Quarterly report pursuant to sections 13 or 15(d)

DESCRIPTION OF BUSINESS AND ORGANIZATION

v2.4.0.8
DESCRIPTION OF BUSINESS AND ORGANIZATION
6 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Business Description and Basis of Presentation [Text Block]
1.
DESCRIPTION OF BUSINESS AND ORGANIZATION
 
China Equity Growth Investment Ltd. ("CGEI") incorporated in the Cayman Islands as an exempted limited liability company, was incorporated as a blank check company on January 18, 2010 with the purpose of directly or indirectly acquiring, through a merger, share exchange, asset acquisition, plan of arrangement, recapitalization, reorganization or similar business combination, an operating business, or control of such operating business through contractual arrangements, that has its principal business and/or material operations located in the PRC.  In connection with its initial business combination, CGEI changed its name to Pingtan Marine Enterprise Ltd. (“the Company” or “PME”) in February 2013.
 
China Dredging Group Co., Ltd (“CDGC” or “China Dredging”) and Merchant Supreme Co., Ltd (“Merchant Supreme”) are limited liability companies incorporated on April 14, 2010 and June 25, 2012, respectively, in British Virgin Island (“BVI”).
 
China Dredging, through its PRC Variable Interest Entity (“VIE”), Fujian Service Port Service Co., Ltd (“Fujian Service”), provides specialized dredging services exclusively to the PRC marine infrastructure market and is, based on the number and capacity of the dredging vessels it operates, one of the leading independent (not state-owned) providers of such services in the PRC. Since its inception, China Dredging has functioned exclusively as a specialist subcontractor, performing dredging services for other companies licensed to function as general contractors. China Dredging engages in capital dredging, maintenance dredging and reclamation dredging projects and primarily sources its projects by subcontracting projects from general contractors.
 
Merchant Supreme, through its PRC VIE, Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd. (“Pingtan Fishing”) engages in ocean fishery with many of its self-owned vessels within Indian EEZ and Arafura Sea of Indonesia. Pingtan Fishing is ranked highly as one of the leading private (not state-owned) supplier and trader of oceanic aquatic products in PRC.
 
CGEI and CDGC entered into the Merger Agreement dated October 24, 2012, providing for the combination of CGEI and CDGC.  Pursuant to the Merger Agreement, CDGC would continue as the surviving company and a wholly-owned subsidiary of CGEI.  CGEI also acquired all of the outstanding capital shares and other equity interests of Merchant Supreme as per Share Purchase Agreement dated October 24, 2012.  Following the completion of the business combination held on February 25, 2013, CDGC and Merchant Supreme became the wholly-owned subsidiaries of the Company.  The ordinary shares, par value $0.001 per share were listed on The NASDAQ Capital Market under the symbol “PME”. 
 
Details of the Company’s subsidiaries and VIEs which are included in these consolidated financial statements as of June 30, 2013 are as follows:
 
Name of subsidiaries
 
Place and date of
incorporation
 
Percentage of ownership
 
Principal activities
 
 
 
 
 
 
 
 
 
China Dredging Group Co., Ltd
 
BVI
 
100% held by PME
 
Intermediate holding
 
(“CDGC” or “China
 
April 14, 2010
 
 
 
company
 
Dredging”)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
China Dredging (HK)
 
Hong Kong,
 
100% through CDGC
 
Intermediate holding
 
Company Limited
 
April 26, 2010
 
 
 
company
 
(“China Dredging HK”)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Master Gold Corporation
 
Hong Kong,
 
100% through CDGC
 
Intermediate holding
 
Limited (“Master Gold”)
 
June 1, 2012
 
 
 
company
 
 
 
 
 
 
 
 
 
Fujian Wanggang Dredging
 
PRC
 
100% through China
 
Intermediate holding
 
Construction Co., Ltd
 
June 12, 2010
 
Dredging HK;
 
company
 
(“Fujian Wanggang”)
 
 
 
VIE Agreement signed with Wonder Dredging
 
 
 
 
 
 
 
 
 
 
 
Pingtan Xingyi Port Service
 
PRC
 
100% through Wonder
 
BT project involves
 
Co., Ltd (“Pingtan Xingyi”)
 
August 6, 2012
 
Dredging
 
dredging, reclamation and
 
 
 
 
 
 
 
cofferdam construction
 
 
 
 
 
 
 
 
 
Pingtan Zhuoying Dredging
 
PRC
 
100% through Master
 
Intermediate holding
 
Engineering Construction
 
September 26, 2012
 
Gold
 
company
 
Co., Ltd (“Pingtan Zhuoying”)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merchant Supreme Co., Ltd.
 
BVI,
 
100% held by PME
 
Intermediate holding
 
(“Merchant Supreme”)
 
June 25, 2012
 
 
 
company
 
 
 
 
 
 
 
 
 
Prime Cheer Corporation
 
Hong Kong,
 
100% held by Merchant
 
Intermediate holding
 
Ltd. (“Prime Cheer”)
 
May 3, 2012
 
Supreme
 
company
 
 
 
 
 
 
 
 
 
Pingtan Guansheng Ocean
 
PRC
 
100% held by Prime
 
Intermediate holding
 
Fishing Co., Ltd.
 
October 12, 2012
 
Cheer
 
company
 
("Pingtan Guansheng")
 
 
 
 
 
 
 
  
Name of Variable Interest
Entities
 
Place and date of
incorporation
 
Percentage of ownership
 
Principal activities
 
 
 
 
 
 
 
 
 
Wonder Dredging Engineering
 
PRC
 
91% owned by Qing Lin and
 
Intermediate holding
 
LLC (“Wonder Dredging”)
 
May 10, 2010
 
9% owned by Panxing Zhuo; VIE agreement signed with Fujian Wanggang
 
company
 
 
 
 
 
 
 
 
 
Fujian Xinggang Port Service
 
PRC
 
50% through Fujian
 
Provides specialized
 
Co., Ltd. (“Fujian Service”)
 
January 8, 2008
 
Wanggang and 50% through Wonder Dredging; VIE agreement signed with Fujian Wanggang
 
dredging services
 
 
 
 
 
 
 
 
 
Fujian Provincial Pingtan
 
PRC
 
70% owned by Honghong
 
Engages in ocean fishing
 
County Fishing Group Co., Ltd. (“Pingtan Fishing”)
 
February 27, 1998
 
Zhuo and 30% owned by Zhiyan Lin; VIE agreement signed with Pingtan Guansheng
 
and sale of frozen marine catches
 
 
 
 
 
 
 
 
 
Pingtan Dingxin Fishing
 
PRC
 
100% through Pingtan
 
No business activity
 
Information Consulting Co.,
 
October 21, 2012
 
Fishing
 
 
 
Ltd. (“Pingtan Dingxin”)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pingtan Duoying Fishing
 
PRC
 
100% through Pingtan
 
No business activity
 
Information Consulting Co.,
 
October 21, 2012
 
Fishing
 
 
 
Ltd. (“Pingtan Duoying”)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pingtan Ruiying Fishing
 
PRC
 
100% through Pingtan
 
No business activity
 
Information Consulting Co.,
 
October 21, 2012
 
Fishing
 
 
 
Ltd. (“Pingtan Ruiying”)