x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Cayman Islands
|
000-52339
|
N/A
|
||
(State or other jurisdiction of
incorporation or organization)
|
(Commission File Number)
|
(IRS Employee
Identification No.)
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o (Do not check if a smaller reporting company)
|
Smaller reporting company
|
x
|
PART 1 - FINANCIAL INFORMATION
|
||
PAGE
|
||
Item 1.
|
Financial Statements (Unaudited)
|
1
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
22
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
30
|
Item 4.
|
Controls and Procedures
|
30
|
PART II - OTHER INFORMATION
|
||
Item 1A.
|
Risk Factors
|
31
|
Item 6.
|
Exhibits
|
31
|
SIGNATURES
|
32
|
●
|
“Exchange Act” refers to the Securities Exchange Act of 1934, as amended;
|
●
|
“PRC,” “China,” and “Chinese,” refer to the People’s Republic of China;
|
●
|
“Hong Kong” refers to the Hong Kong Special Administrative Region of the People’s Republic of China;
|
●
|
“Jiangmen Huiyuan” refers Jiangmen Huiyuan Environmental Protection Technology Consultancy Co. Ltd ., a wholly foreign owned enterprise organized under the PRC laws;
|
●
|
“Guangdong Huixin” refers to Guangdong Huixin Environmental Protection Co., Ltd., a PRC limited liability company, (formerly “Jiangmen Wealth Water Purifying Agent Co., Ltd”).
|
●
|
“Operating Company” or “Operating Companies” refers to Jiangmen Huiyuan, Guangdong Huixin, Guizhou Yufeng and Shanxi Wealth;
|
●
|
“Guizhou Yufeng” refers to Guizhou Yufeng Melt Co., Ltd., a PRC limited company;
|
●
|
“Renminbi” and “RMB” refer to the legal currency of China;
|
●
|
“SEC” refers to the United States Securities and Exchange Commission;
|
●
|
“Securities Act” refers to the Securities Act of 1933, as amended;
|
●
|
“Shanxi Wealth” refers to Shanxi Wealth Aluminate Materials Co., Ltd., a PRC limited company;
|
●
|
“U.S. dollars,” “dollars” and “$” refer to the legal currency of the United States of America;
|
●
|
“Wealth Environmental Protection” or “WEP” refers to Wealth Environmental Protection Group, Inc., a British Virgin Islands company; and
|
●
|
“Wealth Technology” refers to Wealth Environmental Technology Holding, Ltd., a Hong Kong company.
|
Item 1.
|
Financial Statements.
|
Page
|
|
Condensed Consolidated Balance Sheets as of September 30, 2013 (Unaudited) and December 31, 2012
|
2
|
Condensed Consolidated Statements of Income for the three months and nine months ended September 30, 2013 and 2012 (Unaudited)
|
3
|
Condensed Consolidated Statements of Comprehensive Income for the three months and nine months ended September 30, 2013 and 2012 (Unaudited)
|
4
|
Condensed Consolidated Statement of Shareholders' Equity for the nine months ended September 30, 2013 (Unaudited)
|
5-6
|
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and 2012 (Unaudited)
|
7
|
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
8-21
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(UNAUDITED)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
35,809,292
|
$
|
33,871,287
|
||||
Accounts receivable
|
3,122,104
|
2,729,778
|
||||||
Inventories
|
1,221,626
|
1,447,570
|
||||||
Other current assets
|
20,200
|
31,479
|
||||||
Total current assets
|
40,173,222
|
38,080,114
|
||||||
Property, plant and equipment and land and mining rights, net
|
93,533,987
|
13,618,082
|
||||||
Deposit for mining right acquisition
|
-
|
63,480,677
|
||||||
Total assets
|
$
|
133,707,209
|
$
|
115,178,873
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Short –term debt
|
$
|
19,555,344
|
$
|
19,044,203
|
||||
Accounts payable
|
2,077,240
|
2,444,555
|
||||||
Accrued expenses
|
1,108,939
|
2,335,342
|
||||||
Due to shareholders
|
15,290
|
15,290
|
||||||
Value added taxes payable
|
821,333
|
646,743
|
||||||
Other taxes payable
|
149,941
|
160,605
|
||||||
Income tax payable
|
170,719
|
1,332,804
|
||||||
Total current liabilities
|
23,898,806
|
25,979,542
|
||||||
Deferred income taxes
|
468,736
|
311,425
|
||||||
Total liabilities
|
24,367,542
|
26,290,967
|
||||||
Commitments and contingencies
|
||||||||
