0001144204-12-045017.txt : 20120814 0001144204-12-045017.hdr.sgml : 20120814 20120813183432 ACCESSION NUMBER: 0001144204-12-045017 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20120630 FILED AS OF DATE: 20120814 DATE AS OF CHANGE: 20120813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Yongye International, Inc. CENTRAL INDEX KEY: 0001398551 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE CHEMICALS [2870] IRS NUMBER: 208051010 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-34444 FILM NUMBER: 121028936 BUSINESS ADDRESS: STREET 1: 6TH FLR, STE 608 XUE YUAN INT'L TOWER STREET 2: NO. 1 ZHICHUN ROAD,HAIDIAN DISTRICT, CITY: BEIJING, STATE: F4 ZIP: 000000 BUSINESS PHONE: 86-10-8232-8866 MAIL ADDRESS: STREET 1: 6TH FLR, STE 608 XUE YUAN INT'L TOWER STREET 2: NO. 1 ZHICHUN ROAD,HAIDIAN DISTRICT, CITY: BEIJING, STATE: F4 ZIP: 000000 FORMER COMPANY: FORMER CONFORMED NAME: Yongye Biotechnology International, Inc. DATE OF NAME CHANGE: 20080415 FORMER COMPANY: FORMER CONFORMED NAME: Golden Tan, Inc DATE OF NAME CHANGE: 20070504 10-Q/A 1 v321204_10qa.htm AMENDMENT NO. 1

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 10-Q/A
(Amendment No. 1)

 

(Mark One)

xQuarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended June 30, 2012

 

or

 

oTransition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from ________ to ________

 

Commission File Number 001-34444

 

Yongye International, Inc.

(Exact name of registrant as specified in its charter)

 

Nevada 20-8051010
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

 

6th Floor, Suite 608, Xue Yuan International Tower,

No. 1 Zhichun Road, Haidian District Beijing, PRC

(Address of principal executive offices)

 

 

(Former name, former address and former fiscal year, if changed since last report)

 

+86 10 8232 8866

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x     No o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x     No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer o Accelerated filer x
Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o     No x

 

As of August 6, 2012, there were 50,537,044 shares of common stock, par value $.001 per share, issued and outstanding.

 

 
 

 

The sole purpose of this Amendment No. 1 to Yongye International Inc.’s Quarterly Report on Form 10-Q (the “Form 10-Q”) for the quarterly period ended June 30, 2012, as filed with the Securities and Exchange Commission on August 9, 2012, is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 provides the financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

 

No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way the disclosures made in the original Form 10-Q.

 

 
 

 

ITEM 1.EXHIBITS

 

Exhibit No.   Description
31.1   Certification of the Chief Executive Officer (Principal Executive Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2   Certification of the Chief Financial Officer (Principal Financial and Accounting 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.*
101.INS   XBRL Instance Document**
101.SCH   XBRL Taxonomy Extension Schema Document**
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document**
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document**
101.LAB   XBRL Taxonomy Extension Label Linkbase Document**
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document**

 

 

 
*Filed as an exhibit to the original Form 10-Q for the quarterly period ended June 30, 2012, filed August 9, 2012.
**Pursuant to Rule 406T of Regulation S-T, the interactive files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

 

 
 

 

SIGNATURES

 

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

August 13, 2012 Yongye International, Inc.
   
   
  By:  /s/ Zishen Wu
    Name: Zishen Wu
Title: Chief Executive Officer and President
(Principal Executive Officer)
     
     
  By: /s/ Sam Yu
    Name: Sam Yu
    Title: Chief Financial Officer
(Principal Financial and Accounting Officer)

 

 
 

 

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CONCENTRATIONS AND CREDIT RISKS (Tables)
6 Months Ended
Jun. 30, 2012
Risks and Uncertainties [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]
All these major customers are distributors in the PRC agriculture industry.

 

For the three months ended June 30, 2012      For the six months ended June 30, 2012  

Largest

Customers

 

Primary 

Provinces

  Amount of Sales    

% Total

Sales

   

Largest

Customers

 

Primary 

Provinces

  Amount of Sales    

% Total

Sales

 
Customer A   Shandong   US$ 19,870,690       11 %   Customer E   Inner Mongolia   US$  30,116,951       12 %
                                             
Customer B   Guangdong     17,608,619       10 %   Customer A   Shandong     23,839,329       10 %
                                             
Customer C   Henan     16,380,450       9 %   Customer C   Henan     20,888,735       9 %
                                             
Customer D   Liaoning; Heilongjiang; Jilin     15,124,464       9 %   Customer B   Guangdong     20,814,750       8 %
                                             
Customer E   Inner Mongolia     12,621,588       7 %   Customer D   Liaoning; Heilongjiang; Jilin     19,021,343       8 %
                                             
Total       US$ 81,605,811       46 %   Total       US$  114,681,108       47 %

 

For the three months ended June 30, 2011      For the six months ended June 30, 2011  

Largest

Customers

 

Primary 

Provinces

  Amount of Sales    

% Total

Sales

   

Largest

Customers

 

Primary 

Provinces

  Amount of Sales    

% Total

Sales

 
Customer D   Liaoning; Heilongjiang; Jilin   US$ 11,714,097       7 %   Customer A   Shandong   US$  15,482,182       8 %
Customer A   Shandong     11,140,841       7 %   Customer D   Liaoning; Heilongjiang; Jilin     15,111,830       7 %
Customer B   Guangdong     10,665,071       7 %   Customer B   Guangdong     13,550,836       7 %
Customer F   Jiangsu     9,193,809       6 %   Customer G   Shaanxi     13,097,356       6 %
Customer C   Henan     9,061,962       6 %   Customer F   Jiangsu     12,016,174       6 %
Total       US$ 51,775,780       33 %   Total       US$  69,258,378       34 %
XML 9 R54.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER ASSETS (Details Textual) (USD $)
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Deferred tax liabilities (in dollars) $ 6,831,827 $ 4,857,800
Property, Plant and Equipment, Useful Life, Average 5 years  
Vehicles [Member]
   
Deferred tax liabilities (in dollars) $ 6,831,827 $ 4,857,800
XML 10 R48.htm IDEA: XBRL DOCUMENT v2.4.0.6
PROPERTY, PLANT AND EQUIPMENT (Details Textual) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Vehicles [Member]
Dec. 31, 2011
Vehicles [Member]
Jun. 30, 2012
Building [Member]
Dec. 31, 2011
Building [Member]
Depreciation, Depletion and Amortization (in dollars) $ 440,318 $ 453,803 $ 909,504 $ 833,473        
Number Of Vehicles Fledged         7 16    
Plant Property and Equipment Held As Collateral At Carrying Value (in dollars)         $ 468,426 $ 794,984 $ 6,100,000 $ 6,100,000
XML 11 R70.htm IDEA: XBRL DOCUMENT v2.4.0.6
EARNINGS PER SHARE (Details 1) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Numerator:        
Net income allocated to common stockholders as reported in basic EPS $ 36,840,986 $ 38,244,297 $ 50,481,242 $ 46,466,739
Change in fair value of derivative liabilities (9,889) (83,435) (69,287) (413,587)
Net Income (Loss) Available to Common Stockholders, Diluted $ 36,831,097 $ 38,160,862 $ 50,411,955 $ 46,053,152
Denominator:        
Weighted average shares of common stock as reported in basic EPS (in shares) 49,370,711 49,276,070 49,370,711 48,734,565
Incremental Common Shares Attributable to Call Options and Warrants (in shares) 74,465 102,326 82,861 110,716
Diluted (in shares) 49,445,176 49,378,396 49,453,572 48,845,281
Diluted earnings per common stock (in dollars per share) $ 0.74 $ 0.77 $ 1.02 $ 0.94
XML 12 R55.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHORT-TERM BANK LOANS (Details Textual)
1 Months Ended 1 Months Ended
Dec. 31, 2011
USD ($)
Jun. 30, 2012
USD ($)
Dec. 31, 2011
Short Term Loan 1 [Member]
USD ($)
Dec. 31, 2011
Short Term Loan 1 [Member]
CNY
Dec. 31, 2011
Short Term Loan 2 [Member]
USD ($)
Dec. 31, 2011
Short Term Loan 2 [Member]
CNY
Jun. 30, 2012
Short Term Loan 3 [Member]
USD ($)
Jun. 30, 2012
Short Term Loan 3 [Member]
CNY
Apr. 30, 2012
Short Term Loan 3 [Member]
USD ($)
Apr. 30, 2012
Short Term Loan 3 [Member]
CNY
Short-term bank loans (in dollars) $ 28,308,563 $ 25,339,309 $ 9,436,188 60,000,000 $ 18,872,375 120,000,000 $ 9,502,241 60,000,000 $ 15,837,068 100,000,000
Short-term Debt, Lender China Citic Bank           China Citic Bank China Citic Bank China Everbright Bank China Everbright Bank
Short-term Debt, Percentage Bearing Fixed Interest Rate     7.93% 7.93% 7.93% 7.93% 8.203% 8.203% 8.528% 8.528%
Short Term Debt Maturity Date             Jun. 20, 2013 Jun. 20, 2013 Apr. 28, 2013 Apr. 28, 2013
Short-term Debt, Repayment Date     May 31, 2012 May 31, 2012 Jun. 30, 2012 Jun. 30, 2012        
XML 13 R46.htm IDEA: XBRL DOCUMENT v2.4.0.6
DEPOSITS TO SUPPLIERS (Details Textual) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Deposit Made To Suppliers $ 24,696,228 $ 2,616,231
Raw Materials Received Value on August 01, 2012 $ 12,000,000  
XML 14 R33.htm IDEA: XBRL DOCUMENT v2.4.0.6
PROPERTY, PLANT AND EQUIPMENT (Tables)
6 Months Ended
Jun. 30, 2012
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment [Table Text Block]

Property, plant and equipment at June30,2012and December31,2011consisted of the following:

 

 

 

June30, 2012

 

 

December 31, 2011

 

 

 

 

 

 

 

 

Buildings

 

US$

14,891,527

 

 

US$

14,329,776

 

Machinery and equipment

 

 

7,127,252

 

 

 

7,025,521

 

Office equipment and furniture

 

 

521,852

 

 

 

511,713

 

Vehicles

 

 

2,423,122

 

 

 

2,406,278

 

Software

 

 

26,067

 

 

 

19,909

 

Leasehold improvements

 

 

972,631

 

 

 

902,962

 

Construction in progress

 

 

1,658

 

 

 

-

 

 

 

 

25,964,109

 

 

 

25,196,159

 

Less: Accumulated depreciation and amortization

 

 

(4,176,219

)

 

 

(3,266,715

)

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

US$

21,787,890

 

 

US$

21,929,444

 

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LONG-TERM LOANS AND PAYABLES (Details Textual) (USD $)
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Secured Long-term Debt, Noncurrent (in dollars) $ 18,554,877 $ 11,743,917
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months (in dollars) 7,518,593  
Long-term Debt, Maturities, Repayments of Principal in Year Two (in dollars) 7,822,378  
Long-term Debt, Maturities, Repayments of Principal in Year Three (in dollars) 3,213,906  
Long-term Debt, Maturities, Repayments of Principal in Year Four (in dollars) 0  
Long-term Debt, Maturities, Repayments of Principal in Year Five (in dollars) 0  
Vehicle Loans Employees [Member]
   
Secured Long-term Debt, Noncurrent (in dollars) 129,423 189,229
Number Of Vehicles Fledged 7 16
Plant Property and Equipment Held As Collateral At Carrying Value (in dollars) 468,426 794,984
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum 5.40%  
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum 14.54%  
Long-term Debt, Maturities, Repayment Terms The vehicle loans-employees are payable in monthly installments over three to five years  
Vehicle Laons Distributor [Member]
   
Secured Long-term Debt, Noncurrent (in dollars) $ 18,425,454 $ 11,554,688
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum 5.40%  
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum 18.24%  
Long-term Debt, Maturities, Repayment Terms The loans have two or three years terms and are payable in monthly installments  
XML 17 R71.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONCENTRATIONS AND CREDIT RISKS (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Entity Wide Revenue, Major Customer, Amount (in dollars) $ 81,605,811 $ 51,775,780 $ 114,681,108 $ 69,258,378
Entity Wide Revenue, Major Customer, Percentage 46.00% 33.00% 47.00% 34.00%
Customer A [Member] | Shandong [Member]
       
Entity Wide Revenue, Major Customer, Amount (in dollars) 19,870,690 11,140,841 23,839,329 15,482,182
Entity Wide Revenue, Major Customer, Percentage 11.00% 7.00% 10.00% 8.00%
Customer B [Member] | Guangdong [Member]
       
Entity Wide Revenue, Major Customer, Amount (in dollars) 17,608,619 10,665,071 20,814,750 13,550,836
Entity Wide Revenue, Major Customer, Percentage 10.00% 7.00% 8.00% 7.00%
Customer C [Member] | Henan [Member]
       
Entity Wide Revenue, Major Customer, Amount (in dollars) 16,380,450 9,061,962 20,888,735  
Entity Wide Revenue, Major Customer, Percentage 9.00% 6.00% 9.00%  
Customer D [Member] | Liaoning Heilongjiang Jilin [Member]
       
Entity Wide Revenue, Major Customer, Amount (in dollars) 15,124,464 11,714,097 19,021,343 15,111,830
Entity Wide Revenue, Major Customer, Percentage 9.00% 7.00% 8.00% 7.00%
Customer E [Member] | Inner Mongolia [Member]
       
Entity Wide Revenue, Major Customer, Amount (in dollars) 12,621,588   30,116,951  
Entity Wide Revenue, Major Customer, Percentage 7.00%   12.00%  
Customer F [Member] | Jiangsu [Member]
       
Entity Wide Revenue, Major Customer, Amount (in dollars)   9,193,809   12,016,174
Entity Wide Revenue, Major Customer, Percentage   6.00%   6.00%
Customer G [Member] | Shaanxi [Member]
       
Entity Wide Revenue, Major Customer, Amount (in dollars)       $ 13,097,356
Entity Wide Revenue, Major Customer, Percentage       6.00%
XML 18 R25.htm IDEA: XBRL DOCUMENT v2.4.0.6
FAIR VALUE MEASUREMENTS
6 Months Ended
Jun. 30, 2012
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 18 - FAIR VALUE MEASUREMENTS

 

The fair values of the financial instruments as of June 30, 2012 and December 31, 2011 represent the estimated amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction between market participants at that date. The fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by the Company based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs.

