[X]
|
ANNUAL
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
[ ]
|
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Florida
(State
or other jurisdiction of
incorporation
or organization)
|
33-0961490
(I.R.S.
Employer
Identification
No.)
|
101
Xinanyao Street, Jinzhou District
Dalian,
Liaoning Province
(Address
of principal executive offices)
|
PRC
116100
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
|
None
|
None
|
Large
accelerated filer [ ]
|
Accelerated
filer [ ]
|
Non-accelerated
filer [ X
]
|
PART I | .................................................................................................................................................................................................................................................................................................1 | |
ITEM 1 | BUSINESS ..............................................................................................................................................................................................................................................................................1 | |
ITEM 1A | RISK FACTORS ...................................................................................................................................................................................................................................................................5 | |
ITEM 1B | UNRESOLVED STAFF COMMENTS ...............................................................................................................................................................................................................................8 | |
ITEM 2 | PROPERTIES .........................................................................................................................................................................................................................................................................8 | |
ITEM 3 | LEGAL PROCEEDINGS .......................................................................................................................................................................................................................................................8 | |
ITEM 4 | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS........................................................................................................................................................................8 | |
PART II | .................................................................................................................................................................................................................................................................................................9 | |
ITEM 5 | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS | |
AND ISSUER PURCHASES OF EQUITY SECURITIES ................................................................................................................................................................................................9 | ||
ITEM 6 | SELECTED FINANCIAL DATAMANAGEMENT'S DISCUSSION AND ANALYSIS OR | |
PLAN OF OPERATION ....................................................................................................................................................................................................................................................10 | ||
ITEM 7 | MANAGEMENT'S DISCUSSION AND ANALSYS OF FINANCIAL CONDITION AND | |
RESULTS OF OPERATIONS ...........................................................................................................................................................................................................................................11 | ||
ITEM 7A | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ...............................................................................................................................................14 | |
ITEM 8 | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ................................................................................................................................................................................15 | |
ITEM 9 | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING | |
AND FINANCIAL DISCLOSURE ...................................................................................................................................................................................................................................16 | ||
ITEM 9A | CONTROLS AND PROCEDURES ....................................................................................................................................................................................................................................16 | |
ITEM 9B | OTHER INFORMATION ...................................................................................................................................................................................................................................................16 | |
PART III | ...............................................................................................................................................................................................................................................................................................17 | |
ITEM 10 | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT ........................................................................................................................................................................17 | |
ITEM 11 | EXECUTIVE COMPENSATION ......................................................................................................................................................................................................................................18 | |
ITEM 12 | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | |
AND RELATED STOCKHOLDER MATTERS ..............................................................................................................................................................................................................19 | ||
ITEM 13 | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS .............................................................................................................................................................................20 | |
ITEM 14 | PRINCIPAL ACCOUNTANT FEES AND SERVICES ...................................................................................................................................................................................................20 | |
PART IV | ...............................................................................................................................................................................................................................................................................................21 | |
ITEM 15 | EXHIBITS, FINANCIAL STATEMENTS SCHEDULES ...............................................................................................................................................................................................21 |
Fiscal
Year
Ended
September
30,
|
Bid
Prices
|
|||||
Period
|
High
|
Low
|
||||
2004
|
First
Quarter
|
N/A
|
N/A
|
|||
Second
Quarter
|
N/A
|
N/A
|
||||
Third
Quarter
|
N/A
|
N/A
|
||||
Fourth
Quarter
|
N/A
|
N/A
|
||||
2005
|
First
Quarter
|
N/A
|
N/A
|
|||
Second
Quarter
|
N/A
|
N/A
|
||||
Third
Quarter
|
N/A
|
N/A
|
||||
Fourth
Quarter
|
$ -
|
$ -
|
||||
2006
|
First
Quarter
|
N/A
|
N/A
|
|||
Second
Quarter
|
N/A
|
N/A
|
||||
Third
Quarter
|
$2.30
|
$0.50
|
||||
Fourth
Quarter
|
$1.75
|
$1.05
|
||||
2007
|
First
Quarter
|
$1.40
|
$1.10
|
|||
Second
Quarter (through January 3, 2007)
|
$1.18
|
$1.17
|
China
Agro Sciences Corp. (1)
|
For
the Years Ended September 30,
|
||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002 |
|
||||||||||||||||
Statement
of Operations Data:
|
|||||||||||||||||||||
Total
revenues
|
$ | 12,749,788 | - | - | - | - | |||||||||||||||
Net
income (loss)
|
1,931,558 | (287,204 | ) | - | - | - | |||||||||||||||
Balance
Sheet Data:
|
|||||||||||||||||||||
Current
assets
|
$ | 2,537,925 | 252,708 | - | - | - | |||||||||||||||
Total
assets
|
7,843,728 | 6,014,573 | - | - | - | ||||||||||||||||
Current
liabilities
|
2,159,855 | 2,504,078 | - | - | - | ||||||||||||||||
Total
liabilities
|
2,483,218 | 2,815,144 | - | - | - | ||||||||||||||||
Total
stockholders’ equity
|
5,360,510 | 3,199,429 | - | - | - | ||||||||||||||||
Total
dividends per common share
|
- 0 - | - 0 - | - | - | - |
(1)
|
The
selected financial data included in this Section is the financial data for
Ye Shun International, which, with its subsidiary, Runze, contains all the
operations of the merged company, Dalian Holding Corp. (now China Agro
Sciences Corp.).
