10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________________

FORM 10-Q

_____________________

(Mark One)

x    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2011

or

o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to______

Commission File Number: 000-26777

CHINA YIDA HOLDING, CO.

(Exact name of registrant as specified in its charter)

Delaware	50-0027826
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
28/F Yifa Building, No. 111 Wusi Road Fuzhou, Fujian, P. R. China	350003
(Address of principal executive offices)	(Zip Code)

+ 86 (591) 2830 8999

 (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 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

Class	Shares outstanding as of November 4, 2011
Common stock, $ 0.001par value	19,551,785

INDEX

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited).
	Condensed Consolidated Balance Sheets as of September 30, 2011 and December 31, 2010.	1
	Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2011 and 2010.	2
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2011 and 2010.	3
	Notes to the Condensed Consolidated Financial Statements.	4 -20
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	29
Item 4.	Controls and Procedures.	29
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings.	30
Item 1A.	Risk Factors.	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	30
Item 3.	Defaults Upon Senior Securities.	30
Item 4.	(Removed and Reserved).	30
Item 5.	Other Information.	30
Item 6.	Exhibits.	30
SIGNATURES		32

i

PART 1 - FINANCIAL INFORMATION

Item 1.                      Financial Statements.

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	September 30,		December 31,
	2011		2010
ASSETS
Current assets
Cash and cash equivalents	$	14,358,935	$	7,146,684
Accounts receivable		137,175		27,724
Other receivables, net		5,186,349		160,133
Advances and prepayments		8,249,433		1,020,000
Deferred tax assets		284,420		280,266
Total current assets		28,216,312		8,634,807
Property and equipment, net		111,060,532		89,739,372
Construction in progress		24,272,257		35,191,692
Intangible assets, net		9,658,994		14,042,432
Long-term prepayments		3,021,914		193,593
Deferred tax assets		-		19,913
Total assets	$	176,230,009	$	147,821,809
LIABILITIES AND EQUITY
Current liabilities
Short-term loans	$	1,847,069	$	1,784,687
Long-term debt, current portion		3,584,566		-
Accounts payable		69,112		1,229,237
Current obligation under airtime rights commitment		2,241,135		1,890,657
Accrued expenses and other payables		2,311,261		638,026
Taxes payable		1,781,281		2,255,208
Deferred tax liabilities		36,155		-
Total current liabilities		11,870,579		7,797,815
Long-term obligation under airtime rights commitment		2,183,389		3,758,376
Long-term debt		9,783,204		2,571,161
Total liabilities		23,837,172		14,127,352
Commitments and contingencies
Stockholders' equity
Preferred stock ($0.001 par value, 10,000,000 shares authorized, none issued and outstanding)		-		-
Common stock ($0.0001 par value, 100,000,000 shares authorized, 19,551,785 issued and outstanding as of September 30, 2011 and December 31, 2010		1,955		1,955
Additional paid in capital		49,054,622		48,478,086
Accumulated other comprehensive income		12,006,402		7,000,839
Retained earnings		86,222,893		75,569,652
Statutory reserve		2,549,330		2,549,330
Total China Yida Holding Co.		149,835,202		133,599,862
Non-controlling interest		2,557,635		94,595
Total equity		152,392,837		133,694,457
Total liabilities and equity	$	176,230,009	$	147,821,809

