SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1996
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 33-3272-W
LOTUS PACIFIC, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State of Incorporation)
52-1947160
(I.R.S. Employer Identification Number)
235 Route 22 East, Greenbrook, New Jersey 08812
(Address of principal executive offices)
(908) 752-5899
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant
(1) has filed all reports required to be
filed by Section 13or 15(d) of the Securities
Exchange Act of 1934 during the proceeding
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.
(1) Yes _X_ No __
(2) Yes _X_ No __
As of March 31, 1996, the Registrant had
outstanding 26,937,054 shares of Common Stock,
par value $.001 per share and 4,300 shares
of Series A Preferred Stock.
Lotus Pacific, Inc.
Table of Contents
Part I Financial Information
Item 1:
Condensed Balance Sheet (4)
Condensed Income Statement (5)
Condensed Statement of Cash Flow (6)
Item 2:
Management's Discussion and Analysis of Financial
Condition and Results of Operations (8)
Part II Other Information
Item 1: Legal Proceedings (9)
Item 2: Change in the Rights of the Registrant's Holders (9)
Item 3: Defaults by Registrants on its Senior Securities (9)
Item 4: Submission of Matters to a Vote of Securities Holder (9)
Item 5: Other Information (9)
Part I
Financial Information
Item 1. Financial Statements
The accompanying unaided financial statements
have been prepared in accordance with generally
accepted accounting principles for interim
financial information and the instructions
to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the
information and footnotes required by
generally accepted accounting principles
for completing financial statements.
In the opinion of management, all adjustments
(consisting of normal recurring accruals)
considered necessary for a fair presentation.
Lotus Pacific, Inc.
Condensed Balance Sheets
March 31, 1996
(Unaudited)
March 31, 1996 March 31, 1995
Assets
Current Assets
Cash $ 331,656 $ 231,385
Accounts receivable 69,972 68,125
Other receivable 224,107 134,695
Inventories 399,201 471,156
Prepaid expenses 17,045 28,909
Total Current Assets 1,041,981 1,316,025
Fixed Assets (Net) 320,352 409,289
Construction in Process 6,568 5,116
Other Assets
Organization costs 21,351 21,351
Total Assets 1,390,252 1,316,025
Liabilities and Stockholders Equity
Current Liabilities
Short-term loan 542,169 703,976
Notes payable 16,887 0
Accounts payable 226,016 87,648
Taxes payable (21,016) 527
Advances from Customers 3,874 6,283
Other payable 166,797 128,473
Total Current Liabilities 934,727 926,908
Minority Interest 73,495 53,573
Stockholders' Equity
Preferred Stock, $0.001 par value, 4 4
100,000 shares issued, 4,300 issued
& outstandingCommon Stock,
$0.001 par value, 50,000,000 shares
authorized, 26,937,054 issued &
outstanding 26,937 26,937
Additional Paid-in Capital 358,823 358,823
Retained Earnings (Deficit) (3,735) (50,221)
Translation Adjustment 0 0
Total Stockholders' Equity 382,029 335,543
Total Liabilities &
Stockholders' Equity 1,390,252 1,316,024
Lotus Pacific, Inc.
Condensed income Statement
for the Three Month Ending March 31, 1996
(Unaudited)
March 31, 1996 March 31, 1995
Sales $ 349,443 $ 185,126
Cost of Goods Sold 257,645 107,850
Gross Profit 91,797 77,277
Operating Expenses (47,135) (12,826)
Income from Operations 44,662 64,451
Other income (Expenses), Net
Miscellaneous Income (Expense)
Interest Expense, Net (13,452) (73,921)
Net Income 31,210 (9,470)
Minority Interest Income 8,658 (2,841)
Consolidated Net Income 22,552 (6,629)
Gain/Loss Per Share 0 0
Lotus Pacific, Inc.