 

The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

 

Cash, restricted cash, accounts receivable, other receivables, short-term bank loans, long-term loans and payables - current portion, accounts payable, accrued expenses and other payables: The carrying amounts approximate fair value because of the short maturity of these instruments.

 

Derivative liabilities: The method and assumptions used to estimate the fair value of derivative liabilities are set out in Note 15.

 

Long-term loans and payables: The fair value of the Company’s long-term loans and payables is estimated by discounting future cash flows using current market interest rates offered to the Company and its subsidiaries for debts with substantially the same characteristics and maturities, and which approximated to its carrying amount as of June 30, 2012 and December 31, 2011.

XML 19 R50.htm IDEA: XBRL DOCUMENT v2.4.0.6
INTANGIBLE ASSET (Details Textual) (USD $)
3 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Mar. 31, 2011
Customer Lists [Member]
Jul. 31, 2010
Customer Lists [Member]
Jun. 30, 2012
Customer Lists [Member]
Dec. 31, 2011
Customer Lists [Member]
Amortization of Intangible Assets $ 730,693 $ 755,628 $ 1,485,114 $ 1,453,508        
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months 2,909,161   2,909,161          
Finite-Lived Intangible Assets, Amortization Expense, Year Two 2,909,161   2,909,161          
Finite-Lived Intangible Assets, Amortization Expense, Year Three 2,909,161   2,909,161          
Finite-Lived Intangible Assets, Amortization Expense, Year Four 2,909,161   2,909,161          
Finite-Lived Intangible Assets, Amortization Expense, Year Five 2,909,161   2,909,161          
Stock Issued During Period, Shares, Purchase of Assets (in shares)           3,600,000    
Finite Lived Intangible Assets Acquired Cash Consideration           3,000,000    
Payment Finite Lived Intangible Assets Acquired Purchase Consideration         $ 3,000,000      
Finite Lived Intangible Asset Useful Life (in years)             9 years 9 years
XML 20 R42.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCOUNTS RECEIVABLE (Details 1) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Allowance for doubtful accounts at beginning of period $ 15,222,584 $ 0
Charged to bad debt expense 0 0
Reversal of allowance for doubtful accounts, net (6,334,832) 0
Foreign currency translation adjustment 112,076 0
Allowance for doubtful accounts at end of period $ 8,999,828 $ 0
XML 21 R37.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY FINANCING (Tables)
6 Months Ended
Jun. 30, 2012
Stockholders' Equity Note [Abstract]  
Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were measured at fair value on a recurring basis as of June30,2012and December31,2011.

 

 

 

Fair Value Measurements Using:

 

 

 

 

 

 

Quoted Prices in
Active Markets for
Identical Financial
Assets and Liabilities

 

 

Significant Other
Observable Inputs

 

 

Significant
Unobservable Inputs

 

June30,2012

 

Total

 

 

Level1

 

 

Level2

 

 

Level3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities-warrants

 

US$

247,896

 

 

 

-

 

 

US$

247,896

 

 

 

-

 

 

 

 

Fair Value Measurements Using:

 

 

 

 

 

 

Quoted Prices in
Active Markets for
Identical Financial
Assets and Liabilities

 

 

Significant Other
Observable Inputs

 

 

Significant
Unobservable Inputs

 

December31,2011

 

Total

 

 

Level1

 

 

Level2

 

 

Level3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities-warrants

 

US$

317,183

 

 

 

-

 

 

US$

317,183

 

 

 

-

 

Schedule of Fair Values of Warrants [Table Text Block]

The fair values of the warrants are summarized as follows:

 

 

 

April Warrants

 

 

September Warrants

 

Fair value of warrant per share (US$) at:

 

 

 

 

 

 

 

 

Date of issuance

 

US$

1.07

 

 

US$

2.08

 

December31,2011

 

 

2.11

 

 

 

2.16

 

June30,2012

 

 

1.60

 

 

 

1.71

 

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

The fair values of the warrants outstanding as of June30,2012and December31,2011were determined based on the Binominal option pricing model, using the following key assumptions:

 

 

 

June30, 2012

 

 

December 31, 2011

 

 

 

April 
Warrants

 

 

September
Warrants

 

 

April 
Warrants

 

 

September
Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected volatility

 

 

57.1

%

 

 

69.3

%

 

 

65.5

%

 

 

64.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expected dividends yield

 

 

0

%

 

 

0

%

 

 

0

%

 

 

0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time to maturity

 

 

0.8years

 

 

 

1.2 years

 

 

 

1.3years

 

 

 

1.7 years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-free interest rate per annum

 

 

0.590

%

 

 

0.590

%

 

 

1.202

%

 

 

1.202

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of underlying common shares (per share)

 

US$

3.09

 

 

US$

3.09

 

 

US$

3.52

 

 

US$

3.52

 

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

A summary of the Company’s unvested shares as of June30,2012, and changes during the three and six months ended June30,2012, is presented below: 

 

 

 

 

 

 

Weighted average

 

 

 

 

 

 

grant-date

 

Restricted shares

 

Shares

 

 

fair value

 

Balance at January1,2012

 

 

1,166,333

 

 

US$

4,875,272

 

Granted

 

 

-

 

 

 

-

 

Vested

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

Balance at March31,2012

 

 

1,166,333

 

 

 

4,875,272

 

Granted

 

 

-

 

 

 

-

 

Vested

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

Balance at June30,2012

 

 

1,166,333

 

 

US$

4,875,272

 

XML 22 R52.htm IDEA: XBRL DOCUMENT v2.4.0.6
LAND USE RIGHT (Details Textual) (Use Rights [Member], USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Use Rights [Member]
   
Mortgage Loans on Real Estate, Carrying Amount of Mortgages (in dollars) $ 4.5 $ 4.5
XML 23 R67.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Operating Leases, Rent Expense, Net $ 66,005 $ 64,172 $ 132,121 $ 127,559
Operating Leases, Future Minimum Payments Due, Current 264,234   264,234  
Operating Leases, Future Minimum Payments, Due in Two Years 132,117   132,117  
Operating Leases, Future Minimum Payments Due $ 396,351   $ 396,351  
XML 24 R61.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY FINANCING (Details 1) (USD $)
Jun. 30, 2012
Dec. 31, 2011
April Warrants [Member]
   
Fair value of warrant per share (US$) at:    
Issuance Of Warrant Per Share $ 1.07  
Fair Value Of Warrant Per Share (in dollars per share) $ 1.6 $ 2.11
September Warrants [Member]
   
Fair value of warrant per share (US$) at:    
Issuance Of Warrant Per Share $ 2.08  
Fair Value Of Warrant Per Share (in dollars per share) $ 1.71 $ 2.16
XML 25 R47.htm IDEA: XBRL DOCUMENT v2.4.0.6
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Buildings $ 14,891,527 $ 14,329,776
Machinery and equipment 7,127,252 7,025,521
Office equipment and furniture 521,852 511,713
Vehicles 2,423,122 2,406,278
Software 26,067 19,909
Leasehold improvements 972,631 902,962
Construction in progress 1,658 0
Property, Plant and Equipment, Gross 25,964,109 25,196,159
Less: Accumulated depreciation and amortization (4,176,219) (3,266,715)
Property, plant and equipment, net $ 21,787,890 $ 21,929,444
XML 26 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2012
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The December 31, 2011 consolidated balance sheet was derived from the audited consolidated financial statements of the Company. The accompanying unaudited consolidated financial statements should be read in conjunction with the December 31, 2011 audited consolidated financial statements of the Company included in the Company’s annual report on Form 10-K for the year ended December 31, 2011.

 

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of June 30, 2012, the results of operations for the three and six months ended June 30, 2012 and 2011 and cash flows for six months ended June 30, 2012 and 2011, have been made.

 

The Company’s business is subject to seasonal variations; thus, the results of operations for the three months ended June 30, 2012 are not necessarily indicative of the results for the full fiscal year ending December 31, 2012. Generally, the second and third quarters are peak sales periods, and first and fourth quarters are low sales periods for the Company.

 

All significant intercompany transactions and balances are eliminated on consolidation.

 

USE OF ESTIMATES

 

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the allowance for doubtful accounts; the fair value determination of financial and equity instruments and stock compensation awards, the realizability of deferred tax assets and inventories; the recoverability of goodwill, intangible asset, prepayment for mining project, land use right and property, plant and equipment; and accruals for income tax uncertainties and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions.

XML 27 R62.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY FINANCING (Details 2) (USD $)
6 Months Ended 12 Months Ended
Jun. 30, 2012
Dec. 31, 2011
April Warrants [Member]
   
Expected volatility 0.571 0.655
Expected dividends yield 0.00 0.00
Time to maturity 9 months 18 days 1 year 3 months 18 days
Risk-free interest rate per annum 0.00590 0.01202
Fair value of underlying common shares (per share) $ 3.09 $ 3.52
September Warrants [Member]
   
Expected volatility 0.693 0.641
Expected dividends yield 0.00 0.00
Time to maturity 1 year 2 months 12 days 1 year 8 months 12 days
Risk-free interest rate per annum 0.00590 0.01202
Fair value of underlying common shares (per share) $ 3.09 $ 3.52
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ACCOUNTS RECEIVABLE (Details Textual) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Allowance For Doubtful Accounts Receivable Period Increase Decrease $ 6.3
XML 30 R29.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONCENTRATIONS AND CREDIT RISKS
6 Months Ended
Jun. 30, 2012
Risks and Uncertainties [Abstract]  
CONCENTRATIONS AND CREDIT RISKS

NOTE 22 - CONCENTRATIONS AND CREDIT RISKS

 

At June 30, 2012, the Company held cash in banks of approximately US$81,863,373 that is uninsured by the government authority. To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits only with large financial institution in the PRC with acceptable credit rating.

 

Five major customers accounted for 46% of the Company’s total revenue for the three months ended June 30, 2012, and 47% of the Company’s total revenue for the six months ended June 30, 2012. Five major customers accounted for 33% of the Company’s total revenue for the three months ended June 30, 2011, and 34% of the Company’s total revenue for the six months ended June 30, 2011. The Company’s total revenue to five major customers were US$81,605,811 and US$114,681,108 for the three and six months ended June 30, 2012, respectively. The Company’s total revenue to five major customers were US$51,775,780 and US$69,258,378 for the three and six months ended June 30, 2011, respectively. All these major customers are distributors in the PRC agriculture industry.

 

For the three months ended June 30, 2012      For the six months ended June 30, 2012  

Largest

Customers

 

Primary 

Provinces

  Amount of Sales    

% Total

Sales

   

Largest

Customers

 

Primary 

Provinces

  Amount of Sales    

% Total

Sales

 
Customer A   Shandong   US$ 19,870,690       11 %   Customer E   Inner Mongolia   US$  30,116,951       12 %
                                             
Customer B   Guangdong     17,608,619       10 %   Customer A   Shandong     23,839,329       10 %
                                             
Customer C   Henan     16,380,450       9 %   Customer C   Henan     20,888,735       9 %
                                             
Customer D   Liaoning; Heilongjiang; Jilin     15,124,464       9 %   Customer B   Guangdong     20,814,750       8 %
                                             
Customer E   Inner Mongolia     12,621,588       7 %   Customer D   Liaoning; Heilongjiang; Jilin     19,021,343       8 %
                                             
Total       US$ 81,605,811       46 %   Total       US$  114,681,108       47 %

 

For the three months ended June 30, 2011      For the six months ended June 30, 2011  

Largest

Customers

 

Primary 

Provinces

  Amount of Sales    

% Total

Sales

   

Largest

Customers

 

Primary 

Provinces

  Amount of Sales    

% Total

Sales

 
Customer D   Liaoning; Heilongjiang; Jilin   US$ 11,714,097       7 %   Customer A   Shandong   US$  15,482,182       8 %
Customer A   Shandong     11,140,841       7 %   Customer D   Liaoning; Heilongjiang; Jilin     15,111,830       7 %
Customer B   Guangdong     10,665,071       7 %   Customer B   Guangdong     13,550,836       7 %
Customer F   Jiangsu     9,193,809       6 %   Customer G   Shaanxi     13,097,356       6 %
Customer C   Henan     9,061,962       6 %   Customer F   Jiangsu     12,016,174       6 %
Total       US$ 51,775,780       33 %   Total       US$  69,258,378       34 %

 

Three major suppliers accounted for 77% (US$44,725,788), of which one major supplier accounted for 32% (US$18,255,847) of the Company’s inventory purchase for the three months ended June 30, 2012. Three major suppliers accounted for 70% (US$75,077,488), of which one major supplier accounted for 27% (US$29,338,145) of the Company’s inventory purchase for the six months ended June 30, 2012. Three major suppliers accounted for 83% (US$22,790,351), of which one major supplier accounted for 31% (US$8,539,793) of the Company’s inventory purchase for the three months ended June 30, 2011. Three major suppliers accounted for 87% (US$50,562,626), of which one major supplier accounted for 36% (US$20,794,408) of the Company’s inventory purchase for the six months ended June 30, 2011. If these suppliers terminate their supply relationship with the Company, the Company may be unable to purchase sufficient raw materials on acceptable terms, which may adversely affect the Company’s results of operations.

 

The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. In addition, the Company’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation, and the extraction of mining resources, among other factors.