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

	Nine Months Ended September 30,						Three Months Ended September 30,
	2011			2010			2011			2010
Net revenue
Advertisement	$	26,675,530		$	27,820,997		$	8,322,439		$	9,726,192
Tourism		7,299,124			14,383,404			2,885,042			1,299,966
		33,974,654			42,204,401			11,207,481			11,026,158
Cost of revenue
Advertisement		6,847,683			5,855,415			2,141,129			2,118,790
Tourism		3,681,633			2,958,141			1,389,869			654,551
		10,529,316			8,813,556			3,530,998			2,773,341
Gross profit		23,445,338			33,390,845			7,676,483			8,252,817
Operating expenses
Selling expenses		3,704,622			2,839,638			1,596,304			604,444
General and administrative expenses		3,543,764			3,320,020			1,174,569			1,024,657
Total operating expenses		7,248,386			6,159,658			2,770,873			1,629,101
Income from operations		16,196,952			27,231,187			4,905,610			6,623,716
Other income (expense)
Other income (expense), net		(41,430	)		1,650			(23,648	)		(5,593	)
Interest income		75,358			69,111			27,942			45,764
Interest expenses		(228,212	)		(19,099	)		(26,454	)		(19,099	)
		(194,284	)		51,662			(22,160	)		21,072
Income before income tax and non-controlling interest		16,002,668			27,282,849			4,883,450			6,644,788
Less: Provision for income tax		5,433,442			7,381,950			1,715,696			1,989,280
Net income		10,569,226			19,900,899			3,167,754			4,655,508
Net loss attributable to non-controlling interest		84,015			21,590			40,852			17,557
Net income attributable to China Yida Holding Co.	$	10,653,241		$	19,922,489		$	3,208,606		$	4,673,065
Net income	$	10,569,226		$	19,900,899		$	3,167,754		$	4,655,508
Other comprehensive income
Foreign currency translation gain		5,005,563			2,165,824			1,741,244			1,997,105
Comprehensive income		15,574,789			22,066,723			4,908,998			6,652,613
Comprehensive loss attributable to non-controlling interest		84,678			21,956			41,469			17,907
Comprehensive income attributable to China Yida Holding Co.	$	15,659,467		$	22,088,679		$	4,950,647		$	6,670,520
Earnings per share
- Basic	$	0.54		$	1.03		$	0.16		$	0.24
- Diluted	$	0.54		$	0.99		$	0.16		$	0.23
Weighted average shares outstanding
- Basic		19,551,785			19,343,858			19,551,785			19,551,785
- Diluted		19,561,621			20,117,670			19,555,436			20,325,597

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended September 30,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	10,569,226		$	19,900,899
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		2,599,582			1,247,957
Amortization		2,718,586			1,463,586
Stock-based compensation		576,536			83,994
Deferred tax		51,914			-
Changes in operating assets and liabilities:
Accounts receivable		(106,811	)		-
Other receivables, net		(319,681	)		119,823
Advances and prepayments		282,239			(808,288	)
Accounts payable		(1,098,386	)		1,063,947
Accrued expenses and other payables		1,539,620			861,250
Taxes payable		(544,244	)		(575,416	)
Net cash provided by operating activities		16,268,581			23,357,752
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of loan from (loan to) non-controlling interest		2,712,533			(5,750,836	)
Other receivables - acquisition of land use rights		(4,623,636	)		-
Advances and prepayments - acquisition of land use rights		(7,365,260	)		-
Additions to property and equipment		(5,823,616	)		(1,819,530	)
Additions to construction in progress		(2,718,003	)		(22,032,201	)
Proceeds from disposal of intangible assets		2,080,636			-
Additions to long-term prepayments for acquisition of property and equipment		(2,778,112	)		(921,312	)
Net cash used in investing activities		(18,515,458	)		(30,523,879	)
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contributed by non-controlling interest		-			5,868,200
Net proceeds from issuance of common stock		-			26,682,957
Payments of obligation under airtime rights commitment		(1,400,069	)		(276,103	)
Repayment of long-term loans		(246,594	)		-
Proceeds from long-term loans		10,788,484			-
Net cash provided by financing activities		9,141,821			32,275,054
EFFECT OF EXCHANGE RATE CHANGES ON CASH		317,307			512,892
NET INCREASE IN CASH AND CASH EQUIVALENTS		7,212,251			25,621,819
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		7,146,684			5,776,678
CASH AND CASH EQUIVALENTS, ENDING OF PERIOD	$	14,358,935		$	31,398,497
SUPPLEMENTAL DISCLOSURES:
Non-cash investing and financing activities:
Transfer from construction in progress to property and equipment	$	14,680,446		$	52,991,179
Transfer from advances and prepayments to property and equipment	$	-		$	1,173,640
Capitalized interest in construction in progress	$	511,493		$	214,956
Capitalized airtime rights commitment	$	-		$	6,209,282
Cash paid during the period for:
Income tax	$	5,830,819		$	7,940,410
Interest	$	691,035		$	234,055

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1.   ORGANIZATION AND DESCRIPTION OF BUSINESS

China Yida Holding Co. (“China Yida”) and its subsidiaries (collectively the "Company”, “we”, “us”, or “our”) engage in tourism and advertisement businesses in the People’s Republic of China.