Shareholders' equity:
|
||||||||
Preferred stock, $0.000128 par value, 781,250 shares
|
||||||||
authorized, 177,530 and 184,198 shares
|
||||||||
issued and outstanding on September 30, 2013
|
||||||||
and December 31, 2012
|
23
|
24
|
||||||
Common stock: $0.00018254172 par value, 39,062,500
|
||||||||
shares authorized, 22,456,695 and 21,089,275 shares issued
|
||||||||
and outstanding on September 30, 2013 and December 31, 2012
|
4,099
|
3,850
|
||||||
Additional paid-in capital
|
31,502,795
|
24,840,803
|
||||||
Accumulated other comprehensive income
|
9,652,056
|
7,071,841
|
||||||
Retained earnings (the restricted portion of retained earnings
|
||||||||
is $496,396 on September 30, 2013 and December 31, 2012)
|
68,180,694
|
56,971,388
|
||||||
Total shareholders’ equity
|
109,339,667
|
88,887,906
|
||||||
Total liabilities and shareholders’ equity
|
$
|
133,707,209
|
$
|
115,178,873
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net revenue
|
$
|
21,361,331
|
$
|
22,407,329
|
$
|
64,002,554
|
$
|
61,298,540
|
||||||||
Cost of revenue
|
11,575,232
|
12,308,208
|
34,875,014
|
33,746,528
|
||||||||||||
Gross profit
|
9,786,099
|
10,099,121
|
29,127,540
|
27,552,012
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling and marketing
|
744,583
|
797,674
|
2,161,603
|
2,218,268
|
||||||||||||
General and administrative
|
1,382,882
|
1,490,942
|
10,590,151
|
3,826,647
|
||||||||||||
Research and development
|
179,432
|
151,176
|
533,787
|
470,722
|
||||||||||||
Total operating expenses
|
2,306,897
|
2,439,792
|
13,285,541
|
6,515,637
|
||||||||||||
Income from operations
|
7,479,202
|
7,659,329
|
15,841,999
|
21,036,375
|
||||||||||||
Other income/(expense):
|
||||||||||||||||
Interest income
|
29,879
|
79,596
|
78,483
|
708,023
|
||||||||||||
Interest expense
|
(298,621
|
)
|
(228,123
|
)
|
(882,000
|
)
|
(284,243
|
)
|
||||||||
Total other income/(expense)
|
(268,742
|
)
|
(148,527
|
)
|
(803,517
|
)
|
423,780
|
|||||||||
Income before provision for income taxes
|
7,210,460
|
7,510,802
|
15,038,482
|
21,460,155
|
||||||||||||
Provision for income taxes
|
1,811,743
|
1,901,646
|
3,816,936
|
5,454,958
|
||||||||||||
Net income
|
5,398,717
|
5,609,156
|
11,221,546
|
16,005,197
|
||||||||||||
Less cumulative dividends on preferred stock
|
43,227
|
100,081
|
129,560
|
300,243
|
||||||||||||
Net income attributable to common shareholders
|
$
|
5,355,490
|
$
|
5,509,075
|
$
|
11,091,986
|
$
|
15,704,954
|
||||||||
Net income per common share - basic
|
$
|
0.24
|
$
|
0.28
|
$
|
0.51
|
$
|
0.80
|
||||||||
Net income per common share - diluted
|
$
|
0.23
|
$
|
0.26
|
$
|
0.49
|
$
|
0.73
|
||||||||
Weighted average number of common shares outstanding - basic
|
22,456,695
|
19,600,305
|
21,842,586
|
19,600,305
|
||||||||||||
Weighted average number of common shares outstanding - diluted
|
23,340,265
|
21,824,325
|
22,726,987
|
21,824,325
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(UNAUDITED)
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net income
|
$
|
5,398,717
|
$
|
5,609,156
|
$
|
11,221,546
|
$
|
16,005,197
|
||||||||
Other comprehensive income/(loss)
|
||||||||||||||||
- foreign currency translation adjustments
|
627,540
|
(127,092
|
)
|
2,580,215
|
350,325
|
|||||||||||
Comprehensive income
|
$
|
6,026,257
|
$
|
5,482,064
|
$
|
13,801,761
|
$
|
16,355,522
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
|
(UNAUDITED)
|
Additional
|
||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid-In
|
||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
||||||||||||||||
Balance as of December 31, 2012
|
184,198
|
$
|
24
|
21,089,275
|
$
|
3,850
|
$
|
24,840,803
|
||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Shares issued in kind for the payment of preferred stock dividends
|
816
|
-
|
-
|
-
|
12,240
|
|||||||||||||||
Preferred stock and related dividends in arrears converted to common stock
|
(7,484
|
)
|
(1
|
)
|
37,420
|
7
|
(6
|
)
|
||||||||||||
Common stock issued for services
|
-
|
-
|
1,330,000
|
242
|
6,649,758
|
|||||||||||||||