XML 31 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
EARNINGS PER SHARE
6 Months Ended
Jun. 30, 2012
Earnings Per Share [Abstract]  
EARNINGS PER SHARE

NOTE 21 - EARNINGS PER SHARE

 

The following table sets forth the computation of basic earnings per share for the periods indicated:

 

    For the Three Months Ended  
    June 30,
2012
    June 30,
2011
 
Numerator:                
Net income attributable to Yongye International, Inc.   US$ 41,109,863     US$ 39,536,764  
                 
Paid-in-kind dividends on redeemable Series A convertible preferred shares, net of amounts accumulated in prior reporting periods     913,042     (201,370 )
Earnings allocated to participating nonvested shares     (870,331 )     (73,453 )
Earnings allocated to participating redeemable Series A convertible preferred shares     (4,311,588 )     (1,017,644 )
Net income for basic earnings per share     36,840,986       38,244,297  
Denominator:                
Weighted average shares of common stock     49,370,711       49,276,070  
Basic earnings per common stock     0.75       0.78  

 

    For the Six Months Ended  
   

June 30,
2012

   

June 30,
2011 

 
Numerator:                
Net income attributable to Yongye International, Inc.   US$ 57,492,153     US$ 47,903,192  
                 
Paid-in-kind dividends on redeemable Series A convertible preferred shares, net of amounts accumulated in prior reporting periods     40,439       (201,370 )
Earnings allocated to participating nonvested shares     (1,192,568 )     (606,543 )
Earnings allocated to participating redeemable Series A convertible preferred shares     (5,858,782 )     (628,540  )
Net income for basic earnings per share     50,481,242       46,466,739  
Denominator:                
Weighted average shares of common stock     49,370,711       48,734,565  
Basic earnings per common stock     1.02       0.95  

 

The holders of the redeemable Series A convertible preferred shares are  entitled to receive cumulative paid-in-kind dividends in additional shares of redeemable Series A convertible preferred shares, on each anniversary of the Issuance Date (See Note 15) (“Cumulative Dividends”), and therefore net income attributable to Yongye International, Inc is reduced by dividends accumulated for each reporting period in the computation of basic earnings per share. At each reporting period prior to the dividends declaration date, the fair value of the dividends accumulated is measured based on what it would be if the end of the reporting period was the dividend determination date.  In June 2012, 397,727 shares of paid-in-kind dividends with a total fair value of the US$1,808,667 were issued to MPSEA. The paid-in kind dividends for the three and six month periods ended June 30, 2012 represent the fair value of the dividends on the declaration date, net of the amount accumulated in prior reporting periods within the anniversary of the Issuance Date.

 

The following table sets forth the computation of diluted earnings per share for the periods indicated:

 

    For the Three Months Ended  
    June 30,
2012
    June 30,
2011
 
Numerator:                
                 
Net income allocated to common stockholders as reported in basic EPS   US$ 36,840,986     US$ 38,244,297  
Change in fair value of derivative liabilities     (9,889 )     (83,435 )
Net income for diluted earnings per share     36,831,097       38,160,862  
Denominator:                
Weighted average shares of common stock as reported in basic EPS     49,370,711       49,276,070  
Dilutive effect of warrants     74,465       102,326  
      49,445,176       49,378,396  
                 
Diluted earnings per common stock     0.74       0.77  

 

    For the Six Months Ended  
    June 30,
2012
    June 30,
2011
 
Numerator:                
                 
Net income allocated to common stockholders as reported in basic EPS   US$ 50,481,242     US$ 46,466,739  
Change in fair value of derivative liabilities     (69,287 )     (413,587 )
Net income for diluted earnings per share     50,411,955       46,053,152  
Denominator:                
Weighted average shares of common stock as reported in basic EPS     49,370,711       48,734,565  
Dilutive effect of warrants     82,861       110,716  
      49,453,572       48,845,281  
                 
Diluted earnings per common stock     1.02       0.94  
XML 32 R56.htm IDEA: XBRL DOCUMENT v2.4.0.6
LONG-TERM LOANS AND PAYABLES (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Secured Long-term Debt, Noncurrent $ 18,554,877 $ 11,743,917
Vehicle Loans Employees [Member]
   
Secured Long-term Debt, Noncurrent 129,423 189,229
Vehicle Laons Distributor [Member]
   
Secured Long-term Debt, Noncurrent $ 18,425,454 $ 11,554,688
XML 33 R44.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVENTORIES (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Finished goods $ 71,966,332 $ 75,073,119
Work in progress 27,931,646 10,028,719
Raw materials 3,387,607 805,534
Consumables and packing supplies 435,029 209,628
Total $ 103,720,614 $ 86,117,000
XML 34 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2012
Accounting Policies [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The December31,2011consolidated balance sheet was derived from the audited consolidated financial statements of the Company. The accompanying unaudited consolidated financial statements should be read in conjunction with the December31,2011audited consolidated financial statements of the Company included in the Company’s annual report on Form10-K for the year ended December31,2011.

 

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of June30,2012, the results of operations for the three and six months ended June30,2012and2011and cash flows for six months ended June30,2012and2011, have been made.

 

The Company’s business is subject to seasonal variations; thus, the results of operations for the three months ended June30,2012are not necessarily indicative of the results for the full fiscal year ending December31,2012. Generally, the second and third quarters are peak sales periods, and first and fourth quarters are low sales periods for the Company.

 

All significant intercompany transactions and balances are eliminated on consolidation.

Use of Estimates, Policy [Policy Text Block]

USE OF ESTIMATES

 

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets; the allowance for doubtful accounts; the fair value determination of financial and equity instruments and stock compensation awards, the realizability of deferred tax assets and inventories; the recoverability of goodwill, intangible asset, prepayment for mining project, land use right and property, plant and equipment; and accruals for income tax uncertainties and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions.

XML 35 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCOUNTS RECEIVABLE (Tables)
6 Months Ended
Jun. 30, 2012
Accounts Receivable, Net [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Accounts receivable at June30,2012and December31,2011consisted of the following:

 

 

 

June 30, 2012

 

 

December 31, 2011

 

 

 

 

 

 

 

 

Accounts receivable

 

US$

197,359,480

 

 

US$

168,852,106

 

Less: allowance for doubtful accounts

 

 

(8,999,828

)

 

 

(15,222,584

)

Total

 

US$

188,359,652

 

 

US$

153,629,522

 

Schedule of Allowance for Doubtful Accounts [Table Text Block]

The activities in the allowance for doubtful accounts for the six months ended June30,2012and2011are as follows:

 

 

 

June 30, 2012

 

 

June 30, 2011

 

 

 

 

 

 

 

 

Allowance for doubtful accounts at beginning of period

 

US$

15,222,584

 

 

US$

-

 

Charged to bad debt expense

 

 

-

 

 

 

-

 

Reversal of allowance for doubtful accounts, net

 

 

(6,334,832

)

 

 

-

 

Foreign currency translation adjustment

 

 

112,076

 

 

 

-

 

Allowance for doubtful accounts at end of period

 

US$

8,999,828

 

 

US$

-

 

XML 36 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
ORGANIZATION AND DESCRIPTION OF BUSINESS
6 Months Ended
Jun. 30, 2012
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1 -ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Yongye International, Inc. (the “Company”) was incorporated in the State of Nevada on December 12, 2006. On April 17, 2008, the Company and the Company’s then principal shareholder entered into a share exchange agreement (the “Exchange Agreement”) with Fullmax Pacific Limited (“Fullmax”), a privately held investment holding company organized on May 23, 2007 under the laws of the British Virgin Islands and all the shareholders of Fullmax (the “Fullmax Shareholders”). Pursuant to the terms of the Exchange Agreement, the Fullmax Shareholders transferred to the Company all of their shares in exchange for 11,444,755 shares of the Company’s common shares (the “Share Exchange”). As a result of the Share Exchange, Fullmax became a wholly-owned subsidiary of the Company and the Fullmax Shareholders received approximately 84.7% of the Company’s issued and outstanding common shares. Immediately prior to the date of the Share Exchange, the Company was a publicly listed shell entity with no operations and held a nominal amount of cash and, Fullmax, through its wholly-owned subsidiary, Asia Standard Oil Limited (“ASO”) and indirect subsidiary, Yongye Nongfeng Biotechnology Co., Ltd. (“Yongye Nongfeng”), was engaged in the sale of fulvic acid based liquid and powder nutrient compounds. The Share Exchange was accounted for as a reverse recapitalization, equivalent to the issuance of stock by Fullmax for the net monetary assets of the Company accompanied by a recapitalization.

 

In November 2007, ASO entered into a Sino-Foreign cooperative joint venture contract with Inner Mongolia Yongye Biotechnology Co., Ltd. (“Inner Mongolia Yongye”) to form Yongye Nongfeng, pursuant to which, Inner Mongolia Yongye and ASO were to own 10% and 90% of the equity interests in Yongye Nongfeng, respectively. Inner Mongolia Yongye was formed on September 16, 2003 in the People’s Republic of China (the “PRC”). Mr. Zishen Wu, Chief Executive Officer, President and Chairman of the Company, owns a controlling equity interest in Inner Mongolia Yongye.

 

On January 4, 2008, the incorporation and establishment of Yongye Nongfeng was approved by the Inner Mongolia Department of Commerce and the Inner Mongolia Administration for Industry and Commerce. The scope of business of Yongye Nongfeng is the research and development, manufacturing, distribution and sale of fulvic acid based liquid and powder nutrient compounds used in the agriculture industry. The period of the cooperative joint venture is ten years and may be extended by a written application submitted to the relevant government authority for approval no less than six months prior to the expiration of the cooperative joint venture. Prior to the legal establishment of Yongye Nongfeng, both Fullmax and ASO were non-substantive holding companies with no assets and operations and were primarily designed and used as legal vehicles to facilitate foreign participation in the business conducted by Inner Mongolia Yongye.

 

In connection with the September Offering (See Note 15), the Company entered into agreements to acquire the productive assets of Shengmingsu manufacturing business from Inner Mongolia Yongye (the “Acquisition”). In October, 2009, the Company completed the Acquisition. The consideration paid for the Acquisition consisted of cash of US$4.7 million and 4.5% equity interests in Yongye Nongfeng. After the Acquisition, Inner Mongolia Yongye and ASO became 5% and 95% equity interest owner of Yongye Nongfeng, respectively.

 

During the year ended December 31, 2009, ASO made a capital contribution of US$55,999,965 into Yongye Nongfeng. During the year ended December 31, 2011, ASO made a capital contribution of US$42,541,199 into Yongye Nongfeng. These contributions resulted in an increase in ASO’s registered capital interest in Yongye Nongfeng to 98.8%.

 

On July 20, 2010, Yongye Nongfeng set up a wholly-owned subsidiary, Inner Mongolia Yongye Fumin Biotechnology Co., Ltd. (“Yongye Fumin”), with registered capital of US$14,731,880 (equivalent to RMB100 million). Yongye Fumin is engaged in the manufacturing and sale of fulvic acid based liquid and powder nutrient compounds. Yongye Fumin was established to expand the production capacity for fulvic acid based liquid and powder nutrient compounds, and to produce humic acid using lignite coal (See Note 9). The construction of the production plant of Yongye Fumin, which is located in Wuchuan County, was completed in the fourth quarter of 2010.

 

In May 2011, the Company entered into a securities purchase agreement with MSPEA Agriculture Holding Limited (“MSPEA”), an affiliate of Morgan Stanley, and Full Alliance International Limited (“Full Alliance”), the Company’s largest shareholder. According to the agreement, the Company issued 5,681,818 shares of redeemable Series A convertible preferred shares to MSPEA on June 9, 2011 (“Issuance Date”) for total gross proceeds of US$50 million. The redeemable Series A convertible preferred shares are convertible into common stock of the Company at an initial conversion price of US$8.80 subject to certain adjustments as specified in the agreement (See Note 15).

 

During the six months ended June 30, 2012, the Company began to sell two new products, a crop seed nutrient product and a crop root nutrient product named “Zhongbaosheng” and “Qianggenbao”, respectively. During the three and six months ended June 30, 2012, revenue from the two new products were US$21 million and US$69 million, respectively.

XML 37 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVENTORIES (Tables)
6 Months Ended
Jun. 30, 2012
Inventory Disclosure [Abstract]  
Schedule of Utility Inventory [Table Text Block]

Inventories at June30,2012and December31,2011consisted of the following:

 

 

 

June 30, 2012

 

 

December 31, 2011

 

 

 

 

 

 

 

 

Finished goods

 

US$

71,966,332

 

 

US$

75,073,119

 

Work in progress

 

 

27,931,646

 

 

 

10,028,719

 

Raw materials

 

 

3,387,607

 

 

 

805,534

 

Consumables and packing supplies

 

 

435,029

 

 

 

209,628

 

Total

 

US$

103,720,614

 

 

US$

86,117,000

 