Keenway Limited was incorporated under the laws of the Cayman Islands on May 9, 2007 for the purpose of functioning as an off-shore holding company to obtain ownership interests in Hong Kong Yi Tat International Investment Co., Ltd (“Hong Kong Yi Tat”), a company incorporated under the laws of Hong Kong. Immediately prior to the Merger (defined below), Mr. Chen Minhua and his wife, Ms. Fan Yanling, were the majority shareholders of Keenway Limited.

On November 19, 2007, we entered into a share exchange and stock purchase agreement with Keenway Limited, Hong Kong Yi Tat, and with the shareholders of Keenway Limited at that time, including Chen Minhua, Fan Yanling, Zhang Xinchen, Extra Profit International Limited, and Lucky Glory International Limited (collectively, the “Keenway Limited Shareholders”), pursuant to which in exchange for all of their shares of Keenway Limited common stock, the Keenway Limited Shareholders received 90,903,246 newly issued shares of our common stock and 3,641,796 shares of our common stock which was transferred from some of our then existing shareholders (the “Merger”). As a result of the closing of the Merger, the Keenway Limited Shareholders owned approximately 94.5% of our then issued and outstanding shares on a fully diluted basis and Keenway Limited became our wholly owned subsidiary.

Hong Kong Yi Tat was incorporated as the holding company of our operating entities, Fujian Jintai Tourism Development Co., Ltd., and Fujian Jiaoguang Media Co., Ltd., Yida (Fujian) Tourism Group Limited, and Fujian Yida Tulou Tourism Development Co., Ltd. (“Tulou”).  Hong Kong Yi Tat does not have any other operation.  

Fujian Jintai Tourism Development Co., Ltd. (“Fujian Jintai”) has a wholly owned subsidiary, Fuzhou Hongda Commercial Services Co., Ltd., (“Hongda”).  The operation of Fujian Jintai is to develop the Great Golden Lake, one of our tourism destinations.

Hongda does not have any operation except for owning 100% of the ownership interest in Fuzhou Fuyu Advertising Co., Ltd. (“Fuyu”) which is engaged in the operations of our media business. On March 15, 2010, Hongda entered into an equity transfer agreement with Fujian Yunding Tourism Industrial Co., Ltd, (currently known as Yida (Fujian) Tourism Group Limited, “Fujian Yunding”), pursuant to which Fujian Yunding acquired 100% of the issued and outstanding shares of Fuyu from Hongda at the aggregate purchase price of RMB3,000,000.  As a result, Fujian Yunding became the 100% holding company of Fuyu.

Fujian Jintai originally also owned 100% of the ownership interest in Fujian Yintai Tourism Co., Ltd. (“Yintai”). On March 15, 2010, Fujian Jintai entered into an equity transfer agreement with Fujian Yunding, pursuant to which Fujian Yunding acquired 100% of the issued and outstanding common stock of Yintai from Fujian Jintai at the aggregate purchase price of RMB5,000,000. As a result, Yintai became a wholly owned subsidiary of Fujian Yunding.  Yintai was deregistered on November 18, 2010.

Fujian Yida Tulou Tourism Development Co., Ltd.’s (“Tulou”) primary business relates to the operation of the Hua’An Tulou cluster, one of our tourism destinations.

