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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Asia Carbon Industries Inc (CE) | USOTC:ACRB | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.000001 | 0.00 | 01:00:00 |
x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Maryland
|
26-2895795
|
|
State or other jurisdiction of
Incorporation or organization
|
(I.R.S. Employer
Identification No.)
|
Xi Gu Nan Street, Qing Xu County, Taiyuan City
Shanxi Province, People’s Republic of China
|
030407
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
x
Yes
¨
No
|
Large accelerated filer
¨
|
Accelerated filer
¨
|
Non-accelerated filer
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
x
|
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
o
Yes
x
No
|
|
Page
|
|
PART I
|
||
Item 1.
|
2
|
|
Item 1A.
|
15
|
|
Item 1B.
|
15
|
|
Item 2.
|
15
|
|
Item 3.
|
16
|
|
Item 4.
|
16
|
|
PART II
|
||
Item 5.
|
17
|
|
Item 6.
|
19
|
|
Item 7.
|
19
|
|
Item 7A.
|
24
|
|
Item 8.
|
25
|
|
Item 9.
|
25
|
|
Item 9A.
|
26
|
|
Item 9B.
|
||
PART III
|
||
Item 10.
|
27
|
|
Item 11.
|
30
|
|
Item 12.
|
32
|
|
Item 13.
|
33
|
|
Item 14.
|
33
|
|
PART IV
|
||
Item 15.
|
34
|
Item
1.
|
Business
|
·
|
Entrusted Management Agreement –
pursuant to this agreement entered into by and among the Hongxing Shareholders, Hongxing, and Liteweisi, the Hongxing Shareholders and Hongxing entrust the management of Hongxing to Liteweisi until (a) the winding up of Hongxing, (b) the termination date of the agreement as determined by the parties, or (c) the date on which Liteweisi acquires Hongxing. During the term, Liteweisi is fully and exclusively responsible for the management of Hongxing. In consideration of such services, the Hongxing Shareholders and Hongxing will pay a fee to Liteweisi as set forth in the agreement.
|
·
|
Exclusive Option Agreement –
pursuant to this agreement entered into by and among Liteweisi, the Hongxing Shareholders, and Hongxing, the Hongxing Shareholders grant Liteweisi an irrevocable exclusive purchase option to purchase all or part of the shares of Hongxing, currently owned by any of the Hongxing Shareholders. Further, Hongxing grants Liteweisi an irrevocable exclusive purchase option to purchase all or part of the assets and business of Hongxing. Liteweisi and the Hongxing Shareholders will enter into relevant agreements regarding the price of acquisition based on the circumstances of the exercise of the option, and the consideration shall be refunded to Liteweisi or Hongxing at no consideration in an appropriate manner decided by Liteweisi. Upon the exercise of the option, Liteweisi will be subject to non-competition restrictions as set forth in the agreement.
|
·
|
Exclusive Purchase Agreement
– pursuant to this agreement entered into by and among Liteweisi and Hongxing, Hongxing grants to Liteweisi the sole and exclusive right of purchasing all the products produced and manufactured by Hongxing at a price which is equal to the total cost of the products subject to adjustments by the parties’ mutual written agreement.
|
·
|
Pledge of Equity Agreement
–pursuant to this agreement entered into by and among the Hongxing Shareholders (as Pledgors), and Liteweisi (as Pledgee), the equity interest of the Hongxing Shareholders is pledged to guarantee all of the rights and interest Liteweisi is entitled to under the Entrusted Management Agreement, the Exclusive Option Agreement, and the Shareholders’ Voting Proxy Agreement. The Hongxing Shareholders pledge, by way of a first priority pledge, all of its rights, title and interest in (i) 100% of the equity interest in Hongxing, (ii) 100% of the registered capital of Hongxing, (iii) all investment certificates and other documents in respect of the registered capital of Hongxing, (iv) all money, dividends, interest and benefits at any time arising in respect of all the equity interest and registered capital of Hongxing, and (v) all voting rights and all other rights and benefits attaching to or accruing to the equity interest of the registered capital of Hongxing to Liteweisi.
|
·
|
Shareholders’ Voting Proxy Agreement
– pursuant to this agreement entered into by and among the Hongxing Shareholders and Liteweisi, the Hongxing Shareholders irrevocably appoint the persons designated by Liteweisi with the exclusive right to exercise, on their behalf, all of their voting rights of Hongxing. The persons designated by Liteweisi shall be the full board of directors of Liteweisi.
