Document and Entity Information
Document and Entity Information - Mar. 31, 2012 - shares | Total |
Document And Entity Information | |
Entity Registrant Name | China Water Group, Inc. |
Entity Central Index Key | 1,083,459 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2012 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | No |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 169,133,450 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2,012 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2012 | Dec. 31, 2011 |
Current assets | ||
Cash and cash equivalents | $ 89,093 | $ 157,955 |
Accounts receivable, net of allowance for doubtful accounts of $773,539 and $746,439 as of March 31, 2012 and December 31, 2011, respectively | 47,595 | 40,099 |
Inventory | 252,246 | 243,404 |
Due from related company | 0 | 101,138 |
Other current assets | 235,876 | 30,515 |
Total current assets | 624,810 | 573,111 |
Property, plant and equipment, net | 881,291 | 988,380 |
Intangible assets, net | 213,540 | 216,185 |
Goodwill | 6,247,964 | 6,167,114 |
Total assets | 7,967,605 | 7,944,790 |
Current liabilities | ||
Accounts payable and accrued expenses | 215,852 | 155,954 |
Due to shareholders | 287,506 | 326,683 |
Due to related companies | 444,962 | 288,555 |
Due to affiliated companies | 2,122,919 | 2,110,848 |
Other current liabilities | 2,023,021 | 1,825,385 |
Total current liabilities | 5,094,260 | 4,707,425 |
Long-term liabilities | ||
Long-term bank loan | 2,327,010 | 2,361,000 |
Total long-term liabilities | 2,327,010 | 2,361,000 |
Total liabilities | 7,421,270 | 7,068,425 |
Stockholders' equity (deficit): | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 200,000,000 shares authorized; 169,133,450 and 169,133,450 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively | 169,133 | 169,133 |
Additional paid-in capital | 12,051,782 | 12,051,782 |
Accumulated deficit | (13,490,261) | (13,126,728) |
Accumulated other comprehensive income | 2,291,374 | 2,230,131 |
Total stockholders' equity (deficit) | 1,022,028 | 1,324,318 |
Noncontrolling interest | (475,693) | (447,953) |
Total equity (deficit) | 546,335 | 876,365 |
Total liabilities and equity | $ 7,967,605 | $ 7,944,790 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2012 | Dec. 31, 2011 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 773,539 | $ 746,439 |
PREFERRED STOCK | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
COMMON STOCK | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 200,000,000 | 200,000,000 |
Common stock, issued | 169,133,450 | 169,133,450 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2012 | Mar. 31, 2011 | |
Sales | ||
Sales | $ 89,554 | $ 43,375 |
Cost of Sales | ||
Cost of sales | 65,948 | 33,219 |
Gross profit | 23,606 | 10,156 |
Operating expenses: | ||
Selling and distribution expenses | 30,928 | 34,482 |
General and administrative expenses | 336,272 | 166,702 |
Total operating expenses | 367,200 | 201,184 |
Loss from operations | (343,594) | (191,028) |
Other income (expense): | ||
Interest expense | (45,763) | 34 |
Gain on financial instruments | 0 | 14,588 |
Other expenses | 621 | (177) |
Total other income (expense) | (45,142) | 14,445 |
Loss before income taxes | (388,736) | (176,583) |
Provision for income taxes | 10 | 203 |
Net loss | (388,746) | (176,786) |
Less: net loss attributable to noncontrolling interest | (25,213) | (13,484) |
Net loss attributable to China Water Group, Inc. | $ (363,533) | $ (163,302) |
Basic loss per share | $ 0 | $ (.01) |
Diluted loss per share | $ 0 | $ (.01) |
Weighted average number of common shares outstanding | ||
Basic | 169,133,450 | 160,869,561 |
Diluted | 169,133,450 | 160,869,561 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | |
Mar. 31, 2012 | Mar. 31, 2011 | |
Consolidated Statements Of Comprehensive Loss | ||
Net loss | $ (388,746) | $ (176,786) |
Other comprehensive income | ||
Foreign currency translation adjustment | 58,716 | 68,439 |
Total other comprehensive income | 58,716 | 68,439 |
Total Comprehensive income (loss) | (330,030) | (108,347) |
Less: comprehensive loss attributable to noncontrolling interest | (27,740) | (16,060) |
Comprehensive income (loss) attributable to China Water Group, Inc. | $ (302,290) | $ (92,287) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2012 | Mar. 31, 2011 | |
Cash flows from operating activities: | ||