On April 12, 2010, our operating subsidiary “Fujian Yunding Tourism Industrial Co., Ltd.” changed its name to “Yida (Fujian) Tourism Group Limited” for our expanding business in operations of domestic tourism destinations in China by acquiring new tourism destinations. Yida (Fujian) Tourism Group Limited’s (“Fujian Yida”) primary business relates to the operations of our Yunding tourism destination and all of our newly engaged tourism destinations, and the management of our media business. 

On March 16, 2010, Fujian Yida formed a wholly owned subsidiary, Yongtai Yunding Resort Management Co., Ltd. (“Yongtai Yunding”) which currently has no material business operations. We plan to develop Yongtai Yunding into a business entity primarily focusing on the operations of our Yunding tourism destination.

Fujian Jiaoguang Media Co., Ltd. (“Fujian Jiaoguang”) and the Company’s contractual relationship comply with the requirements of the Accounting Standard Codification ("ASC") 810, to consolidate Fujian Jiaoguang’s financial statements as a Variable Interest Entity. During the current period, Fujian Jiaoguang had no material business operations.

Fuzhou Fuyu Advertising Co., Ltd. (“Fuyu”) concentrates on the mass media segment of our business.  Its primary business is focused on advertisements, including media publishing, television, cultural and artistic communication activities, and performance operation and management activities.

On April 15, 2010, we entered into agreement with Anhui Xingguang Group to set up a new subsidiary – Anhui Yida Tourism Development Co., Ltd. ("Anhui Yida") by investing 60% of the equity interest, and Anhui Xingguang Group owns 40% of the equity interest of Anhui Yida. The total paid-in capital of Anhui Yida was $14,687,307 (equals RMB100 million). Anhui Yida's primary business relates to the operation of our tourism destinations, specifically, Ming dynasty culture tourist destination.

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1.  ORGANIZATION AND DESCRIPTION OF BUSINESS (CONTINUED)

On July 6, 2010 Fujian Yida formed a wholly owned subsidiary, Jiangxi Zhangshu (Yida) Tourism Development Co., Ltd. (“Jiangxi Zhangshu”) which currently has no material business operations. The initial paid-in capital of Jiangxi Zhangshu was $2,937,461 (equals RMB20 million). On July 5, 2011, Fujian Yida and Fuyu further injected capital amounted to RMB49 million and RMB1 million to Jiangxi Zhangshu.  The total paid-in capital increased to $10,957,189 (equals RMB70 million). We plan to develop Jiangxi Zhangshu into a business entity primarily focusing on the operations of a new tourist destination.

On July 7, 2010 Fujian Yida formed a wholly owned subsidiary, Jiangxi Fenyi (Yida) Tourism Development Co., Ltd. (“Jiangxi Fenyi”) which currently has no material business operations. The initial paid-in capital of Jiangxi Fenyi was $1,762,477 (equals RMB12 million).  On July 7, 2011, Fujian Yida further injected capital amounted to RMB48 million to Jiangxi Fenyi and the total paid-in capital increased to $9,391,876 (equals RMB60 million). We plan to develop Jiangxi Fenyi into a business entity primarily focusing on the operations of a new tourist destination.

On June 24, 2011, Fujian Yida formed a wholly owned subsidiary, Fujian Yida Travel Service Co., Ltd (the “Yida Travel”). The total paid-in capital of Yida Travel was $1,546,670 (equals RMB10 million).  Its primary business is to conduct domestic and international traveling services in China, including operating the direct sales of travel services for our current tourist destinations at the Great Golden Lake, Yunding Recreational Park, and Hua’An Tulou Cluster, and our three tourist destinations currently under construction, Ming Dynasty Entertainment World, China Yang-sheng (Nourishing Life) Paradise, and the City of Caves.

2.   BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of presentation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements.

The unaudited condensed consolidated financial statements include all adjustments including normal recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows of the Company for the periods presented. The results of operations for the three and nine months ended September 30, 2011 are not necessarily indicative of operating results expected for the full year or future interim periods. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report of Form 10-K for the year ended December 31, 2010, filed on March 16, 2011.

The functional currency is the Chinese Renminbi, however the accompanying condensed consolidated financial statements have been translated and presented in United States Dollars ($).

