462  
Other assets:                
Property, plant and equipment     22,359,945       23,681,715  
Total assets   $ 151,079,228     $ 173,123,177  
LIABILITIES AND EQUITY                
Current liabilities:                
Due to related parties   $ 11,366,974     $ 6,283,354  
Total liabilities     11,366,974       6,283,354  
Shareholders' equity:                
Equity attributable to owners of the company:                
Ordinary shares ($0.001 par value; 225,000,000 shares authorized; 79,055,053 shares issued and outstanding at December 31, 2016 and 2015)     79,055       79,055  
Additional paid-in capital     111,008,085       111,008,085  
Retained earnings     26,830,042       43,709,867  
Accumulated other comprehensive loss     (12,879,051 )     (4,326,351 )
Total equity attributable to owners of the company     125,038,131       150,470,656  
Non-controlling interest     14,674,123       16,369,167  
Total shareholders' equity     139,712,254       166,839,823  
Total liabilities and equity   $ 151,079,228     $ 173,123,177  

Condensed Parent Company Statements of Operations

 

    For the Year Ended December 31,  
    2016     2015     2014  
Revenue   $ -     $ -     $ -  
Cost of revenue     -       -       -  
Operating expenses:                        
General and administrative     (2,456,219 )     (2,074,964 )     (1,899,368 )
Total operating expenses     (2,456,219 )     (2,074,964 )     (1,899,368 )
Loss from operations     (2,456,219 )     (2,074,964 )     (1,899,368 )
Other (expense) income     (542 )     (593 )     82,855  
Loss attributable to parent only     (2,456,761 )     (2,075,557 )     (1,816,513 )
Equity in (loss) income of subsidiaries and VIEs     (12,220,550 )     21,633,959       87,577,218  
Net (loss) income     (14,677,311 )     19,558,402       85,760,705  
Less: net (loss) income attributable to the non-controlling interest     (959,688 )     1,205,485       -  
Net (loss) income attributable to owners of the company   $ (13,717,623 )   $ 18,352,917     $ 85,760,705  

Condensed Parent Company Statements of Cash Flows

 

    For the Year Ended December 31,  
    2016     2015     2014  
CASH FLOWS FROM OPERATING ACTIVITES                  
Net (loss) income   $ (14,677,311 )   $ 19,558,402     $ 85,760,705  
Adjustments to reconcile net (loss) income to net cash used in operating activities:                        
Equity in loss (income) of subsidiaries and VIEs     12,220,550       (21,633,959 )     (87,577,218 )
Changes in assets and liabilities:                        
Prepaid expenses     -       2,819       1  
Other receivable     -       (75,000 )     (33 )
Accrued liabilities and other payables     -       (11,099 )     (198,075 )
Due to related parties     20,000       2       23,352  
NET CASH USED IN OPERATING ACTIVITIES     (2,436,761 )     (2,158,835 )     (1,991,268 )
CASH FLOWS FROM INVESTING ACTIVITIES                        
Investment payments to subsidiaries and VIEs     (114,036 )     (244,033 )     -  
NET CASH USED IN INVESTING ACTIVITIES     (114,036 )     (244,033 )        
CASH FLOWS FROM FINANCING ACTIVITIES                        
Cash acquired from subsidiaries and VIEs     614,800       636,000       584,983  
Advances from related parties     5,063,620       3,910,000       2,350,000  
Payments made for dividend     (3,162,202 )     (2,371,652 )     (790,550 )
NET CASH PROVIDED BY FINANCING ACTIVITIES     2,516,218       2,174,348       2,144,433  
NET (DECREASE) INCREASE IN CASH     (34,579 )     (228,520 )     153,165  
CASH - beginning of year     171,329       399,849       246,684  
CASH - end of year   $ 136,750     $ 171,329     $ 399,849  

 

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 VIEs.

 

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 subsidiaries and VIEs in PRC of $9,391,827 as of December 31, 2016 and 2015.