Attached files

file filename
8-K/A - FORM 8-K AMENDMENT - Asia Travel Corpform8kamendmentchinesebusine.htm
EX-99 - Asia Travel Corpex992unauditedfinanicalstate.htm
EX-10 - Asia Travel Corpex102tengdahotelownershiptra.htm
EX-10 - Asia Travel Corpex101leasemanagementagreemen.htm
EX-99 - Asia Travel Corpex991auditedfinancialstateme.htm

Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements


1. Description of the Acquisition and Basis of Presentation


On November 22, 2012, Realgold International, Inc.’s (“Realgold”) wholly owned subsidiary Realgold Venture Pte Limited (“Realgold Venture”), a limited liability company formed under the laws of Hong Kong, entered into a Lease Management Agreement (“Lease Management Agreement”) with Zhuhai Tengfei Investment Co., Ltd. (“Tengfei Investment”), a limited liability company formed under the laws of the People’s Republic of China (“China” or “PRC”). Under the Lease Management Agreement, Tengfei Investment leased the managerial and operating rights of Zhuhai Tengda International Travel Agency Co., Ltd. (“Tengda Travel”), a wholly owned subsidiary of Tengfei Investment, to Realgold Venture.


On November 25, 2012, Realgold Venture entered into an Ownership Transfer Agreement (“Ownership Transfer Agreement’) with Tengfei Investment. Under the Ownership Transfer Agreement, Tengfei Investment transfers to Realgold Venture 100% of the ownership of Zhuhai Tengda Business Hotel Co., Ltd. (“Tengda Hotel”) for a total transfer price of RMB 400,000 Yuan (approximately $64,241).


On November 29, 2012, the Bureau of Science and Technology Industry Trade and Information of Zhuhai City approved the ownership transfer of Tengda Hotel to Realgold Venture. As of January 02, 2012, we have filed the notice of ownership transfer with Guangdong Province Department of Foreign Trade and Economic Cooperation.


Upon the completion of the said ownership transfer, Tengda Hotel becomes the wholly owned subsidiary of Realgold Venture.


Basis of Presentation


Certain disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted as permitted by SEC rules and regulations.


These pro forma unaudited condensed consolidated financial statements are not necessarily indicative of the results of operations that would have been achieved had the transaction actually taken place at the dates indicated and do not purport to be indicative of future position or operating results.


The unaudited pro forma condensed consolidated balance sheet was prepared combining the historical balance sheet of Tengda Travel and Tengda Hotel at September 30, 2012 and the historical balance sheet of Realgold at September 30, 2012, as described above.


The unaudited pro forma condensed consolidated statement of operations includes the historical combined operations of Tengda Travel and Tengda Hotel for the six months ended September 30, 2012 and for the year ended March 31, 2012, and the historical operations of Realgold for the nine months ended September 30, 2012 and for the year ended December 31, 2011.   







Realgold International, Inc.

 

 

 

 

 

 

 

Unaudited Pro Forma Balance sheet

 

 

 

 

 

 

 

As of September 30, 2012

 

 

 

 

 

 

 

 

Combined

 

 

 

 

 

 

 

Tengda Hotel and

 

 

 

 

 

 

 

Tengda Travel

 

 Realgold

 

Adjustments

 

Consolidated

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and equivalents  

 $ 13,692 

 

 $ 494,754 

 

 $ (64,241)

A

 $ 444,205 

Accounts receivable

  -   

 

  -   

 

 

 

  -   

Other receivables

  -   

 

  -   

 

 

 

  -   

Prepaid expenses and other current assets

59,659 

 

 

 

 

59,659 

                       Total current assets

  73,351 

 

  494,754 

 

 

 

  503,864 

 

 

 

 

 

 

 

 

SHAREHOLDERS RECEIVABLES

  - 

 

  - 

 

 

 

  - 

PROPERTY, PLANT AND EQUIPMENT, Net

  39 

 

  - 

 