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

b. Principles of consolidation

The accompanying condensed consolidated financial statements include the accounts of China Yida and its wholly-owned subsidiaries Keenway Limited, Hong Kong Yi Tat, Fujian Jintai, Fuyu, Hongda, Fujian Yida, Tulou, Anhui Yida, Yongtai Yunding, Jiangxi Zhangshu, Jiangxi Fenyi, Yida Travel and the accounts of its variable interest entity, Fujian Jiaoguang. All significant inter-company accounts and transactions have been eliminated in consolidation.

Consolidation of Variable Interest Entities

According to the requirements of ASC 810, an Interpretation of Accounting Research Bulletin No. 51 that requires a Variable Interest Entity ("VIE"), the Company has evaluated the economic relationships of Fujian Jiaoguang which signed an exclusive right agreement with the Company. Therefore, Fujian Jiaoguang is considered to be a VIE, as defined by ASC Topic 810-10, of which the Company is the primary beneficiary.

The carrying amount and classification of Fujian Jiaoguang’s assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows:

	September 30, 2011		December 31, 2010
Total current assets*	$	11,923,638	$	11,005,172
Total assets	$	11,931,490	$	11,020,336
Total current liabilities#	$	9,714,197	$	8,398,261
Total liabilities	$	9,714,197	$	8,398,261

* Including intercompany receivables of $11,915,404 and $11,001,921 as at September 30, 2011 and December 31, 2010 to be eliminated in consolidation.

# Including intercompany payables of $8,403,077 and $7,086,393 as at September 30, 2011 and December 31, 2010 to be eliminated in consolidation.

c. Use of estimates and assumptions

The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results. The most significant estimates reflected in the condensed consolidated financial statements include depreciation, useful lives of property and equipment, deferred income taxes, useful life of intangible assets and contingencies. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the condensed consolidated financial statements in the period they are determined to be necessary.

d. Impairment

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.

Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available, judgments and projections are considered necessary. There was no impairment of long-lived assets as of September 30, 2011 and December 31, 2010. 

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

2.   BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

e. Revenue recognition

Revenue is recognized at the date of service rendered to customers when a formal arrangement exists, the price is fixed or determinable, the services rendered, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before satisfaction of all of the relevant criteria for revenue recognition are recorded as unearned revenue.

Revenues from advance resort ticket sales are recognized when the tickets are used. Revenues from our contractors who have tourism contracts with us are generally recognized over the period of the applicable agreements commencing with the tourists visiting the resort. The Company also sells admission and activities tickets for a resort which the Company has the management right.

The Company sells the television airtime to third parties. The Company records advertising sales when advertisements are aired.

The Company has no allowance for product returns or sales discounts because services that are rendered and accepted by the customers are normally not refundable and discounts are normally not granted after service has been rendered. 

f. Advertising costs

The Company expenses the cost of advertising as incurred or, as appropriate, the first time the advertising takes place. Advertising costs for the nine months ended September 30, 2011 and 2010 were $400,160 and $548,212, respectively. Advertising costs for the three months ended September 30, 2011 and 2010 were $169,356 and $155,367, respectively recorded under selling expenses.

g. Post-retirement and post-employment benefits

Full time employees of subsidiaries of the Company participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, employee housing, and other welfare benefits are provided to employees. Chinese labor regulations require that the subsidiaries of the Company make contributions to the government for these benefits based on a certain percentages of employees’ salaries. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $145,730 and $100,294 for the nine months ended September 30, 2011 and 2010, respectively and were $57,162 and $35,628 for the three months ended September 30, 2011 and 2010 respectively.  Other than the above, neither the Company nor its subsidiary provide any other post-retirement or post-employment benefits.

h. Foreign currency translation

The Company uses the United States dollar ("U.S. dollars") for financial reporting purposes. The Company's subsidiaries maintain their books and records in their functional currency, being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, the Company translates the subsidiaries' assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet dates, and the statements of income are translated at average exchange rates during the reporting periods. Gain or loss on foreign currency transactions are reflected on the income statement. Gain or loss on financial statement translation from foreign currency are recorded as a separate component in the equity section of the balance sheet and is included as part of accumulated other comprehensive income. The functional currency of the Company and its subsidiaries in China is the Chinese Renminbi.