XML 38 R40.htm IDEA: XBRL DOCUMENT v2.4.0.6
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual)
0 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended
Jan. 04, 2008
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2012
Zhongbaosheng and Qianggenbao [Member]
USD ($)
Jun. 30, 2012
Zhongbaosheng and Qianggenbao [Member]
USD ($)
Oct. 03, 2009
Inner Mongolia Yongye [Member]
Oct. 31, 2007
Inner Mongolia Yongye [Member]
Oct. 03, 2009
Aso [Member]
Oct. 31, 2007
Aso [Member]
May 23, 2007
Fullmax Pacific Limited [Member]
Jul. 20, 2010
Yongye Nongfeng Biotechnology Co [Member]
USD ($)
Jul. 20, 2010
Yongye Nongfeng Biotechnology Co [Member]
CNY
Dec. 31, 2011
Yongye Nongfeng Biotechnology Co [Member]
USD ($)
Dec. 31, 2009
Yongye Nongfeng Biotechnology Co [Member]
USD ($)
Oct. 03, 2009
Yongye Nongfeng Biotechnology Co [Member]
USD ($)
May 31, 2011
M S P E Agriculture Holding Limited [Member]
USD ($)
Entity Incorporation, State Country Name   State of Nevada                            
Entity Incorporation, Date Of Incorporation Jan. 04, 2008 Dec. 06, 2006                 Jul. 20, 2010 Jul. 20, 2010        
Entity Information, Former Legal Or Registered Name Yongye Nongfeng Yongye International, Inc.                 Inner Mongolia Yongye Fumin Biotechnology Co., Ltd Inner Mongolia Yongye Fumin Biotechnology Co., Ltd        
Business Acquisition, Name of Acquired Entity   Fullmax Pacific Limited                            
Equity Method Investment, Ownership Percentage           5.00% 10.00% 95.00% 90.00% 84.70%         4.50%  
Business Acquisition, Cost of Acquired Entity, Cash Paid (in dollars)                             $ 4,700,000  
Equity Method Investment Additional Capital Contribution (in dollars)                         42,541,199 55,999,965    
Equity Method Investment Effective Ownership Percentage     98.80%                          
Authorised Share Capital                     14,731,880 100,000,000        
Preferred Stock, Shares Issued (in shares)                               5,681,818
Conversion Of Preferred Shares Into Common Stock Exercise Price (in dollars per share)                               $ 8.8
Conversion Of Preferred Shares Into Common Stock Shares (in shares)                               5,681,818
Proceeds from Issuance of Convertible Preferred Stock (in dollars)                               50,000,000
Sales Revenue, Goods, Net (in dollars)       $ 21,000,000 $ 69,000,000                      
XML 39 R53.htm IDEA: XBRL DOCUMENT v2.4.0.6
PREPAYMENT FOR MINING PROJECT (Details Textual)
In Millions, unless otherwise specified
1 Months Ended
Mar. 31, 2010
Mar. 31, 2010
Mining Properties and Mineral Rights [Member]
Mineral Right [Member]
USD ($)
Mar. 31, 2010
Mining Properties and Mineral Rights [Member]
Mineral Right [Member]
CNY
Aug. 31, 2011
Mining Properties and Mineral Rights [Member]
Mineral Resource Exploration Permit [Member]
Payments to Acquire Mineral Rights (in dollars)   $ 35 240  
Mining Rights Vendor Wuchuan Shuntong Humic Acid Company Ltd.      
Exploration Area Mining (in square kilometer)       29.74
Exploration Right Period (in years)       3 years
XML 40 R72.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONCENTRATIONS AND CREDIT RISKS (Details Textual) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Document Information [Line Items]        
Cash, Uninsured Amount (in dollars) $ 81,863,373   $ 81,863,373  
Entity Wide Revenue, Major Customer, Percentage 46.00% 33.00% 47.00% 34.00%
Entity Wide Revenue, Major Customer, Amount (in dollars) 81,605,811 51,775,780 114,681,108 69,258,378
Entity Wide Purchase Majors Suppliers Percentage 77.00% 83.00% 70.00% 87.00%
Entity Wide Purchase Majors Supplier Amount (in dollars) 44,725,788 22,790,351 75,077,488 50,562,626
Entity Wide Purchase Major Single Supplier Percentage 32.00% 31.00% 27.00% 36.00%
Entity Wide Purchase Major Single Supplier Amount (in dollars) $ 18,255,847 $ 8,539,793 $ 29,338,145 $ 20,794,408
XML 41 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED BALANCE SHEETS (USD $)
Jun. 30, 2012
Dec. 31, 2011
Current assets    
Cash $ 81,952,040 $ 81,154,880
Restricted cash 40,000 40,000
Accounts receivable, net of allowance for doubtful accounts 188,359,652 153,629,522
Inventories 103,720,614 86,117,000
Deposits to suppliers 25,240,430 2,664,360
Prepaid expenses 774,372 4,954,359
Other receivables 253,299 385,263
Deferred tax assets 1,349,974 2,283,388
Total Current Assets 401,690,381 331,228,772
Property, plant and equipment, net 21,787,890 21,929,444
Intangible asset, net 20,346,860 21,649,890
Land use right, net 6,111,971 6,129,151
Prepayment for mining project 35,760,100 35,511,520
Other assets 44,682,486 31,621,465
Goodwill 10,769,499 10,694,636
Total Assets 541,149,187 458,764,878
Current liabilities    
Short-term bank loans 25,339,309 28,308,563
Long-term loans and payables - current portion 7,518,593 4,279,234
Accounts payable 12,175,256 13,098,183
Income tax payable 8,802,549 3,161,538
Advance from customers 138,951 4,095,580
Accrued expenses 14,888,397 4,437,220
Other payables 2,956,623 3,159,070
Derivative liabilities - fair value of warrants 247,896 317,183
Total Current Liabilities 72,067,574 60,856,571
Long-term loans and payables 11,036,284 7,464,683
Other non-current liability 4,327,927 4,297,842
Deferred tax liabilities 6,831,827 4,857,800
Total Liabilities 94,263,612 77,476,896
Redeemable Series A convertible preferred shares: par value $.001; 7,969,044 shares authorized; 6,079,545 shares and 5,681,818 shares issued and outstanding as of June 30, 2012 and December 31, 2011, respectively 51,208,657 49,399,990
Equity    
Common stock: par value $.001; 75,000,000 shares authorized; 49,370,711 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively 49,371 49,371
Additional paid-in capital 153,079,165 150,654,849
Retained earnings 204,488,483 148,804,997
Accumulated other comprehensive income 19,594,212 17,078,758
Total equity attributable to Yongye International, Inc. 377,211,231 316,587,975
Noncontrolling interest 18,465,687 15,300,017
Total Equity 395,676,918 331,887,992
Commitments and Contingencies 0 0
Total Liabilities, Redeemable Series A Convertible Preferred Shares and Equity $ 541,149,187 $ 458,764,878
XML 42 R45.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVENTORIES (Details Textual) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Pledged Assets Inventory Assets Pledged As Collateral At Fair Value   $ 18,991,849
Unrecognized Revenue Finished Goods $ 23,251,377 $ 6,340,411
XML 43 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $)
Series A Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Parent [Member]
Noncontrolling Interest [Member]
Total
Balance at Dec. 31, 2011 $ 49,399,990 $ 49,371 $ 150,654,849 $ 148,804,997 $ 17,078,758 $ 316,587,975 $ 15,300,017 $ 331,887,992
Balance (in shares) at Dec. 31, 2011 5,681,818 49,370,711            
Comprehensive income                
Net income 0 0 0 57,492,153 0 57,492,153 3,042,814 60,534,967
Other comprehensive income 0 0 0 0 2,515,454 2,515,454 122,856 2,638,310
Stock compensation to management and independent directors 0 0 2,424,316 0 0 2,424,316 0 2,424,316
Paid-in-kind dividends 1,808,667 0 0 (1,808,667) 0 (1,808,667) 0 (1,808,667)
Paid-in-kind dividends (in shares) 397,727 0            
Balance at Jun. 30, 2012 $ 51,208,657 $ 49,371 $ 153,079,165 $ 204,488,483 $ 19,594,212 $ 377,211,231 $ 18,465,687 $ 395,676,918
Balance (in shares) at Jun. 30, 2012 6,079,545 49,370,711            
XML 44 R59.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER PAYABLES (Details Textual) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Construction Payable, Current $ 422,754 $ 980,169
Accrual for Taxes Other than Income Taxes, Current $ 1,939,346 $ 1,834,577
XML 45 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
LAND USE RIGHT (Tables)
6 Months Ended
Jun. 30, 2012
Land Use Right [Abstract]  
Schedule of Property Subject to Land Use Right [Table Text Block]

As of June30,2012and December31,2011, land use right represented:

 

 

 

June30, 2012

 

 

December 31, 2011

 

 

 

 

 

 

 

 

Land use right

 

US$ 

6,386,536

 

 

US$ 

6,342,142

 

Less: Accumulated amortization

 

 

(274,565

)

 

 

(212,991

)

Total

 

US$ 

6,111,971

 

 

US$ 

6,129,151

 

XML 46 R65.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATUTORY RESERVE (Details Textual) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Statutory Accounting Practices, Statutory Capital and Surplus Required, Percentage 10.00%    
Statutory Accounting Practices Statutory Capital and Surplus Percentage Maximum 50.00%    
Yongye Nongfeng Biotechnology Co Ltd and Yongye Fumin Biotechnology Co [Member]
     
Statutory Accounting Practices, Statutory Capital and Surplus, Balance (in dollars) $ 27,557,130   $ 21,723,169
Statutory Accounting Practices, Retained Earnings Not Available for Dividends (in dollars) 26,179,274    
Statutory Accounting Practices, Appropriations To Statutory Capital and Surplus (in dollars) $ 5,833,961 $ 5,889,753  
XML 47 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY FINANCING
6 Months Ended
Jun. 30, 2012
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

NOTE 15- EQUITY FINANCING

 

Capital stock

 

Concurrent with the Share Exchange, the Company entered into a securities purchase agreement on April 17, 2008 with certain investors (the “April Investors”) for the sale in a private placement of an aggregate of 6,495,619 shares of the Company’s common stock, par value US$0.001 per share (the “April Investor Shares”) and 1,623,905 warrants (See below) for aggregate gross proceeds equal to US$10,000,651 (the “April Offering”). 

 

On September 5, 2008, the Company entered into a securities purchase agreement with certain investors (the “September Investors”), for the sale in a private placement of an aggregate of 6,073,006 shares of the Company’s common stock, par value US$0.001 per share (the “September Investor Shares”) and 1,518,253 warrants (See below) for aggregate gross proceeds equal to approximately US$9,350,000 (the “September Offering”).

 

On May 8, 2009, the Company entered into a securities purchase agreement with certain investors (the “May Investors”), for the sale in a private placement of an aggregate of 5,834,083 shares of the Company’s common stock, par value US$0.001 per share (the “May Shares”) for aggregate gross proceeds equal to US$8,984,595 (the “May Offering”).

 

On December 17, 2009, the Company entered into an underwriting agreement with Roth Capital Partners, LLC (“Roth”) and Oppenheimer and Company Inc. (the “Underwriters”), pursuant to which the Company agreed to issue and sell 8,000,000 shares of common stock (the “Firm Stock”), par value US$0.001 per share, to the Underwriters at a price per share of US$7.50 (the “December Offering”). The sale of the Firm Stock was priced on December 17, 2009 and closed on December 22, 2009. The aggregate proceeds from the offering were US$60,000,000. Underwriting discounts and commissions and offering expenses were US$3,692,000 and were recorded as a reduction of additional paid-in capital.

 

The Company also granted the Underwriters an option to purchase up to an additional 1,200,000 shares to cover over-allotments, if any, at the same price as the Firm Stock. On December 31, 2009, the Underwriters agreed to purchase the over-allotment for gross proceeds of US$9,000,000, which, after net of commissions and discounts of US$450,000, was received on January 4, 2010.

 

In connection with the acquisition of Customer List (See Note 7) in July 2010, the Company issued 3,600,000 shares of its common stock to the Seller as part of the consideration.

 

In October 2010, the Company granted 1,183,667 restricted shares to management and independent directors of the Company in accordance with Yongye International, Inc. 2010 Omnibus Securities and Incentive Plan, as an incentive to such individuals to promote the success of the Company’s business. Management was granted 1,137,000 shares on October 8, 2010, and the independent directors were granted 46,667 shares on October 15, 2010 (See below). As of June 30, 2011, all shares have been vested.

 

On October 10, 2011, the Company granted 1,166,333 restricted shares to management and independent directors of the Company in accordance with Yongye International, Inc. 2010 Omnibus Securities and Incentive Plan, as an incentive to such individuals to promote the success of the Company’s business. As of June 30, 2012, the shares have not yet vested.

 

Redeemable Series A convertible preferred shares

 

In May 2011, the Company entered into a securities purchase agreement with MSPEA, an affiliate of Morgan Stanley, and Full Alliance, the Company’s largest shareholder. Pursuant to the terms of the agreement, on June 9, 2011 the Company issued 5,681,818 shares of redeemable Series A convertible preferred shares to MSPEA for gross proceeds of US$50 million. The redeemable Series A convertible preferred shares are convertible into common stock of the Company at an initial conversion price of US$8.80, subject to further adjustments as discussed below.

 

In June 2012, 397,727 shares redeemable Series A convertible preferred shares were issued to MSPEA as paid-in-kind dividends. Total fair value of the paid-in-kind dividends as of the declaration and issuance date was US$1,808,667. The estimated fair values of the paid-in-kind dividends were determined using Monte Carlo Simulation Model.

 

The significant terms of the redeemable Series A convertible preferred shares are as follows:

 

Liquidation Preference

 

In the event of liquidation, whether voluntary or involuntary, the holders of the redeemable Series A convertible preferred shares then outstanding shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders before any payment shall be made to the holders of the common stock, with respect to each outstanding share of redeemable Series A convertible preferred shares, an amount equal to the greater of (i) the original issue price, representing US$8.80 per share of redeemable Series A convertible preferred shares, plus (a) all accrued but unpaid preferred dividends and (b) other declared but unpaid dividends on redeemable Series A convertible preferred shares, and (ii) such amount per share as would have been payable had all shares of redeemable Series A convertible preferred shares been converted into common stock immediately prior to such liquidation.

 

If upon liquidation, the assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of the redeemable Series A convertible preferred shares the full liquidation preference to which they shall be entitled in accordance with the above, the holders of the redeemable Series A convertible preferred shares shall share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

 

Dividends

 

The holders of the redeemable Series A convertible preferred shares shall be entitled to receive paid-in-kind dividends in additional shares of redeemable Series A convertible preferred shares, on each anniversary of the Issuance Date. The calculation of paid-in kind dividends is based on the number of shares of redeemable Series A convertible preferred shares held by such holders on such anniversary multiplied by an annual dividend rate determined on such anniversary in accordance with the formula set forth below (the “Preferred Dividend Rate”), compounded annually:

 

Preferred Dividend Rate is defined as 7% - [(VWAP - 8.8) x 2 / 310], where VWAP means one-year volume weighted average share price of the Company during the 365-day period immediately prior to the applicable anniversary of Issuance Date, provided that the preferred dividend rate should not exceed 7% per annum and shall not fall below 3% per annum.

 

In addition, the holders of redeemable Series A convertible preferred shares should also receive, on an as-converted basis, any dividends or distributions that the Company declares to the holders of common stock.

 

Conversion

 

At any time after issuance, each holder of any shares of redeemable Series A convertible preferred shares then outstanding may, at such holder’s option, elect to convert all or any portion of the shares of redeemable Series A convertible preferred shares held by such holder into a number of fully paid and non-assessable shares of common stock. The initial conversion price is US$8.80 per share and is subject to customary anti-dilution adjustments for issuances of shares of common stock as a dividend or distribution on shares of the common stock, or mergers or reorganizations or future issuances of other Company’s securities at a price lower than the then applicable conversion price. Additionally, the conversion price is subject to upward or downward adjustments, depending upon the Actual Net Income (as defined below) being greater than or lower than the Cumulative Net Income Guarantee (as defined below) of the corresponding period, provided that (i) the conversion price, as adjusted, shall not exceed US$15.00 per share, and (ii) the sum of all shares of common stock issuable to the holders of redeemable Series A convertible preferred shares as a result of conversions, dividends, or distributions, or common stock acquired shall not exceed 9,869,205, or 19.99% of the total number of shares of common stock outstanding on May 29, 2011, which is the date the Company entered into the securities purchase agreement for the issuance of redeemable Series A convertible preferred shares.

