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EX-31 - CERTIFICATION - Huixin Waste Water Solutions, Inc. | china_ex31.htm |
EX-32 - CERTIFICATION - Huixin Waste Water Solutions, Inc. | china_ex32.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended December 31, 2009
OR
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from _______________ to _______________ |
Commission File Number 000-52339
China Growth Corporation
(Exact name of Registrant as specified in its charter)
Cayman Islands | N/A |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
c/o Nautilus Global Partners
700 Gemini, Suite 100, Houston, TX 77056
(Address of principal executive offices) (Zip Code)
(281) 488-3883
(Registrants 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 [__]
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 (Check one):
Large accelerated filer o | Accelerated filer o |
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Non-accelerated filer o | Smaller reporting company x |
Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). YES [X] NO [__]
At February 18, 2010 there were 998,275 shares of Registrants ordinary shares outstanding.
GENERAL INDEX
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| PART I. FINANCIAL INFORMATION |
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ITEM 1. | FINANCIAL STATEMENTS | 3 |
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ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 12 |
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ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 13 |
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ITEM 4. | CONTROLS AND PROCEDURES | 13 |
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| PART II. OTHER INFORMATION |
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ITEM 1. | LEGAL PROCEEDINGS | 13 |
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ITEM 1.(A) | RISK FACTORS | 13 |
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ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES & USE OF PROCEEDS | 14 |
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ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | 14 |
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ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | 14 |
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ITEM 5. | OTHER INFORMATION | 14 |
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ITEM 6. | EXHIBITS | 14 |
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| SIGNATURES | 14 |
2
PART I - FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
China Growth Corporation
(A Development Stage Company)
Condensed Balance Sheets
| December 31, |
| June 30, | |||
| 2009 |
| 2009 | |||
| (Unaudited) |
| (Audited) | |||
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents | $ | 1,426 |
| $ | 1,426 | |
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Total assets | $ | 1,426 |
| $ | 1,426 | |
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LIABILITIES AND SHAREHOLDERS DEFICIT |
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CURRENT LIABILITIES |
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Payable to affiliate | $ | 9,669 |
| $ | 8,815 | |
Accounts payable |
| 2,674 |
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| 1,154 | |
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Total current liabilities |
| 12,343 |
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| 9,969 | |
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SHAREHOLDERS DEFICIT |
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Preference shares, $0.000128 par value, 781,250 shares authorized, none issued and outstanding |
| -- |
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| -- | |
Ordinary shares, $.000128 par value; 39,062,500 shares authorized; |
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998,275 shares issued and outstanding as of December 31, 2009 and June 30, 2009. |
| 128 |
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| 128 | |
Additional paid in capital |
| 6,597 |
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| 6,597 | |
Deficit accumulated during development stage |
| (17,642) |
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| (15,268) | |
Total shareholders deficit |
| (10,917) |
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| (8,543) | |
Total liabilities and shareholders deficit | $ | 1,426 |
| $ | 1,426 |
See accompanying notes to condensed financial statements.
3
China Growth Corporation
(A Development Stage Company)
Condensed Statements of Operations
(Unaudited)
Six Months Ended December 31, 2009 |
| Six Months Ended December 31, 2008 |
| Cumulative During Development Stage (September 27, 2006 to December 31, 2009) | ||||
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Revenues | $ | -- |
| $ | -- |
| $ | -- |
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Expenses |
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Formation, general and administrative |
| 2,374 |
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| 2,050 |
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| 17,642 |
Total operating expenses |
| 2,374 |
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| 2,050 |
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| 17,642 |
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Operating loss |
| (2,374) |
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| (2,050) |
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| (17,642) |
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Income tax expense (benefit) |
| -- |
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| -- |
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| -- |
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Net loss | $ | (2,374) |
| $ | (2,050) |
| $ | (17,642) |
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Basic and diluted loss per share | $ | (0.00) |
| $ | (0.00) |
| $ | (0.02) |
Weighted average ordinary shares outstanding |
| 998,275 |
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| 867,679 |
| $ | 903,189 |
See accompanying notes to condensed financial statements.