Other comprehensive income foreign currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Balance as of September 30, 2013
|
177,530
|
$
|
23
|
22,456,695
|
$
|
4,099
|
$
|
31,502,795
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
|
(UNAUDITED)
|
Accumulated
|
||||||||||||||||
Other
|
Total
|
|||||||||||||||
Comprehensive
|
Retained Earnings
|
Shareholders’
|
||||||||||||||
Income
|
Restricted
|
Unrestricted
|
Equity
|
|||||||||||||
Balance as of December 31, 2012
|
$ | 7,071,841 | $ | 496,396 | $ | 56,474,992 | $ | 88,887,906 | ||||||||
Net income
|
- | - | 11,221,546 | 11,221,546 | ||||||||||||
Shares issued in kind for the payment of preferred stock dividends
|
- | - | (12,240 | ) | - | |||||||||||
Preferred stock and related dividends in arrears converted to common stocks
|
- | - | - | - | ||||||||||||
Common stock issued for services
|
- | - | - | 6,650,000 | ||||||||||||
Other comprehensive income - foreign currency translation adjustments
|
2,580,215 | - | - | 2,580,215 | ||||||||||||
Balance as of September 30, 2013
|
$ | 9,652,056 | $ | 496,396 | $ | 67,684,298 | $ | 109,339,667 |
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
Nine Months Ended
|
||||||||
September 30,
|
||||||||
2013
|
2012
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
11,221,546
|
$
|
16,005,197
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,320,151
|
1,047,465
|
||||||
Deferred income taxes
|
145,125
|
(453
|
)
|
|||||
Issuance of common stock for services
|
6,650,000
|
-
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(315,119
|
)
|
(873,048
|
)
|
||||
Interest receivable
|
-
|
157,171
|
||||||
Inventories
|
261,526
|
(230,512
|
)
|
|||||
Advance to suppliers
|
-
|
3,852,007
|
||||||
Other assets
|
11,975
|
(4,495
|
)
|
|||||
Accounts payable
|
(429,362
|
)
|
690,404
|
|||||
Accrued expenses
|
(1,273,155
|
)
|
(305,160
|
)
|
||||
Value added taxes payable
|
140,392
|
264,967
|
||||||
Other taxes payable
|
112
|
64,453
|
||||||
Income tax payable
|
(1,203,594
|
)
|
655,406
|
|||||
Net cash provided by operating activities
|
17,529,597
|
21,323,402
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of property, plant and equipment
|
(91,888
|
)
|
(209,113
|
)
|
||||
Mining right acquisition
|
(16,250,008
|
)
|
(31,703,760
|
)
|
||||
Promissory note receivable from non related party
|
-
|
25,363,008
|
||||||
Net cash used in investing activities
|
(16,341,896
|
)
|
(6,549,865
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Principal payments on short-term debt
|
(12,989,543
|
)
|
(22,509,670
|
)
|
||||
Proceeds received from short-term debt
|
12,989,543
|
35,191,174
|
||||||
Decrease in restricted cash
|
-
|
550,000
|
||||||
Net cash provided by financing activities
|
-
|
13,231,504
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
750,304
|
91,887
|
||||||
Net increase in cash and cash equivalents
|
1,938,005
|
28,096,928
|
||||||
Cash and cash equivalents at the beginning of period
|
33,871,287
|
26,383,537
|
||||||
Cash and cash equivalents at the end of period
|
$
|
35,809,292
|
$
|
54,480,465
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Income taxes paid
|
$
|
4,875,404
|
$
|
4,799,533
|
||||
Interest paid
|
$
|
882,000
|
$
|
284,243
|
||||
Non-cash investing and financing activities:
|
||||||||
Reclassify deposit for mining rights acquisition to property, plant and equipment and land and mining rights
|
$
|
63,480,677
|
$
|
-
|
||||
Preferred stock issued in kind for payment of dividends
|
$
|
12,240
|
$
|
-
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(1)
|
Organization, Nature of Business and Basis of Presentation
|
Domicile and
|
|||||||||
Date of
|
Paid -In
|
Effective
|
|||||||
Name and Location
|
Incorporation
|
Capital
|
Ownership
|
Activities
|
|||||
Wealth Environmental Protection Group, Inc (“WEP”)
|
British Virgin Islands
June 3, 2010
|
$
|
7,000
|
100% Owned
|
Holding Company
|
||||
Wealth Environmental Technology Holding Ltd. (“Wealth Technology”)
Hong Kong
|
Hong Kong
June 18, 2010
|
$
|
1,299
|
100% Owned
|
Holding Company
|
||||
Jiangmen Huiyuan Environmental Protection Technology Consultancy Co.