Statement of Cash Flow for
The Three months Ending March 31, 1996
Net Income $ 22,552
Additions:
Increase in accounts payable 116,033
Increase in other payable 3,599
Increase in accumulated depreciation 44,511
Subtractions:
Increase in accounts receivable (7,923)
Decrease in prepaid expenses 2,197
Decrease in inventory 14,089
Increase in other receivable (59,187)
Increase in tax receivable 874
Net Cash Flow From Operations (49,950)
Cash Flow Investment Activities:
Increase in Minority Interest 8,656
Issue Common Stock 0
Acquisition of Equipment 0
Net Cash Flow From Financing Activities 8,656
Cash Flow from Financing Activities:
Increase in notes payable (37,831)
Increase in loan payable 0
Net Cash Flow From Financing Activities (37,831)
Net Increase in Cash and Cash Equivalents 107,571
Cash & Cash Equivalents at
Beginning of the Period 224,085
Cash & Cash Equivalents at
the Ending of the Period 331,656
Notes to Consolidated Financial Statements
1. Basis of Presentation
On September 29, 1995, Lotus pacific, Inc.
(the "Company") acquired shanghai Union Auto-
Bicycle Co., Ltd. which was accounted for as a
purchase. All financial date of the Company,
including the company's previously issued financial
statements for the period presented in this Form-10-Q,
have been restated to include the historical financial
information of Shanghai Union Auto-Bicycle Co. Ltd.
in accordance with generally accepted accounting
principles and pursuant to Regulated S-X.
The unaudited consolidated financial statements, prepared
by the Company, include the accounts of the Company's
subsidiary. In the opinion of management, these unaudited
financial statements included all adjustments necessary
for a fair presentation of the Company's financial positions
of march 31, 1996, and the results of operation and cash
flows for the quarter ended March 31, 1996.
These financial statements should be read in conjunction
with the financial statements and related notes thereto
for the fiscal year ended June 30, 1995 included in the
Company's fiscal 1995 Form 10-K.
2. Net Income Per Share
Net income per common and equivalent share is computed based
on the weight average number shares during the period.
3. Business Combination
On September 29, 1995, the Company acquired Shanghai Union
Auto-Bicycle Co.,Ltd. By issuing 560,000 restricted shares
of common stock for 70% equity interest of Shanghai Union
Auto-Bycycle Co., Ltd. Shanghai Union Auto-Bicycle Co., Ltd.
is licensed to manufacture and sell automated bicycles and
parts. The acquisition was accounted for as a purchase.
4. Foreign Exchange
The financial Statements for the Company's
subsidiary Shanghai Union Auto-Bicycle Co.,
Ltd. Operating in China are genearlly
measured by using the local currency,
Renminbi(RMB), as functional currency.
The exchange rate adopted in the translation
of RMB to The U.S. dollar is applicable Bank of
China official rate which would be
settled by the Chinese government.
Item 2 Management's Discussion and Analysis of
Financial Condition and results of Operations
1. Results of Operarions
Lotus Pacific, Inc. has conducted no operational
business in the U.S. during the three months
ended March 31, 1996. The result of operation
of its subsidiary, Shanghai Union Auto-Bicycle
Co. Ltd., is reflected in the enclosed quarterly
financial statements.
2. Liabilities and Capital Resources
The Company continues to explore
offshore business opportunites.
Part II
Other Information
Item 1. Legal Proceedings
None.
Item 2. Changes in the Rights of the
Registrant's Holders
None.
Item 3. Defaults by the Registrants
on its Senior Securities
None.
Item 4. Submission of Matters to A
Vote of Securities Holders
None.
Item 5. Other Information
None.
Signatures
Pursuant to the requirements of Section
12 of the Securities Exchange Act of 1934,
the registrant had duly caused this
registration statement to be signed on
its behalf by the undersigned, thereto
duly authorized.
Date: February 12, 1996
Lotus Pacific, Inc.
/S/
Thomas H. Gong
Vice President & Treasurer