EX-99.4 31 v210969_ex99-4.htm Unassociated Document
Exhibit 99.4
 
TEEN EDUCATION GROUP, INC.
UNAUDITED PRO FORMA CONSOLODATED
FINANCIAL STATEMENTS
JUNE 30, 2010 
 
TEEN EDUCATION GROUP, INC.
INDEX TO UNAUDITED PRO FORMA CONSOLODATED
FINANCIAL STATEMENTS
   
   
PAGE (S)
  
       
Pro Forma Consolidated Balance Sheet as of June 30, 2010 (Unaudited)
    
1
  
         
Pro Forma Consolidated Statement of Operations for the Six Months  Ended June 30, 2010 (Unaudited)
    
2
  
         
Pro Forma Consolidated Statement of Operations for the Year  Ended December 31, 2009 Year Ended (Unaudited)
    
3
  
         
Notes to Consolidated Pro Forma Financial Statements (Unaudited)
    
4-5
  
 
 
 
 
 
PRO FORMA CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2010
(UNAUDITED)
  
         
Hongkong
Charter
    
Pro Forma
    
Pro Forma
  
   
Teen Education
    
International
Group Limited
    
Adjustments
    
Consolidated
Total
  
ASSETS
                        
                          
Current assets:
                        
Cash & cash equivalents
  
$
-
    
$
2,786,069
          
$
2,786,069
  
Accounts receivable, net of allowance for doubtful accounts
    
-
      
1,148,177
            
1,148,177
  
Other receivables, net of allowance for doubtful accounts
    
-
      
171,341
            
171,341
  
Inventories
    
-
      
3,676,681
            
3,676,681
  
Value added tax recoverable
    
-
      
237,292
            
237,292
  
Advance to vendors
    
-
      
1,037,363
            
1,037,363
  
Prepaid expenses
    
-
      
52,037
            
52,037
  
Loan to outside parties
    
   
      
1,327,159
            
1,327,159
  
                               
Total current assets
    
-
      
10,436,119
            
10,436,119
  
                               
Property, plant and equipment, net
    
-
      
310,280
            
310,280
  
                               
Total Assets
  
$
-
    
$
10,746,399
          
$
10,746,399
  
                               
LIABILITIES AND STOCKHOLDERS' EQUITY
                              
                               
Current liabilities:
                              
Short-term loans
  
$
-
    
$
3,686,554
          
$
3,686,554
  
Accounts payable
    
2,500
      
748,310
      
(2,500
)a
    
748,310
  
Officers advances
    
22,453
      
-
      
(22,453
)a
    
-
  
Advance from customers
    
-
      
103,978
              
103,978
  
Accrued expenses and other liabilities
    
-
      
10,462
              
10,462
  
Taxes payable
    
-
      
59,578
              
59,578
  
Due to related parties
    
-
      
5,936,768
              
5,936,768
  
                                 
Total current liabilities
    
24,953
      
10,545,650
              
10,545,650
  
                                 
Total Liabilities
    
24,953
      
10,545,650
              
10,545,650
  
                                 
Stockholders' equity
                                
Preferred Stock, $0.01 par value, 5,000,000 shares authorized, none issued or outstanding at June 30, 2010
    
-
      
-
              
-
  
Common Stock, $0.001 par value, 100,000,000 shares authorized, 2,500,000 shares issued and outstanding at June 30, 2010
    
2,250
      
-
      
250
a,b
    
2,500
  
Additional paid-in capital
    
27,750
      
144,697
      
(30,249
) a,b
    
142,197
  
Retained earnings (deficit)
    
(54,953
)
    
56,876
      
54,953
a,b 
    
56,876
  
Accumulated other comprehensive loss
    
-
      
(824
)
            
(824
)
                                 
Total stockholders' equity
    
(24,953
)
    
200,749
              
200,749
  
                                 
Total Liabilities and Stockholders' Equity
  
$
-
    
$
10,746,399
            
$
10,746,399
  
        
The accompanying notes are an integral part of these condensed consolidated financial statements
 
 
1
 
TEEN EDUCATION GROUP, INC
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(UNAUDITED)
  