|
Name |
Percentage of Purchases (%)
2012
|
Percentage of Purchases (%)
2011
|
||||||
Taiyuan Coal Gasification Co.,Ltd
|
11
|
13
|
||||||
Taiyuan Gengyang Industries Co., Ltd
|
11
|
13
|
||||||
Taiyuan Dongsheng Coking & Gas Co.,Ltd
|
11
|
13
|
||||||
Shanxi Shenlong Energy Coking Co., Ltd
|
11
|
-
|
|
|||||
Shanxi Xishan Coal Gasification Co., Ltd
|
11
|
-
|
||||||
Shanxi Tianxing Coal Gasification Co., Ltd
|
14
|
13
|
||||||
Shanxi Donghui Coal Chemical Co., Ltd
|
14
|
12
|
||||||
Shanxi Changyuan Coking Co., Ltd
|
2
|
12
|
||||||
Xiaoyi Jinhui Cold & Coking Co.,Ltd
|
2
|
12
|
||||||
Shanxi Yinyan Energy Development Co., Ltd.
|
2 | 12 | ||||||
Total Purchases
|
89
|
100
|
Company Name
|
Percentage of 2012
|
Percentage of 2011
|
||||||
1
Xuzhou Xulun Rubber Co., Ltd.
|
22
|
%
|
30
|
%
|
||||
2
Shifeng Juxing Tire Co., Ltd.
|
19
|
%
|
22
|
%
|
||||
3
Shandong Luhe Group Co., Ltd.
|
12
|
%
|
10
|
%
|
||||
4
Company D
|
10
|
%
|
13
|
%
|
||||
5
Company E
|
8
|
%
|
10
|
%
|
||||
Total Sales
|
71
|
%
|
85
|
%
|
·
|
We are close to the areas where our raw material, coal tar oil is produced. As a result, we could have stable raw material suppliers with lower transportation cost.
|
·
|
We are growing with our customers together.
|
·
|
Our flat management structure lowered management cost.
|
·
|
As a result of the foregoing, we have a higher net profit rate compared to the top manufacturers in China.
|
Item
1A.
|
Risk Factors
|
Item
1B.
|
Unresolved Staff Comments
|
Item
2.
|
Properties
|
1 | 2 | 3 | 4 | |||||||||
Owner
|
Hongxing
|
Hongxing
|
Hongxing
|
Hongxing
|
||||||||
Location
|
Xigu village South,Qingxu County
|
Xigu village South,Qingxu County
|
Xigu village South,Qingxu County
|
Xigu village South,Qingxu County
|
||||||||
Category
|
Office building
|
Manufacturing office
|
Warehouse
|
Factory plant
|
||||||||
Area (
㎡
)
|
1358
|
1040
|
3447
|
2089
|
||||||||
Usage of Design
|
Management center
|
Manufacturing Management
|
Storage
|
Manufacturing
|
||||||||
Structure
|
Frame structure
|
Brick and concrete structure
|
Steel frame
|
Brick and concrete structure
|
||||||||
Encumbrances
|
No
|
No
|
No
|
No
|
No.
|
Lessor
|
Location
|
Term
|
Rent per Year (RMB)
|
||||||||
1 |
Xigu Village, Qingxu County
|
Xigu Village,Qingxu County
|
2003.07-2053.07
|
10,000
|
||||||||
2 |
Xigu Village, Qingxu County
|
Xigu Village,Qingxu County
|
2006.07-2056.06
|
10,000
|
(1)
|
49 mu (8.07 acre) parcel of land. The lease terms are for a yearly payment of RMB10,000 ($1,605) through July, 2053.
|
(2)
|
Second 49 mu (8.07 acre) parcel of land. The lease terms were for a yearly payment of RMB 10,000 ($1,605) through June, 2056.
|
Item
3.
|
Legal Proceedings
|
Item
4.
|
Mine Safety disclosures
|
Item
5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
High
|
Low
|
|||||||
Year ended December 31, 2010
|
||||||||
4th Quarter
|
$
|
1.20
|
$
|
1.01
|
||||
Year ended December 31, 2011
|
||||||||
1
st
Quarter
|
$
|
1.02
|
$
|
1.01
|
||||
2
nd
Quarter
|
$
|
1.02
|
$
|
0.66
|
||||
3
rd
Quarter
|
$
|
0.95
|
$
|
0.51
|
||||
4
th
Quarter
|
$
|
0.74
|
$
|
0.42
|
||||
Year ended December 31, 2012
|
||||||||
1
st
Quarter
|
$
|
0.64
|
$
|
0.45
|
||||
2
nd
Quarter
|
$
|
0.50
|
$
|
0.28
|
||||
3
rd
Quarter
|
$
|
0.35
|
$
|
0.20
|
||||
4
th
Quarter
|
$
|
0.23
|
$
|
0.14
|
Plan Category
|
Number of securities
to be issued
upon exercise of
outstanding options,
warrants and rights
(a)
|
Weighted average exercise
price of outstanding
options, warrants and
rights
(b)
|
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column (a))
(c)
|
|||||||||
Equity compensation plans approved by security holders
|
--
|
$
|
--
|
--
|
||||||||
Equity compensation plans not approved by security holders
|
295,000
|
$
|
$0.64
|
3,705,000
|
||||||||
Total
|
295,000
|
$
|
$0.64
|
3,705,000*
|
Item
6.
