Nevada
|
001-34407
|
20-5526104
|
||
(State or other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
Area 2, 1/F, Building M-6,
Central High-Tech Industrial Park, Nanshan,
Shenzhen, China
|
518057
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit
|
Description
|
99.99
|
DEER CONSUMER PRODUCTS, INC.
|
||||
(Registrant)
|
||||
Date:
|
November 9, 2011
|
By:
|
/s/ Ying He
|
|
Name:
|
Ying He
|
|||
Title:
|
Chief Executive Officer
|
·
|
Q3/2011 revenue of $73.0 million, an increase of 32% from Q3/2010
|
·
|
Q3/2011 net income of $13.2 million, an increase of 43% from Q3/2010
|
·
|
Fully diluted earnings per share of $0.39, an EPS increase of 39% from Q3/2010
|
·
|
Anticipates favorable Chinese domestic consumer market environment for continued growth in 2012
|
·
|
Board of Directors declares $0.05 per share quarterly dividend for the 4th quarter
|
·
|
Affirms and potentially exceeds the current 2011 financial guidance
|
SEPTEMBER 30, 2011
|
DECEMBER 31, 2010
|
|||||||
ASSETS
|
(UNAUDITED)
|
|||||||
CURRENT ASSETS
|
||||||||
Cash & equivalents
|
$
|
26,772,793
|
$
|
33,956,591
|
||||
Restricted cash
|
482,683
|
1,347,385
|
||||||
Accounts receivable
|
55,733,650
|
52,686,494
|
||||||
Advances to suppliers
|
1,886,933
|
3,018,531
|
||||||
Other receivables
|
637,098
|
125,580
|
||||||
VAT receivable
|
3,884,940
|
2,839,718
|
||||||
Prepaid expenses
|
12,500
|
159,583
|
||||||
Deposits
|
828,652
|
445,740
|
||||||
Inventories
|
40,852,119
|
23,015,850
|
||||||
Total current assets
|
131,091,367
|
117,595,472
|
||||||
NON-CURRENT ASSETS
|
||||||||
Property and equipment, net
|
21,981,463
|
20,453,404
|
||||||
Advance for construction and equipment
|
919,306
|
-
|
||||||
Prepayment for land use rights
|
-
|
3,367,207
|
||||||
Intangible assets, net
|
36,602,688
|
38,308,468
|
||||||
Construction in progress
|
12,735,572
|
8,913,181
|
||||||
Other assets
|
-
|
4,570
|
||||||
Total noncurrent assets
|
72,239,029
|
71,046,830
|
||||||
TOTAL ASSETS
|
$
|
203,330,396
|
$
|
188,642,302
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable
|
$
|
11,550,095
|
$
|
26,247,453
|
||||
Advance from customers
|
3,646,510
|
1,759,792
|
||||||
Income tax payable
|
6,508,184
|
5,536,646
|
||||||
Other payables and accrued expenses
|
2,567,299
|
3,001,716
|
||||||
Dividend payable
|
1,679,628
|
-
|
||||||
Notes payable
|
5,420,745
|
8,361,698
|
||||||
Total current liabilities
|
31,372,460
|
44,907,305
|
||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
STOCKHOLDERS' EQUITY
|
||||||||
Common Stock, $0.001 par value; 75,000,000 shares
authorized; 33,592,562 shares issued and
outstanding as of September 30, 2011 and
December 31, 2010, respectively
|
33,593
|
33,593
|
||||||
Paid-in capital
|
91,161,931
|
91,084,958
|
||||||
Statutory reserve
|
7,674,827
|
6,127,639
|
||||||
Development fund
|
3,837,413
|
3,063,819
|
||||||
Accumulated other comprehensive income
|
13,111,668
|
6,315,475
|
||||||
Retained earnings
|
56,138,503
|
37,109,513
|
||||||
Total stockholders' equity
|
171,957,935
|
143,734,997
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
203,330,396
|
$
|
188,642,302
|
Nine Months Ended September 30,
|
Three Months Ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenue
|
$
|
152,800,171
|
$
|
113,616,453
|
$
|
72,996,341
|
$
|
55,263,309
|
||||||||
Cost of revenue
|
107,439,971
|
81,011,120
|
50,741,986
|
39,417,477
|
||||||||||||
Gross profit
|
45,360,201
|
32,605,333
|
22,254,355
|
15,845,832
|
||||||||||||
Operating expenses
|
||||||||||||||||
Selling
|
10,723,068
|
6,004,777
|
5,193,216
|
2,756,357
|
||||||||||||
General and administrative
|
3,378,922
|
3,245,637
|
1,104,235
|
1,480,948
|
||||||||||||
Total operating expenses
|
14,101,990
|
9,250,414
|
6,297,451
|
4,237,305