|
September
30, 2006
|
September
30, 2005
|
Percentage
Change
|
||||||||||
Revenue
|
$ | 12,749,788 | $ | - | N/A | |||||||
Cost
of Sales
|
9,837,089 | - | N/A | |||||||||
General
and Administrative Expenses
|
981,141 | 287,204 | 218 | % | ||||||||
Net
Income (Loss)
|
$ | 1,931,558 | $ | (287,204 | ) | N/A |
September
30, 2006
|
September
30, 2005
|
Increase
(Decrease)
|
||||||||||
Cash
|
$ | 103,817 | $ | 77,250 | 26,567 | |||||||
Total
Current Assets
|
2,537,925 | 252,708 | 2,285,217 | |||||||||
Total
Assets
|
7,843,728 | 6,014,573 | 2,423,964 | |||||||||
Total
Current Liabilities
|
2,159,855 | 2,504,078 | (344,223 | ) | ||||||||
Total
Liabilities
|
$ | 2,483,218 | $ | 2,815,144 | (331,926 | ) |
Payments
due by period (in U.S. Dollars)
|
||||||||||||||||||||
Obligations
|
Total
|
1 Year
|
1-3 Years
|
3-5 Years
|
5 Years
|
|||||||||||||||
Long-Term
Debt Obligations
|
-0- | -0- | -0- | -0- | -0- | |||||||||||||||
Capital
Lease Obligations
|
-0- | -0- | -0- | -0- | -0- | |||||||||||||||
Operating
Lease Obligations
|
-0- | -0- | -0- | -0- | -0- | |||||||||||||||
Purchase
Obligations
|
-0- | -0- | -0- | -0- | -0- | |||||||||||||||
Other
Long-Term Liabilities
|
-0- | -0- | -0- | -0- | -0- | |||||||||||||||
Total
Contractual Obligations
|
-0- | -0- | -0- | -0- | -0- |
Index
to Financial Statements
|
|
Report
of Independent Certified Public Accountants
|
|
Consolidated
Balance Sheet as of September 30, 2006
|
F-1
|
Consolidated
Statement of Operations for the years ended September 30, 2006 and
2005
|
F-2
|
Statement
of Changes in Stockholders’ Equity
|
F-3
|
Consolidated
Statements of Cash Flows for the years ended September 30, 2006 and
2005
|
F-4
|
Notes
to Financial Statements
|
F-5
|
Restated
|
||||
ASSETS
|
||||
CURRENT
ASSETS:
|
||||
Cash
|
$ | 103,817 | ||
Accounts
receivable
|
2,013,529 | |||
Inventories
|
399,636 | |||
Other
current assets
|
20,943 | |||
TOTAL
CURRENT ASSETS
|
2,537,925 | |||
Property
and equipment, net of accumulated depreciation (Notes 2 and
9)
|
5,305,803 | |||
TOTAL
ASSETS
|
$ | 7,843,728 | ||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
CURRENT
LIABILITIES:
|
||||
Accounts
payable
|
$ | 1,815,719 | ||
Due
to affiliated company
|
344,136 | |||
TOTAL
CURRENT LIABILITIES
|
2,159,855 | |||
LONG-TERM
DEBT
|
323,363 | |||
STOCKHOLDERS’
EQUITY
|
||||
Common
stock, $0.001 par value
|
||||
100,000,000
shares authorized
|
||||
20,000,000
shares issued and outstanding
|
20,000 | |||
Additional
paid in capital
|
3,738,900 | |||
Retained
earnings
|
1,372,662 | |||
Accumulated
other comprehensive income
|
228,948 | |||
TOTAL STOCKHOLDERS’ EQUITY
|
5,360,510 | |||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 7,843,728 | ||
YEAR ENDED SEPTEMBER 30, | ||||||||||
2006 | 2005 | |||||||||
Restated | ||||||||||
SALES
|
$ | 12,749,788 | $ | - | ||||||
COST OF SALES (Note
8)
|
9,837,089 | - | ||||||||
GROSS
PROFIT
|
2,912,699 | - | ||||||||
COSTS
AND EXPENSES:
|
||||||||||
General
and administrative expenses
|
914,385 | 287,204 | ||||||||
Interest
expense
|
66,756 | - | ||||||||
TOTAL
COSTS AND EXPENSES
|
981,141 | 287,204 | ||||||||
NET
INCOME (LOSS)
|
$ | 1,931,558 | $ | (287,204 | ) | |||||
BASIC
