上海翻译公司完成审计报告英文翻译

HEBEI ZHONGTAI CPA OFFICE CO., LTD

                                                            

Auditor’s Report

HZT CPA [2012] No. 021 

All Shareholders of Cangzhou Mis Co., Ltd.: 

We have audited the accompanying financial statements of Cangzhou Mis Co., Ltd., which comprise the balance sheet as at December 31, 2011, the profit statement, cash flow statement of 2011 and notes to financial statements. 

I. Management’s Responsibilities for the Financial Statement

The management of the Company is responsible for the preparation and the fair presentation of these financial statements. This responsibility includes (a) preparing the financial statements in accordance with the Accounting Standards for Business Enterprises (b) designing, implementing and maintaining the internal control relevant to the preparation of financial statements so that these financial statements are free from the material misstatement, whether due to fraud or error. 

II. Certified Public Accountants’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the China Auditing Standards for Certified Public Accountants. Those standards require that we comply with the code of professional ethics, plan and perform the audit for obtaining the reasonable assurance as to whether the financial statements are free from the material misstatement.

An audit involves of performing procedures to obtain the audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of certified public accountant, including the assessment of the risks of material misstatement of the financial statements, whether due to the fraud or error. In making those risk assessments, we consider the internal control relevant to the preparation and the fair presentation of financial statements in order to design the appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of internal control. The audit also includes evaluating the appropriateness of the accounting policies used by the management and the reasonableness of the accounting estimates, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for audit opinion.

III. Audit Opinions

In our opinion, the financial statements of Cangzhou Mis Co. have been prepared in accordance with Accounting Standards for Business Enterprises and Accounting System of Enterprise, presented fairly, in all material respects, the financial position of the Company as at December 31, 2011 and operating result and cash flow of 2011. 

 

HEBEI ZHONGTAI CPA OFFICE CO., LTD                CCPA: Chen Zeming

 

                                                CCPA: Li Yongli 

Cangzhou Hebei

                                           March 6, 2012

 

 

Balance Sheet

Table 01 of Financial Statements of Foreign-invested Enterprise

Unit: Yuan

Prepared by: Cangzhou Mis Co.                            

Item Line No. Closing Balance  Opening Balance

Current Assets: 1

Monetary Capital 2

Deposit Reservation for Balance  3

Lending to Banks and Other Financial Institutions 4

Held for Trading Financial Assets 5

Notes Receivable 6

Account Receivable 7

   Prepaid Accounts 8

   Insurance Premium Receivable 9

Accounts Receivable Reinsurance 10

Provision of Cession Receivable 11

Interests Receivable  12

Other receivables 13

Redemptory Monetary Capital for Sale 14

Inventory 15

     Raw Material  16

     Good Stocks 17

   Non-current Assets Maturing Within One Year 18

   Other Current Assets  19

   Total Current Assets  20

Non-current Assets 21

   Disbursement of Loans and Advances 22

Available-for-sale Financial Assets 23

Held-to-maturity Investment 24

Long-term Accounts Receivable  25

Long-term Equity Investment 26

Investment Real Estate 27

Original Price of Fixed Assets 28

  Less: Accumulated Depreciation 29

Net Value of Fixed Assets 30

Less: Provision for Impairment of Fixed Assets 31

Net Amount of Fixed Assets 32

   Construction in Progress 33

   Project Materials 34

   Liquidation of Fixed Assets 35

   Capitalized Biological Assets 36

   Oil and Gas Assets 37

Intangible Assets 38

   Expenditure for Development  39

   Goodwill 40

   Long-term Deferred Expenses 41

   Deferred Tax Assets 42

   Other Non-current Assets 43

     Physical Assets Reserve Specifically Authorized 44

   Total Non-current Assets 45

63

Total Assets 64

Current Liabilities  65

   Short-term Loan 66

   Borrowing from the Central Bank 67

   Savings Absorption and Due from Placements with Banks and Other Financial Institutions 68