(“Jiangmen Huiyuan”)
Jiangmen, Guandong Province
|
People’s Republic Of China (“PRC”)
July 22, 2010
|
$
|
15,082
|
100% Owned - Wholly Foreign Owned Entity (“WFOE”)
|
Holding Company
|
||||
Guangdong Huixin Environmental Protection Co., Ltd. (formerly “Jiangmen Wealth Water Purifying Agent Co., Ltd”) (“Guangdong Huixin”)
Jiangmen, Guandong Province
|
PRC
April 25, 2003
|
$
|
4,049,060
|
100% Control Through
Contractual Arrangements
|
Manufacturer of water purifying agents
|
||||
Guizhou Yufeng Melt Co., Ltd. (“Guizhou Yufeng”)
Guizhou Province
|
PRC
March 25, 2005
|
$
|
4,233,854
|
100% Control Through
Contractual Arrangements
|
Manufacturer of HAC Powder (defined below) using bauxite and limestone from mines controlled under mining rights agreements
|
||||
Shanxi Wealth Aluminate
Materials Co., Ltd (“Shanxi Weath”)
Shanxi Province
|
PRC
April 8, 2004
|
$
|
6,786,056
|
100% Control Through
Contractual Arrangements
|
Manufacturer of HAC Powder (defined below) using bauxite
and limestone from mines controlled under mining rights agreements
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(1)
|
Organization, Nature of Business and Basis of Presentation, continued
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(2)
|
Summary of Significant Accounting Policies, continued
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(2)
|
Summary of Significant Accounting Policies, continued
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
2013
|
September 30,
2012
|
September 30,
2013
|
September 30,
2012
|
|||||||||||||
Supplier 1
|
16
|
%
|
12
|
%
|
15
|
%
|
12
|
%
|
||||||||
Supplier 2
|
12
|
%
|
18
|
%
|
13
|
%
|
11
|
%
|
||||||||
Supplier 3
|
12
|
%
|
12
|
%
|
11
|
%
|
16
|
%
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(2)
|
Summary of Significant Accounting Policies, continued
|
Nine Months
|
Nine Months
|
|||||||
Ended
|
Ended
|
|||||||
September 30, 2013
|
September 30, 2012
|
|||||||
VAT billed to customers for sales during the period
|
$
|
12,613,741
|
$
|
12,017,833
|
||||
Less: VAT billed to the Company for purchases during the period
|
4,627,436
|
4,780,061
|
||||||
Net VAT on transactions during the period
|
7,986,305
|
7,237,772
|
||||||
Amount remitted to the PRC
|
(7,811,715
|
)
|
(6,970,630
|
)
|
||||
VAT payable at beginning of period
|
646,743
|
497,581
|
||||||
VAT payable at period end
|
$
|
821,333
|
$
|
764,723
|
As of
|
As of
|
|||||||
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Liabilities for taxes collected but not remitted
|
$
|
367,694
|
$
|
250,109
|
||||
Liabilities for taxes billed to customers but not collected
|
||||||||
from the customers or remitted to PRC
|
453,639
|
396,634
|
||||||
VAT payable at period end
|
$
|
821,333
|
$
|
646,743
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(3)
|
Earnings Per Share
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Net income attributable to common shareholders - Basic
|
$
|
5,355,490
|
$
|
5,509,075
|
$
|
11,091,986
|
$
|
15,704,954
|
||||||||
Add: cumulative dividends attributable to convertible preferred stock
|
43,227
|
100,081
|
129,560
|
300,243
|
||||||||||||
Net income attributable to common shareholders - Diluted
|
$
|
5,398,717
|
$
|
5,609,156
|
$
|
11,221,546
|
$
|
16,005,197
|
||||||||
Weighted average number of common shares outstanding - Basic
|
22,456,695
|
19,600,305
|
21,842,586
|
19,600,305
|
||||||||||||
Dilutive effect of preferred stock conversion
|
883,570
|
2,224,020
|
884,401
|
2,224,020
|
||||||||||||
Weighted average number of common shares outstanding - Diluted
|
23,340,265
|
21,824,325
|
22,726,987
|
21,824,325
|
||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
0.24
|
$
|
0.28
|
$
|
0.51
|
$
|
0.80
|
||||||||
Diluted
|
$
|
0.23
|
$
|
0.26
|
$
|
0.49
|
$
|
0.73
|
(4)
|
Inventories
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Raw Materials
|
$
|
899,629
|
$
|
949,111
|
||||
Work in progress
|
40,225
|
33,228
|
||||||
Finished goods
|
281,772
|
465,231
|
||||||
$
|
1,221,626
|
$
|
1,447,570
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(5)
|
Property, Plant and Equipment and Land and Mining Rights
|
Estimated
|
|||
Category
|
Useful Life
|
||
Land use rights
|
43 to 48 years
|
||
Mining rights
|
14 to 30 years
|
||
Leasehold improvements
|
20 to 40 years
|
||
Production equipment
|
5 to 30 years
|
||
Furniture and fixtures
|
5 years
|
||
Automobiles
|
5 years
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Leasehold improvement
|
$
|
3,437,873
|
$
|
3,348,013
|
||||
Production equipment
|
7,003,348
|
6,777,072
|
||||||
Furniture and fixtures
|
493,943
|
468,644
|
||||||
Automobiles
|
624,211
|
572,900
|
||||||
Land use rights
|
2,356,426
|
2,294,833
|
||||||
Mining rights
|
91,095,311
|
9,045,997
|
||||||
105,011,112
|
22,507,459
|
|||||||
Less: Accumulated depreciation and amortization
|
11,477,125
|
8,889,377
|
||||||
$
|
93,533,987
|
$
|
13,618,082
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(5)
|
Property, Plant, Equipment and Land and Mining Rights, continued
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Depreciation of plant, equipment and improvements
|
$
|
199,994
|
$
|
185,403
|
$
|
594,444
|
$
|
557,403
|
||||||||
Amortization of land use rights
|
12,937
|
12,612
|
38,488
|
37,907
|
||||||||||||
Amortization of mining rights
|
620,856
|
172,571
|
1,687,219
|
452,155
|
||||||||||||
Total
|
$
|
833,787
|
$
|
370,586
|
$
|
2,320,151
|
$
|
1,047,465
|
●
|
300,000 tons of limestone, from which the calcium needed for production of its products is derived;
|
●
|
360,000 tons of bauxite, from which the aluminum for production of its products is derived.