 

The Actual Net Income means, in respect of any fiscal year or quarter, the consolidated net income of the Company for such fiscal year or quarter (as applicable), after all charges and provisions for taxes and minority interests and adjusted to exclude certain items, as audited (for fiscal years) or reviewed (for fiscal quarters) in accordance with U.S. GAAP.

 

The Cumulative Net Income Guarantee is defined as: US$84 million for fiscal 2011, US$210 million for the cumulative period of fiscal 2011 through fiscal 2012, US$399 million for the cumulative period of fiscal 2011 through fiscal 2013, and US$682.5 million for the cumulative period of fiscal 2011 through fiscal 2014.

 

Automatic Conversion

 

On the fifth anniversary of the Issuance Date of the redeemable Series A convertible preferred shares, all redeemable Series A convertible preferred shares will automatically convert into common stock at the then applicable conversion price.

 

Voting Rights

 

The holders of the redeemable Series A convertible preferred shares are entitled to vote upon all matters upon which the holders of common stocks have the right to vote, such votes to be counted together with all other shares of stock having general voting powers and not separately as a class. Each holder of the outstanding redeemable Series A convertible preferred shares shall be entitled to cast the number of votes, which is equal to the number of votes that would be attributable to the shares of common stock issuable upon conversion of the redeemable Series A convertible preferred shares.

 

Redemption

 

The holders of the redeemable Series A convertible preferred shares have the right to require the Company to redeem all or a portion of the outstanding redeemable Series A convertible preferred shares upon the occurrence of any of the following conditions: (i) a material breach by any of the Company and Full Alliance of any of the key obligations under the securities purchase agreement and related transaction documents, (ii) the failure to remain current in the Company’s securities filings, (iii) the failure to obtain the Exploration Right (See Note 9) and recover amounts paid for such rights, on or prior to June 30, 2012, and (iv) the discontinuation of Mr. Zishen Wu as CEO of the Company prior to December 31, 2014, unless his cessation of duties results from his death, disability or incapacity. In such cases, the redemption price for the redeemable Series A convertible preferred shares would be equal to an amount that would yield a total internal rate of return of 30% on the purchase price of the redeemable Series A convertible preferred shares.

 

The holders of the redeemable Series A convertible preferred shares also have the right to redeem all or a portion of their redeemable Series A convertible preferred shares if (i) the quotient of the Company’s aggregate earnings per share in any six rolling consecutive quarters from the first quarter of 2010 onwards divided by the aggregate amount of the earnings per share of the corresponding periods in the prior year is less than 120%, and (ii) net income of any fiscal year between 2011 and 2014 is less than the relevant Income Threshold for such year. In such cases, the redemption price for the redeemable Series A convertible preferred shares would be equal to an amount that would yield a total internal rate of return of 20% on the purchase price of the redeemable Series A convertible preferred shares. The “Income Threshold” is defined as: US$75 million for the fiscal year 2011, US$101 million for the fiscal year 2012, US$121 million for the fiscal year 2013 and US$145 million for the fiscal year 2014, subject to certain adjustments caused by future issuances of the Company’s securities that have a dilutive effect on the holders of the redeemable Series A convertible preferred shares.

 

Based on the historical income level, year to date income and projected net income and earnings per share for the next three years, management believes it is not probable that the Series A convertible preferred shares are redeemable as at December 31, 2011 and June 30, 2012. The Company assesses the probability of whether the redeemable Series A convertible preferred shares are redeemable at each reporting period end.

 

Warrants

 

Concurrent with the April Investor Shares, the Company issued 1,623,905 warrants to purchase 1,623,905 shares of the Company’s common stock (the “April Warrants”) to the April Investors as an inducement to the April Offering. The warrants issued have a five-year exercise period with an initial exercise price of US$1.848. In addition, 649,562 warrants were issued to Roth as the placement agent with terms and exercise price identical to the warrants issued to the April Investors.

 

Concurrent with the September Investor Shares, the Company issued 1,518,253 warrants to purchase 1,518,253 shares of the Company’s common stock (the “September Warrants”) to the September Investors as an inducement to the September Offering. The warrants issued have a five-year exercise period with an initial exercise price of US$1.848. In addition, 607,301 warrants were issued to Roth as the placement agent with terms and exercise price identical to the warrants issued to the September Investors.

 

 On September 12, 2008, Roth executed an irrevocable cashless exercise of its warrants and was issued 686,878 shares of common stock of the Company. In exchange for the issuance of 354,987 shares, Roth surrendered 649,562 warrants received in the April Offering; and in exchange for the issuance of 331,891 shares, Roth surrendered 607,301 warrants received in the September Offering.

 

Concurrent with the offering of the “May Shares”, the Company issued to Roth as the placement agent, 246,224 warrants (“May Warrants”). The warrants have a five-year exercise period and an initial exercise price of US$1.848. On November 9, 2009, Roth executed an irrevocable cashless exercise of all the “May Warrants”. The Company issued 198,247 shares of common stock of the Company in exchange for the surrender of all the May Warrants.

 

During the three and six months ended June 30, 2012 and 2011, no “April Warrants” and “September Warrants” were exercised by April Investors and September Investors.

 

According to the terms of these warrants, the Company could be required to pay cash to the warrant holders under certain events that are not within the control of the Company.  Specifically, upon the occurrence of certain “fundamental transactions” as defined, the warrant holders (but not the shareholders of the Company’s common stock) are entitled to receive cash equal to the value of the warrants to be determined based on an option pricing model and certain specified assumptions set forth in the warrant agreement.  In addition, the terms of the warrants include a “down-round” provision under which the exercise price could be affected by future equity offerings undertaken by the Company.  If the Company issues any common stock or common stock equivalents, as defined, at any time the warrants are outstanding, at an effective price less than the then warrant exercise price, the exercise price of warrants will be reduced to the effective price of newly issued common stock or common stock equivalents.  In the “May Offering”, the Company issued new common stock at a price of US$1.54 per share and accordingly, the exercise price of the April Warrants and the September Warrants was reduced to US$1.54 per share.  The exercise price of the May Warrants (US$1.848) was not affected but is also subject to potential down-round adjustments in future periods. As of June 30, 2012 and December 31, 2011, there were 148,172 warrants outstanding, of which 48,714 and 99,458 warrants will expire if unexercised by April 2013 and September 2013, respectively.

 

The potential cash payments and the down-round provision preclude the classification of these warrants as equity. Accordingly, the warrants are accounted for as a liability and adjusted to fair value through earnings at each reporting date. The gain resulting from the decrease in fair value of warrants was US$9,889 and US$83,435 for the three months ended June 30, 2012 and 2011, respectively. The gain resulting from the decrease in fair value of warrants was US$69,287 and US$413,587 for the six months ended June 30, 2012 and 2011, respectively.

 

The estimated fair values of the warrants issued to April Investor and September Investor were determined at June 30, 2012 and December 31, 2011 using Binominal Option Pricing Model with Level 2 inputs. The following table sets forth, by level within the fair value hierarchy, the Company’s financial liabilities that were measured at fair value on a recurring basis as of June 30, 2012 and December 31, 2011.

 

    Fair Value Measurements Using:  
          Quoted Prices in
Active Markets for
Identical Financial
Assets and Liabilities
    Significant Other
Observable Inputs
    Significant
Unobservable Inputs
 
June 30, 2012   Total     Level 1     Level 2     Level 3  
                         
Liabilities at fair value:                                
Derivative liabilities-warrants   US$ 247,896       -     US$ 247,896       -  

 

    Fair Value Measurements Using:  
          Quoted Prices in
Active Markets for
Identical Financial
Assets and Liabilities
    Significant Other
Observable Inputs
    Significant
Unobservable Inputs
 
December 31, 2011   Total     Level 1     Level 2     Level 3  
                         
Liabilities at fair value:                                
Derivative liabilities-warrants   US$ 317,183       -     US$ 317,183       -  

 

The fair values of the warrants are summarized as follows:

 

    April Warrants     September Warrants  
Fair value of warrant per share (US$) at:                
Date of issuance   US$ 1.07     US$ 2.08  
December 31, 2011     2.11       2.16  
June 30, 2012     1.60       1.71  

 

The fair values of the warrants outstanding as of June 30, 2012 and December 31, 2011 were determined based on the Binominal option pricing model, using the following key assumptions:

 

    June 30, 2012     December 31, 2011  
    April 
Warrants
    September
Warrants
    April 
Warrants
    September
Warrants
 
                         
Expected volatility     57.1 %     69.3 %     65.5 %     64.1 %
                                 
Expected dividends yield     0 %     0 %     0 %     0 %
                                 
Time to maturity     0.8 years       1.2 years       1.3 years       1.7 years  
                                 
Risk-free interest rate per annum     0.590 %     0.590 %     1.202 %     1.202 %
                                 
Fair value of underlying common shares (per share)   US$ 3.09     US$ 3.09     US$ 3.52     US$ 3.52  

 

Stock-based compensation

 

Pursuant to the 2010 Omnibus Securities and Incentive Plan (the “Plan”), which was approved by the stockholders of the Company in the annual meeting held on June 11, 2010, the Company was authorized to issue up to 2,350,000 shares of the Company’s common stock to selected executives, key employees and directors. The number of shares of the Company’s common stock that can be issued is limited to an aggregate of 1,500,000 shares in any calendar year. The purpose of the Plan is to provide incentives to such individuals to promote the success of the Company’s business.

 

In October 2010, the Company granted 1,183,667 restricted shares to management and independent directors of the Company in accordance with the Plan. Management was granted 1,137,000 shares on October 8, 2010, and the independent directors were granted 46,667 shares on October 15, 2011. The shares vested in April 2011.

 

In October 2011, the Company granted 1,166,333 restricted shares to management and independent directors of the Company in accordance with the Plan. Management was granted 1,073,000 shares, and the independent directors were granted 93,333 shares on October 10, 2011. The shares vest in October 2012.

 

At June 30, 2012, there was US$1,345,362 unrecognized compensation cost related to unvested shares granted under the Plan, which is expected to be recognized over a weighted average period of approximately 3 months. The total stock-based compensation cost recognized in the general and administrative expenses for the three months ended June 30, 2012 and 2011 were US$1,212,158 and US$370,866, respectively. The total stock-based compensation cost recognized in the general and administrative expenses for the three months ended June 30, 2012 and 2011 were US$2,424,316 and US$4,950,600, respectively.

 

A summary of the Company’s unvested shares as of June 30, 2012, and changes during the three and six months ended June 30, 2012, is presented below: 

 

          Weighted average  
          grant-date  
Restricted shares   Shares     fair value  
Balance at January 1, 2012     1,166,333     US$ 4,875,272  
Granted     -       -  
Vested     -       -  
Forfeited     -       -  
Balance at March 31, 2012     1,166,333       4,875,272  
Granted     -       -  
Vested     -       -  
Forfeited     -       -  
Balance at June 30, 2012     1,166,333     US$ 4,875,272  

 

XML 48 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
LONG-TERM LOANS AND PAYABLES (Tables)
6 Months Ended
Jun. 30, 2012
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments [Table Text Block]

As of June30,2012and December31,2011, the long-term loans consisted of the following:

 

 

 

June, 2012

 

 

December 31, 2011

 

 

 

 

 

 

 

 

Vehicle loans-employees

 

US$ 

129,423

 

 

US$ 

189,229

 

Vehicle loans-distributors

 

 

18,425,454

 

 

 

11,554,688

 

Total

 

US$ 

18,554,877

 

 

US$ 

11,743,917

 

XML 49 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
6 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 17 - INCOME TAXES

 

Effective from January 1, 2008, the PRC’s statutory income tax rate is 25%. The Company’s PRC subsidiaries are subject to income tax rate of 25%, unless otherwise specified. During 2010, Yongye Nongfeng was qualified as a High-Tech Enterprise which entitles it to a preferential tax rate of 15% for three years from January 1, 2010 to December 31, 2012.

 

The Company’s effective income tax rates for the three months ended June 30, 2012 and 2011 were 17.66% and 19.49%, respectively, and were 17.69% and 20.05% for the six months ended June 30, 2012 and 2011. The effective income tax rate for the three and six months ended June 30, 2012 differs from the PRC statutory income tax rate of 25% primarily due to the effect of Yongye Nongfeng’s preferential tax treatment, which is partly offset by the effect of non-deductible expenses.

 

There has been no change in unrecognized tax benefits during the six months ended June 30, 2012. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months. No interest and penalties related to unrecognized tax benefits was recorded for the three and six months ended June 30, 2012.