   Loans from Other Banks 69

   Transaction Financial Liabilities 70

   Notes Payable  71

   Accounts Payable 72

   Accounts Received in Advance 73

   Financial Assets Sold For Repurchase 74

   Commissions Payable  75

   Remuneration Staff for Payable  76

     Salary Payable  77

     Welfare Payable 78

       Rewards and Welfare Fund Payable for Staff 79

   Taxes Payable  80

     Taxes Payable  81

   Interests Payable 82

   Other Payables  83

   Accounts Payable Reinsurance 84

   Reserve of Insurance Contract 85

   Acting Trading Securities 86

   Acting Underwriting Securities 87

   Non-current Liabilities Maturing Within One Year 88

Other Current Liabilities  89

Total Current Liabilities 90

Non-current Liabilities  91

   Long-term Loans 92

   Bonds Payable  93

   Long-term Accounts Payable  94

   Special Accounts Payable 95

   Estimated Liabilities 96

   Deferred Tax Liabilities  97

Other Non-current Liabilities 98

     Reserve Fund Permitted Particularly 99

   Total Non-current Liabilities  100

Total Liabilities  101

Owner’s Equities (or Shareholder’s Equities) 102

   Paid-in Capital (Capital Stock) 103

     State-owned Capital 104

     Collectively Owned Capital  105

     Legal Person Owned Capital 106

       State-owned Legal Person’s Capital  107

       Collective Legal Person’s Capital  108

     Individual Capital  109

     Foreign Capital  110

   Less: Investment Returned 111

   Net Amount of Paid-in Capital (Capital Stock) 112

   Capital Reserve 113

   Less: Treasury Share 114

   Special Reserve 115

Surplus Reserve 116

     Legal Reserve  117

     Other Surplus Reserve  118

     Reserve Fund 119

     Venture Expansion Fund 120

     Capital Redemption 121

   Provisions of Risk 122

   Undistributed Profit 123

   Converted difference in Foreign Currency Statements 124

   Totality of Owner’s Equities Attributable to the Parent Company  125

   Minority Equity  126

Totality of Owner’s Equities 127

Total Liabilities and Owner’s Equities 128

 

 

 Profit Statement

Table 02 of Financial Statements of Foreign-invested Enterprise 

Unit: Yuan

Prepared by: Cangzhou Mis Co.                         

Item Line No. Current Amount  Previous Amount 

Total Revenue of Business  1

   Income of Business 2

Income from Main Businesses 3

Income from Other Items 4

   Interests Income  5

   Premium Earned  6

   Commissions  7

II. Total Cost of Business  8

   Cost of Business  9

     Cost for Main Business 10

     Cost for Other Items  11

   Cost for Interests  12

   Cost for Commissions  13

   Surrender Value 14

   Net Amount of Compensation Payout 15

   Net Amount of Provision for Insurance Contracts 16

   Dividends Paid from Policy  17

   Amortized Reinsurance Expenditures 18

   Business Tax and Addition 19

   Sales Cost  20

   Management Cost  21

     Expenses for Business Entertainment  22

     Expenses for Research and Development  23

   Financial Cost  24

     Expenses for Interests  25

     Income From Interests 26

     Net Loss on Exchange (Net Profit is marked as “-”) 27

     Asset Impairment Loss 28

     Other  29

   Plus: Profit on the Changes in Fair Value (Loss is marked as “-’) 30

     Income on Investment (Loss is marked as ‘-”) 31

       Investment income from affiliated business and cooperative enterprise 32

     Profit on Exchange (Loss is marked as “-’) 33

III. Operating Profits (loss is marked as “-”) 34

Plus: Non-business Income  35

 Disposal Profits on Non-current Assets 36

Loss on Exchange of Non- monetary Assets 37

Subsidy of Government  38

    Gains and Losses of  Exchange on Debt Restructuring  39

     Less: Non-business cost  40

    Loss of Disposal of Non-current Assets  41

    Loss of  Disposal of Exchange of Non-monetary Assets  42

    Loss of Debt Restructuring  43

IV. Total Profits (loss is marked as “-”) 44

   Less: Income Tax 45

V. Net Profits (Net loss is marked as “-”) 46

   Net Profits Attributable to Owners of Mother Company 47

   Loss and Profit of Minority Shareholders 48

VI. Revenue Per Share 49

   Basic Earnings Per Share 50

   Earning Per Share 51

VII. Other Comprehensive Earnings  52

VIII. Total Comprehensive Earnings  53

   Total Comprehensive Earnings Attributable to Owners of Mother Company 54

Total Comprehensive Earnings Attributable to Minority Shareholders 55

 

 

Cash Flow Statement

Table 03 of Financial Statements of Foreign-invested Enterprise 

Unit: Yuan

Prepared by: Cangzhou Mis Co.