|
Selected Financial Data
|
Item
7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
2012
|
2011
|
||||||||||||||||
Product
|
Sales
|
Quantity
(Metric Tons)
|
Sales
|
Quantity
(Metric Tons)
|
|||||||||||||
N220 | $ | 26,164,315 | 27,156 | $ | 31,773,444 | 30,668 | |||||||||||
N330 | 10,323,933 | 11,760 | 7,883,618 | 8,492 | |||||||||||||
N660 | 6,368,588 | 7,602 | 7,728,838 | 8,493 | |||||||||||||
Naphthalene oil
|
3,080,978 | 4,100 | 1,736,144 | 2,030 | |||||||||||||
Total Sales
|
$ | 45,937,814 | 50,618 | $ | 49,122,044 | 49,683 |
Total
|
Current
|
31-90 days
|
91-120 days
|
121-360 days
|
Over 361 days
|
|||||||||||||||||||
2012
|
100.00 | % | 79.13 | % | 19.40 | % | 0.00 | % | 1.47 | % | 0.00 | % | ||||||||||||
2011
|
100.00 | % | 90.50 | % | 8.69 | % | 0.00 | % | 0.00 | % | 0.81 | % |
2012
|
2011
|
|||||||
To Xigu Credit Union
|
||||||||
Interest at 13.25%, payable April 28, 2012
|
$ | - | $ | 511,658 | ||||
Interest at 12%, payable December 26, 2013
|
497,581 | - | ||||||
To Chengguan Credit Union
|
||||||||
Interest at 13.25%, payable April 28, 2012
|
- | 864,416 | ||||||
Interest at 12%, payable December 26, 2013
|
866,433 | - | ||||||
Total Short Term Debt
|
$ | 1,364,014 | $ | 1,376,074 |
Item
7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item
8.
|
Financial Statements and Supplementary Data
|
Page
|
|
Report of Independent Registered Public Accounting Firm
|
F - 1
|
Consolidated Balance Sheets
December 31, 2012 and 2011
|
F - 2
|
Consolidated Statements of Income and Comprehensive Income
Years Ended December 31, 2012 and 2011
|
F - 3
|
Consolidated Statements of Stockholders’ Equity
Years Ended December 31, 2012 and 2011
|
F - 4
|
Consolidated Statements of Cash Flows
Years Ended December 31, 2012 and 2011
|
F - 5
|
Notes to Consolidated Financial Statements
|
F - 6
|
December 31,
|
||||||||
2012
|
2011
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and equivalents
|
$ | 6,664,444 | $ | 8,092,411 | ||||
Accounts receivable, net
|
3,622,644 | 4,404,319 | ||||||
Inventories
|
2,393,121 | 3,146,756 | ||||||
Prepaid expenses
|
6,420 | 11,138 | ||||||
Total Current Assets
|
12,686,629 | 15,654,624 | ||||||
Property, Plant and Equipment, Net
|
26,906,929 | 18,431,407 | ||||||
Other Assets:
|
||||||||
Land use rights, net
|
214,356 | 217,145 | ||||||
TOTAL ASSETS
|
$ | 39,807,914 | $ | 34,303,176 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Short term debt
|
$ | 1,364,014 | $ | 1,376,074 | ||||
Accounts payable
|
1,962,695 | 4,009,531 | ||||||
Accrued liabilities
|
169,302 | 153,735 | ||||||
Taxes payable
|
714,413 | 694,219 | ||||||
Investor deposit payable
|
- | 49,985 | ||||||
Due to shareholder
|
26,625 | 26,415 | ||||||
Total Liabilities
|
4,237,049 | 6,309,959 | ||||||
Commitments and Contingencies
|
||||||||
Stockholders' Equity:
|
||||||||
Series A Convertible Preferred Stock, $0.001 par value, 5,000,000
authorized, none issued and outstanding
|
- | - | ||||||
Blank Check Preferred Stock, $0.001 par value, 5,000,000
authorized, none issued and outstanding
|
- | - | ||||||
Common Stock, $0.001 par value, 100,000,000 authorized, 52,857,052 and 50,978,580
issued and outstanding at December 31, 2012 and 2011, respectively
|
52,857 | 50,979 | ||||||
Additional paid-in capital