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

2.   BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

i. Income taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized.

The Company applied the provisions of ASC 740-10-50, “Accounting For Uncertainty In Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. At September 30, 2011, management considered that the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future.

China Yida is subject to U.S. Federal and California state examination by tax authorities for years after 2007, and the PRC tax authority for years after 2006.

j. Fair values of financial instruments

The carrying amounts reported in the condensed consolidated financial statements for current assets and currently liabilities approximate fair value due to the short-term nature of these financial instruments. The carrying amount of long-term loans approximates fair value since the interest rate associated with the debt approximates the current market interest rate.

In 2008, the Company adopted ASC 820-10, “Fair Value Measurements and Disclosures”, which establishes a single authoritative definition of fair value and a framework for measuring fair value and expands disclosure of fair value measurements for both financial and nonfinancial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flows) and the cost approach (cost to replace the service capacity of an asset or replacement cost). For purposes of ASC 820-10-15, nonfinancial assets and nonfinancial liabilities would include all assets and liabilities other than those meeting the definition of a financial asset or financial liability as defined in ASC-820-10-15-15-1A.

k. Statutory Reserves

In accordance with the relevant laws and regulations of the PRC and the articles of association of the Company, the Company is required to allocate 10% of their net income reported in the PRC statutory accounts, after offsetting any prior years’ losses, to the statutory surplus reserve, on an annual basis. When the balance of such reserve reaches 50% of the respective registered capital of the subsidiaries, any further allocation is optional.

As at September 30, 2011, the statutory reserve of the subsidiaries already reached 50% of the registered capital of the subsidiaries and the Company did not have any further allocation on it.

The statutory surplus reserves can be used to offset prior years’ losses, if any, and may be converted into registered capital, provided that the remaining balances of the reserve after such conversion is not less than 25% of registered capital. The statutory surplus reserve is non-distributable.

l. Segment reporting

ASC 250, "Disclosure About Segments of an Enterprise and Related Information" requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. 

m. Reclassification

Certain reclassifications have been made to the 2010 consolidated financial statements to conform to the 2011 consolidated financial statement presentation. These reclassifications had no effect on net loss or cash flows as previously reported.

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

3.   OTHER RECEIVABLES, NET

Other receivables consist of the following:

	September 30, 2011			December 31, 2010
Tender for the acquisition of land use rights	$	4,695,938		$	-
Other		511,008			180,035
		5,206,946			180,035
Less: Allowance		(20,597	)		(19,902	)
	$	5,186,349		$	160,133

Anhui Yida participates in a bid for land use rights in Anhui Province, with the intention to develop tourism destinations. Anhui Yida deposited $4,695,938 (RMB30 million) with local government of Anhui province to participate in the bid. The amount will be used as payment for the land use rights if the Company wins the bid or the funds will be refunded to the Company.

4.   ADVANCES AND PREPAYMENTS

Advances and prepayments consist of the following:

	September 30, 2011			December 31, 2010
Advance payment for the acquisition of land use rights	$	7,480,434		$	574,730
Other		772,082			448,249
		8,252,516			1,022,979
Less: Allowance		(3,083	)		(2,979	)
	$	8,249,433		$	1,020,000

Advance payment for the acquisition of land use rights represents the payment relating for the acquisition of land use rights. Jiangxi Zhangshu and Jiangxi Fenyi paid compensation to the local government for the compensation to the existing user of the land.  The land use right located on the targeted land which the Company will acquire for the development of the tourism destinations in Jiangxi province. As of September 30, 2011, advance payment made by Jiangxi Zhangshu and Jiangxi Fenyi for the compensation were $4,695,938 (RMB30 million) and $376,338 (RMB2.4 million), respectively. Anhui Yida paid $1,719,420 (RMB10.98 million) for the tax regarding the acquisition of the land use right. Yunding paid $688,738 (RMB4.4 million) for the acquisition of land use rights.