Item Line Current Amount  Previous Amount 

I. Cash Flows from Operating Activities： 01

    Cash received from the sale of goods, rendering of services 02

    Net increase in customer bank deposits and due to banks and other financial institutions 03

    Net increase of borrowing from central bank  04

    Net increase of borrowing from the other financial institutions 05

    Cash received from receiving insurance premium of original insurance contract 06

    Net cash received from reinsurance business 07

    Net increase of policy holder deposits and investment funds  08

    Net increase from disposal of tradable financial assets  09

    Interest, handling charges and commission received 10

    Net increase in placements from banks and other financial institutions  11

    Net increase in repurchase business capital  12

    Refunds Of Taxes And Levies 13

    Amounts Of Other Received Cash Relevant To Operating Activities 14

         Sub-total of Cash Inflows  of Operating Activities  15

   Cash paid for purchasing the goods and receiving the services 16

    Net increase in loans and advances to customers  17

    Net increase in central bank deposits and due to banks and other financial institutions 18

    Cash paid for the insurance premium of original insurance contract 19

    Cash paid for the interest, handling charges and commissions 20

    Cash paid for the bond of policy 21

    Cash paid to and on behalf of employees  22

    Taxes paid  23

    Other cash paid relating to operating activities 24

          Sub-total of Cash Outflows  25

Net Cash Flow from Operating Activities 26

II.Net Cash Flow from the Investment Activities： 27

    Cash returned from the investment activities 28

    Cash received from the investment activities 29

    Net cash received from the sale of fixed assets, intangible assets and other long-term assets 30

    Net cash received from the disposal of fixed assets, intangible assets and other long-term assets 31

Other cash received relating to the operating activities 32

         Sub-total of Cash inflows of Investment Activities 33

    Cash paid for acquiring the fixed assets, intangible assets and other long-term assets 34

Cash Paid for Investment  35

    Net increase in mortgage loan  36

    Net cash paid for acquiring the subsidiaries and other business units 37

    Other cash paid relating to the operating activities 38

         Sub-total of Cash outflows of Investment Activities 39

        Net Cash Flow from Investment Activities 40

III. Cash Flow from Financing Activities: 41

  Cash received from the capital contribution  42

        cash inflows from minority investment in subsidiaries 43

Cash received from borrowings 44

    Cash received from issuing bonds 45

    Cash Received Relating to Financing Activities 46

          Sub-total of Cash Outflows of Financing Activities 47

    Cash Paid for Repayments of borrowings  48

   Cash paid for the distribution of dividends, profits or the repayment of interests.   49

        Dividends, profit paid by the subsidiary to the minority shareholders  50

    Cash paid relating to the finaning activities 51

        Sub-total of Cash Outflows of Financing Activities 52

      Net Cash Flow from Financing Activities 53

IV. Influence of Foreign Exchange Rate on Cash or Cash Equivalent 54

V. Net Increase of Cash and Cash Equivalent 55

    Plus：Opening Balance of Cash and Cash Equivalent  56

VI. Closing Balance of Cash and Cash Equivalent 57

 

 

Statement of Change of Owner's Equity

 

Table 03 of Financial Statements of Foreign-invested Enterprise 

Unit: Yuan

Prepared by: Cangzhou Mis Co.

 

Item Line  Current Amount  Previous Amount 

Owner's Equity Attributable to Mother Company Minority Shareholders' Equity Total Owner's Equity Owner's Equity Attributable to Mother Company Minority Shareholders' Equity Total Owner's Equity

Paid-in Capital（or capital stock） Capital Reserve Less:

Treasury Stock Special Reserve Surplus Reserve △Common Risk Reserve Undistributed Profit Other  Sub-total  Paid-in Capital（or capital stock） Capital Reserve Less:

Treasury Stock Special Reserve Surplus Reserve △Common Risk Reserve Undistributed Profit Other  Sub-total 

I. Previous Closing Balance 1

         Plus：Change of Accounting Policy 2

             Correction of Previous Error 3

II. Current Opening Balance 4

III. Current amount increased or decreased（decrease is marked as “-”) 5

（I）Net Profit 6

（II）Other Comprehensive Income  7

Sub-total of Comprehensive Income  8

（III）Capital contributed and decreased by the owner 9

1.Capital contributed by owner 10

2.Amount charged to the owner's equity in the shares paid 11

3.Other  12

（IV）Provision and Use of Special Reserve 13

1.Provision of Special Reserve 14

2.Use of Special Reserve 15

（V）Profit Distribution 16

1.Provision of Surplus Reserve 17

       Legal Surplus 18

       Other Surplus Reserve  19

Reserve Fund  20

Venture Expansion Fund 21

Profit Returned to Investment  22

2.Provision of Common Risk Reserve 23

3.Distribution to Owners (Shareholders) 24

4.Other  25

（VI）Internal Carry-forward of Owners' Equity 26

1.Capitalized Capital Reserves 27

2.Capitalized Surplus Reserves 28

3.Surplus Reserves for Making up Losses 29

4.Other  30

IV. Current Closing Balance 31

 