|
6,690,461 | 5,942,339 | ||||||
Statutory reserves
|
2,757,200 | 2,025,737 | ||||||
Retained earnings
|
22,859,898 | 17,138,113 | ||||||
Accumulated other comprehensive income
|
3,210,449 | 2,836,049 | ||||||
Total Stockholders' Equity
|
35,570,865 | 27,993,217 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 39,807,914 | $ | 34,303,176 |
2012
|
2011
|
|||||||
Net Sales
|
$ | 45,937,814 | $ | 49,122,044 | ||||
Cost of Sales
|
35,307,446 | 37,820,109 | ||||||
Gross Profit
|
10,630,368 | 11,301,935 | ||||||
Operating Expenses:
|
||||||||
Depreciation
|
233,416 | 235,765 | ||||||
Bad debts
|
26,078 | (17,000 | ) | |||||
Selling
|
341,703 | 305,245 | ||||||
Professional fees
|
263,501 | 313,000 | ||||||
Consulting fees
|
3,000 | 117,800 | ||||||
Other general and administrative
|
696,119 | 253,156 | ||||||
Total
|
1,563,817 | 1,207,966 | ||||||
Income From Operations
|
9,066,551 | 10,093,969 | ||||||
Other Income and (Expense)
|
||||||||
Interest income
|
30,018 | 35,609 | ||||||
Interest expense
|
(196,021 | ) | (156,580 | ) | ||||
Total Other Income and (Expense)
|
(166,003 | ) | (120,971 | ) | ||||
Income Before Provision for Income Tax
|
8,900,548 | 9,972,998 | ||||||
Provision for Income Tax
|
2,447,300 | 2,661,717 | ||||||
Net Income
|
6,453,248 | 7,311,281 | ||||||
Other Comprehensive Income - foreign currency translation
|
374,400 | 1,140,695 | ||||||
Comprehensive Income
|
$ | 6,827,648 | $ | 8,451,976 | ||||
Earnings Per Share - Basic and Diluted
|
$ | 0.12 | $ | 0.14 | ||||
Weighted Average Shares Outstanding - Basic and Diluted
|
52,093,867 | 50,666,166 |
Preferred Stock | Common Stock |
Additional
Paid-In
|
Statutory | Retained |
Accumulated
Other
Comprehensive
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Reserves
|
Earnings
|
Income
|
Total
|
||||||||||||||||||||||||||||
Balance - December 31, 2010
|
- | $ | - | 50,608,077 | $ | 50,608 | $ | 5,533,737 | $ | 1,224,559 | $ | 10,628,010 | $ | 1,695,354 | $ | 19,132,268 | ||||||||||||||||||||
Shares issued
|
- | - | 345,503 | 346 | 254,962 | - | - | - | 255,308 | |||||||||||||||||||||||||||
Common stock issued for services
|
- | - | 25,000 | 25 | 17,725 | - | - | - | 17,750 | |||||||||||||||||||||||||||
Options issued for services
|
- | - | - | - | 135,915 | - | - | - | 135,915 | |||||||||||||||||||||||||||
Allocation of statutory reserves
|
- | - | - | - | - | 801,178 | (801,178 | ) | - | - | ||||||||||||||||||||||||||
Net income for year
|
- | - | - | - | - | - | 7,311,281 | - | 7,311,281 | |||||||||||||||||||||||||||
Foreign currency translation adjustment
|
- | - | - | - | - | - | - | 1,140,695 | 1,140,695 | |||||||||||||||||||||||||||
Balance - December 31, 2011
|
- | - | 50,978,580 | 50,979 | 5,942,339 | 2,025,737 | 17,138,113 | 2,836,049 | 27,993,217 | |||||||||||||||||||||||||||
Shares issued
|
- | - | 878,472 | 878 | 299,122 | - | - | - | 300,000 | |||||||||||||||||||||||||||
Common stock issued for services
|
- | - | 1,000,000 | 1,000 | 449,000 | - | - | - | 450,000 | |||||||||||||||||||||||||||
Allocation of statutory reserves
|
- | - | - | - | - | 731,463 | (731,463 | ) | - | - | ||||||||||||||||||||||||||
Net income for year
|
- | - | - | - | - | - | 6,453,248 | - | 6,453,248 | |||||||||||||||||||||||||||