Net loss | $ (388,746) | $ (176,786) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 139,525 | 25,035 |
Provision for bad debt | 4,140 | (14,588) |
Accounts receivable | (30,141) | (29,537) |
Inventory | (7,461) | (239) |
Other current assets | (185,603) | 14,132 |
Accounts payable and accrued expenses | 59,089 | 4,903 |
Income tax payable | 10 | 0 |
Other current liabilities | 195,036 | (30,857) |
Total adjustments | 174,595 | (31,326) |
Net cash used in operating activities | (214,151) | (208,112) |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (23,887) | 0 |
Due from related company | 101,859 | 0 |
Net cash provided by investing activities | 77,972 | 0 |
Cash flows from financing activities: | ||
Due to shareholders | (41,103) | 0 |
Due to related companies | 154,974 | 696,359 |
Proceeds from long-term bank loan | (47,557) | 0 |
Net cash provided by (used in) financing activities | 66,314 | 696,359 |
Effect of foreign currency translation on cash and cash equivalents | 1,003 | 1,826 |
Net increase in cash and cash equivalents | (68,862) | 490,073 |
Cash and cash equivalents - beginning | 157,955 | 23,873 |
Cash and cash equivalents - ending | 89,093 | 513,946 |
Supplemental schedule of non-cash activities: | ||
Issuance of common stock pursuant to conversion of other payables for acquisition of a subsidiary | $ 0 | $ 5,950,000 |
NOTE 1 - ORGANIZATION AND NATUR
NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS | 3 Months Ended |
Mar. 31, 2012 | |
Accounting Policies [Abstract] | |
NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS | NOTE 1 ORGANIZATION AND NATURE OF BUSINESS In these notes, the terms CHWG, we, us, our and the Company mean China Water Group, Inc. (formerly China Evergreen Environmental Corporation) and subsidiary companies. We were organized as a Nevada corporation on September 10, 1996 under the name Discovery Investments, Inc. and were previously engaged in the business of seeking, investing and, acquiring an interest in various business opportunities. On October 15, 2004, we were subject to the reverse acquisition by Evergreen Asset Group Limited, an International Business Company organized under the laws of the British Virgin Islands (Evergreen), pursuant to which we acquired 100% of the outstanding shares of Evergreen capital stock in exchange for a controlling interest in our common stock. Pursuant to a securities purchase agreement dated September 9, 2004, as amended, we issued 83,500,000 shares of our common stock (representing 83.5% of our outstanding capital stock) in exchange for all of the issued and outstanding shares of Evergreen capital stock transferred to us by the Evergreen shareholders at the closing (the Reverse Acquisition). Following the close of the Reverse Acquisition, we changed our corporate name from Discovery Investments, Inc. to China Evergreen Environmental Corporation. On November 7, 2006, we changed our name to China Water Group, Inc. to reflect our focus on Chinas water treatment and supply needs. As a result of the Reverse Acquisition, Evergreen became our wholly owned subsidiary. Evergreen has three majority owned subsidiaries: Guang Dong Xin Xing Mei Biology Company Limited (Xinxingmei), and Hai Yang City Sheng Shi Environment Protection Company Limited (Haiyang). Through Xinxingmei and Haiyang, we provide wastewater turn-key engineering, equipment and chemical trading. Evergreen then holds 90% of Xinxingmei. Xinxingmei provides turn-key wastewater treatment engineering design and contracting. Xinxingmei also holds 90% and 35% respectively in the equity interest of the following two water treatment facilities operated through build, operate and transfer (BOT) arrangements with the PRC government: (i) Tian Jin Shi Sheng Water Treatment Company Limited (Tian Jin), which commissioned water treatment in November 2003 and has a daily treatment capacity of approximately 10,000 cubic meters and (ii) Xin Le Sheng Mei Water Purifying Company Limited (Xin Le), which also commissioned water treatment in November 2003 and has a daily treatment capacity of 40,000 cubic meters. Xinxingmei was retained to manage both Tian Jin and Xin Le. The principal activities of the Company were the research and development of waste water, garbage treatment and aqueous purifying techniques, investment and construction of waste water treatment plant and sales of environment protection related products. The Company is now engaged in the production, sales and marketing