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Limestone
|
27,837
|
24,211
|
78,520
|
74,598
|
||||||||||||
Bauxite
|
67,045
|
79,504
|
186,524
|
200,981
|
(6)
|
Short-term debt
|
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Short term note (a)
|
$
|
13,036,896
|
$
|
12,696,135
|
||||
Short term note (b)
|
6,518,448
|
6,348,068
|
||||||
Total
|
$
|
19,555,344
|
$
|
19,044,203
|
(a)
|
On August 28, 2013, the Company extended the $13.04 million (RMB80,000,000) short-term note with Industrial Bank Co., Limited (“IB”) for another 12 months, which are personally guaranteed by Mr. Ming Zhou Tan, CEO of the Company (“Mr. Tan”) and Ms. Hong Yu Du, Director (“Ms. Du”), and contains no financial maintenance covenants. The interest rate under the short-term note is based on the base rate, the interest rate set by the People’s Bank of China (6% as of September 30, 2013 and as of December 31, 2012). Interest under the short term note is paid monthly at the end of each month. As of September 30, 2013, all interest was fully paid.
|
(b)
|
On December 3, 2012, the Company entered into a $6.52 million (RMB40,000,000) short-term note agreement with IB with a one-year maturity, which are personally guaranteed by Mr. Tan and Ms. Du, and contains no financial maintenance covenants. The interest rate under the short-term note is based on the base rate, the interest rate set by the People’s Bank of China (6% as of September 30, 2013 and at December 31, 2012). Interest under the short term note is paid monthly at the end of each month. As of September 30, 2013, all interest was fully paid.
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(7)
|
Income Taxes
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Computed tax at the U.S. federal statutory rate of 34%
|
$
|
2,463,956
|
$
|
2,553,673
|
$
|
5,190,826
|
$
|
7,296,453
|
||||||||
Tax rate difference between the US and PRC on foreign earnings
|
(652,224
|
)
|
(675,972
|
)
|
(1,374,042
|
)
|
(1,931,414
|
)
|
||||||||
Change in valuation allowance
|
12,401
|
32,563
|
267,590
|
122,215
|
||||||||||||
Other
|
(12,390
|
)
|
(8,618
|
)
|
(267,438
|
)
|
(32,296
|
)
|
||||||||
$
|
1,811,743
|
$
|
1,901,646
|
$
|
3,816,936
|
$
|
5,454,958
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(7)
|
Income Taxes, continued
|
As of
|
As of
|
|||||||
September 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Deferred tax assets:
|
||||||||
Net operating losses
|
$
|
1,507,946
|
$
|
1,240,356
|
||||
Liability for social insurance premiums and provident housing funds
|
75,000
|
75,000
|
||||||
Total deferred tax assets
|
1,582,946
|
1,315,356
|
||||||
Deferred tax liabilities:
|
||||||||
Difference between book and tax amortization on mining rights
|
(543,736
|
)
|
(386,425
|
)
|
||||
Total deferred tax liabilities
|
(543,736
|
)
|
(386,425
|
)
|
||||
Net deferred tax assets before valuation allowance
|
1,039,210
|
928,931
|
||||||
Valuation allowance
|
(1,507,946
|
)
|
(1,240,356
|
)
|
||||
Net deferred tax liabilities
|
$
|
(468,736
|
)
|
$
|
(311,425
|
)
|
(8)
|
Shareholders’ Equity
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(8)
|
Shareholders’ Equity
|
Registered
|
General
|
|||||||
Capital
|
Reserve Fund
|
|||||||
Jiangmen Huiyuan
|
$
|
-
|
$
|
-
|
||||
Jiangmen Wealth Water
|
61,981
|
38,801
|
||||||
Guizhou Yufeng
|
61,981
|
39,211
|
||||||
Shangxi Wealth
|
619,806
|
418,384
|
||||||
$
|
743,768
|
$
|
496,396
|
(9)
|
Related Party Balances and Transactions
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(10)
|
Segment Information
|
●
|
Guangdong Huixin produces water purification agents for specific industrial uses such as the treatment of waste water from paper mills, decolorization agents to treat waste water that contains active dyes, acid dyes and direct dyes produced in the textile and printing industry, and other industry specific water purification applications. The Company uses HAC powder produced by the Guizhou Yefeng segment in the production of its water purification agents.
|
●
|
Guizhou Yefeng produces HAC powder from calcium and aluminum derived from its limestone and bauxite mines. The HAC powder is used by Guangdong Huixin in the production of its water purification agents and is also sold to outside customers for waste water treatment.
|
●
|
Shanxi Wealth produces HAC powder from calcium and aluminum derived from its limestone and bauxite mines. The HAC powder is sold to outside customers for waste water treatment.
|
●
|
Other represents the cost of corporate activities and eliminations.