Foreign currency translation adjustment
|
- | - | - | - | - | - | - | 374,400 | 374,400 | |||||||||||||||||||||||||||
Balance - December 31, 2012
|
- | $ | - | 52,857,052 | $ | 52,857 | $ | 6,690,461 | $ | 2,757,200 | $ | 22,859,898 | $ | 3,210,449 | $ | 35,570,865 |
2012
|
2011
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net Income
|
$ | 6,453,248 | $ | 7,311,281 | ||||
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
|
||||||||
Provision (reduction) for allowances, returns and doubtful accounts
|
26,078 | (17,000 | ) | |||||
Depreciation
|
1,806,002 | 1,322,452 | ||||||
Amortization of land use rights
|
4,927 | 4,809 | ||||||
Common stock issued for services
|
450,000 | 17,750 | ||||||
Options issued for services
|
- | 135,915 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Decrease in accounts receivable
|
794,825 | 1,642,959 | ||||||
Decrease (increase) in inventories
|
753,635 | (1,670,695 | ) | |||||
Decrease (increase) in prepaid expenses
|
4,718 | (5,077 | ) | |||||
(Decrease) increase in accounts payable
|
(2,046,836 | ) | 96,324 | |||||
Increase (decrease) in accrued expenses
|
15,567 | (9,783 | ) | |||||
Increase (decrease) in taxes payable
|
20,194 | (202,132 | ) | |||||
Net Cash Provided by Operating Activities
|
8,282,358 | 8,626,803 | ||||||
Cash Flows from Investing Activities:
|
||||||||
Capital expenditures
|
(9,348,419 | ) | (6,663,431 | ) | ||||
Net Cash Used in Investing Activities
|
(9,348,419 | ) | (6,663,431 | ) | ||||
Cash Flows from Financing Activities:
|
||||||||
Proceeds from short term debt
|
2,708,790 | 1,376,074 | ||||||
Repayment of short term debt
|
(2,734,470 | ) | (1,376,074 | ) | ||||
Cash advance from shareholder
|
- | 5,593 | ||||||
Proceeds from investor deposit payable
|
- | 49,985 | ||||||
Proceeds from shares issued
|
250,015 | 255,308 | ||||||
Net Cash Provided by Financing Activities
|
224,335 | 310,886 | ||||||
Effect of Exchange Rate Changes on Cash
|
(586,241 | ) | 101,011 | |||||
Net (Decrease) Increase in Cash and Equivalents
|
(1,427,967 | ) | 2,375,269 | |||||
Cash and Equivalents - Beginning of Year
|
8,092,411 | 5,717,142 | ||||||
Cash and Equivalents - End of Year
|
$ | 6,664,444 | $ | 8,092,411 | ||||
Supplemental Cash Flow Information:
|
||||||||
Interest Paid
|
$ | 198,865 | $ | 155,266 | ||||
Income taxes
|
$ | 2,564,516 | $ | 2,749,075 | ||||
Supplemental Schedule of Non-Cash Investing Activities:
|
||||||||
Obligation payable to seller of assets acquired
|
$ | - | $ | 53,023 |
2012
|
2011
|
|||||||
RMB/US$ exchange rate at year-end
|
0.1605 | 0.1589 | ||||||
Average RMB/US$ exchange rate for the years
|
0.1585 | 0.1547 |
2012
|
2011
|
|||||||
Accounts receivable
|
$ | 3,694,429 | $ | 4,489,254 | ||||
Allowance for doubtful accounts
|
(71,785 | ) | (84,935 | ) | ||||
Accounts receivable, net
|
$ | 3,622,644 | $ | 4,404,319 |
2012
|
2011
|
|||||||
Raw materials
|
$ | 1,277,286 | $ | 1,172,747 | ||||
Packing and other materials
|
40,664 | 43,762 | ||||||
Finished products
|
1,075,171 | 1,930,247 | ||||||
$ | 2,393,121 | $ | 3,146,756 |
Estimated
|
|||||||||||
Useful Lives
|
2012
|
2011
|
|||||||||
Plant
|
20 | $ | 8,340,697 | $ | 5,784,796 | ||||||
Machinary and equipment
|
10 | 16,839,670 | 16,750,387 | ||||||||
