EX-11.1 10 k22454a4exv11w1.txt STATEMENT OF COMPUTATION PER SHARE EARNINGS . . . UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS Unaudited Pro Forma Condensed Combined Statement of Income (Maximum Approval Assumption) At December 31, 2006 (in US dollars, in thousand)
PRO-FORMA COMBINED ADJUSTMENTS PRO-FORMA (ASSUMING (ASSUMING MAXIMUM MAXIMUM TONGXIN AAAC APPROVAL) APPROVAL) ----------- ---------- ------------ ---------- Revenue Revenues (Net) $ 66,205 $ -- $ -- $ 66,205 COST OF REVENUE Cost of good sold 47,741 47,741 ----------- ---------- ------- ---------- Gross profit 18,464 -- 18,464 OPERATING EXPENSES -- Selling, general and administrative 8,492 7,818(G) 16,310 ----------- ---------- ------- ---------- -- ----------- ---------- ------- ---------- OPERATING INCOME 9,972 -- (7,818) 2,154 Interest income -- 1,308 432(H) 876 Interest expense (1,707) -- (1,707) Other income, net 400 400 Unrealized loss on warrant liability -- (3,783) (3,783) Formation and operating costs -- (637) (637) ----------- ---------- ------- ---------- TOTAL OTHER INCOME (EXPENSE) (1,307) (3,112) (432) (4,581) NET INCOME (LOSS) BEFORE TAXES 8,665 (3,112) 8,250 (2,697) Income tax provision (2,946) (458) 173(H) (3,231) ----------- ---------- ------- ----------
NET INCOME (LOSS) $ 5,719 $ (3,570) $(8,077) $ (5,928) =========== ========== ======= =========== Weighted average common shares outstanding Basic 72,521,705 4,901,284 9,401,284 Diluted 72,521,705 4,901,284 11,131,552 =========== ========== =========== Income (loss) per share: Basic $ 0.0786 $ (0.7283) $ (0.6306) Diluted $ 0.0786 $ (0.7283) $ (0.5236) =========== ========== ===========
Unaudited Pro Forma Condensed Combined Statement of Income (Minimum Approval Assumption) At December 31, 2006 (in US dollars, in thousand)
PRO FORMA COMBINED ADJUSTMENTS PRO FORMA (ASSUMING (ASSUMING HUNAN MINIMUM MINIMUM TONGXIN AAAC APPROVAL) APPROVAL) ----------- ---------- ----------- ---------- Total revenue (net) $ 66,205 $ 0 $ 0 $ 66,205 ---------- COST OF REVENUE Cost of good sold $ 47,741 $ 0 $ 0 $ 47,741 ----------- ---------- ------ ---------- Gross profit $ 18,464 $ 0 $ 0 $ 18,464 OPERATING EXPENSES Selling, general and administrative $ 8,492 $ 0 $7,818(G) $ 16,310 ----------- ---------- ------ ---------- -- ----------- ---------- ------ ---------- OPERATING INCOME $ 9,972 $ 0 $(7,818) $ 2,154 Interest income $ 1,707 $1,308 (602)(H) 706 Interest expense $ (1,707) $ 0 $ 0 $ (1,707) Other Income 400 400 Unrealized loss on warrant liability $ 0 $ (3,783) $ 0 $ (3,783)
Formation and operating costs $ 0 $ (637) $ 0 $ (637) ----------- ---------- ------ ---------- TOTAL OTHER INCOME (EXPENSE) $ (1,307) $ (3,112) ($170) $ (5,021) Net income(loss) before taxes $ 8,665 ($3,112) ($170) (2,867) Income tax provision ($2,946) ($458) ($68)(H) ($3,163) ----------- ---------- ------ ---------- Net income(loss) $ 5,719 ($3,570) (102) (6,030) Basic 72,521,705 4,901,284 8,395,538 Diluted 72,521,705 4,901,284 10,125,806 ----------- ---------- ---------- Income(loss) per share Basic $ 0.0786 ($0.7283) (0.5955) Diluted $ 0.0786 ($0.7283) (0.5955)
Unaudited Pro Forma Condensed Combined Balance Sheet (Maximum Approval Assumption) At September 30, 2007, (US dollars, in thousand)
PRO-FORMA COMBINED ADJUSTMENTS PRO-FORMA (ASSUMING (ASSUMING MAXIMUM MAXIMUM TONGXIN AAAC APPROVAL) APPROVAL) ------- ------- -------------- --------- ASSETS Current assets Cash and cash equivalents $ 7,646 $ 60 $ 39,912 (A) $ 28,591 (13,000)(B) (4,100)(B) (1,207)(E) Accounts receivable, net 16,902 -- -- 16,902 Inventories 15,403 -- 15,403 Investments held in trust -- 39,192 (39,192)(A) -- Other receivables 4,309 -- 4,309
Other receivables due related party 10,056 -- -- 10,056 Deferred tax assets 1,710 358 -- 2,068 Prepaid expenses and other current assets 1,635 -- -- 1,635 Advanced suppliers 1,760 -- 1,760 ------- ------- -------- -------- Total current assets 59,421 39,610 (18,307) 80,724 Property and equipment, net 24,002 -- -- 24,002 Land occupancy rights 1,876 -- (1,876)(B) -- Investments in operating businesses 5,225 -- -- 5,225 New goodwill 11,828 (B) 11,192 New intangible assets 20,447 (B) 21,083 -- -- ------- ------- -------- -------- Total assets $90,524 $39,610 $ 12,092 $142,226 ======= ======= ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities Accounts payable $16,215 $ $ -- $ 16,215 Short-term bank loans 15,871 -- 15,871 Short-term bank loans from related parties 6,974 -- 6,974 Accrued expenses 4,894 383 5,277 Accrued income tax payable 11,068 -- 11,068 Warrant liability -- 9,599 9,599 Dividend payable 5,279 -- 5,279 Advances to customers 2,813 -- 2,813 Deferred underwriters fee -- 966 (966)(E) -- -- ------- ------- -------- -------- Total current liabilities 63,114 10,948 (966) 73,096