XML 50 R68.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY TRANSACTIONS AND BALANCES (Details Textual) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Operating Leases, Rent Expense, Net $ 66,005 $ 64,172 $ 132,121 $ 127,559
Operating Leases, Future Minimum Payments Due, Current 264,234   264,234  
Inner Mongolia Yongye [Member]
       
Renewal Of Operating Lease     Jan. 04, 2012  
Operating Leases, Rent Expense, Net 63,297 39,898 126,700 79,308
Operating Leases, Future Minimum Payments Due, Current $ 126,697   $ 126,697  
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XML 52 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 60,534,967 $ 50,885,969
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:    
Depreciation and amortization 7,072,522 3,261,186
Reversal of allowance for doubtful accounts (6,334,832) 0
Change in fair value of derivative liabilities (69,287) (413,587)
Stock compensation expense 2,424,316 4,950,600
Deferred tax expense 300,108 162,234
Changes in operating assets and liabilities:    
Accounts receivable (27,170,173) (115,140,649)
Inventories (17,028,433) 23,582,770
Deposits to suppliers (22,118,726) (41,373,219)
Prepaid expenses 4,212,958 (693,128)
Other receivables 134,726 (5,805)
Other assets (5,099,274) (1,995,399)
Accounts payable (1,002,120) 12,662,550
Income tax payable 5,610,204 8,251,950
Advance from customers (3,988,722) 606,546
Accrued expenses 10,413,691 26,366,405
Other payables 193,633 1,108,043
Net Cash Provided by/(Used in) Operating Activities 8,085,558 (27,783,534)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payment for intangible asset 0 (3,000,000)
Purchase of property, plant and equipment (1,449,852) (1,608,789)
Net Cash Used in Investing Activities (1,449,852) (4,608,789)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from short-term bank loans 25,318,859 15,384,852
Repayment of long-term loans and payables (3,091,865) (351,242)
Repayment of short-term bank loans (28,483,717) 0
Proceeds from preferred shares, net of issuance cost of $600,010 0 49,399,990
Net Cash (Used in)/Provided by Financing Activities (6,256,723) 64,433,600
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH 418,177 878,510
NET INCREASE IN CASH 797,160 32,919,787
Cash at beginning of period 81,154,880 41,913,469
Cash at end of period 81,952,040 74,833,256
Supplemental cash flow information:    
Cash paid for income taxes 7,128,066 4,345,862
Cash paid for interest expense 2,069,219 309,862
Noncash investing and financing activities:    
Acquisition of property, plant and equipment included in other payables 422,754 1,081,041
Acquisition of other assets by assuming long-term loans and payables 9,820,930 1,977,956
Paid-in-kind dividends on redeemable Series A convertible preferred shares $ 1,808,667 $ 0
XML 53 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)
Jun. 30, 2012
Dec. 31, 2011
Redeemable Series A convertible preferred shares, par value (in dollars per share) $ 0.001 $ 0.001
Redeemable Series A convertible preferred shares, shares authorized 7,969,044 7,969,044
Redeemable Series A convertible preferred shares, shares issued 6,079,545 6,079,545
Redeemable Series A convertible preferred shares, shares outstanding 6,079,545 6,079,545
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 75,000,000 75,000,000
Common stock, shares issued 49,370,711 49,370,711
Common stock, shares outstanding 49,370,711 49,370,711
XML 54 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER ASSETS
6 Months Ended
Jun. 30, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS

NOTE 10 - OTHER ASSETS

 

The Company entered into agreements with certain distributors, including sub-distributors pursuant to which the Company provided the distributor a free vehicle in exchange for the distributor agreeing to comply with certain sale conditions during the term of the agreement of five years.  The sales conditions included (1) meeting the annual sales target set by the Company; (2) not selling the products at a price lower than the price stipulated by the Company; and (3) selling the products only in Company’s approved territories.  To the extent the distributor fails any one of these conditions during the term of the agreement, the Company has the right to have the vehicles return back to the Company.

 

The cost of these vehicles has been recorded as “Other asset” which is expensed over a five-year period in “Cost of Sales”. In addition, as of June 30, 2012 and December 31, 2011, other assets included an amount of US$6,831,827 and US$4,857,800 respectively, representing the tax effect of the difference between the amount paid for the vehicles and the tax basis of the assets.

XML 55 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
DOCUMENT AND ENTITY INFORMATION
6 Months Ended
Jun. 30, 2012
Aug. 06, 2012
Entity Registrant Name Yongye International, Inc.  
Entity Central Index Key 0001398551  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Trading Symbol YONG  
Entity Common Stock Shares Outstanding   50,537,044
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2012  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q2  
XML 56 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHORT-TERM BANK LOANS
6 Months Ended
Jun. 30, 2012
Debt Disclosure [Abstract]  
Short-term Debt [Text Block]

NOTE 11 - SHORT-TERM BANK LOANS

  

In December 2011, Yongye Nongfeng obtained two short-term bank loans of RMB 60,000,000 (equivalent to US$9,436,188) and RMB 120,000,000 (equivalent to US$18,872,375) from China Citic Bank. These two short-term bank loans carry a fixed annual interest rate of 7.93% and are pledged by the inventory, land use right and buildings of Yongye Nongfeng. Yongye Nongfeng repaid the short-term loans in May and June 2012.

 

In April 2012, Yongye Nongfeng obtained a short-term bank loan of RMB 100,000,000 (equivalent to US$15,837,068) with fixed annual interest rate of 8.528% from China Everbright Bank. The short-term bank loan is guaranteed by the Company’s Chairman and his wife, and is due on April 28, 2013. In June 2012, Yongye Nongfeng obtained a short-term bank loan of RMB 60,000,000 (equivalent to US$9,502,241) with fixed annual interest rate of 8.203% from China Citic Bank. The short-term bank loan is pledged by the land use right and building of Yongye Nongfeng, and is due on June 20, 2013.

XML 57 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Sales $ 177,625,986 $ 154,704,865 $ 241,991,630 $ 204,926,076
Cost of sales 69,535,733 62,939,174 98,488,872 85,860,458
Gross profit 108,090,253 91,765,691 143,502,758 119,065,618
Selling expenses 38,554,590 29,152,923 52,757,647 36,834,243
Research and development expenses 7,384,804 5,555,634 8,893,542 6,608,614
General and administrative expenses (including a reversal of allowance for doubtful accounts of US$6,334,832 and nil for the six months ended June 30, 2012 and 2011, respectively) 8,646,763 5,586,019 6,437,292 12,864,324
Income from operations 53,504,096 51,471,115 75,414,277 62,758,437
Other income/(expenses)        
Interest expense (1,102,126) (291,751) (2,106,295) (309,862)
Interest income 75,336 16,860 135,410 27,164
Subsidy income 0 655,071 0 655,071
Other income, net 2,662 26,560 34,716 101,619
Change in fair value of derivative liabilities 9,889 83,435 69,287 413,587
Total other (expenses)/income, net (1,014,239) 490,175 (1,866,882) 887,579
Earnings before income tax expense 52,489,857 51,961,290 73,547,395 63,646,016
Income tax expense 9,272,206 10,127,255 13,012,428 12,760,047
Net income 43,217,651 41,834,035 60,534,967 50,885,969
Less: Net income attributable to the noncontrolling interest 2,107,788 2,297,271 3,042,814 2,982,777
Net income attributable to Yongye International, Inc. 41,109,863 39,536,764 57,492,153 47,903,192
Net income per share of common stock:        
Basic (in dollars per share) $ 0.75 $ 0.78 $ 1.02 $ 0.95
Diluted (in dollars per share) $ 0.74 $ 0.77 $ 1.02 $ 0.94
Weighted average shares used in computation:        
Basic (in shares) 49,370,711 49,276,070 49,370,711 48,734,565
Diluted (in shares) 49,445,176 49,378,396 49,453,572 48,845,281
Net income 43,217,651 41,834,035 60,534,967 50,885,969
Other comprehensive income        
Foreign currency translation adjustment, net of nil income taxes 297,059 3,845,490 2,638,310 5,672,157
Comprehensive income 43,514,710 45,679,525 63,173,277 56,558,126
Less: Comprehensive income attributable to the noncontrolling interest 2,121,775 2,469,167 3,165,670 3,234,579
Comprehensive income attributable to Yongye International, Inc. $ 41,392,935 $ 43,210,358 $ 60,007,607 $ 53,323,547
XML 58 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
DEPOSITS TO SUPPLIERS
6 Months Ended
Jun. 30, 2012
Deposits To Suppliers [Abstract]  
DEPOSITS TO SUPPLIERS

NOTE 5 - DEPOSITS TO SUPPLIERS

 

The Company is required to pay deposits to the suppliers for the full amount of certain raw materials ordered. These raw materials primarily consist of lignite coal, chemical component materials and packing materials. The lignite coal and chemical component materials will be consumed in the production process at Yongye Nongfeng and Yongye Fumin. As of June 30, 2012 and December 31, 2011, the deposits to suppliers for raw materials amounted to US$24,696,228 and US$2,616,231, respectively. As of August 2, 2012, raw materials amounting to approximately US$12 million were subsequently received.

 

The Company’s decision to make advanced orders of raw materials is mainly based upon (1) the current and projected future market price of raw materials, (2) the demand and supply situation in the raw materials market, and (3) the forecasted demand of products.

XML 59 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVENTORIES
6 Months Ended
Jun. 30, 2012
Inventory Disclosure [Abstract]  
INVENTORIES

NOTE 4 - INVENTORIES

 

Inventories at June 30, 2012 and December 31, 2011 consisted of the following:

 

    June 30, 2012     December 31, 2011  
             
Finished goods   US$ 71,966,332     US$ 75,073,119  
Work in progress     27,931,646       10,028,719  
Raw materials     3,387,607       805,534  
Consumables and packing supplies     435,029       209,628  
Total   US$ 103,720,614     US$ 86,117,000  

 

As of December 31, 2011, certain finished goods of US$18,991,849 were pledged as security for short-term bank loans (See Note 11). In addition, as of June 30, 2012 and December 31, 2011, finished goods included US$23,251,377 and US$6,340,411, respectively, of products that were sold to customers for which the related revenue was not recognized in accordance with the Company’s accounting policy on revenue recognition.

XML 60 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATUTORY RESERVE
6 Months Ended
Jun. 30, 2012
Statutory Reserve Disclosure [Abstract]  
STATUTORY RESERVE

NOTE 16 - STATUTORY RESERVE

 

Yongye Nongfeng and Yongye Fumin are required to allocate at least 10% of its after tax profits as determined under generally accepted accounting principal in the PRC to a statutory surplus reserve until the reserve balance reaches 50% of its registered capital. For the six months ended June 30, 2012 and 2011, Yongye Nongfeng and Yongye Fumin made appropriations to this statutory reserve of US$5,833,961, and US$5,889,753, respectively. The accumulated balance of the statutory reserve of Yongye Nongfeng and Yongye Fumin as of June 30, 2012 and December 31, 2011 was US$27,557,130 and US$21,723,169, respectively.

 

In accordance with the PRC laws and regulations, Yongye Nongfeng and Yongye Fumin are restricted in its ability to transfer a portion of its net assets to the Company in the form of dividends, which amounted to US$26,179,274, representing the amount of accumulated balance of statutory reserve of Yongye Nongfeng and Yongye Fumin attributable to the Company as of June 30, 2012.

XML 61 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
LONG-TERM LOANS AND PAYABLES
6 Months Ended
Jun. 30, 2012
Debt Disclosure [Abstract]  
Long-term Debt [Text Block]

 

NOTE 12 - LONG-TERM LOANS AND PAYABLES

 

As of June 30, 2012 and December 31, 2011, the long-term loans consisted of the following:

 

    June, 2012     December 31, 2011  
             
Vehicle loans-employees   US$  129,423     US$  189,229  
Vehicle loans-distributors     18,425,454       11,554,688  
Total   US$  18,554,877     US$  11,743,917  

 

As of June 30, 2012 and December 31, 2011, vehicle loans-employees of US$129,423 and US$189,229, respectively, were secured by seven and sixteen vehicles with initial carrying amount of US$468,426 and US$794,984, respectively. The vehicle loans-employees are payable in monthly installments over three to five years. Interest rates on the loans range from 5.40% to 14.54% annually and are subject to the change of the base interest rate prescribed by People’s Bank of China. The vehicle loans were obtained by individual employees of the Company after the Company made the initial down payment of the purchase price of the vehicles. The Company and the individual employees entered into trust agreements that stipulate that (i) the vehicles are legally registered under the individuals’ name, (ii) the Company has the rights of official use, (iii) the Company has the rights to the legal title of the vehicles at all times and is entitled to change the registered owner to the Company or designated third party at any time, (iv) the Company assumes the risk of loss, damage, penalty and other obligations related to the operation and ownership of the vehicle to the extent that the loss or damages were not caused by the individuals’ improper use of the vehicle, (v) the individuals have no right to sell, lease, lend or pledge the vehicles to any other person or entity, and (vi) the Company is obligated to repay the loans in full, and to bear the costs of the related repairs, maintenance, insurance and taxes. Consequently, the Company has recognized the cost of the vehicles as other assets and the loans as liabilities in its consolidated balance sheet.

 

Vehicle loans-distributors represented loans that were initially obtained by the distributors from banks and financial institutions. The Company and the distributors entered into agreements, pursuant to which the Company would assume the full repayment of the loans on behalf of these distributors in exchange for the distributors agreeing to comply with certain sales conditions (See Note 10). The loans have two or three year terms and are payable in monthly installments. Interest rates on the loans range from 5.40% to 18.24% annually, subject to the change of the base interest rate prescribed by People’s Bank of China.

 

The aggregate maturities of the long-term loans and payables for each of the five years subsequent to June 30, 2012 are: US$7,518,593, US$7,822,378, US$3,213,906, US$0, and US$0, respectively.

XML 62 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
LAND USE RIGHT
6 Months Ended
Jun. 30, 2012
Land Use Right [Abstract]  
LAND USE RIGHT

NOTE 8 - LAND USE RIGHT

 

As of June 30, 2012 and December 31, 2011, land use right represented:

 

    June 30, 2012     December 31, 2011  
             
Land use right   US$  6,386,536     US$  6,342,142  
Less: Accumulated amortization     (274,565 )     (212,991 )
Total   US$  6,111,971     US$  6,129,151  

 

As of June 30, 2012 and December 31, 2011, the Company had pledged its land use right with an original carrying amount of approximately US$4.5 million as security for certain short-term bank loans (See Note 11).

XML 63 R60.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY FINANCING (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Liabilities, Fair Value Disclosure [Abstract]    
Derivative liabilities - fair value of warrants $ 247,896 $ 317,183
Fair Value, Inputs, Level 1 [Member]
   
Liabilities, Fair Value Disclosure [Abstract]    
Derivative liabilities - fair value of warrants 0 0
Fair Value, Inputs, Level 2 [Member]
   
Liabilities, Fair Value Disclosure [Abstract]    
Derivative liabilities - fair value of warrants 247,896 317,183
Fair Value, Inputs, Level 3 [Member]
   
Liabilities, Fair Value Disclosure [Abstract]    
Derivative liabilities - fair value of warrants $ 0 $ 0
XML 64 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
PROPERTY, PLANT AND EQUIPMENT
6 Months Ended
Jun. 30, 2012
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 6 - PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment at June 30, 2012 and December 31, 2011 consisted of the following:

 

    June 30, 2012     December 31, 2011  
             
Buildings   US$ 14,891,527     US$ 14,329,776  
Machinery and equipment     7,127,252       7,025,521  
Office equipment and furniture     521,852       511,713  
Vehicles     2,423,122       2,406,278  
Software     26,067       19,909  
Leasehold improvements     972,631       902,962  
Construction in progress     1,658       -  
      25,964,109       25,196,159  
Less: Accumulated depreciation and amortization     (4,176,219 )     (3,266,715 )
                 
Property, plant and equipment, net   US$ 21,787,890     US$ 21,929,444  

 

Depreciation and amortization expense related to property, plant and equipment for the three months ended June 30, 2012 and 2011 was US$440,318 and US$453,803, respectively. Depreciation and amortization expense related to property, plant and equipment for the six months ended June 30, 2012 and 2011 was US$909,504 and US$833,473, respectively. 