 

 

Supplementary of Financial Indexes

 

Supplement Table 01 of Financial Statements of Foreign-invested Enterprise 

Unit: Yuan

Prepared by: Cangzhou Mis Co.

 

Item Line Current Amount Previous Amount

Index of Basic Information of Enterprise  1

（I）Number of Collected Enterprises 2

    Number of Exporting Enterprises  3

    Number of Advanced High-tech Enterprises 4

    Number of High-tech and New Enterprises  5

Number of Enterprises Paid For Income Taxes 6

（II）Total Investment of Contract 7

    Amount of Foreign Contribution Planned 8

（III）Actual Investment 9

   Actual Foreign Contribution 10

（IV）Registered Capital 11

   Contribution of Foreign Party 12

（V）Total Amount of Export and Import 13

    Total Amount of Import 14

    Total Amount of Export 15

（VI）Total Taxes Paid 16

1.Tariff  17

2.VAT 18

   VAT for Import 19

3.Tax on Consumption 20

   Tax on Consumption for Import 21

4.Business Tax 22

5.Business Income Tax 23

6.Individual Income Tax 24

7.Other Taxes 25

   Increment Tax on Land Value 26

　　　　Resource Tax 27

　　　Stamp Tax 28

      Tax on Deed 29

      Urban Land Use Tax  30

          Other 31

（VII）Social Insurances for Chinese Staffs 32

　     Endowment Assurance 33

　　　　Insurance for Medical Care 34

　　　　Insurance Against Suspension of Work 35

　　　　Accident Insurance 36

　　　　Maternity Insurance 37

　　　　Other 38

（VIII）Housing Fund 39

（IX）Charge for Land Use 40

（X）Charge for Use of Sea Areas 41

（XI）Land Remise Fund  42

（XII）Actual Salaries 43

    Actual Salaries for Foreign Staffs 44

（XIII）Average Number of Staff Yearly 45

    Number of Foreign Staff 46

（XIV）Annual Per Capita Wage  47

    Per Capita Wage for Chinese Staff 48

    Per Capita Wage for Foreign Staff 49

 

 

Notes to Financial Statements

 

I. Basic Information 

Cangzhou Mis Co. was established on June 21, 2007 and registered at Cangzhou Municipal Administration for Industry and Commerce for its Business License of Enterprise Legal Person with Registered No. 130900400000408 and its CERTIFICATE OF APPROVAL FOR ESTABLISHMENT OF ENTERPRISES WITH INVESTMENT OF OVERSEA ENTERPRISES with Approval No. 0002 (2007) Office of Investment of Oversea Enterprises in Cangzhou City Hebei Province, the registered capital was EURO 5 Million Thirty-seven Thousand (Paid-in Capital was EURO 5 Million Thirty-seven Thousand); The legal representative of the Company is Peter Thun Hohenstein; Address of the Company is Cangzhou Economic Development Zone, Hebei Province; Type of Business is Limited Company (Wholly Foreign Owned); Scope of Business is the production and sale of ceramics-based works, wooden crafts, candle; the import & export of the goods (exclude the distribution; except for the merchandises that the nation prohibits companies to engage in or import/export).

II. Description of Inconformity to the Premise of Accounting 

The Company shall not exist the premise of inconformity to the of Accounting.

III. Major Accounting Policies and Accounting Estimates Adopted by the Company

(I)Current Accounting System Adopted by the Company 

The Company shall follow the Accounting Standards for Enterprises and Accounting System of Enterprise.

(II) Fiscal Year

The Company adopts the calendar year as its fiscal year, i.e. from January 1 to December 31.

(III) Accounting Basis and Valuation Principle

The debit credit bookkeeping and accrual basis is adopted as accounting basis, and the received assets are recorded in the accounting as per the actual cost; In case of the impairment at later, the corresponding provision of impairment shall be used.