of the bottled water. On January 8, 2008, the Chinese government approved the sale of Evergreens 58% of the total equity interest in Guang Dong Xin Xing Mei Biology Company Limited (Xinxingmei) to Wenming Pu at a total consideration of RMB 7,308,600. After completing the transfer formalities, Evergreen held 32% of total equity of Xinxingmei, instead of the previous 90% interest. On January 23, 2008, the Chinese government approved China Water Group Incs. acquisition of 90% equity interest in Guangzhou Xinchen Water Company Limited from Fortune Luck Global International Limited. Guangzhou Xinchen Water Company Limited owns 100% equity interest of Aba XinchenDagu Glacier Spring Co., Limited. The acquisition was completed for a consideration of $13.45 million, of which $7.5 million was paid in cash, and the remaining $5.95 million will be paid in the future. The primary reason for the acquisition was to enter into the bottled water industry. The Company recorded a liability of $5.95 million, which represented the fair value of stock calculated based on US$ 0.2 per share, with reference to contemporaneous prices of the Companys common stock on the Pink Quote, with total of 29.75 million shares. Approximately $13 million of the purchase price of $13.45 million was assigned to goodwill as the net asset of Aba XinchenDagu Glacier Spring Co., Limited. was minimum at the acquisition date (see Note 7). On January 26, 2011, the Company issued 29.75 million shares of its common stock to Fortune Luck Global International Limited to settle the $5.95 million remaining purchase price incurred for the acquisition. In January, 2009, the Company sold 100% of the equity interest in Evergreen to Whole Treasure Investment Ltd. at a total consideration of RMB 19,000,000 (approximately $2,784,450). After completing the transfer formalities, the Company no longer holds any share in Evergreen. As of March 31, 2012, the receivable for disposal of Evergreen was $0. On February 26, 2009, Guangzhou Xinchen Water Company established a subsidiary, Chengdu Jiuqiannian Water Company, in the PRC as a wholly-owned limited liability company with registered capital of RMB 500,000 (approximately $73,250). On August 24, 2009, Guangzhou Xinchen Water Company established a subsidiary, Beijing Jiuqiannian Trading Company Ltd., in the PRC as a wholly-owned limited liability company with registered capital of RMB 300,000 (approximately $43,971). |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2012 | |
Accounting Policies [Abstract] | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The Companys consolidated financial statements include the accounts of its controlled subsidiaries. All intercompany balances and transactions are eliminated in consolidation. The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) applicable to interim financial information and the requirements of Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included. In preparing the accompanying unaudited consolidated financial statements, the Company evaluated the period from March 31, 2012 through the date the financial statements were issued for material subsequent events requiring recognition or disclosure. (See Note17) INTERIM FINANCIAL STATEMENTS These interim financial statements should be read in conjunction with the Companys audited consolidated financial statements for the year ended December 31, 2011, as not all disclosures required by generally accepted accounting principles for annual financial statements are presented. The interim financial statements followed the same accounting policies and methods of computations as the audited financial statements for the year ended December 31, 2011. FINANCIAL INSTRUMENTS The carrying amounts of all financial instruments approximate their fair value. The carrying amounts of cash, accounts receivable, related party receivables, unsecured loans, accounts payable and related party payables approximate their fair value due to the short-term nature of these items. The carrying amounts of borrowings approximate their fair value based on our expected borrowing rate for debt with similar remaining maturities and comparable risk. |
NOTE 3 - INVENTORY
NOTE 3 - INVENTORY | 3 Months Ended |
Mar. 31, 2012 | |
Inventory Disclosure [Abstract] | |
NOTE 3 - INVENTORY | NOTE 3 INVENTORY Inventory as of March 31, 2012 and December 31, 2011 consisted of the following: March 31, December 31, 2012 2011 Raw materials $ 100,925 $ 101,620 Finished goods 151,321 141,784 Total $ 252,246 $ 243,404 |