 

As of June 30, 2012 and December 31, 2011, seven and sixteen vehicles with initial carrying amount of US$468,426 and US$794,984 were pledged as security for the long-term bank loans of US$129,423 and US$189,229, respectively. The bank loans were provided for the purchases of the vehicles (See Note 12).

 

As of June 30, 2012 and December 31, 2011, the Company pledged its building with an original carrying amount of approximately US$6.1 million as security for the short-term bank loan (See Note 11). 

XML 65 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
INTANGIBLE ASSET
6 Months Ended
Jun. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSET

NOTE 7 - INTANGIBLE ASSET

 

Intangible asset at June 30, 2012 and December 31, 2011 consisted of the following:

 

    June 30, 2012  
    Weighted                    
    average     Gross           Net  
    amortization     carrying     Accumulated     carrying  
    period     amount     amortization     amount  
Amortizing intangible assets:                        
Customer List     9 years     US$  26,078,836       (5,795,297 )     20,283,539  
Patent     10 years       115,128       (51,807 )     63,321  
Total           US$  26,193,964       (5,847,104 )     20,346,860  

 

    December 31, 2011  
    Weighted                    
    average     Gross           Net  
    amortization     carrying     Accumulated     carrying  
    period     amount     amortization     amount  
Amortizing intangible assets:                        
Customer List     9 years     US$  25,897,553       (4,316,259 )     21,581,294  
Patent     10 years       114,327       (45,731 )     68,596  
Total           US$  26,011,880       (4,361,990 )     21,649,890  

 

Amortization expense for the three months ended June 30, 2012 and 2011 was US$730,693 and US$755,628, respectively. Amortization expense for the six months ended June 30, 2012 and 2011 was US$1,485,114 and US$1,453,508, respectively. The estimated annual amortization expense for intangible asset in each of the next five years is US$2,909,161.

 

On July 1, 2010, Yongye Nongfeng entered into an agreement with its provincial level distributor in Hebei Province, the PRC (“Seller”) to purchase the customer list, including the customer relationships, from Seller (“Customer List”). The acquisition of the Customer List allows Yongye Nongfeng to sell its products to sub-provincial level or regional distributors in Hebei Province directly. The consideration of the Customer List was 3,600,000 shares of common stock of the Company which was issued in July 2010 and US$3 million cash. The US$3 million cash consideration was paid in March 2011.

 

The Company determined that a nine-year period to amortize the customer list was appropriate, following the pattern in which the expected benefits of the acquired asset will be consumed or otherwise used up. The Company’s contract period with the provincial distributors (including sub-provincial level distributors after the acquisition) generally is for a period of three-years. The Company believes that it has historical experience in renewing or extending similar distributor contracts, which is consistent with the intended use of the Customer List. There are no legal or regulatory provisions that limit the useful life of the Customer List or that cause the cash flows and useful life of the Customer List to be constrained. In addition, the Company expects the effect of obsolescence, demand, competition, and other economic factors to be minimal.

 

The Company engaged an independent third party valuation firm in determining the fair value of the Customer List. The fair value of the Customer List was determined using an income approach and considered assumptions (including turnover rate) that a market participant would make consistent with the highest and best use of the asset by market participants. The period of expected cash flows used to measure the fair value of the Customer List was nine years. Without evidence to the contrary, the Company expects that the Customer List will be renewed or extended at the same rate as a market participant would expect, and no other factors would indicate a different useful life is more appropriate. Accordingly, in light of the absence of any other entity-specific factors, the useful life of the Customer List was determined to be nine years.

 

A straight-line method of amortization has been adopted as the pattern in which the economic benefits of the Customer List are used up cannot be reliably determined.

XML 66 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
PREPAYMENT FOR MINING PROJECT
6 Months Ended
Jun. 30, 2012
Prepayment Mining Project [Abstract]  
PREPAYMENT FOR MINING PROJECT

NOTE 9 - PREPAYMENT FOR MINING PROJECT

 

On March 1, 2010, the Company entered into an agreement with its then major humic acid supplier, Wuchuan Shuntong Humic Acid Company Ltd. (“Vendor”), to acquire the permit for the rights to explore, develop and produce lignite coal resources (the “Mineral Right”) in a certain area of Wuchuan County (the “Project Site”) for cash consideration of approximately RMB 240 million or US$ 35 million. The permit allows the Company to complete all necessary administrative procedures and obtaining government approvals to acquire the Mineral Right. Pursuant to the agreement, Vendor is to assist the Company in completing all necessary administrative procedures and obtaining government approvals.

 

In August 2011, Inner Mongolia’s Ministry of Land and Resources granted the Company a Mineral Resource Exploration Permit which gives it exclusive exploration rights for the 29.74 square kilometer Project Site for an initial period of three years effective August 2, 2011 (the “Exploration Right”). As of June 30, 2012, the Company had not obtained all other government approvals, including the Geological Report and Geological Exploration Report, for it to acquire the Mineral Right. During the six months ended June 30, 2012, the Company engaged a third party mineral institute to assist the Company in obtaining Geological Exploration Report. The Company believes the cost to be incurred in completing the remaining administrative procedures and obtaining government approvals are not significant. The Project Site in Wuchuan is located near Yongye Fumin’s production plant which manufactures the majority of the Company’s products. The Company believes the acquisition of the Mineral Right will allow it to secure a long term supply of humic acid, which is a major raw material used in the manufacture of fulvic acid based liquid and powder nutrient compounds, and which is sourced from lignite coals.

XML 67 R64.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY FINANCING (Details Textual) (USD $)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 6 Months Ended
Jun. 30, 2012
Mar. 31, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Jun. 11, 2010
Jun. 30, 2012
Selling, General and Administrative Expenses [Member]
Jun. 30, 2011
Selling, General and Administrative Expenses [Member]
Jun. 30, 2012
April Warrants [Member]
Jun. 30, 2012
September Warrants [Member]
Jun. 30, 2012
May Warrants [Member]
Jun. 30, 2012
Redeemable Convertible Preferred Stock [Member]
Jun. 30, 2012
Redeemable Convertible Preferred Stock [Member]
Guaranteed In Next Year [Member]
Jun. 30, 2012
Redeemable Convertible Preferred Stock [Member]
Guaranteed In Next Two Years [Member]
Jun. 30, 2012
Redeemable Convertible Preferred Stock [Member]
Guaranteed In Next Three Years [Member]
Jun. 30, 2012
May Offering [Member]
Oct. 31, 2011
Omnibus Securities and Incentive Plan 2010 [Member]
Management [Member]
Oct. 31, 2010
Omnibus Securities and Incentive Plan 2010 [Member]
Management [Member]
Oct. 08, 2010
Omnibus Securities and Incentive Plan 2010 [Member]
Management [Member]
Oct. 31, 2011
Omnibus Securities and Incentive Plan 2010 [Member]
Management and Independent Directors [Member]
Oct. 31, 2010
Omnibus Securities and Incentive Plan 2010 [Member]
Management and Independent Directors [Member]
Oct. 10, 2011
Omnibus Securities and Incentive Plan 2010 [Member]
Management and Independent Directors [Member]
Oct. 08, 2010
Omnibus Securities and Incentive Plan 2010 [Member]
Management and Independent Directors [Member]
Oct. 31, 2011
Omnibus Securities and Incentive Plan 2010 [Member]
Independent Directors [Member]
Oct. 31, 2010
Omnibus Securities and Incentive Plan 2010 [Member]
Independent Directors [Member]
Oct. 08, 2010
Omnibus Securities and Incentive Plan 2010 [Member]
Independent Directors [Member]
Jul. 31, 2010
Customer List [Member]
May 08, 2009
Private Placement [Member]
Sep. 05, 2008
Private Placement [Member]
Apr. 17, 2008
Private Placement [Member]
Jan. 04, 2010
Underwriting [Member]
Dec. 17, 2009
Underwriting [Member]
Jun. 09, 2011
M S P E [Member]
Jun. 30, 2012
M S P E [Member]
Common stock, shares issued (in shares) 49,370,711     49,370,711   49,370,711                           1,137,000     1,166,333 1,183,667     46,667 3,600,000 5,834,083 6,073,006 6,495,619   8,000,000    
Common Stock Par Or Stated Value Per Share (in dollars per share) $ 0.001     $ 0.001   $ 0.001                                             $ 0.001 $ 0.001 $ 0.001   $ 0.001    
Proceeds from Issuance of Private Placement (in dollars)                                                         $ 8,984,595 $ 9,350,000 $ 10,000,651        
Proceeds from Issuance of Common Stock (in dollars)                                                                 60,000,000    
Payments for Underwriting Expense                                                                 3,692,000    
Restricted shares, Granted 0 0                               1,073,000 1,137,000           93,333 46,667                  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 1,166,333 1,166,333   1,166,333   1,166,333                                                          
Redeemable Series A convertible preferred shares, shares issued 6,079,545     6,079,545   6,079,545                                                       5,681,818  
Proceeds from Issuance of Redeemable Convertible Preferred Stock       0 49,399,990                                                         50,000,000  
Temporary Equity, Redemption Price Per Share                                                                   $ 8.8  
Paid-in-kind dividends on redeemable Series A convertible preferred shares       1,808,667 0                                                           1,808,667
Paid-in-kind dividends (in shares)                                                                     397,727
Temporary Equity, Net Income                         84,000,000 210,000,000 399,000,000 682,500,000                                      
Class of Warrant or Right, Number of Securities Called by Warrants or Rights                   1,623,905 1,518,253                                                
Class of Warrant or Right, Exercise Price of Warrants or Rights                   1.848 1.848           1.848                                    
Class of Warrant or Right, Outstanding 148,172     148,172                                                              
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized             2,350,000                                                        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures                                         1,166,333 1,183,667                          
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition 1       3 months                                                              
Stock compensation expense       2,424,316 4,950,600     1,212,158 370,866                                                    
Warrants Issued (in shares)                   1,623,905 1,518,253           246,224                         1,518,253 1,623,905        
Price Per Share Issued To Underwriters (in dollars per share)                                                                 $ 7.50    
Common Stock Shares Issued For Over Allotment                                                                 1,200,000    
Proceeds From Common Stock Issued For Over Allotment                                                                 9,000,000    
Temporary Equity Liquidation Preference Per Share Description       In the event of liquidation, whether voluntary or involuntary, the holders of the redeemable Series A convertible preferred shares then outstanding shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders before any payment shall be made to the holders of the common stock, with respect to each outstanding share of redeemable Series A convertible preferred shares, an amount equal to the greater of (i) the original issue price, representing US$8.80 per share of redeemable Series A convertible preferred shares, plus (a) all accrued but unpaid preferred dividends and (b) other declared but unpaid dividends on redeemable Series A convertible preferred shares, and (ii) such amount per share as would have been payable had all shares of redeemable Series A convertible preferred shares been converted into common stock immediately prior to such liquidation.                                                              
Temporary Equity Dividend Percentage       7.00%                                                              
Temporary Equit Dividend Percentage Maximum       7.00%                                                              
Temporary Equity Dividend Percentage Minimum       3.00%                                                              
Temporary Equity Redemption Price Per Share Maximum       $ 15                                                              
Temporary Equity Maximum Number Of Shares Called 9,869,205     9,869,205                                                              
Temporary Equity Maximum Number Of Shares Called Percentage Of Shares Outstanding       19.99%                                                              
Temporary Equity Premium Payable On Redemption Price                         The holders of the redeemable Series A convertible preferred shares have the right to require the Company to redeem all or a portion of the outstanding redeemable Series A convertible preferred shares upon the occurrence of any of the following conditions: (i) a material breach by any of the Company and Full Alliance of any of the key obligations under the securities purchase agreement and related transaction documents, (ii) the failure to remain current in the Company''s securities filings, (iii) the failure to obtain the exploration rights and recover amounts paid for such rights, on or prior to June 30, 2012, and (iv) the discontinuation of Mr. Zishen Wu as CEO of the Company prior to December 31, 2014, unless his cessation of duties results from his death, disability or incapacity. In such cases, the redemption price for the redeemable Series A convertible preferred shares would be equal to an amount that would yield a total internal rate of return of 30% on the purchase price of the redeemable Series A convertible preferred shares.                                            
Temporary Equity On Redemption Feature                         The holders of the redeemable Series A convertible preferred shares also have the right to redeem all or a portion of their redeemable Series A convertible preferred shares if (i) the quotient of the Company''s aggregate earnings per share in any six rolling consecutive quarters from the first quarter of 2010 onwards divided by the aggregate amount of the earnings per share of the corresponding periods in the prior year is less than 120%, and (ii) net income of any fiscal year between 2011 and 2014 is less than the relevant Income Threshold for such year. In such cases, the redemption price for the redeemable Series A convertible preferred shares would be equal to an amount that would yield a total internal rate of return of 20% on the purchase price of the redeemable Series A convertible preferred shares. The "Income Threshold" is defined as: US$75 million for the fiscal year 2011, US$101 million for the fiscal year 2012, US$121 million for the fiscal year 2013 and US$145 million for the fiscal year 2014, subject to certain adjustments caused by future issuances of the Company''s securities that have a dilutive effect on the holders of the redeemable Series A convertible preferred shares.                                            
Additional Warrants Issued                   649,562 607,301                                                
Shares Issued For Warrants Exercised 686,878     686,878           354,987 331,891           198,247                                    
Class Of Warrant Or Right Revised Exercise Price Of Warrants Or Rights                   $ 1.54 $ 1.54 $ 1.54         $ 1.54                                    
Gain Loss From Increase Decrease In Fair Value Of Warrants 9,889   83,435 69,287 413,587                                                            
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized 1 1,345,362     1,345,362                                                              
Warrants Surrendered For Shares Issued                   649,562 607,301                                                
Class Of Warrant Outstanding One 48,714     48,714                                                              
Class Of Warrant Outstanding Two 99,458     99,458                                                              
Class Of Warrant Or Righst Date From Which Warrants Expire One       April 2013                                                              
Class Of Warrant Or Righst Date From Which Warrants Expire Two       September 2013                                                              
Cash Received For Over Allotment Net Of Commission and Discounts                                                               $ 450,000      
Common Stock Issued Limited To Aggregate Issuance (in shares)       1,500,000                                                              
XML 68 R66.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Details Textuals)
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate 25.00% 17.66% 19.49% 17.69% 20.05%
Effective Income Tax Rate Reconciliation Preferential Income Tax Rate Description       preferential tax rate of 15% for three years from January 1, 2010 to December 31, 2012  
XML 69 R63.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY FINANCING (Details 3) (USD $)
3 Months Ended
Jun. 30, 2012
Mar. 31, 2012
Restricted shares 1,166,333 1,166,333
Restricted shares, Granted 0 0
Restricted shares, Vested 0 0
Restricted shares, Forfeited 0 0
Restricted shares 1,166,333 1,166,333
Weighted average grant-date fair value $ 4,875,272 $ 4,875,272
Weighted average grant-date fair value, Granted 0 0
Weighted average grant-date fair value, Vested 0 0
Weighted average grant-date fair value, Forfeited 0 0
Weighted average grant-date fair value $ 4,875,272 $ 4,875,272
XML 70 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
INTANGIBLE ASSET (Tables)
6 Months Ended
Jun. 30, 2012
Goodwill and Intangible Asset Impairment [Abstract]  
Schedule of Intangible Assets and Goodwill [Table Text Block]