Transportation equipment
|
5 | 117,750 | 116,569 | ||||||||
Other machinary and equipment
|
5 | 61,938 | 57,980 | ||||||||
Construction in progress
|
4,969,047 | - | |||||||||
30,329,102 | 22,709,732 | ||||||||||
Less: accumulated depreciation
|
3,422,173 | 4,278,325 | |||||||||
$ | 26,906,929 | $ | 18,431,407 |
2012
|
2011
|
|||||||
Land use rights
|
$ | 249,453 | $ | 246,951 | ||||
Less: accumulated amortization
|
35,097 | 29,806 | ||||||
Land use rights, net
|
$ | 214,356 | $ | 217,145 |
2012
|
2011
|
|||||||
To Xigu Credit Union
|
||||||||
Interest at 13.25%, payable April 28, 2012
|
$ | - | $ | 511,658 | ||||
Interest at 12%, payable December 26, 2013
|
497,581 | - | ||||||
To Chengguan Credit Union
|
||||||||
Interest at 13.25%, payable April 28, 2012
|
- | 864,416 | ||||||
Interest at 12%, payable December 26, 2013
|
866,433 | - | ||||||
Total Short Term Debt
|
$ | 1,364,014 | $ | 1,376,074 |
2012
|
2011
|
|||||||
PRC corporation income tax
|
$ | 464,481 | $ | 581,697 | ||||
Value added tax
|
230,352 | 102,032 | ||||||
Other
|
19,580 | 10,490 | ||||||
Total
|
$ | 714,413 | $ | 694,219 |
2012
|
2011
|
|||||||
US statutory tax rate
|
34.0 | % | 34.0 | % | ||||
Tax rate difference
|
(9.0 | )% | (9.0 | )% | ||||
Changes in valuation allowance
|
2.5 | % | 1.7 | % | ||||
Effective rate
|
27.5 | % | 26.7 | % |
2012
|
2011
|
||||||||||||||||
Customer
|
% of Sales
|
Accounts Receivable Balance
|
% of Sales
|
Accounts Receivable Balance
|
|||||||||||||
A | 22 | % | $ | 859,287 | 30 | % | $ | 1,414,858 | |||||||||
B | 19 | % | 572,731 | 22 | % | 1,068,411 | |||||||||||
C | 10 | % | 77,430 | 13 | % | 543,527 | |||||||||||
D | 12 | % | 462,654 | 10 | % | 541,023 | |||||||||||
E | * | - | 10 | % | 362,395 | ||||||||||||
Total
|
63 | % | $ | 1,972,102 | 85 | % | $ | 3,390,214 |
* |
Percentage of total sales was less than 10%.
|
2012
|
2011
|
||||||||||||||||
Vendor
|
% of Purchases
|
Accounts Payble Balance
|
% of Purchases
|
Accounts Payble Balance
|
|||||||||||||
A | * | $ | - | 12 | % | $ | 404,063 | ||||||||||
B | * | - | 12 | % | 422,865 | ||||||||||||
C | * | - | 12 | % | 403,190 | ||||||||||||
D | 11 | % | 11,289 | 13 | % | 467,603 | |||||||||||
E | 11 | % | 15,159 | 13 | % | 443,226 | |||||||||||
F | 11 | % | 13,725 | 13 | % | 456,386 | |||||||||||
G | 14 | % | 352,289 | 13 | % | 477,812 | |||||||||||
H | 14 | % | 360,145 | 12 | % | 472,170 | |||||||||||
I | 11 | % | 191,927 | * | - | ||||||||||||
K | 11 | % | 201,202 | * | - | ||||||||||||
Total
|
83 | % | $ | 1,145,736 | 100 | % | $ | 3,547,314 |
* |
Percentage of purchase was less than 10%.
|
Item
9.
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
Item
9A.
|
Controls and Procedures
|
1.
|
Recruit qualified staff for internal control positions and develop a suitable internal control system to provide effective oversight of our internal control over financial reporting.
|
2.
|
Establish a suitable internal control system within the Company in accordance with the SOX compliance requirements. We may look for outside help, including engage the services of qualified consultants with Chinese GAAP, US GAAP and SEC reporting experiences.
|
3.
|
Continue training for all accounting and other related staff.
|
Item
9B.
|
Other Information
|
Item
10.