NOTE 4 - OTHER CURRENT ASSETS
NOTE 4 - OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2012 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
NOTE 4 - OTHER CURRENT ASSETS | NOTE 4 OTHER CURRENT ASSETS March 31, December 31, 2012 2011 Prepayments to vendors $ 170,710 $ 16,891 Other receivables 65,166 13,624 Total $ 235,876 $ 30,515 Other current assets consisted mainly of prepayments to vendors for goods and services, rent deposit and petty cash for employees. The balance of other current assets as of March 31, 2012 and December 31, 2011 was $235,876 and $30,515, respectively. |
NOTE 5 - PROPERTY, PLANT AND EQ
NOTE 5 - PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2012 | |
Property, Plant and Equipment [Abstract] | |
NOTE 5 - PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 5 PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net as of March 31, 2012 and December 31, 2011 consists of the following: March 31, 2012 December 31, 2011 Office equipment $ 44,597 $ 41,382 Furniture and fixtures 1,190 4,304 Motor vehicles 354,577 352,317 Building and structure 263,383 261,885 Bottled water production equipment 897,146 868,412 Subtotal 1,560,893 1,528,300 Less: accumulated depreciation 687,790 548,062 980,238 Construction in progress 8,188 8,142 Total $ 881,291 $ 988,380 Depreciation expense for the three months ended March 31, 2012 and 2011 was $43,509 and $23,855, respectively. |
NOTE 6 - INTANGIBLE ASSETS
NOTE 6 - INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
NOTE 6 - INTANGIBLE ASSETS | NOTE 6 INTANGIBLE ASSETS Intangible assets at March 31, 2012 and December 31, 2011 consist of the following: March 31, 2012 December 31, 2011 Rights to use land $ 218,175 $ 238,734 Less: accumulated amortization 4,635 22,549 Total $ 213,540 $ 216,185 Amortization expense for the three months ended March 31, 2012 and 2011 was $1,195 and $1,180. |
NOTE 7 - GOODWILL
NOTE 7 - GOODWILL | 3 Months Ended |
Mar. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
NOTE 7 - GOODWILL | NOTE 7 - GOODWILL On January 23, 2008, the Company completed its acquisition of 90% equity interest in Guangzhou Xinchen Water Company Limited from Fortune Luck Global International Limited for a consideration of $13.45 million. Goodwill, which is equal to the excess of cost over the fair value of acquired assets, has been recorded in conjunction with the acquisition. Goodwill is accounted for in accordance with ASC 350 (formerly SFAS 142). Under ASC 350, goodwill is not amortized and is subject to impairment test, at least annually, when events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. The test of goodwill impairment consists of two steps. First, the identification of potential impairment is performed by comparing the fair value of the reporting unit to its carrying amount, including goodwill. The Company estimates the fair value of the reporting unit using a discounted cash flow (DCF) model. Second, if there is impairment identified in the first step, an impairment loss is recognized for any excess of the carrying amount of the reporting units goodwill over the implied fair value of goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation, in accordance with ASC 450-10 (formerly SFAS No 141(R)), Business Combinations. After recognizing an impairment loss of $7,499,608 at December 31, 2010, the adjusted balance of goodwill at March 31, 2012 was as follows: Balance as of December 31, 2011 $ 6,167,114 Foreign currency exchange adjustment 80,850 Adjusted balance as of March 31, 2012 $ 6,247,964 |
NOTE 8 - ACCOUNTS PAYABLE AND A
NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended |
Mar. 31, 2012 | |
Notes to Financial Statements | |
NOTE 8 - ACOUNTS PAYABLE AND ACCRUED EXPENSES | NOTE 8 ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses as of March 31, 2012 and December 31, 2011 consist of the following: March 31, 2012 December 31, 2011 Accounts payable $ 210,303 $ 150,437 Accrued expenses 5,549 5,517 Total $ 215,852 $ 155,954 The carrying value of accounts payable and accrued expenses approximates their fair value due to the short-term nature of these obligations. |
NOTE 9 - OTHER CURRENT LIABILIT
NOTE 9 - OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2012 | |
Notes to Financial Statements | |