|
For the three months ended September 30, 2013
|
||||||||||||||||||||||||
Guangdong
|
Guizhou
|
Shanxi
|
||||||||||||||||||||||
Huixin
|
Yefeng
|
Wealth
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||
Net revenue
|
$
|
11,159,189
|
$
|
4,151,771
|
$
|
8,519,507
|
$
|
-
|
$
|
(2,469,136
|
)
|
$
|
21,361,331
|
|||||||||||
Cost of revenue
|
6,797,757
|
2,556,186
|
4,690,425
|
-
|
(2,469,136
|
)
|
11,575,232
|
|||||||||||||||||
Gross profit
|
4,361,432
|
1,595,585
|
3,829,082
|
-
|
-
|
9,786,099
|
||||||||||||||||||
Selling and marketing
|
292,626
|
81,034
|
370,923
|
-
|
-
|
744,583
|
||||||||||||||||||
General and administrative
|
646,792
|
199,986
|
338,018
|
198,086
|
-
|
1,382,882
|
||||||||||||||||||
Research and development
|
170,423
|
9,009
|
-
|
-
|
-
|
179,432
|
||||||||||||||||||
Income from operations
|
$
|
3,251,591
|
$
|
1,305,556
|
$
|
3,120,141
|
$
|
(198,086
|
)
|
$
|
-
|
$
|
7,479,202
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(10)
|
Segment Information, continued
|
For the three months ended September 30, 2012
|
||||||||||||||||||||||||
Guangdong
|
Guizhou
|
Shanxi
|
||||||||||||||||||||||
Huixin
|
Yefeng
|
Wealth
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||
Net revenue
|
$
|
11,510,345
|
$
|
4,596,526
|
$
|
9,024,816
|
$
|
-
|
$
|
(2,724,358
|
)
|
$
|
22,407,329
|
|||||||||||
Cost of revenue
|
7,307,167
|
2,459,220
|
5,266,179
|
-
|
(2,724,358
|
)
|
12,308,208
|
|||||||||||||||||
Gross profit
|
4,203,178
|
2,137,306
|
3,758,637
|
-
|
-
|
10,099,121
|
||||||||||||||||||
Selling and marketing
|
331,546
|
85,957
|
380,171
|
-
|
-
|
797,674
|
||||||||||||||||||
General and administrative
|
734,084
|
159,289
|
318,260
|
279,309
|
-
|
1,490,942
|
||||||||||||||||||
Research and development
|
142,394
|
8,782
|
-
|
-
|
-
|
151,176
|
||||||||||||||||||
Income from operations
|
$
|
2,995,154
|
$
|
1,883,278
|
$
|
3,060,206
|
$
|
(279,309
|
)
|
$
|
-
|
$
|
7,659,329
|
For the nine months ended September 30, 2013
|
||||||||||||||||||||||||
Guangdong
|
Guizhou
|
Shanxi
|
||||||||||||||||||||||
Huixin
|
Yefeng
|
Wealth
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||
Net revenue
|
$
|
34,726,702
|
$
|
13,438,658
|
$
|
23,720,626
|
$
|
-
|
$
|
(7,883,432
|
)
|
$
|
64,002,554
|
|||||||||||
Cost of revenue
|
20,974,974
|
8,223,217
|
13,560,255
|
-
|
(7,883,432
|
)
|
34,875,014
|
|||||||||||||||||
Gross profit
|
13,751,728
|
5,215,441
|
10,160,371
|
-
|
-
|
29,127,540
|
||||||||||||||||||
Selling and marketing
|
823,511
|
259,935
|
1,078,157
|
-
|
-
|
2,161,603
|
||||||||||||||||||
General and administrative
|
7,054,360
|
541,125
|
1,002,373
|
1,992,293
|
-
|
10,590,151
|
||||||||||||||||||
Research and development
|
506,989
|
26,798
|
-
|
-
|
-
|
533,787
|
||||||||||||||||||
Income from operations
|
$
|
5,366,868
|
$
|
4,387,583
|
$
|
8,079,841
|
$
|
(1,992,293
|
)
|
$
|
-
|
$
|
15,841,999
|
HUIXIN WASTE WATER SOLUTIONS, INC. AND SUBSIDIARIES
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
(UNAUDITED)
|
(10)
|
Segment Information, continued
|
For the nine months ended September 30, 2012
|
||||||||||||||||||||||||
Guangdong
|
Guizhou
|
Shanxi
|
||||||||||||||||||||||
Huixin
|
Yefeng
|
Wealth
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||
Net revenue
|
$
|
32,700,226
|
$
|
12,667,891
|
$
|
23,460,362
|
$
|
-
|
$
|
(7,529,939
|
)
|
$
|
61,298,540
|
|||||||||||
Cost of revenue
|
20,791,108
|
6,782,660
|
13,702,699
|
-
|
(7,529,939
|
)
|
33,746,528
|
|||||||||||||||||
Gross profit
|
11,909,118
|
5,885,231
|
9,757,663
|
-
|
-
|
27,552,012
|
||||||||||||||||||
Selling and marketing
|
918,796
|
240,411
|
1,059,061
|
-
|
-
|
2,218,268
|
||||||||||||||||||
General and administrative
|
1,665,657
|
463,650
|
921,164
|
776,176
|
-
|
3,826,647
|
||||||||||||||||||
Research and development
|
443,853
|
26,869
|
-
|
-
|
-
|
470,722
|
||||||||||||||||||
Income from operations
|
$
|
8,880,812
|
$
|
5,154,301
|
$
|
7,777,438
|
$
|