Intangible asset at June30,2012and December31,2011consisted of the following:

 

 

 

June30, 2012

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

average

 

 

Gross

 

 

 

 

 

Net

 

 

 

amortization

 

 

carrying

 

 

Accumulated

 

 

carrying

 

 

 

period

 

 

amount

 

 

amortization

 

 

amount

 

Amortizing intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

Customer List

 

 

9years

 

 

US$ 

26,078,836

 

 

 

(5,795,297

)

 

 

20,283,539

 

Patent

 

 

10years

 

 

 

115,128

 

 

 

(51,807

)

 

 

63,321

 

Total

 

 

 

 

 

US$ 

26,193,964

 

 

 

(5,847,104

)

 

 

20,346,860

 

 

 

 

December 31, 2011

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

 

average

 

 

Gross

 

 

 

 

 

Net

 

 

 

amortization

 

 

carrying

 

 

Accumulated

 

 

carrying

 

 

 

period

 

 

amount

 

 

amortization

 

 

amount

 

Amortizing intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

Customer List

 

 

9years

 

 

US$ 

25,897,553

 

 

 

(4,316,259

)

 

 

21,581,294

 

Patent

 

 

10years

 

 

 

114,327

 

 

 

(45,731

)

 

 

68,596

 

Total

 

 

 

 

 

US$ 

26,011,880

 

 

 

(4,361,990

)

 

 

21,649,890

 

XML 71 R51.htm IDEA: XBRL DOCUMENT v2.4.0.6
LAND USE RIGHT (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Land use right $ 6,386,536 $ 6,342,142
Less: Accumulated amortization (274,565) (212,991)
Total $ 6,111,971 $ 6,129,151
XML 72 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER PAYABLES
6 Months Ended
Jun. 30, 2012
Other Liabilities Disclosure [Abstract]  
OTHER PAYABLES

NOTE 14- OTHER PAYABLES

 

Other payable as of June 30, 2012 mainly represented payables of US$422,754 for the construction of the production plant in Yongye Fumin and non income tax payable of US$1,939,346. Other payable as of December 31, 2011 mainly represented payable of US$980,169 for the construction of the production plant in Yongye Fumin and non income tax payable of US$1,834,577.

XML 73 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 19 - COMMITMENTS AND CONTINGENCIES

 

In December 2010, the Company entered into an operating lease for an office space in Beijing, PRC for the period from January 1, 2011 to December 31, 2013. The lease expense for the Beijing office was US$66,005 and US$64,172 for the three months ended June 30, 2012 and 2011, respectively, and US$132,121 and US$127,559 for the six months ended June 30, 2012 and 2011, respectively. As of June 30, 2012, the minimum lease payment for each of the twelve month periods ending June 30, 2013 and 2014 under a non-cancellable operating lease agreement was US$264,234 and US$132,117 respectively, or an aggregate amount of US$396,351. There is no minimum lease payment in the next third, fourth and fifth twelve month periods.

 

On May 26, 2011 and June 3, 2011, the Company and three of its officers and directors were named in putative class action lawsuits filed in the US Federal District Court for the Southern District of New York alleging, among other things, that the Company and such officers and directors issued false and misleading information to investors about the Company’s financial and business condition. These securities class action complaints generally alleged that the Company’s business was not growing at the rate it represented and that the Company’s financial results as reported to the Securities and Exchange Commission were inconsistent with its production capabilities. On March 5, 2012, the plaintiffs voluntarily dismissed this action with prejudice as to themselves as named plaintiffs.

 

On July 19, 2011, the Company and certain of its officers and directors were named in a derivative suit filed in the First Judicial District Court of the State of Nevada and Carson City alleging, among other things, that such directors and officers breached their fiduciary duties to the Company, misrepresented the Company’s earnings, wasted corporate assets and unjustly enriched themselves at the expense of the Company. The derivative complaint also alleges that the Company, at the direction of or with the approval of its directors, failed to implement an adequate system of internal and financial controls. This lawsuit is in its early stages. The Company believes the claims contained in the lawsuit to be without merit and intends to defend itself vigorously.

XML 74 R49.htm IDEA: XBRL DOCUMENT v2.4.0.6
INTANGIBLE ASSET (Details) (USD $)
6 Months Ended 12 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Amortizing intangible assets:    
Gross carrying amount $ 26,193,964 $ 26,011,880
Accumulated amortization (5,847,104) (4,361,990)
Net carrying amount 20,346,860 21,649,890
Customer Lists [Member]
   
Amortizing intangible assets:    
Weighted average amortization period (in years) 9 years 9 years
Gross carrying amount 26,078,836 25,897,553
Accumulated amortization (5,795,297) (4,316,259)
Net carrying amount 20,283,539 21,581,294
Patents [Member]
   
Amortizing intangible assets:    
Weighted average amortization period (in years) 10 years 10 years
Gross carrying amount 115,128 114,327
Accumulated amortization (51,807) (45,731)
Net carrying amount $ 63,321 $ 68,596
XML 75 R41.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCOUNTS RECEIVABLE (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Jun. 30, 2011
Dec. 31, 2010
Accounts receivable $ 197,359,480 $ 168,852,106    
Less: allowance for doubtful accounts (8,999,828) (15,222,584) 0 0
Total $ 188,359,652 $ 153,629,522    
XML 76 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Parenthetical] (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
General and administrative expenses, reversal of allowance for doubtful accounts $ 6,334,832 $ 0
XML 77 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCOUNTS RECEIVABLE
6 Months Ended
Jun. 30, 2012
Accounts Receivable, Net [Abstract]  
ACCOUNTS RECEIVABLE

NOTE 3 - ACCOUNTS RECEIVABLE

 

Accounts receivable at June 30, 2012 and December 31, 2011 consisted of the following:

 

    June 30, 2012     December 31, 2011  
             
Accounts receivable   US$ 197,359,480     US$ 168,852,106  
Less: allowance for doubtful accounts     (8,999,828 )     (15,222,584 )
Total   US$ 188,359,652     US$ 153,629,522  

 

The activities in the allowance for doubtful accounts for the six months ended June 30, 2012 and 2011 are as follows:

 

    June 30, 2012     June 30, 2011  
             
Allowance for doubtful accounts at beginning of period   US$ 15,222,584     US$ -  
Charged to bad debt expense     -       -  
Reversal of allowance for doubtful accounts, net     (6,334,832 )     -  
Foreign currency translation adjustment     112,076       -  
Allowance for doubtful accounts at end of period   US$ 8,999,828     US$ -  

 

Past due balances are reviewed individually for collectability. During the six months ended June 30, 2012, the entire accounts receivable as of December 31, 2011, including all the past due accounts were collected by the Company. Accordingly, the Company reassessed its allowance for doubtful accounts and recorded a reversal of the allowance for doubtful accounts in the amount of US$6.3 million, which was included in general and administrative expenses. The reversal of the allowance for doubtful accounts primarily related to successful settlement of past due accounts receivable from certain distributors that management had assessed collection to be doubtful due to historical collection pattern, the size of the distributors’ businesses, and length of the relationship with the distributors. Although the Company continues to deliver products to these distributors, revenues from sale of products to these distributors are not recognized until collectability is reasonably assured, and this is generally evidenced by receipt of cash until sufficient period of historical collection experience can be demonstrated. The Company determines the adequacy of the allowance for doubtful accounts by considering the amount of historical losses adjusted to take into account current market conditions and the customers’ financial condition, the amount of receivables in dispute and past due, the accounts receivables aging and customers’ repayment patterns.

XML 78 R58.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCRUED EXPENSES (Details Textual) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Accrued Research and Development Expenses $ 6,617,430 $ 667,266
Accrued Advertising and Promotion Expenses 5,232,410 2,388,238
Accrued Freight Charges $ 1,194,538 $ 7,920
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EARNINGS PER SHARE (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Numerator:        
Net income attributable to Yongye International, Inc. $ 41,109,863 $ 39,536,764 $ 57,492,153 $ 47,903,192
Paid-in-kind dividends on redeemable Series A convertible preferred shares, net of amounts accumulated in prior reporting periods (913,042) (201,370) 40,439 (201,370)
Earnings allocated to participating nonvested shares (870,331) (73,453) (1,192,568) (606,543)
Earnings allocated to participating redeemable Series A convertible preferred shares (4,311,588) (1,017,644) (5,858,782) (628,540)
Net income for basic earnings per share $ 36,840,986 $ 38,244,297 $ 50,481,242 $ 46,466,739
Denominator:        
Weighted Average Number of Shares Issued, Basic (in shares) 49,370,711 49,276,070 49,370,711 48,734,565
Basic earnings per common stock (in dollars per share) $ 0.75 $ 0.78 $ 1.02 $ 0.95
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RELATED PARTY TRANSACTIONS AND BALANCES
6 Months Ended
Jun. 30, 2012
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS AND BALANCES

NOTE 20 - RELATED PARTY TRANSACTIONS AND BALANCES

 

On January 4, 2011, the Company entered into an operating lease with Inner Mongolia Yongye for a research and development activity facility in Beijing, PRC for the period from January 4, 2011 to December 31, 2011. The operating lease was renewed on January 4, 2012 for the period from January 4, 2012 to December 31, 2012 and covered larger leasing area. The lease expense for the research and development facility paid to Inner Mongolia Yongye was US$63,297 and US$39,898 for the three months ended June 30, 2012 and 2011, respectively, and was US$126,700 and US$79,308 for the six months ended June 30, 2012 and 2011. Total minimum lease payment is US$126,697 for the next twelve month period.

 

In April 2012, Yongye Nongfeng obtained the short-term bank loan of RMB 100,000,000 (equivalent to US$15,837,068) with fixed annual interest rate of 8.528% from China Everbright Bank. The short-term bank loan is guaranteed by the Company’s Chairman and his wife, and is due on April 28, 2013.

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EARNINGS PER SHARE (Tables)
6 Months Ended
Jun. 30, 2012
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block]

The following table sets forth the computation of basic earnings per share for the periods indicated:

 

    For the Three Months Ended  
    June 30,
2012
    June 30,
2011
 
Numerator:                
Net income attributable to Yongye International, Inc.   US$ 41,109,863     US$ 39,536,764  
                 
Paid-in-kind dividends on redeemable Series A convertible preferred shares, net of amounts accumulated in prior reporting periods     913,042     (201,370 )
Earnings allocated to participating nonvested shares     (870,331 )     (73,453 )
Earnings allocated to participating redeemable Series A convertible preferred shares     (4,311,588 )     (1,017,644 )
Net income for basic earnings per share     36,840,986       38,244,297  
Denominator:                
Weighted average shares of common stock     49,370,711       49,276,070  
Basic earnings per common stock     0.75       0.78  

 

    For the Six Months Ended  
   

June 30,
2012

   

June 30,
2011 

 
Numerator:                
Net income attributable to Yongye International, Inc.   US$ 57,492,153     US$ 47,903,192  
                 
Paid-in-kind dividends on redeemable Series A convertible preferred shares, net of amounts accumulated in prior reporting periods     40,439       (201,370 )
Earnings allocated to participating nonvested shares     (1,192,568 )     (606,543 )
Earnings allocated to participating redeemable Series A convertible preferred shares     (5,858,782 )     (628,540  )
Net income for basic earnings per share     50,481,242       46,466,739  
Denominator:                
Weighted average shares of common stock     49,370,711       48,734,565  
Basic earnings per common stock     1.02       0.95  
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Table Text Block]

The following table sets forth the computation of diluted earnings per share for the periods indicated:

 

    For the Three Months Ended  
    June 30,
2012
    June 30,
2011
 
Numerator:                
                 
Net income allocated to common stockholders as reported in basic EPS   US$ 36,840,986     US$ 38,244,297  
Change in fair value of derivative liabilities     (9,889 )     (83,435 )
Net income for diluted earnings per share     36,831,097       38,160,862  
Denominator:                
Weighted average shares of common stock as reported in basic EPS     49,370,711       49,276,070  
Dilutive effect of warrants     74,465       102,326  
      49,445,176       49,378,396  
                 
Diluted earnings per common stock     0.74       0.77  

 

    For the Six Months Ended  
    June 30,
2012
    June 30,
2011
 
Numerator:                
                 
Net income allocated to common stockholders as reported in basic EPS   US$ 50,481,242     US$ 46,466,739  
Change in fair value of derivative liabilities     (69,287 )     (413,587 )
Net income for diluted earnings per share     50,411,955       46,053,152  
Denominator:                
Weighted average shares of common stock as reported in basic EPS     49,370,711       48,734,565  
Dilutive effect of warrants     82,861       110,716  
      49,453,572       48,845,281  
                 
Diluted earnings per common stock     1.02       0.94  

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ACCRUED EXPENSES
6 Months Ended
Jun. 30, 2012
Accrued Expenses [Abstract]  
Accrued Expenses [Table Text Block]

NOTE 13- ACCRUED EXPENSES

 

As of June 30, 2012 and December 31, 2011, the accrued expenses primarily consisted of accrued research and development expenses that amounted to US$6,617,430 and US$667,266, respectively, accrued advertising and promotion expenses that amounted to US$5,232,410 and US$2,388,238, respectively, and accrued freight charges amounted to US$1,194,538 and US$7,920, respectively.