         
Hongkong
Charter
    
Pro Forma
    
Pro Forma
  
   
Teen
Education
    
International
Group Limited
    
Adjustments
    
Consolidated
Total
  
                         
Revenues
  
$
-
    
$
2,988,534
          
$
2,988,534
  
                               
Cost of revenue
    
-
      
2,333,577
            
2,333,577
  
                               
Gross profit
    
-
      
654,957
            
654,957
  
                               
Operating expenses
                              
Selling, general and administrative expenses
    
5,770
      
617,879
      
(5,770
) a
    
617,879
  
Total operating expenses
    
5,770
      
617,879
              
617,879
  
                                 
Operating income (loss)
    
(5,770
)
    
37,078
              
37,078
  
                             
-
  
Other expenses
                            
-
  
Interest expenses
    
-
      
(7,395
)
            
(7,395
)
Other expenses
    
-
      
46,201
              
46,201
  
Total other expense
    
-
      
38,806
              
38,806
  
                                 
Income before income taxes
    
(5,770
)
    
75,884
              
75,884
  
                                 
Provision for income taxes
    
-
      
(9,755
)
            
(9,755
)
                                 
Net income (loss)
  
$
(5,770
)
  
$
85,639
            
$
85,639
  
                                 
Other comprehensive loss
                                
Foreign currency translation adjustment
    
-
      
(824
)
            
(824
)
                                 
Comprehensive income (loss)
  
$
(5,770
)
  
$
84,815
            
$
84,815
  
                                 
Basic and diluted income per common share
                                
Basic
  
$
(0.00
)
  
$
84.81
            
$
0.03
  
Diluted
  
$
(0.00
)
  
$
84.81
            
$
0.03
  
                                 
Weighted average common shares outstanding
                                
Basic
    
2,250,000
      
1,000
              
2,500,000
  
Diluted
    
2,250,000
      
1,000
              
2,500,000
  
       
The accompanying notes are an integral part of these condensed consolidated financial statements
   
 
2
 
TEEN EDUCATION GROUP, INC
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2009
(UNAUDITED)

         
Hongkong
Charter
    
Pro Forma
    
Pro Forma
  
   
Teen
Education
    
International
Group Limited
    
Adjustments
    
Consolidated
Total
  
                         
Revenues
  
$
-
    
$
2,683,808
          
$
2,683,808
  
                               
Cost of revenue
    
-
      
1,717,486
            
1,717,486
  
                               
Gross profit
    
-
      
966,322
            
966,322
  
                               
Operating expenses
                              
Selling, general and administrative expenses
    
8,335
      
744,737
      
(8,335
) a
    
744,737
  
Total operating expenses
    
8,335
      
744,737
              
744,737
  
                                 
Operating income (loss)
    
(8,335
)
    
221,585
              
221,585
  
                                 
Other expenses
                                
Interest expenses
    
-
      
(2,239
)
            
(2,239
)
Other expenses
    
-
      
(55,788
)
            
(55,788
)
Total other expense
    
-
      
(58,027
)
            
(58,027
)
                                 
Income before income taxes
    
(8,335
)
    
163,558
              
163,558
  
                                 
Provision for income taxes
    
-
      
75,021
              
75,021
  
                                 
Net income (loss)
  
$
(8,335
)
  
$
88,537
            
$
88,537
  
                                 
Other comprehensive loss
                                
Foreign currency translation adjustment
    
-
      
(438
)
            
(438
)
                                 
Comprehensive income (loss)
  
$
(8,335
)
  
$
88,099
            
$
88,099
  
                                 
Basic and diluted income per common share
                                
Basic
  
$
(0.00
)
  
$
88.10
            
$
0.04
  
Diluted
  
$
(0.00
)
  
$
88.10
            
$
0.04
  
                                 
Weighted average common shares outstanding
                                
Basic
    
2,250,000
      
1,000
              
2,500,000
  
Diluted
    
2,250,000
      
1,000
              
2,500,000
  
    
The accompanying notes are an integral part of these condensed consolidated financial statements
     
 
3
 
 
TEEN EDUCATION GROUP, INC.
NOTES TO THE UNAUDITED PRO FORMA
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1-ORGANIZATION AND BASIS OF PRESENTATION

Teen Education Group, Inc. was incorporated on April 16, 2007 in the State of Delaware, primarily engaged in the business of providing a financial literacy and money management educational program for teenagers on a fee for service offered basis.