NOTE 9 - OTHER CURRENT LIABILITIES | NOTE 9 OTHER CURRENT LIABILITIES Other current liabilities as of March 31, 2012 and December 31, 2011 consist of the following: March 31, 2012 December 31, 2011 City maintenance construction tax and value added tax $ 26,359 $ 26,116 Contribution for employee welfare plan 40,667 43,444 Customer deposits 162,124 159,809 Registration right liability 1,324,735 1,324,735 Other payables 469,136 271,281 Total $ 2,023,021 $ 1,825,385 |
NOTE 10 - DUE TO RELATED COMPAN
NOTE 10 - DUE TO RELATED COMPANIES | 3 Months Ended |
Mar. 31, 2012 | |
Notes to Financial Statements | |
NOTE 10 - DUE TO RELATED COMPANIES | NOTE 10 DUE TO RELATED COMPANIES As of March 31, 2012 and December 31, 2011, the balance due to related companies was $444,962 and $288,555, respectively. This balance represents financing obtained from Guang Dong Xin Sheng Environmental Protection Company Limited (GDXS) and Beijing Zhao Cheng Chuang Zhan Investment Company Limited (BJZC) in which Mr. Pu, the Chairman of the Board, has equity interests. All amounts are non-interest-bearing, unsecured and repayable on demand. |
NOTE 11 - DUE TO AFFILIATED COM
NOTE 11 - DUE TO AFFILIATED COMPANIES | 3 Months Ended |
Mar. 31, 2012 | |
Notes to Financial Statements | |
NOTE 11 - DUE TO AFFILIATED COMPANIES | NOTE 11 DUE TO AFFILIATED COMPANIES As of March 31, 2012 and December 31, 2011, the balance due to affiliated companies was $2,122,919, and $2,110,848, respectively. This balance represents financing obtained from Guang Dong Xin Xing Mei Biology Company Limited (Xinxingmei). All amounts are non-interest-bearing, unsecured and repayable on demand. |
NOTE 12 - LONG-TERM BANK LOAN
NOTE 12 - LONG-TERM BANK LOAN | 3 Months Ended |
Mar. 31, 2012 | |
Notes to Financial Statements | |
NOTE 12 - LONG-TERM BANK LOAN | NOTE 12 LONG-TERM BANK LOAN The Companys short term bank loans consisted of the follows: March 31, December 31, 2012 2011 The interest rate is a variable rate equal to 1.5% per annum above the floating base interest for loans of the same term promulgated by the Peoples Bank of China. The average annual interest rate for the year ended December 31, 2012 was approximately 7.65%. The loan was designated to finance the operation of the Company. $ 2,327,010 $ 2,361,000 Total $ 2,327,010 $ 2,361,000 |
NOTE 13 - INCOME TAXES
NOTE 13 - INCOME TAXES | 3 Months Ended |
Mar. 31, 2012 | |
Income Tax Disclosure [Abstract] | |
NOTE 13 - INCOME TAXES | NOTE 13 INCOME TAXES The Company is a Nevada corporation and conducts all of its business through its Chinese subsidiaries, which solely operate in the PRC. As the Company is a U.S. holding company, it did not generate any revenues for the Three Months Ended March 31, 2012 and 2011, and therefore there was no income tax provision or benefit for U.S. income tax purpose. The Companys Chinese subsidiaries are governed by the Income Tax Law of the PRC and are subject to statutory income tax rate of 25%. For the Three Months Ended March 31, 2012 and 2011, the income tax provision for the Company was $10 and $203, respectively. On February 22, 2008, the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) jointly issued CaiShui [2008] Circular 1 (Circular 1). According to Article 4 of Circular 1, distributions of accumulated profits earned by a Foreign Invested Entity (FIE) prior to January 1, 2008 to foreign investor(s) in 2008 or after will be exempt from withholding tax (WHT) while distribution of the profit earned by an FIE after January 1, 2008 to its foreign investor(s) shall be subject to WHT. Since the Company intends to reinvest its earnings to further expand its businesses in mainland China, its foreign invested enterprises do not intend to declare dividends to their immediate foreign holding companies in the foreseeable future. |
NOTE 14 - LOSS PER SHARE
NOTE 14 - LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2012 | |
Earnings Per Share [Abstract] | |
NOTE 14 - LOSS PER SHARE | NOTE 14 LOSS PER SHARE The Company presents loss per share on a basic and diluted basis. Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding including the dilutive effect of equity securities. The weighted average number of shares calculated for diluted loss per share excludes the potential common stock that would be exercised under the warrants granted to investors because of their anti-dilutive effect. For the Three Months Ended March 31, 2012 2011 Net loss attributable to CHWG (363,533) (163,302) Weighted average common shares 169,133,450 160,869,561 (denominator for basic income per share) Effect of dilutive securities: Weighted average common shares 169,133,450 160,869,561 (denominator for diluted income per share) Basic loss per share $ (0.00) $ (0.01) Diluted loss per share $ (0.00) $ (0.01) As the April Warrants and the September Warrants are anti-dilutive, they are being excluded from the calculation of diluted loss per share. |