(IV) Functional Currency

Renminbi is the functional currency of the Company.

(V) Standards for Recognizing Cash Equivalents

The three-month short-term and highly liquid investments that are held by the Company and easily convertible to known amounts of cash and which are subject to an insignificant risk of change in value shall be recognized as cash equivalents.

(VI) Accounting Methods of Inventories

The materials in storage are accounted as Actual Cost Method, the materials out of storage are valuated as Weighted Averages Method; The cost of finished products is accounted as Varietal Method, the finished products delivered are accounted as Actual Cost Method and valuated as Weighted Averages Method; The low-cost and easily-worn articles are accounted as Five-by-Five Amortization. 

(VII) Valuation for Fixed Assets and Depreciation

a. Standards of Fixed Assets: The houses, buildings, machines, transportation tools and other tools, instruments relevant to the business which are used over one year; The articles with the unit value of more than RMB2000 that are not the main devices relevant to the business but used over two years. 

b. Classification of Fixed Assets: Fixed assets are classified into the machines, tools, production-based furniture, office equipments, vehicles and facilities of suites of rooms and living quarters.  

c. Valuation of Fixed Assets: The fixed asset shall be recorded in the account at its cost, of which the cost of purchased fixed assets includes the purchase price, transport charge, other taxes concerned and other expenses incurred that can be directly attributable to such assets before the fixed assets reach the predetermined serviceable condition; The fixed assets under the self construction shall be recorded in the account as per all expenses of such fixed assets when they reach the predetermined serviceable condition in the course of construction; The fixed assets invested by the investors shall be accounted as the value recognized by all investors. 

d. The fixed asset shall be depreciated in the straight line method. Its residual rate is 10%, the estimated economic serviceable life, the predicted net residual value and the depreciation of the fixed assets recognized as follows:

Classification of Fixed Asset Estimated Economic Serviceable Life Residual Value Rate Annual Depreciation Rate (%)

House and Building 20 years 10 4.5

Machine Equipment 10 years 10 9

Office Furniture and Facility 5 years 10 18

Vehicle  5 years 10 18

 

e. Recognition and Provision of Impairment of Fixed Assets

The Company shall not provide the reserve of impairment of fixed assets. 

(VIII) Valuation and Amortization of Intangible Assets

The intangible assets shall be valuated as the actual cost and amortized as the used years; The Company shall not provide the reserve of impairment of intangible assets. 

(IX) Accounting Methods for Foreign Currency 

Any foreign currency transaction within a fiscal year shall be converted in the functional currency at the benchmark exchange rate announced by the People’s Bank of China on the day when the transaction was made. At the end of the period, it shall be adjusted at middle rate of foreign exchange and the balance of foreign currency shall be recorded in the current gains. 

(X) Recognition of Revenue 

a. The revenue shall be recognized when all the following conditions have been satisfied: 

(a) The Company has transferred the significant risks and remunerations of ownership of the goods to the buyer; 

(b) The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; 

(c) The economic benefits relevant to the transaction are flowed into the Company; 

(d) Relevant amount of revenue and costs can be measured reliably.

b. Other revenues shall be recognized as the relevant regulations of “Accounting Standards of Business Enterprises--Revenue”

(XI) Recognition of Cost 

The cost shall be recognized as the principles of Proportioning between Cost and Revenue in accordance with the industrial regulations and “Accounting Standards of Business Enterprises”. 

(XII) Accounting Standards of Business Income Tax

The business income taxes of the Company shall be paid as per 25%; The business income tax the Company shall be accounted as Tax Payable Method, the accounting profit shall be adjusted to the taxable amount of income according to Tax Law. The Company enjoys the preferential tax policy of being exemptible for the next first two years and half rate reduction for the next subsequent three years.

(XIII) Taxes

Value-added Tax: the tax rate is 17%, the exported products are exercised as tax exempted, waived and free.

(XIV) Distribution of Profit

The Company shall provide the reserve fund, staff’s rewards and welfare fund through the resolution of Board of Directors, the remaining amount shall be distributed to the investors, but except the investors decide to reinvest those profits (or partial profits) to the Company.

IV. Description of Modifying Accounting Policy, Accounting Estimates and Correction of Accounting Error

(I) Modification of Accounting Policy and Accounting Estimates During Period of Report:

There is no modification of Accounting Policy and Accounting Estimates in current period.

(II) Correction of Significant Accounting Error

 There is no correction of Correction of Significant Accounting Error in current period.