(776,176
|
)
|
$
|
-
|
$
|
21,036,375
|
As of September 30, 2013
|
||||||||||||||||||||||||
Guangdong
|
Guizhou
|
Shanxi
|
||||||||||||||||||||||
Huixin
|
Yefeng
|
Wealth
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||
Current assets
|
$
|
60,651,315
|
$
|
8,277,251
|
$
|
34,122,174
|
$
|
5,359,923
|
$
|
(68,237,441
|
)
|
$
|
40,173,222
|
|||||||||||
Property, plant and equipment,
|
||||||||||||||||||||||||
land use and mining rights
|
2,591,964
|
84,979,745
|
5,962,278
|
-
|
-
|
93,533,987
|
||||||||||||||||||
Total assets
|
$
|
63,243,279
|
$
|
93,256,996
|
$
|
40,084,452
|
$
|
5,359,923
|
$
|
(68,237,441
|
)
|
$
|
133,707,209
|
As of December 31, 2012
|
||||||||||||||||||||||||
Guangdong
|
Guizhou
|
Shanxi
|
||||||||||||||||||||||
Huixin
|
Yefeng
|
Wealth
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||
Current assets
|
$
|
15,217,117
|
$
|
16,443,580
|
$
|
26,699,097
|
$
|
5,697,282
|
$
|
(25,976,962
|
)
|
$
|
38,080,114
|
|||||||||||
Property, plant and equipment,
|
||||||||||||||||||||||||
land use and mining rights
|
2,707,170
|
4,608,247
|
6,302,665
|
-
|
-
|
13,618,082
|
||||||||||||||||||
Deposit for mining
|
||||||||||||||||||||||||
right acquisition
|
63,480,677
|
-
|
-
|
-
|
63,480,677
|
|||||||||||||||||||
Total assets
|
$
|
81,404,964
|
$
|
21,051,827
|
$
|
33,001,762
|
$
|
5,697,282
|
$
|
(25,976,962
|
)
|
$
|
115,178,873
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
Three Months Ended September 30,
|
||||||||||||||||
2013
|
% of
|
2012
|
% of
|
|||||||||||||
Revenue
|
Revenue
|
|||||||||||||||
Net revenue
|
$
|
21,361,331
|
100.00
|
%
|
$
|
22,407,329
|
100.00
|
%
|
||||||||
Cost of revenue
|
11,575,232
|
54.19
|
%
|
12,308,208
|
54.93
|
%
|
||||||||||
Gross profit
|
9,786,099
|
45.81
|
%
|
10,099,121
|
45.07
|
%
|
||||||||||
Operating expenses:
|
||||||||||||||||
Selling and marketing
|
744,583
|
3.49
|
%
|
797,674
|
3.56
|
%
|
||||||||||
General and administrative
|
1,382,882
|
6.47
|
%
|
1,490,942
|
6.65
|
%
|
||||||||||
Research and development
|
179,432
|
0.84
|
%
|
151,176
|
0.67
|
%
|
||||||||||
Total operating expenses
|
2,306,897
|
10.80
|
%
|
2,439,792
|
10.88
|
%
|
||||||||||
Income from operations
|
7,479,202
|
35.01
|
%
|
7,659,329
|
34.19
|
%
|
||||||||||
Other income/(expense)
|
||||||||||||||||
Interest income
|
29,879
|
0.14
|
%
|
79,596
|
0.36
|
%
|
||||||||||
Interest expense
|
(298,621
|
)
|
(1.40
|
)%
|
(228,123
|
)
|
(1.02
|
)%
|
||||||||
Total other income/(expense)
|
(268,742
|
)
|
(1.26
|
)%
|
(148,527
|
)
|
(0. 66
|
)%
|
||||||||
Income before provision for income taxes
|
7,210,460
|
33.75
|
%
|
7,510,802
|
33.53
|
%
|
||||||||||
Provision for income taxes
|
1,811,743
|
8.48
|
%
|
1,901,646
|
8.49
|
%
|
||||||||||
Net income
|
$
|
5,398,717
|
25.27
|
%
|
$
|
5,609,156
|
25.04
|
%
|
Nine Months Ended September 30,
|
||||||||||||||
2013
|
% of
|
2012
|
% of
|
|||||||||||
Revenue
|
Revenue
|
|||||||||||||
Net revenue
|
$
|
64,002,554
|
100.00
|
%
|
$
|
61,298,540
|
100.00
|
%
|
||||||
Cost of revenue
|
34,875,014
|
54.49
|
%
|
33,746,528
|
55.05
|
%
|
||||||||
Gross profit
|
29,127,540
|
45.51
|
%
|
27,552,012
|
44.95
|
%
|
||||||||
Operating expenses:
|
||||||||||||||
Selling and marketing
|
2,161,603
|
3.38
|
%
|
2,218,268
|
3.62
|
%
|
||||||||
General and administrative
|
10,590,151
|
16.55
|
%
|
3,826,647
|
6.24
|
%
|
||||||||
Research and development
|
533,787
|
0.83
|
%
|
470,722
|
0.77
|
%
|
||||||||
Total operating expenses
|
13,285,541
|
20.76
|
%
|
6,515,637
|
10.63
|
%
|
||||||||
Income from operations
|
15,841,999
|
24.75
|
%
|
21,036,375
|
34.32
|
%
|
||||||||
Other income /(expense)
|
||||||||||||||
Interest income
|
78,483
|
0.12
|
%
|
708,023
|
1.16
|
%
|
||||||||
Interest expense
|
(882,000
|
)
|
(1.38
|
)%
|
(284,243
|
)
|
(0.46
|
)%
|
||||||
Total other income
|
(803,517
|
)
|
(1.26
|
)%
|
423,780
|
0.70
|
%
|
|||||||
Income before provision for income taxes
|
15,038,482
|
23.49
