Exhibit 99.2
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENT
Basis of presentation
The unaudited pro forma consolidated financial statements of Xtreme Link., Inc. (the “Shell”), in the opinion of management, include all material adjustments directly attributable to the share exchange contemplated by a share exchange agreement, dated September 7, 2010, by and among Orient New Energy Investments Limited (“Orient”) and all of its stockholders, on the one hand, and the Shell its majority shareholder, on the other. Pursuant to the share exchange agreement, on September 7, 2010, the Shell issued to the shareholders of Orient 27,100,000 shares of common stocks, par value $0.001 per share, in the aggregate in exchange for all of the issued and outstanding ordinary shares of Orient held by its shareholders. As a result, Orient became a wholly-owned subsidiary of the Shell. The pro forma consolidated statement of operations includes the accounts of the Shell and Orient.
The unaudited pro forma statement of operations was prepared as if the Shell’s acquisition of Orient was consummated on April 1, 2007, and the unaudited pro forma balance sheet was prepared as if the transaction was consummated on June 30, 2010. The unaudited pro forma consolidated financial statements have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the acquisition transaction occurred on the dates indicated and are not necessarily indicative of the results that may be expected in the future.
XTREME LINK, INC.
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2010
(Amounts expressed in US Dollars and in thousands)
May 31, 2010 | June 30, 2010 | |||||||||||||||
Xtreme Link, Inc. | Orient New Energy Investments Limited | Pro-forma adjustments | Unaudited pro-forma consolidated | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash & cash equivalents | $ | 2 | $ | 4,889 | $ | 4,891 | ||||||||||
Restricted cash | - | 8,677 | 8,677 | |||||||||||||
Accounts receivable, net | - | 423 | 423 | |||||||||||||
Advance to suppliers | - | 30,477 | 30,477 | |||||||||||||
Inventory | - | 4,474 | 4,474 | |||||||||||||
Prepaid expenses | - | 910 | 910 | |||||||||||||
Other receivables | - | 162 | 162 | |||||||||||||
Total current assets | $ | 2 | $ | 50,012 | $ | 50,014 | ||||||||||
Property plant and equipment, net | - | 3,088 | 3,088 | |||||||||||||
Long-term lease payment | - | 9,920 | 9,920 | |||||||||||||
TOTAL ASSETS | $ | 2 | $ | 63,020 | $ | 63,022 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Notes payable | $ | - | $ | 18,616 | $ | 18,616 | ||||||||||
Advance from customers | - | 50 | 50 | |||||||||||||
Tax payables | - | 2,490 | 2,490 | |||||||||||||
Other payables | - | 1,026 | 1,026 | |||||||||||||
Due to related party | 25 | - | 25 | |||||||||||||
Short-term loans | - | 4,418 | 4,418 | |||||||||||||
Total current liabilities | $ | 25 | $ | 26,600 | $ | 26,625 | ||||||||||
Commitments and contingencies | - | - | - | |||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||
Share capital | $ | 8 | $ | 10 | (8 | ) | $ | 10 | ||||||||
Additional paid-in capital | 73 | 13,866 | (96 | ) | 13,843 | |||||||||||
Statutory reserve | - | 4,361 | 4,361 | |||||||||||||
Retained earnings | (104 | ) | 14,743 | 104 | 14,743 | |||||||||||
Other comprehensive income | - | 3,440 | 3,440 | |||||||||||||
Total equity | (23 | ) | 36,420 | 36,397 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2 | $ | 63,020 | $ | 63,022 |
XTREME LINK, INC.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2010
(Amounts expressed in thousands)
May 31, 2010 | June 30, 2010 | |||||||||||||||