NOTE 15 - EMPLOYEE WELFARE PLAN
NOTE 15 - EMPLOYEE WELFARE PLAN | 3 Months Ended |
Mar. 31, 2012 | |
Notes to Financial Statements | |
NOTE 15 - EMPLOYEE WELFARE PLAN | NOTE 15 EMPLOYEE WELFARE PLAN The Company has established an employee welfare plan in accordance with Chinese law and regulations. The Company makes monthly contributions of 12% of all employees' salaries to the employee welfare plan. |
NOTE 16 - RISK OF CONCENTRATION
NOTE 16 - RISK OF CONCENTRATIONS IN SALES AND PURCHASES | 3 Months Ended |
Mar. 31, 2012 | |
Risks and Uncertainties [Abstract] | |
NOTE 16 - RISK OF CONCENTRATIONS IN SALES AND PURCHASES | NOTE 16 RISK OF CONCENTRATIONS IN SALES AND PURCHASES One major vendor accounted for approximately 79% and 51% of the Companys cost for purchases for the Three Months Ended March 31, 2012 and 2011, respectively. Total purchases from the vendor were $ 25,798 and $11,195 for the Three Months Ended March 31, 2012 and 2011, respectively. One major customer accounted for approximately 13% and two major accounted 17% of the Companys sales for the three months ended March 31, 2012 and 2011, respectively. Total sales to these customers were $50,919 and $7,369, for the three months ended March 31, 2012 and 2011, respectively. Financial instruments which potentially subject the Company to credit risk consist principally of cash on deposit with financial institutions. Management believes that the financial institutions which hold the Companys cash and cash equivalents are financially sound and minimal credit risk exists with respect to these investments. |
NOTE 17 - SUPPLEMENTAL DISCLOSU
NOTE 17 - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2012 | |
Notes to Financial Statements | |
NOTE 17 - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | NOTE 17 - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION The following is the supplemental information relating to the consolidated statements of cash flows: For the Three Months Ended March 31, 2012 2011 Cash paid for interest $ (45,966) $ - Cash paid for income taxes $ 10 $ 203 |
NOTE 18 - SUBSEQUENT EVENT
NOTE 18 - SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2012 | |
Subsequent Events [Abstract] | |
NOTE 18 - SUBSEQUENT EVENT | NOTE 18 SUBSEQUENT EVENT Beijing Jiuqiannian Trading Company Ltd. subsidiary of Guangzhou Xinchen Water Company had a cancellation of registration at July 15, 2014. On the September 30, 2011, Guangzhou Xinchen Water Co., a subsidiary of the Company and China Construction Bank Co., Ltd. GuangzouLiwan Sub-branch, signed an RMB 15 million ($2.37 million) loan agreement (the Loan Agreement). The Loan Agreement specifies the loan term as three years commencing from October 9, 2011, a variable loan interest rate of equal to the benchmark interest rate of Peoples Bank of China as in effect from time to time (currently 6.65%) plus 15% resulting in a current rate of 7.65%. The loan proceeds will be used for the Registrants working capital needs to expand its bottled water operations. On May,2014,this loan was repaid in full. On the November 12, 2014, Guangzhou Xinchen Water Co., a subsidiary of the Company and China Construction Bank Co., Ltd. GuangzouLiwan Sub-branch, signed an RMB 9.5 million ($1.55 million) loan agreement (the Loan Agreement). The Loan Agreement specifies the loan term as two years and The annual interest rate in 6.9% commencing from On the November 12, 2014. The loan proceeds will be used for the Registrants working capital needs to expand its bottled water operations. On the August 29, 2014, Guangzhou Xinchen Water Co., a subsidiary of the Company and Qianhai Equity trading center(Shenzhen) Co., ltd , signed an RMB 10 million ($1.65 million) loan agreement (the Loan Agreement). The Loan Agreement specifies the loan term as two years and The annual interest rate in 12.5% commencing from On the November 12, 2014. The loan proceeds will be used for the Registrants working capital needs to expand its bottled water operations. |