Nevada
(State or Other Jurisdiction of
Incorporation)
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333-132056
(Commission File Number)
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20-4078899
(IRS Employer
Identification No.)
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Huiheng Building, Gaoxin 7 Street South,
Keyuannan Road, Nanshan District,
Shenzhen Guangdong, P.R. China 518057
(Address of Principal Executive Offices)
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N/A
(Zip Code)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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The consolidated financial statements as of and for the years ended December 31, 2010 and 2009, as previously issued, have been restated to derecognize the gross profit received from the sales of equipment under the cost recovery method instead of the accrual method until such receivable is settled. The deferred profit not yet recognized is offset against the related receivable on the balance sheet.
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The following consolidated financial statement line items were affected by the restatement:
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Consolidated balance sheet as of December 31, 2010
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||||||||||||
As previously
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||||||||||||
reported
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As restated
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Effect of change
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||||||||||
Accounts receivable, current portion
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$ 8,130,681
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$ 8,130,681
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$ -
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|||||||||
Accounts receivable, non-current portion
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$ 11,617,798
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$ 5,286,563
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$ (6,331,235)
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|||||||||
Retained earnings
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$ 14,298,693
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$ 7,963,681
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$ (6,331,235)
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Consolidated statement of income for the year ended December 31, 2010
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||||||||||||
As previously
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reported
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As restated
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Effect of change
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||||||||||
Revenue
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$ 8,636,573
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$ 8,636,573
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$ 0
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|||||||||
Cost of revenue
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$ (2,176,184)
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$ (2,176,184)
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$ 0
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|||||||||
Gross profit on current year's sales
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$ 6,460,389
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$ 6,460,389
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$ 0
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|||||||||
Less: Deferred profit on current year's sales
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-
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$ (801,603)
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$ (801,603)
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Add: Gross profit realized from prior years' sales
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-
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$ 1,421,317
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$ 1,421,317
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|||||||||
Total gross profit on sales | $ 6,460,389 | $ 7,080,103 | $ 619,714 | |||||||||
Operating income
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$ 2,715,774
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$ 3,335,488
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$ 619,714
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Net income before taxes
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$ 2,756,805
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$ 3,376,519
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$ 619,714
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Net income attributable to Huiheng’s shareholders
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$ 3,376,519
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$ 2,795,880
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$ (580,639)
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Earnings per share
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||||||||||||
Basic
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$ 0.16
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$ 0.20
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$ 0.04
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|||||||||
Diluted
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$ 0.13
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$ 0.17
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$ 0.04
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Consolidated balance sheet as of December 31, 2009
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As previously
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reported
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As restated
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Effect of change
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Accounts receivable, current portion
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$ 6,777,868
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$ 6,777,868
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$ -
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Accounts receivable, non-current portion
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$ 9,721,951
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$ 2,771,002
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$ (6,950,949)
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Retained earnings
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$ 12,488,965
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$ 5,538,016
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$ (6,950,949)
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Consolidated statement of income for the year ended December 31, 2009
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||||||||||||
As previously
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reported
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As restated
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Effect of change
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||||||||||
Revenue
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$ 9,378,579
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$ 9,378,579
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$ -
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Cost of revenue
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$ (2,353,088)
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$ (2,353,088)
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$ -
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Gross profit on current year's sales
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$ 7,025,491
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$ 7,025,491
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$ -
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Less: Deferred profit on current year's sales
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-
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$ (1,652,118)
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$ (1,652,118)
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Add: Gross profit realized from prior years' sales
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-
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$ 639,650
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$ 639,650
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Total gross profit on sales | $ 7,025,491 | $ 6,013,023 | $ (1,012,468) | |||||||||
Operating income
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$ 2,872,753
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$ 1,860,285
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$ 1,012,468
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Net income before taxes
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$ 4,124,863
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$ 3,112,395
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$ 1,012,468
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Net income attributable to Huiheng’s shareholders
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$ 3,640,416
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$ 2,627,948
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$ (1,012,468)
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Earnings per share
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||||||||||||
Basic
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$ 0.26
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$ 0.19
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$ (0.07)
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Diluted
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$ 0.22
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$ 0.16
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$ (0.06)
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