As of December 31, 2010, advance payment made by Yunding for the acquisition of land use rights was $574,730 (RMB3.8 million).

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

5.   PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following:

	September 30, 2011			December 31, 2010
Buildings, Improvements and Attractions	$	115,464,773		$	91,824,909
Electronic Equipment		532,789			315,037
Transportation Equipment		2,348,135			2,099,199
Office Furniture		51,884			38,417
		118,397,581			94,277,562
Less: Accumulated Depreciation		(7,337,049	)		(4,538,190	)
Property and equipment, net	$	111,060,532		$	89,739,372

During the nine months ended September 30, 2011, depreciation expense was $2,599,582, of which $2,563,190 and $36,392 was included as cost of sales and as general and administrative expenses, respectively.

During the nine months ended September 30, 2010, depreciation expense was $1,247,957, of which $961,845 and $286,112 was included as cost of sales and as general and administrative expenses, respectively.

During the three months ended September 30, 2011, depreciation expense was $904,149, of which $890,354 and $13,795 was included as cost of sales and as general and administrative expenses, respectively.

During the three months ended September 30, 2010, depreciation expense was $525,985, of which $425,851 and $100,134 was included as cost of sales and as general and administrative expenses, respectively.

6.   CONSTRUCTION IN PROGRESS

The construction in progress consists of the projects related to the construction of the following:

	September 30, 2011		December 31, 2010
Great Golden Lake	$	2,926,764	$	2,785,712
Yunding resort (Phases I and II)		-		14,406,456
Jiangxi Zhangshu Yangsheng TianTang resort		10,973,498		9,127,911
Jiangxi Fenyi Dongdou resort		10,371,995		8,871,613
	$	24,272,257	$	35,191,692

The construction in progress mainly related to the construction of new tourist resorts which the Company has developed. The estimated completion date of all these construction projects in progress will be September 30, 2012. The amount of capitalized interest included in construction in progress for the nine months ended September 30, 2011 and 2010 amounted to $511,493 and $214,956, respectively. The amount of capitalized interest included in construction in progress for the three months ended September 30, 2011 and 2010 amounted to $250,890 and $72,572, respectively.

The tourist resort in Yunding opened on September 28, 2010 at which time the Company then transferred the related construction in progress of $50,019,707 to property and equipment during the year ended December 31, 2010. The second phase of construction of the Yunding resort was completed as of September 30, 2011.  Construction in progress of $14,680,446 and $52,991,179 were transferred to property and equipment during the nine months ended September 30, 2011 and 2010, respectively.

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

7.   INTANGIBLE ASSETS, NET

Intangible assets consist of the following:

	September 30, 2011			December 31, 2010
Management right of tourist resort	$	5,478,594		$	5,293,566
Advertising boards		-			6,806,013
Commercial airtime rights		6,584,945			6,362,551
Land use right		2,064,514			1,994,790
		14,128,053			20,456,920
Accumulated amortization		(4,469,059	)		(6,414,488	)
Intangible assets, net	$	9,658,994		$	14,042,432

The Company acquired a 30 year tourist resort management right in August 2001 from unrelated parties for purchase consideration of $5,478,594 (RMB35,000,000).

The Company entered into an agreement with a third party on February 29, 2008 and obtained a five-year advertising right for 30 outside advertising boards in Fuzhou City for purchase consideration of RMB45,000,000. The agreement had a five-year term. However, due to the expansion of the highways in Fuzhou City, the advertising boards needed to be demolished.  On August 31, 2011, the Company entered into an agreement with the original third party supplier to have early termination of the term of the advertising right due to the expansion of the highways by government.  The original third party supplier agreed to compensate the Company at the net book value in cash of $2,080,636 (RMB13,500,000). No gain or loss arose from this transaction.