AND DILUTED EARNINGS PER COMMON SHARE
|
$ | 0.097 | N/A | |||||||
WEIGHTED
AVERAGE NUMBER OF COMMON
|
||||||||||
SHARES
OUTSTANDING
|
20,000,000 | N/A | ||||||||
COMMON
STOCK
|
ADDITIONAL
PAID-IN
CAPITAL
|
RETAINED
EARNINGS
(DEFICIT)
Restated
|
OTHER
COMPREHENSIVE
INCOME
Restated
|
TOTAL
Restated
|
BALANCE
– SEPTEMBER 30, 2004
|
3,738,900 | $ | - | $ | (271,692 | ) | $ | (802 | ) | $ | 3,466,406 | |||||||||
Net
loss
|
- | - | (287,204 | ) | 20,227 | (266,977 | ) | |||||||||||||
BALANCE
– SEPTEMBER 30, 2005
|
3,738,900 | - | (558,896 | ) | 19,425 | 3,199,429 | ||||||||||||||
Common
stock, $0.001 par value,
100,000,000
shares authorized,
20,000,000 shares
issued and outstanding
|
20,000 | - | - | - | 20,000 | |||||||||||||||
Preferred
stock, $0.001 par value,
5,000,000
shares authorized,
0 shares
issued and outstanding
|
- | - | - | - | - | |||||||||||||||
Effect
of stock splits and return of shares
|
(3,738,900 | ) | 3,738,900 | - | - | - | ||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | 209,523 | 209,523 | |||||||||||||||
Net
income
|
- | - | 1,931,558 | - | 1,931,558 | |||||||||||||||
BALANCE
– SEPTEMBER 30, 2006
|
$ | 20,000 | $ | 3,738,900 | $ | 1,372,662 | $ | 228,948 | $ | 5,360,510 | ||||||||||
|
||||||||||||
YEAR ENDED SEPTEMBER 30, | ||||||||||||
2006 | 2005 | |||||||||||
Restated | ||||||||||||
OPERATING
ACTIVITIES:
|
||||||||||||
Net
income (loss)
|
$ | 1,931,558 | $ | (287,204 | ) | |||||||
Adjustments
to reconcile net income (loss)
|
||||||||||||
to
net cash provided by operating activities:
|
||||||||||||
Depreciation
|
420,667 | 236,918 | ||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Accounts
receivable
|
(2,013,529 | ) | 11,397 | |||||||||
Inventories
|
(274,069 | ) | 125,830 | |||||||||
Prepaid
expenses
|
35,560 | (9,897 | ) | |||||||||
Other
current assets
|
(6,036 | ) | 142,979 | |||||||||
Accounts
payable
|
691,793 | 434,240 | ||||||||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
785,944 | 654,263 | ||||||||||
INVESTING
ACTIVITIES:
|
||||||||||||
Government
grant for property and equipment purchase
|
349,888 | - | ||||||||||
Acquisition
of property and equipment
|
(317,958 | ) | (632,826 | ) | ||||||||
NET
CASH USED IN INVESTING ACTIVITIES
|
31,930 | (632,826 | ) | |||||||||
FINANCING
ACTIVITIES:
|
||||||||||||
Short-term
bank loan
|
- | (363,000 | ) | |||||||||
Loan
from local government
|
- | 311,066 | ||||||||||
Loans
from affiliated company
|
(1,036,017 | ) | 69,244 | |||||||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
(1,036,017 | ) | 17,310 | |||||||||
EFFECT
OF EXCHANGE RATE ON CASH
|
244,710 | 20,227 | ||||||||||
INCREASE
IN CASH
|
26,567 | 58,974 | ||||||||||
CASH –
BEGINNING OF YEAR
|
77,250 | 18,276 | ||||||||||
CASH –
END OF YEAR
|
$ | 103,817 | $ | 77,250 | ||||||||
Supplemental
disclosures of cash flow information:
|
||||||||||||
Cash paid during the year
for:
|
||||||||||||
Interest
|
$ | 66,707 | $ | - | ||||||||
Non-cash
financing activities:
|
||||||||||||
Sale
of inventory to an affiliated company in repayment of debt
|
$ | - | $ | 125,393 | ||||||||
Maintenance,
repairs and minor renewals are charged to expense when
incurred. Replacements and major renewals are
capitalized.