V. Description of Contingent Items

The Company has no the contingent items that need to be disclosed.

VI. Description of Subsequent Items of Balance Sheet

The Company has no the subsequent items of balance sheet that need to be disclosed. 

VII. Description of Special Items

VIII. Annotations to Items in Financial Statements

(I). Monetary Capital

Item Closing Balance Opening Balance

Cash

Bank Deposit

Total

 

(II). Accounts Receivable

Aging Analysis Opening Balance Closing Balance

Amount  Proportion Amount  Proportion

Below 1 year

Total

 

Information of Debtors

Name of Debtors Closing 

Balance  Proportion Account For Amount Paid In Advance Time of Debt Incurred  Reasons of Debt 

THUN.B.V. 2011 Outstanding Account

Tangshan Ali Ceramics Co., Ltd. 2011 Outstanding Account

 

(III). Accounts Paid In Advance 

Aging Analysis Opening Balance Closing Balance

Amount  Proportion Amount  Proportion

Below 1 year

Total

 

Information of First Three Debtors 

Name of Debtors Closing 

Balance  Proportion Account For Amount Paid In Advance Time of Debt Incurred  Reasons of Debt 

Cangzhou Zhongran Municipal Gas Development Co., Ltd 2011 Outstanding Account

Tianjin Youteai Shipping Agent Co., Ltd. 2011 Outstanding Account

Jiangmen Jiangtao Raw Material of Ceramics Co., Ltd 2011 Outstanding Account

 

(IV) Other Receivables

Aging Analysis Opening Balance Closing Balance

Amount  Proportion Amount  Proportion

Below 1 year

Total

 

(V) Subsidy Receivable 

Item Opening Balance Closing Balance

Amount  Proportion Amount  Proportion

Export Refund 

Total

 

 

(VI) Inventories

Item Opening Balance  Closing Balance

Raw Materials

Goods in Process and Semi-finished Product

Finished Product

Total

 

(VII) Deferred Expenses

Item Opening Balance  Closing Balance

Insurance for Vehicle

Goods in Process and Semi-finished Product

Charges for Facilities of Bus Stop

Total

 

(VIII) Fixed Assets and Accumulated Depreciation

Item Opening Balance Current Increase Current Decrease Closing Balance Remark 

Original Value of Fixed Assets 

Accumulated Depreciation

Net Value

 

Original Value of Fixed Assets 

Item Opening Balance Current Increase Current Decrease Closing Balance Remark

House and Building

Machinery Equipment

Transportation Equipment

Office Equipment

 

(IX) Intangible Assets

Item Opening Balance Closing Balance

Use Right of Land

Net Value

 

(X) Long-term Deferred Expenses 

Item Opening Balance Closing Balance

Power Upgrade Charge

Establishment Charge 

Other 

Total 

 

(XI) Short-term Loan

Bank Make Loan  Opening Balance Closing Balance

Qiaoxi Branch of Cangzhou Bank 

Total

 

(XII) Accounts Payable

Aging Analysis Opening Balance Closing Balance

Amount  Proportion Amount  Proportion

Below 1 year

Total

 

Information of First Three Creditors  

Name of Debtors Closing 

Balance  Proportion Account For Amount Paid In Advance Time of Debt Incurred  Reasons of Debt 

Tangshan Ali Ceramics Co., Ltd. 2011 Outstanding Account

Tangshan Shifang Science and Technology Co., Ltd. 2011 Outstanding Account

Qinhuangdao Zhongrong Undertaking Co., Ltd. 2011 Outstanding Account

 

(XIII) Other Payables 

Aging Analysis Opening Balance Closing Balance

Amount  Proportion Amount  Proportion

Below 1 year

Total

 

(XIV) Salary Payable 

Item  Opening Balance Closing Balance

Salary Payable for Chinese Staffs 

Endowment Assurance

Salary Payable for Foreign Staffs

  Insurance for Medical Care

  Fund for Comprehensive Arrangement for Serious Disease

Accident Insurance

  Insurance Against Suspension of Work

  Maternity Insurance

Total

 

(XV) Taxes Payable 

Item Opening Balance Closing Balance

Salary Payable

Value-added Tax

Taxes Withheld  （Business Tax）

Total

 

(XVI) Long-term Loan  

Item Opening Balance Closing Balance

Misi Trade Co., Ltd. 