4
China Growth Corporation
(A Development Stage Company)
Condensed Statements of Operations
(Unaudited)
Three Months Ended December 31, 2009 |
| Three Months Ended December 31, 2008 |
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Revenues | $ | -- |
| $ | -- |
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Expenses |
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Formation, general and administrative |
| 2,098 |
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| 1,757 |
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Total operating expenses |
| 2,098 |
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| 1,757 |
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Operating loss |
| (2,098) |
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| (1,757) |
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Income tax expense (benefit) |
| -- |
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| -- |
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Net loss | $ | (2,098) |
| $ | (1,757) |
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Basic and diluted loss per share | $ | (0.00) |
| $ | (0.00) |
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Weighted average ordinary shares outstanding |
| 998,275 |
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| 875,983 |
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See accompanying notes to condensed financial statements.
5
China Growth Corporation
(A Development Stage Company)
Condensed Statements of Cash Flows
(Unaudited)
| Six months ended December 31, 2009 |
| Six months ended December 31, 2008 |
| Cumulative During Development Stage (September 27, 2006 to December 31, 2009) | |||
Cash flows from operating activities |
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Net loss | $ | (2,374) |
| $ | (2,050) |
| $ | (17,642) |
Adjustments to reconcile net loss to cash used in operating activities: |
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Shares issued to Founder for payment of formation costs |
| -- |
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| -- |
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| 110 |
Changes in operating assets and liabilities |
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Payable to affiliate |
| 854 |
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| 930 |
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| 9,669 |
Accounts payable |
| 1,520 |
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| 1,119 |
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| 2,674 |
Net cash used in operating activities |
| -- |
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| -- |
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| (5,189) |
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Cash flows from investing activities |
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Net cash provided by investing activities |
| -- |
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| -- |
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| -- |
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Cash flows from financing activities |
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Proceeds from issuance of ordinary shares |
| -- |
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| 6,615 |
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| 6,615 |
Net cash provided by financing activities |
| -- |
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| 6,615 |
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| 6,615 |
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Net increase in cash |
| -- |
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| 1,426 |
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Cash at beginning of the period |
| 1,426 |
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| -- |
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Cash at end of the period | $ | 1,426 |
| $ | 6,615 |
| $ | 1,426 |
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Supplemental disclosures of cash flow information: |
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Interest paid | $ | - |
| $ | - |
| $ | - |
Income taxes paid | $ | - |
| $ | - |
| $ | - |
See accompanying notes to condensed financial statements.
6
China Growth Corporation
(A Development Stage Company)
NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2009
(Unaudited)
NOTE 1 - Organization, Business and Operations
On September 27, 2006, China Growth Corporation (the "Company") was formed in the Cayman Islands with the objective to acquire, or merge with, an operating business. The Companys formation and administrative costs of $8,376 were financed through the issuance of 859,375 shares of ordinary shares at par value of $0.000128 per share together with a payable to the Founders of $8,266.
At December 31, 2009, the Company had not yet commenced operations. All activity from September 27, 2006 (Date of Inception) through December 31, 2009 relates to the Companys formation. The Company selected June 30 as its fiscal year-end.
The Company, based on its proposed business activities, is a "blank check" company. The Securities and Exchange Commission defines such a company as a development stage company as it either has no specific business plan or purpose, or has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies, or other entity or person; and has issued penny stock, as defined in Rule 3a51-1 under the Securities Exchange Act of 1934. Many states have enacted statutes, rules and regulations limiting the sale of securities of "blank check" companies in their respective jurisdictions. Management does not intend to undertake any efforts to cause a market to develop in its securities, either debt or equity, until the Company concludes a business combination with an operating entity.
The Company was organized to acquire a target company or business seeking the perceived advantages of being a publicly-held company and, to a lesser extent, that desires to employ the Companys funds in its business. The Companys principal business objective for the next 12 months and beyond will be to achieve long-term growth potential through a business combination rather than short-term earnings. The Company will not restrict its potential candidate target companies to any specific business, industry or geographical location. The analysis of new business opportunities will be undertaken by or under the supervision of the officers and directors of the Company.
NOTE 2 - Summary of Significant Accounting Policies
Interim financial information
The financial statements included herein, which have not been audited pursuant to the rules and regulations of the Securities and Exchange Commission, reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods on a basis consistent with the annual audited statements. All such adjustments are of a normal recurring nature. The results of operations for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for a full year. Certain information, accounting policies and footnote disclosures normally included in consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with our audited financial statements included in our Form 10-K, for the year ended June 30, 2009, filed with the Securities and Exchange Commission on October 8, 2009.
7
NOTE 2 - Summary of Significant Accounting Policies (Continued)
Basis of Presentation
These financial statements are presented on the accrual basis of accounting in accordance with generally accepted accounting principles in the United State of America, whereby revenues are recognized in the period earned and expenses when incurred. The Company also follows the accounting guidelines for accounting for and reporting in Development Stage Enterprise in preparing its financial statements.