On November 12, 2010, Teen Education Group, Inc., (“Teen Education”, “We”, “us”, “our” or the “Company”) and its majority shareholder, Mr. Robert L. Wilson, entered into a Share Exchange Agreement with Hongkong Charter International Group Limited, (“Hongkong Limited”), a company incorporated in Hongkong Special Administrative Region of the People’s Republic of China (the “PRC”), and Qun Hu, the majority shareholder of Hongkong Limited.

Hongkong Limited is engaged in automotive parts distribution and automotive maintenance services in the PRC through its wholly-owned subsidiary, Shanghai Vomart Auto Parts Co., Ltd.

Pursuant to the terms of a share exchange agreement, dated November 12, 2010, by and among the Company, Robert L. Wilson, the majority shareholder of the Company (the “Majority Shareholder”), Hongkong Charter International Group Limited, a Hongkong company (“Hongkong Limited”), and Qun Hu, the sole shareholder of Hongkong Limited (the “Hongkong Limited Shareholder”), the Company acquired all of the outstanding shares of Hongkong Limited from the Hongkong Limited Shareholder.  In exchange, we issued to the Hongkong Limited Shareholder, his designees or assigns, 2,250,000 shares of the Company’s common stock which represent approximately 90% of the issued and outstanding shares of the Company’s common stock on a fully diluted basis as of and immediately after the closing of the share exchange transaction (the “Share Exchange”).  In addition, Hongkong Limited Shareholder, Mr. Hu paid $350,000 in cash directly to the Majority Shareholder, Mr. Wilson, as additional consideration to Mr. Wilson for the Company’s common stock that he owned.  The $350,000 additional consideration did not have any impact on Hongkong Limited as the payment was made between Mr. Hu and Mr. Wilson.

Pursuant to the terms of the Exchange Agreement, Robert L. Wilson, the majority shareholder of the Company, cancelled a total of 2,000,000 shares of the Company’s common stock, which represents 100% of his security interests in the Company.

Pursuant to the Exchange Agreement, Hongkong Limited became a wholly owned subsidiary of the Company. The sole director of the Company approved the Exchange Agreement and the transactions contemplated under the Exchange Agreement. The directors of Hongkong Limited approved the Exchange Agreement and the transactions contemplated hereunder.

As a further condition of the Share Exchange, on the Closing Date, Robert L. Wilson resigned as the sole director of the Company, effective on such date that is ten (10) calendar days after the Company mails an Information Statement to the Company’s shareholders prepared pursuant to Rule 14f-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to the Exchange Agreement, and further, appointed Qun Hu to the Company’s board of directors (the “Board”). The following persons were appointed as officers of our Company: Mr. Zhoufeng Shen was appointed as the Company’s President and Chief Executive Officer and Ms. Xiaomei Wang was appointed as the Company’s Chief Financial Officer.
 
 
4
 
 
TEEN EDUCATION GROUP, INC.
NOTES TO THE UNAUDITED PRO FORMA
CONSOLIDATED FINANCIAL STATEMENTS
  
NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited pro forma consolidated balance sheet as of June 30, 2010, and the unaudited pro forma consolidated statements of operations for the six months ended June 30, 2010 and for the year ended December 31, 2009 have been presented as if the share exchange had occurred as of June 30, 2010.

The acquisition will be accounted for as a reverse merge under the purchase method of accounting since there was a change of control. In accordance with FASB 141R, Hongkong Limited and its subsidiaries are the accounting acquirers. Accordingly, Hongkong Limited and its subsidiaries will be treated as the continuing entity for accounting purposes.

The unaudited pro forma consolidated financial statements do not necessarily represent the actual results that would have been achieved had the companies been combined at the beginning of the year, nor may they be indicative of future operations. These unaudited pro forma consolidated financial statements should be read in conjunction with the companies’ respective historical financial statements and notes included thereto. The following unaudited pro forma adjustments are included in the accompanying unaudited pro forma consolidated balance sheet as of June 30, 2010 and the unaudited pro forma consolidated statement of operations for the six months ended June 30, 2010 and for the year ended December 31, 2009 to reflect the acquisition of Hongkong Limited by Teen Education:

 
a.
To record the spin-off of Teen Education ’ s assets and liabilities prior to the Share Exchange;

 
b.
These adjustments reflect the recapitalization as a result of the transactions related to the Share Exchange.
 
 
5