Long-term debt, net of current maturities 4,394 -- 4,394 Long-term payables 630 -- 630 -- ------- ------- -------- -------- Total Liabilities 68,138 10,948 (966) 78,120 ------- ------- -------- -------- Common stock, subject to possible redemption, 1,005,746 shares at redemption value -- 7,829 (7,829)(C) -- Stockholders' equity (deficit) Preferred stock -- -- -- -- Common stock -- 6 34 (B) 40 Additional paid-in-capital 8,762 22,327 34,477 (B,C) 65,566 Deficit accumulated during the development stage -- Reserve funds 1,994 -- (1,994)(B) -- Other Comprehensive Income 2,421 -- (2,421)(B) -- Appropriated earnings -- -- Accumulated other comprehensive income Retained earnings (accumulated deficit) 9,209 (1,500) (9,209)(B,F) (1,500) ------- ------- -------- -------- Total stockholders' equity (deficit) 22,386 20,833 20,887 64,106 ------- ------- -------- -------- Total liabilities and stockholders' equity (deficit) $90,524 $39,610 $ 12,092 $142,226 ======= ======= ======== ======== -- -- --
Unaudited Pro Forma Condensed Combined Balance Sheet (Minimum Approval Assumption) At September 30, 2007, (US dollars, in thousand)
PRO-FORMA COMBINED ADJUSTMENTS PRO-FORMA (ASSUMING (ASSUMING MINIMUM MINIMUM TONGXIN AAAC APPROVAL) APPROVAL) ------- ------- ----------- ---------- ASSETS Current assets Cash and cash equivalents $ 7,646 $ 60 $ 31,363 (A,D) $ 21,003 (12,759)(B,E) (4,100)(B) (1,207)(E) Accounts receivable, net 16,902 -- 16,902 16,902
Inventories 15,403 -- -- 15,403 Investments held in trust -- (39,192) (39,192) -- Other receivables 4,309 -- -- 4,309 Other receivables due related party 10,056 -- -- 10,056 Deferred tax assets 1,710 358 -- 2,068 Prepaid expenses and other current assets 1,635 -- -- 1,635 Advanced suppliers 1,760 -- 1,760 ------- ------- ----------- -------- Total current assets 59,421 39,610 (25,895) 73,136 Property and equipment, net 24,002 -- 24,002 Land occupancy rights 1,876 -- 1,876 (B) -- Investments in operating businesses 5,225 -- 5,225 New goodwill 11,828 (B) 11,192 New intangible assets 20,447 (B) 21,083 -- ------- ------- ----------- -------- Total assets $90,524 $39,610 $ 4,504 $134,638 ======= ======= =========== ======== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities Accounts payable $16,215 $ $ $ 16,215 Short-term bank loans 15,871 -- 15,871 Short-term bank loans from related parties 6,974 -- 6,974 Accrued expenses 4,894 383 5,277 Accrued income tax payable 11,068 -- 11,068 Warrant liability -- 9,599 9,599 Dividend payable 5,279 -- 5,279 Advances to customers 2,813 -- 2,813
Deferred underwriters fee -- 966 (966)(E) -- -- ------- ------- ----------- -------- Total current liabilities 63,114 10,948 (966) 73,096 Long-term debt, net of current maturities 4,394 -- 4,394 Long-term payables 630 -- 630 -- ------- ------- ----------- -------- Total Liabilities 68,138 10,948 (966) 78,120 ------- ------- ----------- -------- Common stock, subject to possible redemption, 1,005,746 shares at redemption value -- 7,829 -- Stockholders' equity (deficit) Preferred stock -- -- -- -- Common stock -- 6 (7)(D) 33 Additional paid-in-capital 8,762 22,327 26,896 (D,E) 57,985 Deficit accumulated during the development stage -- Reserve funds 1,994 -- (1,994) (B) Other Comprehensive Income 2,421 -- (2,421) (B) Appropriated earnings -- -- Accumulated other comprehensive income -- Retained earnings (accumulated deficit) 9,209 (1,500) (9,209) (B,F) (1,500) ------- ------- ----------- -------- Total stockholders' equity (deficit) 22,386 20,833 13,299 56,518 ------- ------- ----------- -------- Total liabilities and stockholders' equity (deficit) $90,524 $39,610 $ 4,504 $134,638 ======= ======= =========== ========
Unaudited Pro Forma Condensed Combined Statement of Income (Maximum Approval Assumption) At September 30, 2007 (in US dollars, in thousand)
PRO-FORMA COMBINED ADJUSTMENTS PRO-FORMA (ASSUMING (ASSUMING MAXIMUM MAXIMUM TONGXIN AAAC APPROVAL) APPROVAL) ---------- ---------- ----------- ---------- Revenue Revenues (Net) $ 62,922 $ -- $ -- $ 62,922