Total

 

(XVII) Owner’s Equity 

a. Classification of Owner’s Equity

Item Opening Balance Current Increase Current Decrease  Closing Balance 

Paid-in Capital 

Surplus Reserve

Undistributed Profit

Total

 

b. Paid-in Capital 

Name of Investors Opening Balance Closing Balance

Amount  Proportion Amount  Proportion

Misi Trade Co., Ltd.

Total

 

c. Surplus Capital 

Item Opening Balance Current Increase Current Decrease  Closing Balance 

Reserve Fund

Total

 

d. Undistributed Profit 

Item Amount

Previous Closing Balance 

Current Closing Balance

Current Increase 

    Current Net Profit Transferred 

    Adjustment of Previous Loss and Gain

Current Decrease 

    Current Addition of Income Tax 

    Provision of Rewards Fund and Surplus Reserve

Current Closing Balance 

 

(XVIII) Revenue and Cost from Main Business

Item Income from Main Business Cost for Main Business 

Amount  Proportion Amount  Proportion

Sales Proceeds of Products

Total

 

IX. Items Promised 

The Company has no the items promised that need to be disclosed. 

 

 

Statement of Foreign Exchange Receipts and Disbursement

Prepared by Cangzhou Mis Co., Ltd.                         December 31, 2011

Organization Code:          Foreign Exchange Registration        Unit: USD

Asset  Opening Balance Closing Balance  Balance between Debts and Current Accounts Opening Balance Closing Balance 

1. Monetary Fund of Foreign Exchange 11. Accounts Payable for Foreign Exchange 

1.1 Cash  Inland Account Receivable 

1.2 Deposit in Capital Account  11.1 Trade in Goods

1.3 Deposit in Current Account  Expiration over one year 

1.4 Financial Leases

1.5 Deposit in Other Accounts 11.2 Trade in Service

2. Foreign Exchange Accounts Receivable  Expiration over one year

Domestic Accounts Receivable  11.3 Other Payables 

2.1 Trade in Goods  Expiration over one year

2.2 Trade In Service  12. Foreign Exchange Account Received in Advance

2.3 Other Receivables Expiration over one year

3.******* 13. Salary Payable for Foreign Stafff

4. Foreign Exchange Dividend Receivable  14.Foreign Exchange Dividend Payable 

******** Expiration over one year

5. Oversea Investment 15. Oversea Borrowings

Fixed Assets  15.1 Borrowings From Financial Institutions

Intangible Assets 15.2 Borrowings From Related Enterprises 

6. Foreign Exchange Investment 15.3 Other Borrowings 

7.******** 15.4 Bonds Issued 

7.1 Renminbi  16. Domestic Foreign Exchange Borrowings 

7.2 Fixed Assets  Borrowings From Domestic Financial Institutions

7.3 Intangible Assets 17. Foreign Exchange Interest Payable 

7.4 Transfer of Consideration of Capital  Domestic Interest Payable 

7.5 Transfer of Single Capital  18. Paid-in Oversea Capital 

7.6 Other  18.1 Foreign Direct Investment 

8. ******** 18.2 Foreign Investment Securities

9. Difference of Conversion of Exchange Rate  19. Paid-in Domestic Foreign Exchange Capital

10. Other Assets 20. Balance of Current Accounts 

Total Assets  Total Balance between Debts and Current Accounts

 

Note: 1. The current increase of guarantee is USD 0  and the current decrease of guarantee is USD 0  and, the closing balance is USD 0 .

2. The closing balance of undistributed profit owned by the foreign investors is calculated as USD        according to the stock right and agreed proportion. 

3. Other assets account for  0%  of total assets. 

 

Filling Date: February 10, 2012

Prepared by Cao Junman   Chief Accounting : Cao Junman    

Legal Representative: Robin Swaffied

Audited by HEBEI ZHONGTAI CPA OFFICE CO., LTD     CPA: Chen Zeming, Li Yongli 

Business License of Enterprise Legal Person

Duplicate copy

Registration No.: 130900400000408 (1/2)

　　

Enterprise Name: Cangzhou Mis Co., Ltd.

Residence: Cangzhou Economic Technology Development Zone 

Legal Representative: Peter Thun Hohenstein 

Registered Capital: EUR5.037 million

Paid-in Capital : EUR5.037 million

Type of Enterprise: Company Limited (Wholly Foreign Owned) 

Scope of Business: the production and sale of ceramics-based works, wooden crafts, candle; the import & export of the goods (exclude the distribution; except for the merchandises that the nation prohibits companies to engage in or import/export). *****

Thun International B.V (Holland)

Shareholder (Founder)

Term of Business: From June 21, 2007 to June 20, 2057

Date of Establishment: June 21, 2007

Explanation

1. Business License for Enterprise’s Legal Person is the certificate for enterprise to obtain legal person qualification and legal operation.