Xtreme Link, Inc. | Orient New Energy Investments Limited | Pro-forma adjustments | Unaudited pro-forma Consolidated | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net sales | $ | - | $ | 52,649 | $ | 52,649 | ||||||||||
Cost of sales | - | (44,276 | ) | (44,276 | ) | |||||||||||
Gross profit | $ | - | $ | 8,373 | $ | 8,373 | ||||||||||
Operating expenses: | ||||||||||||||||
Selling expenses | $ | - | $ | (702 | ) | $ | (702 | ) | ||||||||
General and administrative expenses | (35 | ) | (143 | ) | (178 | ) | ||||||||||
Total operating expenses | (35 | ) | (845 | ) | (880 | ) | ||||||||||
Income (Loss) from Operations | $ | (35 | ) | $ | 7,528 | $ | 7,493 | |||||||||
Non-operating income (expense): | ||||||||||||||||
Interest income | $ | - | $ | 16 | $ | 16 | ||||||||||
Interest expense | - | (84 | ) | (84 | ) | |||||||||||
Bank charges | - | (6 | ) | (6 | ) | |||||||||||
Total non-operating expense | $ | - | $ | (74 | ) | $ | (74 | ) | ||||||||
Income (Loss) before income tax | (35 | ) | 7,454 | 7,419 | ||||||||||||
Income tax | - | (1,858 | ) | (1,858 | ) | |||||||||||
Net income (loss) | $ | (35 | ) | $ | 5,596 | $ | 5,561 |
XTREME LINK, INC.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2010
(Amounts expressed in thousands)
February 28, 2010 | March 31, 2010 | |||||||||||||||
Xtreme Link, Inc. | Orient New Energy Investments Limited | Pro-forma adjustments | Unaudited pro-forma consolidated | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net sales | $ | - | $ | 173,706 | $ | 173,706 | ||||||||||
Cost of sales | - | (146,647 | ) | (146,647 | ) | |||||||||||
Gross profit | $ | - | $ | 27,059 | $ | 27,059 | ||||||||||
Operating expenses: | ||||||||||||||||
Selling expenses | $ | - | $ | (2,899 | ) | $ | (2,899 | ) | ||||||||
General and administrative expenses | (23 | ) | (592 | ) | (615 | ) | ||||||||||
Total operating expenses | $ | (23 | ) | $ | (3,491 | ) | $ | (3,514 | ) | |||||||
Income (Loss) from operations | $ | (23 | ) | $ | 23,568 | $ | 23,545 | |||||||||
Non-operating income (expense): | ||||||||||||||||
Interest income | $ | - | $ | 121 | $ | 121 | ||||||||||
Interest expense | - | (573 | ) | (573 | ) | |||||||||||
Bank charges | - | (61 | ) | (61 | ) | |||||||||||
Other | - | 80 | 80 | |||||||||||||
Total non-operating expense | $ | - | $ | (433 | ) | $ | (433 | ) | ||||||||
Income (Loss) before income tax | $ | (23 | ) | $ | 23,135 | $ | 23,112 | |||||||||
Income tax | - | (5,786 | ) | (5,786 | ) | |||||||||||
Net income (loss) | $ | (23 | ) | $ | 17,349 | $ | 17,326 |
Notes to pro-forma consolidated financial statements:
1. | The Shell’s acquisition of Orient is deemed to be a reverse acquisition. In accordance with the Accounting and Financial Reporting Interpretations and Guidance prepared by the Staff of the Securities and Exchange Commission, the Shell (the legal acquirer) is considered the accounting acquiree and Orient (the legal acquiree) is considered the accounting acquirer. From and after the reverse acquisition, the consolidated financial statements of the consolidated entities will in substance be those of Orient, with the assets and liabilities, and revenues and expenses, of the Shell being included effective from the date of consummation of reverse acquisition. The Shell is deemed to be a continuation of business of Orient. The outstanding common stock of the Shell prior to the reverse acquisition will be accounting for at their net book value and no goodwill will be recognized. |
2. | There were no inter-company transactions and balances between the Shell and Orient during the periods covered by the pro forma consolidated financial statements. |