|
2
|
PROPERTY
AND EQUIPMENT
|
AMOUNT | LIFE |
Machinery
and equipment
|
$ | 2,121,078 |
5-10
years
|
||
Furniture,
fixtures and office equipment
|
19,961 |
5-7
years
|
|||
Building
and building improvements
|
4,021,868 |
40
years
|
|||
Automobile
|
26,910 |
5
years
|
|||
6,189,817 | |||||
Accumulated
depreciation
|
884,014 | ||||
$ | 5,305,803 |
Year
ended September 30th
(using current year exchange rates)
|
|||
2007
|
$ -
|
||
2008
|
-
|
||
2009
|
-
|
||
2010
|
29,397
|
||
2011
|
29,397
|
||
Thereafter
|
264,569
|
||
$
323,363
|
|||
10
|
RISK
FACTORS
|
-------------------------------------QUARTER----------------------------------------------------------
|
|||||
First
|
Second
|
Third
|
Fourth
|
TOTAL
|
Revenue
|
$ 986,894
|
$4,827,290
|
$4,094,201
|
$2,841,403
|
$12,749,788
|
||||
Operating
income
|
169,038
|
1,060,959
|
786,506
|
(84,945)
|
1,931,558
|
||||
Net
income
|
169,038
|
1,060,959
|
786,506
|
(84,945)
|
1,931,558
|
||||
Basic
and diluted earnings per
common
share
|
N/A
|
N/A
|
0.039
|
0.004
|
|||||
CHINA
AGRO SCIENCES CORP.
|
||||||
BALANCE
SHEET
|
||||||
FILED
WITH 10K
|
RESTATED
|
|||||
SEPTEMBER
30,
|
ADJUSTMENTS
|
SEPTEMBER
30,
|
||||
2006
|
2006
|
|||||
ASSETS
|
||||||
CURRENT
ASSETS:
|
||||||
Cash
|
103,817
|
103,817
|
||||
Accounts
receivable
|
2,013,529
|
2,013,529
|
||||
Inventory
|
399,636
|
399,636
|
||||
Other
current assets
|
20,943
|
20,943
|
||||
TOTAL
CURRENT ASSETS
|
2,537,925
|
2,537,925
|
||||
PROPERTY
AND EQUIPMENT, NET OF
|
||||||
ACCUMULATED
DEPRECIATION
|
5,620,703
|
(314,900)
|
(a)
|
5,305,803
|
||
TOTAL
ASSETS
|
8,158,628
|
(314,900)
|
7,843,728
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||
CURRENT
LIABILITIES:
|
||||||
Accounts
payable
|
1,815,719
|
1,815,719
|
||||
Due
to affiliated company
|
694,136
|
(350,000)
|
(b)
|
344,136
|
||
TOTAL
CURRENT LIABILITIES
|
2,509,855
|
(350,000)
|
2,159,855
|
|||
LONG-TERM
DEBT
|
323,363
|
(c)
|
323,363
|
|||
TOTAL
LIABILITIES
|
(26,637)
|
2,483,218
|
||||
STOCKHOLDERS'
EQUITY
|
||||||
Common
stock, $0.001 par value, 100,000,000 shares
|
||||||
authorized,
20,000,000 shares issued and outstanding
|
20,000
|
20,000
|
||||
Additional
paid in capital
|
3,738,900
|
3,738,900
|
||||
Retained
earnings
|
1,643,908
|
(271,246)
|
(d)
|
1,372,662
|
||
Accumulated
other comprehensive income
|
245,965
|
(17,017)
|
(e)
|
228,948
|
||
TOTAL
STOCKHOLDERS' EQUITY
|
5,648,773
|
(288,263)
|
5,360,510
|
|||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
8,158,628
|
(314,900)
|
7,843,728
|
|||
(a) Reclassification
of the government grant of $349,888 which was specifically made to
subsidize the acquisition of fixed assets
|
||||||
and
the related accumulated depreciation of $34,988
|
||||||
(b) Adjust
accrual for equipment leased from related company
|
||||||
(c) Reclassification
of government grant to long term debt
|
||||||
(d) Net
effect of adjustments on income.