2. Business License for Enterprise’s Legal Person has an original and a duplicate copy. Both of the two have the same legal forces. 

3. The original of business license shall be placed in an eye-catching position in the company. 

4. The business license shall not be fabricated, altered, leased, lent or transferred. 5. In case the items registered change, please apply to the Registration Authority for the Change and Registration and obtaining the modified Business License for Enterprise’s Legal Person. 

6. The registration office shall conduct yearly check on the enterprise’s legal person between March 1 and June 30 every year.

7. After Business License for Enterprise’s Legal Person is cancelled, the Company shall not participate in the activities except for the liquidation. 

8. The Re original and duplicate copies of business license should be returned when canceling the registration. 

9. In case the Business License for Enterprise’s Legal Person is lost or damaged, the Company should apply for the cancellation on the paper specified by Registration Authority and apply for reissuing the business license. 

Annul Check

 

 

　　Registration office: Cangzhou Administration for Industry and Commerce (Seal)

　　March 24, 2009

 

 

Certificate of Practice

 

We hereby that HEBEI ZHONGTAI CPA OFFICE CO., LTD complies with “Law of the PRC on Certified Public Accountants” and regulations concerned through the examination and verification, and grant it to act the legal items of CPA.

 

License Issuing Authority: Hebei Finance Department 

 

 

 

Approval No. 37 (2004), Hebei Finance Department 

Certificate No. 13080001

April 2004 

 

Annual Renewal Registration

 

This certificate is valid for another year after this renewal 

 

 

 

THE CHINESE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTINGS

Annual Renewal Registration

 

This certificate is valid for another year after this renewal

 

 

 

 

Full Name: Chen Zeming

Sex: Male

Date of Birth: July 1, 1970

Working Unit: HEBEI ZHONGTAI CPA OFFICE CO., LTD

Identity Card No.: 120106700701063

 

 

 

Annual Renewal Registration

 

This certificate is valid for another year after this renewal 

 

 

 

 

Registration of the Change Working Unit BY CPA 

 

Agree the holder to be transferred from

 

Agree the holder to be transferred to

 

 

 

 

Full Name: Li Yongli 

Sex: Female 

Date of Birth: January 30, 1973

Working Unit: Beijing Zhongrui Zhongda CPA Co., Ltd.

Identity Card No.: 130903197301300023

 

 

Business License of Enterprise Legal Person

Duplicate copy

Registration No.: 130900000008153 (1/1)　　

Enterprise Name: HEBEI ZHONGTAI CPA OFFICE CO., LTD

Residence: No. 269, Jiefang Middle Road, Yunhe District, Cangzhou City

Legal Representative: Zhang Xiulan

Registered Capital: RMB500 thousand 

Paid-in Capital: RMB500 thousand

Type of Enterprise: Company Limited Liability

Scope of Business: Audit, Capital verification, Consultation of Accounting  

 

Date of Establishment: May 10, 2004

Term of Business: From May 10, 2004 to 

　　 Explanation

1. Business License for Enterprise’s Legal Person is the certificate for enterprise to obtain legal person qualification and legal operation.

2. Business License for Enterprise’s Legal Person has an original and a duplicate copy. Both of the two have the same legal forces. 

3. The original of business license shall be placed in an eye-catching position in the company. 

4. The business license shall not be fabricated, altered, leased, lent or transferred. 5. In case the items registered change, please apply to the Registration Authority for the Change and Registration and obtaining the modified Business License for Enterprise’s Legal Person. 

6. The registration office shall conduct yearly check on the enterprise’s legal person between March 1 and June 30 every year.

7. After Business License for Enterprise’s Legal Person is cancelled, the Company shall not participate in the activities except for the liquidation. 

8. The Re original and duplicate copies of business license should be returned when canceling the registration. 

9. In case the Business License for Enterprise’s Legal Person is lost or damaged, the Company should apply for the cancellation on the paper specified by Registration Authority and apply for reissuing the business license. 

Annul Check

 

　　Registration office: Cangzhou Administration for Industry and Commerce (Seal)

　　April, 2010
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