Statement of Cash Flows
For purposes of the statement of cash flows, we consider all highly liquid investments (i.e., investments which, when purchased, have original maturities of three months or less) to be cash equivalents.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Loss Per Ordinary Share
Basic loss per ordinary share is based on the weighted effect of ordinary shares issued and outstanding, and is calculated by dividing net loss by the weighted average shares outstanding during the period. Diluted loss per ordinary share is calculated by dividing net loss by the weighted average number of ordinary shares used in the basic loss per share calculation plus the number of ordinary shares that would be issued assuming exercise or conversion of all potentially dilutive ordinary shares outstanding. The Company does not present diluted earnings per share for years in which it incurred net losses as the effect is antidilutive.
At December 31, 2009 and 2008, there were no potentially dilutive ordinary shares outstanding.
On March 1, 2008, the Company consolidated the authorized ordinary share capital of the Company from 50,000,000 ordinary shares of $0.0001 par value each to 39,062,500 ordinary shares of $0.000128 par value each. This resulted in every shareholder as of March 1, 2008 receiving 0.78125 ordinary shares for every ordinary share previously held. This was treated as a stock split for U.S. GAAP purposes, and all share and per share data is presented as if the consolidation took place as of the date of inception, September 27, 2006. On March 1, 2008, the Company also consolidated the authorized preference share capital of the Company from 1,000,000 preference shares of $0.0001 par value each to 781,250 preference shares of $0.000128 par value.
Income Taxes
China Growth Corporation was registered as an Exempted Company in the Cayman Islands, and therefore, is not subject to Cayman Island income taxes for 20 years from the Date of Inception. While the Company has no intention of conducting any business activities in the United States, the Company would be subject to United States income taxes based on such activities that would occur in the United States.
The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. In assessing the realization of deferred tax assets, management considers whether it is likely that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the Company attaining future taxable income during periods in which those temporary differences become deductible.
8
NOTE 2 - Summary of Significant Accounting Policies (Continued)
Fair Value of Financial Instruments
Our financial instruments consist of accounts payable and payables to an affiliate. We believe the fair value of our payables reflects their carrying amounts.
In 2007, the FASB issued new guidance relating to the measurement and disclosure of financial assets and liabilities. This guidance established a framework for measuring fair value in GAAP and clarified the definition of fair value within that framework. This guidance does not require assets and liabilities that were previously recorded at cost to be recorded at fair value or for assets and liabilities that are already required to be disclosed at fair value, This guidance introduced, or reiterated, a number of key concepts which form the foundation of the fair value measurement approach to be used for financial reporting purposes. The fair value of the Companys financial instruments reflects the amounts that the Company estimates to receive in connection with the sale of an asset or paid in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). This guidance also established a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into the following three levels:
Level 1quoted prices in active markets for identical assets and liabilities.
Level 2observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3unobservable inputs.
The adoption of this guidance did not have an effect on the Companys financial condition or results of operations, but this guidance introduced new disclosures about how we value certain assets and liabilities. Much of the disclosure is focused on the inputs used to measure fair value, particularly in instances where the measurement uses significant unobservable (Level 3) inputs. As of December 31, 2009 and December 31, 2008, the Company did not have financial assets or liabilities that would require measurement on a recurring basis based on this guidance.
Recently Issued Accounting Pronouncements
In December 2007, the FASB issued SFAS No. 141(revised 2007), Business Combinations, (ASC 805, Business Combinations) ASC 805, which replaces SFAS No. 141. ASC 805 establishes principles and requirements for recognition and measurement of assets, liabilities and any noncontrolling interest acquired due to a business combination. ASC 805 expands the definitions of a business and a business combination, resulting in an increased number of transactions or other events that will qualify as business combinations. Under ASC 805 the entity that acquires the business (the acquirer) will record 100 percent of all assets and liabilities of the acquired business, including goodwill, generally at their fair values. As such, an acquirer will not be permitted to recognize the allowance for loan losses of the acquiree. ASC 805 requires the acquirer to recognize goodwill as of the acquisition date, measured as a residual. In most business combinations, goodwill will be recognized to the extent that the consideration transferred plus the fair value of any noncontrolling interests in the acquiree at the acquisition date exceeds the fair values of the identifiable net assets acquired. Under ASC 805, acquisition-related transaction and restructuring costs will be expensed as incurred rather than treated as part of the cost of the acquisition and included in the amount recorded for assets acquired. ASC 805 is effective for fiscal years beginning after December 15, 2008. The adoption of ASC 805 on July 1, 2009, had no effect on the Companys consolidated financial statements.