|
||||||
(e) Changes
on foreign currency translation adjustment because the change of net
income.
|
CHINA
AGRO SCIENCES CORP.
|
|||||||
STATEMENTS
OF OPERATIONS
|
|||||||
FILED
WITH 10K
|
RESTATED
|
||||||
SEPTEMBER
30,
|
ADJUSTMENTS
|
SEPTEMBER
30,
|
|||||
2006
|
2006
|
||||||
REVENUE
|
12,749,788
|
12,749,788
|
|||||
COST
OF SALES
|
10,187,089
|
(350,000)
|
(f)
|
9,837,089
|
|||
GROSS
PROFIT
|
2,562,699
|
350,000
|
2,912,699
|
||||
COSTS
AND EXPENSES:
|
|||||||
General
and administrative expenses
|
1,015,634
|
(101,249)
|
(g)
|
914,385
|
|||
Government
grant
|
(655,739)
|
655,739
|
(h)
|
||||
Interest
expense
|
66,756
|
(i)
|
66,756
|
||||
TOTAL
COSTS AND EXPENSES
|
359,895
|
621,246
|
981,141
|
||||
NET
INCOME (LOSS)
|
2,202,804
|
(271,246)
|
(j)
|
1,931,558
|
|||
(f)
|
Adjust
accrual for equipment leased from related company
|
||||||
(g)
|
Reclassification
of the accumulated depreciation related to government grant of
$34,493
|
||||||
and
segregate interest expense from general and administrative expense of
$66,756
|
|||||||
(h)
|
Reclassification
of government loan and grant
|
||||||
(i)
|
Segregate
interest expense from general and administrative expense
|
||||||
(j)
|
Net
effect of adjustments on income
|
CHINA
AGRO SCIENCES CORP.
|
||||||
STATEMENTS
OF CASH FLOWS
|
||||||
FILED
WITH 10K
|
RESTATED
|
|||||
SEPTEMBER
30,
|
ADJUSTMENTS
|
SEPTEMBER
30,
|
||||
2006
|
2006
|
|||||
OPERATING
ACTIVITIES:
|
||||||
Net
income (loss)
|
2,202,804
|
(271,246)
|
(l)
|
1,931,558
|
||
Adjustments
to reconcile net income (loss) to net cash
|
||||||
provided
by operating activities:
|
||||||
Depreciation
of property and equipment
|
454,948
|
(34,281)
|
(m)
|
420,667
|
||
Adjustments
to reconcile net loss to net
|
||||||
cash
used in operating activities:
|
||||||
Accounts
receivable
|
(2,013,529)
|
(2,013,529)
|
||||
Inventory
|
(274,069)
|
(274,069)
|
||||
Prepaid
expenses
|
35,560
|
35,560
|
||||
Other
current assets
|
(6,036)
|
(6,036)
|
||||
Accounts
payable
|
691,793
|
691,793
|
||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
1,091,471
|
(305,527)
|
785,944
|
|||
INVESTING
ACTIVITIES:
|
||||||
Government
grant to purchase equipment
|
-
|
349,888
|
(n)
|
349,888
|
||
Acquisition
of property and equipment
|
(317,958)
|
-
|
(317,958)
|
|||
NET
CASH USED IN INVESTING ACTIVITIES
|
(317,958)
|
349,888
|
31,930
|
|||
FINANCING
ACTIVITIES:
|
||||||
Grants
from local government
|
(311,066)
|
311,066
|
(o)
|
-
|
||
Loans
from affiliated company
|
(686,017)
|
(350,000)
|
(p)
|
(1,036,017)
|
||
NET
CASH USED IN FINANCING ACTIVITIES
|
(997,083)
|
(38,934)
|
(1,036,017)
|
|||
EFFECT
OF EXCHANGE RATES ON CASH
|
250,137
|
(5,427)
|
(q)
|
244,710
|
||
INCREASE
( DECREASE ) IN CASH
|
26,567
|
-
|
26,567
|
|||
CASH
- BEGINNING OF PERIOD
|
77,250
|
77,250
|
||||
CASH
- END OF PERIOD
|
103,817
|
-
|
103,817
|
|||
(l) Net
effect of adjustments on income.