 

 

  39 

TOTAL ASSETS

 $ 73,390 

 

 $ 494,754 

 

 

 

 $ 503,903 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

        Accounts payables

 $ 13,815 

 

 $ 19,800 

 

 

 

 $ 33,615 

        Accrued expenses and other payables

  1,039 

 

  - 

 

 

 

  1,039 

        Related Party Payable

  48,526 

 

  12,442 

 

 

 

  60,968 

                   Total current liabilities

  63,380 

 

  32,242 

 

 

 

  95,622 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

  63,380 

 

  32,242 

 

 

 

  95,622 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Preferred stock; $.001 par value, 10,000,000 sharesauthorized; 20,000  shares issued and outstanding,

 

 

  20 

 

 

 

  20 

Common stock; $.001 par value, 25,000,000 shares $.001 par value, 90,000,000 shares authorized; 7,270,101 shares issued and outstanding

 

 

  7,270 

 

 

 

  7,270 

Registered capital

  122,625 

 

  -   

 

  (122,625)

A

  -   

Capital in excess of par value

  - 

 

  8,590,708 

 

  (53,929)

A

  8,536,779 

Accumulated retained earnings

  (112,313)

 

  (8,135,486)

 

  112,313 

A

  (8,135,486)

Accumulated other comprehensive income

  (302)

 

  -   

 

  -   

 

  (302)

                   Total stockholders' equity

  10,010 

 

  462,512 

 

  (64,241)

 

  408,281 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 $ 73,390 

 

 $ 494,754 

 

 $ (64,241)

 

 $ 503,903 

 

 

 

 

 

 

 

 

See Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

 

 

 

 

 

 

 

 

     


     











Realgold International, Inc.

 

 

 

 

 

 

 

 

 

Unaudited Pro Forma Statement of Operations and Comprehensive Income

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical

 

 

 

 

 

 

 

Combined

 

 

 

 

 

 

 

 

 

Tengda Hotel and

 

 

 

 

 

Combined

 

 

 

Tengda Travel

 

Realgold

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 $ 131,461 

 

 $ -   

 

 

 

 $ 131,461 

 

 

Cost of sales

115,594 

 

 

 

 

115,594 

 

 

Gross Margin

15,867 

 

 

 

 

15,867 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

General and administrative expenses

  24,496 

 

  29,613 

 

  16,000 

B

  70,109 

 

 

Selling expense

35,271 

 

 

 

 

  35,271 

 

 

Total operating expenses

59,767 

 

29,613 

 

 

 

105,380 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from Operations

  (43,900)

 

  (29,613)

 

 

 

  (89,513)

 

 

 

 

 

 

 

 

 

 

 

 

Other  Income (Expenses)

 

 

 

 

 

 

 

 

 

Interest income

14 

 

 

 

 

14 

 

 

Other income (expenses)

  - 

 

  - 

 

 

 

  - 

 

 

    Total other income

  14 

 

  - 

 

 

 

  14 

 

 

 

 

 

 

 

 

 

 

 

 

Loss Before Income Tax

  (43,886)

 

  (29,613)

 

 

 

  (89,499)

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Provision

  - 

 

  - 

 

 

 

  - 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 $ (43,886)

 

 $ (29,613)

 

 

 

 $ (89,499)

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share - basic and diluted

 

 

 $ (0.02)

 

 

 

 $ (0.06)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

1,393,389 

 

 

 

1,393,389 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 






2. Pro Forma Adjustments and Assumptions


A.

To record the purchase price that Realgold paid for the business combination and eliminate equity.


B.

Reflects the incremental costs of lease payment RMB100,000 (approximate USD16,000) per year.


C.

Reflects the incremental costs of Tengda Travel lease payment approximately USD4,000 per quarter.  Tengda Hotel and Tengda Travel three months income and expenses from January 1, 2012 to March 31, 2012 was not included since it was included in the twelve month pro forma report ended December 31, 2011.