|
||||||||||||
Income from operations
|
31,258,211
|
23,354,919
|
15,956,904
|
11,608,527
|
||||||||||||
Non-operating income (expenses)
|
||||||||||||||||
Interest income
|
170,844
|
519,814
|
62,144
|
188,754
|
||||||||||||
Interest expense
|
-
|
(85,438
|
)
|
-
|
(35,977
|
)
|
||||||||||
Exchange loss
|
(464,225
|
)
|
(884,431
|
)
|
(197,370
|
)
|
(758,621
|
)
|
||||||||
Subsidy income
|
1,046,663
|
-
|
39,471
|
-
|
||||||||||||
Other
|
(80,089
|
)
|
17,450
|
1,678
|
9,227
|
|||||||||||
Total non-operating income (expenses), net
|
673,194
|
(432,605
|
)
|
(94,076
|
)
|
(596,617
|
)
|
|||||||||
Income before income tax
|
31,931,404
|
22,922,314
|
15,862,827
|
11,011,910
|
||||||||||||
Income tax expense
|
5,542,748
|
3,599,127
|
2,614,649
|
1,746,286
|
||||||||||||
Net income
|
26,388,657
|
19,323,187
|
13,248,179
|
9,265,624
|
||||||||||||
Other comprehensive item
|
||||||||||||||||
Foreign currency translation gain
|
6,796,193
|
2,525,446
|
3,314,324
|
2,127,010
|
||||||||||||
Comprehensive Income
|
$
|
33,184,850
|
$
|
21,848,633
|
$
|
16,562,504
|
$
|
11,392,634
|
||||||||
Basic weighted average shares outstanding
|
33,592,562
|
33,082,481
|
33,592,562
|
33,585,553
|
||||||||||||
Diluted weighted average shares outstanding
|
33,592,562
|
33,654,774
|
33,592,562
|
33,591,108
|
||||||||||||
Basic earnings per share
|
$
|
0.79
|
$
|
0.58
|
$
|
0.39
|
$
|
0.28
|
||||||||
Diluted earnings per share
|
$
|
0.79
|
$
|
0.57
|
$
|
0.39
|
$
|
0.28
|
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
26,388,657
|
$
|
19,323,187
|
||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,364,524
|
1,186,426
|
||||||
Stock-based compensation
|
76,971
|
250,042
|
||||||
(Increase) decrease in current assets:
|
||||||||
Accounts receivable
|
(599,417
|
)
|
(24,271,068
|
)
|
||||
Advances to suppliers
|
(567,086
|
)
|
(5,119,133
|
)
|
||||
Other receivables, prepayments, and deposits
|
(704,169
|
)
|
46,505
|
|||||
Other assets
|
4,659
|
(567,302
|
)
|
|||||
Inventories
|
(16,496,200
|
)
|
(3,321,876
|
)
|
||||
Increase (decrease) in current liabilities:
|
||||||||
Accounts payable
|
(15,456,607
|
)
|
11,693,505
|
|||||
Advance from customers
|
1,838,617
|
331,838
|
||||||
Taxes payable
|
(78,867
|
)
|
1,164,803
|
|||||
Notes payable
|
(3,221,044
|
)
|
-
|
|||||
Other payables and accrued expenses
|
(677,157
|
)
|
627,255
|
|||||
Net cash (used in) provided by operating activities
|
(7,127,119
|
)
|
1,344,182
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Changes in restricted cash
|
901,258
|
(1,072,919
|
)
|
|||||
Acquisition of property & equipment
|
(2,304,935
|
)
|
(1,539,295
|
)
|
||||
Advance for construction and equipment
|
899,130
|
-
|
||||||
Acquisition of intangible asset
|
(4,482,149
|
)
|
(22,305,052
|
)
|
||||
Refund of deposit on land use right
|
10,450,389
|
-
|
||||||
Construction in progress
|
(3,371,137
|
)
|
(2,195,791
|
)
|
||||
Net cash provided by (used in) investing activities
|
2,092,557
|
(27,113,057
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Dividend paid
|
(3,359,256
|
)
|
-
|
|||||
Proceeds from exercise of warrants
|
-
|
6,960,278
|
||||||
Purchase of treasury shares
|
-
|
(6,945,950
|
)
|
|||||
Offering costs paid
|
-
|
(320,000
|
)
|
|||||
Net cash used in financing activities
|
(3,359,256
|
)
|
(305,672
|
)
|
||||
EFFECT OF EXCHANGE RATE CHANGE ON CASH & EQUIVALENTS
|
1,210,020
|
1,118,640
|
||||||
NET DECREASE IN CASH & EQUIVALENTS
|
(7,183,798
|
)
|
(24,955,907
|
)
|
||||
CASH & EQUIVALENTS, BEGINNING OF PERIOD
|
33,956,591
|
79,333,729
|
||||||
CASH & EQUIVALENTS, END OF PERIOD
|
$
|
26,772,793
|
$
|
54,377,822
|
||||
Supplemental Cash flow data:
|
||||||||
Income tax paid
|
$
|
4,674,141
|
$
|
2,170,198
|
||||
Interest paid
|
$
|
-
|
$
|
-
|