9
NOTE 2 - Summary of Significant Accounting Policies (continued)
Recently Issued Accounting Pronouncements (continued)
In May 2009, the FASB issued SFAS No. 165, Subsequent Events (ASC 855, Subsequent Events) ASC 855. ACS 855 establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. Specifically, ASC 855 provides (a) the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements; (b) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements; and (c) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. ASC 855 is effective for interim or annual financial periods ending after June 15, 2009, and shall be applied prospectively. The Company adopted ASC 855 in the second quarter of 2009. The adoption did not materially impact the Company. We considered all subsequent events through February 18, 2009, the date the financial statements were available to be issued.
In June 2009, FASB issued SFAS No.168, FASB Accounting Standards Codification TM and the Hierarchy of Generally Accepted Accounting Principlesa replacement of FASB Statement No. 162 (ASC 105, Generally Accepted Accounting Principles) ASC 105, which states that the FASB Accounting Standards CodificationTM (Codification) will become the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC accounting literature not included in the Codification will become non-authoritative. ASC 105 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The codification is effective for these third quarter financial statements and the principal impact is limited to disclosures as all future references to authoritative literature will be reference in accordance with the codification.
In August 2009, the FASB issued Accounting Standards Update (ASU) No. 2009-05, Fair Value Measurements and Disclosures (Topic 820) Measuring Liabilities at Fair Value. This ASU provides amendments for fair value measurements of liabilities. It provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more techniques. ASU 2009-05 also clarifies that when estimating a fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability. ASU 2009-05 is effective for the first reporting period (including interim periods) beginning after issuance or fourth quarter 2009. The Company is assessing the impact of ASU 2009-05 on our financial condition, results of operations, and disclosures. The implementation of the fair value guidance for nonfinancial assets and nonfinancial liabilities, effective January 1, 2009, did not have a material impact on our consolidated financial position and results of operations.
In October 2009, the FASB issued amendments to the accounting and disclosure for revenue recognition. These amendments, effective for fiscal years beginning on or after June 15, 2010 (early adoption is permitted), modify the criteria for recognizing revenue in multiple element arrangements and the scope of what constitutes a non-software deliverable. The Company is currently assessing the impact (if any) on its consolidated financial position and results of operations.
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Companys financial position, results of operations and cash flows.
10
NOTE 3 - Liquidity and Capital Resources
The Company has no revenues for the period from inception (September 27, 2006) through December 31, 2009, and does not intend to realize revenues until the consummation of a merger with an operating entity. The Companys principal business objective for the next 12 months and beyond will be to achieve long-term growth potential through a business combination rather than short-term earnings. There can be no assurance that the Company will ever consummate the business combination; achieve or sustain profitability or positive cash flows from its operations, reduce expenses or sell ordinary shares. To date, the Company has funded its formation activities primarily through issuances of its ordinary shares and a payable to affiliate.
NOTE 4 - Payable to Affiliate and Accounts Payable
The Company had a payable to affiliate of $9,669 and $8,815 to a Founder of the Company as of December 31, 2009 and June 30, 2009, respectively. The payable is non-interest bearing and payable on demand. The Company also had accounts payable related to the formation of the Company and general and administrative expenses of $2,674 and $1,154 as of December 31, 2009 and June 30, 2009, respectively.
NOTE 5 - Ordinary Shares
On September 27, 2006, the Company was formed with 859,375 shares of its restricted ordinary shares issued at par value of $0.000128 per share, for consideration of $110 to its founding shareholders. The stock, along with a payable issued to a Founder of $2,482, were the basis of the funding of the Companys formation costs. On December 21, 2008, the Company sold 138,900 shares of its restricted ordinary shares for $6,615. The restricted ordinary shares were sold to approximately 450 offshore private investors pursuant to a Private Placement Offering in lots of 300 shares each at approximately $0.05 per share. No underwriting discounts or commissions were paid with respect to such sales.
NOTE 6 - Preference Shares
The Company is authorized to issue 781,250 shares of preference shares with such designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. At December 31, 2009, there were no preference shares issued or outstanding.