|
Directors, Executive Officers and Corporate Governance
|
Name
|
Age
|
Position
|
||
Guoyun Yao
|
51 |
Chief Executive Officer, President, Secretary and Chairman of the Board
|
||
Chunde Meng
|
50 |
Director and Chief Operating Officer
|
||
Xiaolong Zhou
|
61 |
Chief Financial Officer
|
||
Lei Shi
|
34 |
Director and Vice President – Finance
|
||
Jianjun Wang
|
32 |
Director and Assistant Vice President - Finance
|
||
Baozhu Ren
|
48 |
Director
|
Directors and Executive Officers
|
Position/Title
|
Age
|
|||
Guoyun Yao
|
Chairman of Board
|
51
|
|||
Chunde Meng
|
General Manager
|
50
|
|||
Faqua Bai
|
Deputy General Manager
|
50
|
|||
Baozhu Ren
|
Deputy General Manager
|
48
|
|||
Lei Shi
|
Deputy General Manager -- Corporate Finance and Sales
|
34
|
|||
Jianjun Wang
|
Deputy General Manager, Finance
|
32
|
|||
Tielong Fu
|
Chief Engineer
|
41
|
|||
●
|
Had a bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.
|
●
|
Been convicted in a criminal proceeding or been subject to a pending criminal proceeding, excluding traffic violations and other minor offenses.
|
●
|
Been subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities.
|
●
|
Been found by a court of competent jurisdiction (in a civil action), the SEC, or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
|
●
|
Been the subject to, or a party to, any sanction or order, not subsequently reverse, suspended or vacated, of any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
|
Item
11.
|
Executive Compensation
|
Name and
Principal Position
|
Fiscal
Year
|
Salary
($)
|
Bonus
($)
|
Stock Awards ($)
|
Option
Awards ($)
|
Non-Equity Incentive Plan Compensation ($)
|
Non-
Qualified Deferred Compensation Earnings
($)
|
All Other Compensation ($)
|
Total
($)
|
||||||||||||||||||||||||||
Guoyun Yao
President, CEO, Secretary, and Chairman (1) (2)
|
2011
2012
|
$ |
7,627
7,609
|
$
|
—
—
|
$
|
—
90,000
|
$
|
—
—
|
$
|
—
—
|
$
|
—
—
|
$
|
—
—
|
$
|
7,627
97,609
|
||||||||||||||||||
Xiaolong Zhou
CFO (3)
|
2011
2012
|
50,000
50,000
|
—
—
|
—
—
|
49,736
—
|
—
—
|
—
—
|
—
—
|
99,736
50,000
|
(1)
|
Guoyun Yao has been serving as our President, CEO, and Secretary since May 2010.
|
(2)
|
Bonus payment is dependent upon the profitability of the Company. Ms. Guoyun Yao is entitled to receive RMB30,000 ($4,815) as a bonus per-annum. Ms. Yao was granted 200,000 shares of Common Stock under the Plan on March 16, 2012. Applying the closing price of $0.45 of the shares on March 15, 2012, the initial value of the Stock Awards is $90,000.
|
(3)
|
Xiaolong Zhou has been serving as our Chief Financial Officer since September 1, 2008.
|
Item
12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Title of Class
|
Name and Address
of Beneficial Owner
(1)
|
Common Stock Beneficially Owned
|
Percent of
Common Stock
(2)
|
|||||||
Common Stock
|
Guoyun Yao, Chief Executive Officer, President, Secretary and Chairman of the Board of Directors
|
20,780,064 | 37.9 | % | ||||||
|
||||||||||
Common Stock
|
Xiaolong Zhou, Chief Financial Officer
Address: 85-19 54th Ave
Elmhurst NY 11373
|
250,000 | (3) | * | ||||||
Common Stock
|
Chunde Meng, Chief Operating Officer and Director
|
3,435,391 | 6.3 | % | ||||||
|
||||||||||
Common Stock
|
Lei Shi, Vice President of Finance and Director
|
60,000 | * | |||||||
|
||||||||||
Common Stock
|
Jianjun Wang, Assistant Vice President of Finance and Director
|
90,000 | * | |||||||
Common Stock
|
Baozhu Ren, Director
|
90,000 | * | |||||||
Common Stock
|
All Directors and Officers of the Company as a group
|
24,705,455 | 44.8 | % | ||||||
(1)
|
Unless otherwise indicated in the table above, the address of each beneficial owner is c/o Yuyuan1-1-705, Bei Mei Xintiandi, 116 Changfeng Jie Xiaodian County, Taiyuan City, Shanxi Province, China 030001.
|
(2)
|
Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), a person has beneficial ownership of any securities as to which such person, directly or indirectly, through any contract, arrangement, undertaking, relationship or otherwise has or shares voting power and/or investment power or as to which such person has the right to acquire such voting and/or investment power within 60 days. As of March 10, 2013, we had 54,888,910 outstanding shares of common stock. Certain beneficial owner listed in the table holds option to acquire any shares of our common within 60 days of the date of March 10, 2013, the calculation of percentage of class held by such owner include such shares that could be acquired upon the option exercise with the 60-day period.