|
||||||
(m) Reclassification
of the accumulated depreciation related to government
grant
|
||||||
(n) Reclassification
of the government grant which was specifically made to subsidize the
acquisition of fixed assets
|
||||||
(o) Reclassification
of government grant to long term debt
|
||||||
(p) Adjust
accrual for equipment leased from related company
|
||||||
(q) Changes
on foreign currency translation adjustment because the change of net
income.
|
ASSETS
|
||||
INVESTMENT
IN SUBSIDIARIES
|
$ | 5,360,510 | ||
TOTAL
ASSETS
|
$ | 5,360,510 | ||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
STOCKHOLDERS’
EQUITY
|
$ | 5,360,510 | ||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 5,360,510 | ||
INCOME
FROM EARNINGS OF SUBSIDIARIES
|
$ | 1,931,558 | ||
NET
INCOME BEFORE INCOME TAXES
|
$ | 1,931,558 | ||
OPERATING
ACTIVITIES:
|
||||
Net
income
|
$ | 1,931,558 | ||
Adjustments
to reconcile net income to net
|
||||
cash
provided by operating activities:
|
||||
Earnings
of subsidiaries
|
(1,931,558 | ) | ||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
- | |||
CASH
– BEGINNING OF PERIOD
|
- | |||
CASH
– END OF PERIOD
|
$ | - | ||
Name
|
Age
|
Position(s)
|
||
Zhengquan
Wang
|
63
|
Chief
Executive Officer, Chief Financial Officer, Secretary, and Director
(2006)
|
Annual
Compensation
|
Long
Term Compensation
|
|||||||||
Awards
|
Payouts
|
|||||||||
Name
and
Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Other
Annual
Compensation
($)
|
Restricted
Stock
Awards
($)
|
Securities
Underlying Options SARs
(#)
|
LTIP
Payouts
($)
|
All
Other
Compensation
($)
|
||
Zhengquan
Wang
|
2006
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||
Chief
Executive Officer, Chief Financial Officer, Secretary, and
Director
|
||||||||||
John
C. Leo
|
2006
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||
Ex-Secretary,
Ex- Director
|
||||||||||
Carl
M. Berg
|
2006
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||
Ex-Chairman,
Ex-President, Ex-Secretary, Ex-Treasurer
|
2005
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||
2004
|
-0-
|
-0-
|
0-
|
-0-
|
-0-
|
-0-
|
-0-
|
|||
Kevin
J. Gadawski
|
2006
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||
Ex-Director
|
2005
|
-0-
|
-0-
|
5,000
|
-0-
|
-0-
|
-0-
|
-0-
|
||
2004
|
-0-
|
-0-
|
5,000
|
-0-
|
-0-
|
-0-
|
-0-
|
|||
Mark
Stewart
|
2006
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||
Ex-Director
|
2005
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
||
2004
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
-0-
|
OPTION/SAR
GRANTS IN LAST FISCAL YEAR
(Individual
Grants)
|
||||
Name
|
Number
of Securities
Underlying
Options/SARs
Granted
(#)
|
Percent
of Total
Options/SARs
Granted
to
Employees In Fiscal
Year
|
Exercise
or Base Price
($/Sh)
|
Expiration
Date
|
Zhengquan
Wang
|
-0-
|
N/A
|
N/A
|
N/A
|
John
C. Leo
|
-0-
|
N/A
|
N/A
|
N/A
|
AGGREGATED
OPTIONS/SAR EXERCISES IN LAST FISCAL YEAR
AND
FY-END OPTION/SAR VALUES
|
||||
Name
|
Shares
Acquired On
Exercise
(#)
|
Value
Realized
($)
|
Number
of Unexercised
Securities
Underlying
Options/SARs
at FY-End
(#)
Exercisable/Unexercisable
|
Value
of Unexercised
In-The-Money
Option/SARs
at
FY-End
($)
Exercisable/Unexercisable