NOTE 7 - Commitments and Contingencies
The Company may become subject to various claims and litigation. The Company vigorously defends its legal position when these matters arise. The Company is neither a party to, nor the subject of, any material pending legal proceeding nor to the knowledge of the Company, are any such legal proceedings threatened against the Company.
NOTE 8 Subsequent Events
The Company considered all subsequent events through February 18, 2009, the date the financial statements were available to be issued.
11
ITEM 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Disclosure Regarding Forward Looking Statements
Statements, other than historical facts, contained in this Quarterly Report on Form 10-Q, including statements of potential acquisitions and our strategies, plans and objectives, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Although we believe that our forward looking statements are based on reasonable assumptions, we caution that such statements are subject to a wide range of risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are important factors that could cause actual results to differ materially from the forward looking statements, including, but not limited to; the effect of existing and future laws, governmental regulations and the political and economic climate of the United States; the effect of derivative activities; and conditions in the capital markets. We undertake no duty to update or revise these forward-looking statements.
When used in this Form 10-Q, the words, "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by these forward-looking statements for a number of important reasons.
General
China Growth Corporation (we, us, or the Company) is a development stage company formed solely for the purpose of identifying and entering into a business combination with a privately held business or company, domiciled and operating in an emerging market that is seeking the advantages of being a publicly held corporation whose stock is eventually traded on a major United States stock exchange. We intend to focus on targets located primarily in Asia, South America and Eastern Europe, as we believe that businesses with operating history and growth potential in these locations would benefit significantly from access to the United States capital markets and may offer the potential of capital appreciation stemming from the economic growth in such emerging markets.
Plan of Operation
We have not engaged in any business activities that generate revenue. Our activities to date have been primarily focused upon our formation and raising capital. We have conducted private offerings of our ordinary shares, the proceeds of which we intend to use for payment of costs associated with formation, accounting and auditing fees, legal fees, and costs associated with identifying acquisition targets and completing necessary due diligence. In addition, we expect to incur costs related to filing periodic reports with the Securities and Exchange Commission. We believe we will be able to meet these costs for at least the next 12 months by obtaining loans from our shareholders, management or other investors.
We may consider a business which has recently commenced operations, is a developing company in need of additional funds for expansion into new products or markets, is seeking to develop a new product or service, or is an established business which may be experiencing financial or operating difficulties and is in need of additional capital. In the alternative, a business combination may involve the acquisition of, or merger with, a company which does not need substantial additional capital, but which desires to establish a public trading market for its shares, while avoiding, among other things, the time delays, significant expense, and loss of voting control which may occur in a public offering.
12
Comparison of the six months ended December 31, 2009 and 2008
Because we currently do not have any business operations, we have not had any revenues during the six months ended December 31, 2009 and 2008. Total expenses for the six months ended December 31, 2009 were $2,374 compared with $2,050 for the six months ended December 31, 2008.
Comparison of the three months ended December 31, 2009 and 2008
Because we currently do not have any business operations, we have not had any revenues during the three months ended December 31, 2009 and 2008. Total expenses for the three months ended December 31, 2009 were $2,098 compared with $1,757 for the three months ended December 31, 2008.
Liquidity and Capital Resources
As of December 31, 2009, we had cash and cash equivalents of $1,426 and current liabilities of $9,669 to a related party and $2,674 to unrelated parties. The Company is actively pursuing merger opportunities as described in the General Section of Managements Discussion and Analysis, and believes that it will be able to fund necessary expenses through the continued funding from its founding shareholders in the form of payables, but may seek additional financing in connection with a potential business combination or if it otherwise requires additional funds.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
ITEM 4.
CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures. Our Chief Executive and Financial Officer has reviewed and evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 240.13a-15(e) or 15d-15(e)) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive and Financial Officer has concluded that our current disclosure controls and procedures provide him with reasonable assurance that they are effective to provide him with timely material information relating to us required to be disclosed in the reports we file or submit under the Exchange Act.
Changes in Internal Control over Financial Reporting. There has been no change in our internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 1A. RISK FACTORS.
There have been no material changes to the risk factors previously disclosed under Item 1A of the Companys Annual Report on Form 10-K, filed with the Securities and Exchange Commission on October 8, 2009.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS.
Exhibit
Number
Description
31
Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32
Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| CHINA GROWTH CORPORATION |
Date: February 17, 2010
|
|
| By: /s/ Joseph Rozelle |
| Name: Joseph Rozelle |
| Title: President, Chief Financial Officer and Director |
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