|
|
(3)
|
This figure includes an option to purchase 220,000 shares of common stock of the Company from January 1, 2012 to December 31, 2014 at $0.64 per share under the 2011 Incentive Stock Plan.
|
Item
13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item
14.
|
Principal Accounting Fees and Services
|
Fiscal year ended December 31,
|
||||||||
2011
|
2012
|
|||||||
Audit fees
|
$
|
105,691
|
$
|
107,500
|
||||
Audit-related fees
|
-
|
-
|
||||||
Tax fees
|
-
|
-
|
||||||
All other fees
|
-
|
-
|
||||||
Total
|
$
|
105,691
|
$
|
107,500
|
Item
15.
|
Exhibits, Financial Statement Schedules
|
Exhibit Number
|
Description
|
3.1
|
Articles of Incorporation filed with the Secretary of State of the State of Maryland on June 23, 2008*
|
3.2
|
Bylaws of the Company*
|
10.1
|
Lease Agreement, dated June 14, 2006, by and between the villager Committee of Xigu village, Qingxu County, and Taiyuan Hongxing Carbon Black Co., Ltd.*
|
10.2
|
Lease Agreement, dated July 18, 2003, by and between the villager Committee of Xigu village, Qingxu County, and Taiyuan Hongxing Carbon Black Co., Ltd.*
|
10.3
|
Registered Trademark License Contract, by and between Guoyun Yao and Taiyuan Hongxing Carbon Black Co., Ltd.*
|
10.4
|
Entrusted Management Agreement, by and among Yao Guoyun, Meng Chun De, Taiyuan Hongxing Carbon Black Co., Ltd., and Jin Zheng Li Te Wei Si Carbon (Taiyuan) Co., Ltd.**
|
10.5
|
Exclusive Option Agreement, by and among Jin Zheng Li Te Wei Si Carbon (Taiyuan) Co., Ltd., Yao Guoyun, Meng Chun De, and Taiyuan Hongxing Carbon Black Co., Ltd.**
|
10.6
|
Exclusive Option Agreement, by and among Jin Zheng Li Te Wei Si Carbon (Taiyuan) Co., Ltd., Yao Guoyun, Meng Chun De, and Taiyuan Hongxing Carbon Black Co., Ltd.**
|
10.7
|
Pledge of Equity Agreement, by and among Yao Guoyun, Meng Chunde, Taiyuan Hongxing Carbon Black Co., Ltd. and Jinzheng Liteweisi Carbon (Taiyuan) Co., Ltd.**
|
10.8
|
Shareholders’ Voting Proxy Agreement, by and among Yao Guoyun, Meng Chun De, and Jizheng Litewisi Carbon (Taiyuan) Co., Ltd.**
|
10.9
|
Call Option Agreement, by and between Yao Guoyun and Karen Prudente.**
|
10.10
|
2011 Incentive Stock Plan ***
|
21.1
|
List of subsidiaries.*
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Schema Document
|
101.CAL
|
XBRL Calculation Linkbase Document
|
101.DEF
|
XBRL Definition Linkbase Document
|
101.LAB
|
XBRL Label Linkbase Document
|
101.PRE
|
XBRL Presentation Linkbase Document
|
ASIA CARBON INDUSTRIES, INC.
|
||
Date: March 19, 2013
|
By:
|
/s/ Guoyun Yao
|
Guoyun Yao
Chief Executive Officer and President
(Principal Executive Officer)
|
Name
|
Title
|
Date
|
||
/s/Guoyun Yao
|
Chief Executive Officer, President, Secretary and Chairman of the Board
|
March 19, 2013
|
||
Guoyun Yao
|
||||
/s/Xiaolong Zhou
|
Chief Financial Officer (
Principal Financial Officer and Principal Accounting Officer)
|
March 19, 2013
|
||
Xiaolong Zhou
|
||||
/s/Chunde Meng
|
Director and Chief Operating Officer
|
March 19, 2013
|
||
Chunde Meng
|
||||
/s/Lei Shi | Director and Vice President - Finance | March 19, 2013 | ||
Lei Shi | ||||
/s/ Jianjun Wang | Director and Assistant Vice President - Finance | March 19, 2013 | ||
Jianjun Wang | ||||
/s/Baozhu Ren | Director | March 19, 2013 | ||
Baozhu Ren |
1 Year Asia Carbon Industries (CE) Chart |
1 Month Asia Carbon Industries (CE) Chart |
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