|
Zhengquan
Wang
|
N/A
|
N/A
|
N/A
|
N/A
|
John
C. Leo
|
N/A
|
N/A
|
N/A
|
N/A
|
Common Stock
|
|||
Title of Class
|
Name and Address
of Beneficial Owner
|
Amount and Nature of
Beneficial Ownership
|
Percent
of Class (1)
|
Common
Stock
|
Zhengquan
Wang (2)(3)
|
16,000,000
(4)
|
80.0%
(4)
|
Common
Stock
|
All
Directors and Officers
As
a Group (2 persons)
|
16,000,000
(4)
|
80.0%
(4)
|
|
(1)
|
Unless
otherwise indicated, based on 20,000,000 shares of common stock issued and
outstanding following the Merger. Shares of common stock
subject to options or warrants currently exercisable, or exercisable
within 60 days, are deemed outstanding for purposes of computing the
percentage of the person holding such options or warrants, but are not
deemed outstanding for the purposes of computing the percentage of any
other person.
|
|
(2)
|
Indicates
one of our officers or directors.
|
|
(3)
|
Unless
indicated otherwise, the address of the shareholder is 101 Xinanyao
Street, Jinzhou District, Dalian, Liaoning Province, PRC
116100.
|
|
(4)
|
Includes
3,000,000 shares held by Xiufen Bi, 3,000,000 shares held by Qiming Wang,
2,000,000 shares held by Yinghua Wang, and 2,000,000 shares held by Feng
Yang, Mr. Wang’s spouse, son, daughter, and son-in-law,
respectively.
|
Report
of Independent Certified Public Accountants
|
|
Consolidated
Balance Sheet as of September 30, 2006 and 2005
|
F-1
|
Consolidated
Statement of Operations for the years ended September 30, 2006 and
2005
|
F-2
|
Statement
of Changes in Stockholders’ Equity
|
F-3
|
Consolidated
Statements of Cash Flows for the years ended September 30, 2006 and
2005
|
F-4
|
Notes
to Financial Statements
|
F-5
|
3.1
(1)
|
Articles
of Incorporation of China Agro Sciences Corp.
|
|
3.2
(1)
|
Bylaws
of China Agro Sciences Corp.
|
|
3.3
(2)
|
Articles
of Amendment to Articles of Incorporation Changing Name to China Agro
Sciences Corp.
|
|
3.4
(2)
|
Articles
of Merger Merging DaLian Acquisition Corp. into China Agro Sciences
Corp.
|
|
10.1
(3)
|
Agreement
and Plan of Merger dated March 15, 2006
|
|
10.2
(2)
|
Extension
of Closing Date
|
|
10.3
(2)
|
Agreement
to Terminate Warrants dated April 28, 2006 by and between Clark Johnson
and M-GAB Development Corporation
|
|
10.4
(2)
|
Agreement
to Terminate Warrants dated April 28, 2006 by and between AMRES Holding,
LLC and M-GAB Development Corporation
|
|
10.5
(2)
|
Agreement
to Terminate Options dated April 28, 2006 by and between Kevin Gadawski
and M-GAB Development Corporation
|
|
10.6
(2)
|
Agreement
to Terminate Options dated April 28, 2006 by and between Mark Stewart and
M-GAB Development Corporation
|
|
10.7
(2)
|
Form
N-54C
|
|
31.1
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer
|
|
31.2
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer
|
|
32.1
|
Chief
Executive Officer Certification Pursuant to 18 USC, Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
|
Chief
Financial Officer Certification Pursuant to 18 USC, Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
China
Agro Sciences Corp.
|
|
Dated: April
3, 2008
|
/s/ Zhengquan
Wang
|
By: Zhengquan
Wang
|
|
Its: President,
Director,
|
|
Chief Executive
Officer,
Chief Financial
Officer
|