|
%
|
21,460,155
|
35.01
|
%
|
||||||||
Provision for income taxes
|
3,816,936
|
5.96
|
%
|
5,454,958
|
8.90
|
%
|
||||||||
Net income
|
$
|
11,221,546
|
17.53
|
%
|
$
|
16,005,197
|
26.11
|
%
|
Nine Months Ended September 30,
|
||||||||
2013
|
2012
|
|||||||
Net cash provided by operating activities
|
$
|
17,529,597
|
$
|
21,323,402
|
||||
Net cash used for investing activities
|
(16,341,896
|
)
|
(6,549,865
|
)
|
||||
Net cash provided by financing activities
|
-
|
13,231,504
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
750,304
|
91,887
|
||||||
Cash and cash equivalents at the beginning of period
|
33,871,287
|
26,383,537
|
||||||
Cash and cash equivalents at the end of period
|
$
|
35,809,292
|
$
|
54,480,465
|
Nine Months Ended September 30,
|
||||||||
2013
|
2012
|
|||||||
Effect on beginning cash at period end exchange rate
|
$
|
900,068
|
$
|
138,594
|
||||
Effect from operating activities during the period
|
223,419
|
(36,401
|
)
|
|||||
Effect from investing activities during the period
|
(373,183
|
)
|
11,008
|
|||||
Effect from financing activities during the period
|
-
|
(21,313
|
)
|
|||||
Effect of exchange rate changes on cash
|
$
|
750,304
|
$
|
91,887
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1A.
|
Risk Factors.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
(a)
|
Unregistered Sales of Equity Securities
|
(b)
|
Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits.
|
Exhibit Number
|
Description
|
|
31.1*
|
Certifications of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2*
|
Certifications of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32.1*
|
Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
32.2*
|
Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS**
|
XBRL Instance Document
|
|
101.SCH**
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
HUIXIN WASTE WATER SOLUTIONS, INC.
|
||
Dated: November 14, 2013
|
By:
|
/s/ Mingzhuo Tan
|
Mingzhuo Tan
Chief Executive Officer, President and
Chairman of the Board of Directors
(Duly Authorized Officer and Principal Executive Officer)
|
Dated: November 14, 2013
|
By:
|
/s/ Tin Nang (Chris) Lui
|
Tin Nang (Chris) Lui
Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly for the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
a)
|
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
Huixin Waste Water Solutions, Inc.
|
|||
Date: November 14, 2013
|
By:
|
/s/ Mingzhuo Tan
|
|
Mingzhuo Tan
|
|||
President and Chief Executive Officer
(Principal Executive Officer)
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly for the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
a)
|
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
|
Huixin Waste Water Solutions, Inc.
|
|||
Date: November 14, 2013
|
By:
|
/s/ Tin Nang (Chris) Lui
|
|
Tin Nang (Chris) Lui
|
|||
Chief Financial Officer
(Principal Financial Officer)
|
Huixin Waste Water Solutions, Inc.
|
|||
Date: November 14, 2013
|
By:
|
/s/ Mingzhuo Tan
|
|
Mingzhuo Tan
|
|||
President and Chief Executive Officer
(Principal Executive Officer)
|
Huixin Waste Water Solutions, Inc
|
|||
Date: November 14, 2013
|
By:
|
/s/ Tin Nang (Chris) Lui
|
|
Tin Nang (Chris) Lui
|
|||
Chief Financial Officer
(Principal Financial Officer)
|
Segment Information
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
The Company follows FASB ASC 280-Segment Reporting, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. The Company has three operating segments identified by manufacturing facility and each segment is operated in a separate subsidiary. The Company primarily evaluates performance based on income before income taxes and excludes non-recurring items. The operations and product produced by the Company’s various segments are as follows:
The segment data presented below was prepared on the same basis as the Company’s consolidated financial statements:
|
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