On August 1, 2010, the Company entered into a commercial airtime rights agreement with a television station. Under the terms of the agreement, the Company can obtain commercial airtime and resell to advertisers from August 1, 2010 to July 31, 2013 for a monthly fee of $154,121 (RMB 1,000,000) for the period from August 1, 2010 to July 31, 2011. The fee is increased by 20% annually on every August 1.  From August 1, 2011 to July 31, 2012, the monthly fee is $184,945 (RMB1,200,000).  From August 31, 2012 to July 30, 2013, the monthly fee will be $221,934 (RMB1,440,000) for the period.  The agreement can be renewed for two additional years, with mutual agreement between the parties. Since the Company is reselling the commercial airtime to advertisers, the Company has present-valued the monthly payments, including the 20% annual increase, using the market borrowing rate of 7% for three years and recorded $6,584,945 (RMB42,067,917) as commercial airtime rights as an intangible asset, $6,837,286 (RMB43,680,000) as obligation under airtime rights commitment, and $252,341 (RMB1,612,083) as deferred interest at inception (See note 10).

At inception, the Company had made an initial assessment that there is no assurance the Company will exercise the option for two additional years and therefore, the Company has only considered the present value of the monthly fee for the first three years under the terms of the agreement.

During the nine months ended September 30, 2011 and 2010, amortization expense amounted to $2,718,586 and $1,463,586, respectively, and was included in cost of sales.

During the three months ended September 30, 2011 and 2010, amortization expense amounted to $844,271 and $720,437, respectively, and was included in cost of sales.

Estimated amortization for the next five years and thereafter is as follows:

Remainder of 2011	$	607,303
2012		2,429,214
2013		1,514,638
2014		234,233
2015		234,233
Thereafter		4,639,373
	$	9,658,994

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

8.    LONG-TERM PREPAYMENTS

Long-term prepayments consist of the following:

	September 30, 2011		December 31, 2010
Prepayments for project planning, assessments and consultation fees	$	2,217,140	$	193,593
Prepayments for development right for resort, deferred financing costs and others		804,774		-
	$	3,021,914	$	193,593

Prepayments for project planning, assessments and consultation fees represent advances relating to the planning, assessment and consultation for the development of other tourism destinations in Anhui province and Jiangxi province.

Prepayments included in development for resort, deferred financing costs and others were $302,510 (RMB1.9 million) for development rights for other resorts and $339,896 (RMB2.17 million) for deferred financing costs.

9.   BANK LOANS

Short-term loans

Short-term loans represent borrowings from commercial banks that are due within one year. These loans consisted of the following:

	September 30, 2011		December 31, 2010
Loan from Construction Bank, interest rate at 5.56% per annum, due December 15, 2011, collateralized by the Tulou’s property with a net book value of $1,206,200.	$	594,819	$	574,730
Loan from Fujian Haixia Bank (formerly known as Merchant bank of Fuzhou), interest rate at 6.67% per annum, due November 5, 2011, guaranteed by Fujian Jintai Tourism Development Co., Ltd.		1,252,250		1,209,957
Total	$	1,847,069	$	1,784,687

The Company is applying for an extension for the loan from Fujian Haixia Bank and the due date to be extended to November 5, 2012.

Interest expense for the nine months ended September 30, 2011 and 2010 amounted to $94,968 and $81,702, respectively. Interest expense for the three months ended September 30, 2011 and 2010 amounted to $32,722 and $27,653, respectively. The interest expense for the nine months ended September 30, 2011 and 2010 of $64,977 and $81,702, respectively was capitalized as part of construction in progress. The interest expense for the three months ended September 30, 2011 and 2010 of $32,262 and $27,653, respectively was capitalized as part of construction in progress.

- 12 -

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

9.   BANK LOANS (CONTINUED)

Long-term debt

Long term debt consists of the following:

	September 30, 2011			December 31, 2010
Loan from Taining Credit Union, interest rate at 7.02% per annum, due March 20, 2012, collateralized by the management rights of the Great Golden Lake.	$	2,645,378		$	2,571,161
Loan from Industrial and Commercial Bank of China Limited, interest rate at 6.40% per annum, final installment due December 15, 2017, secured by credit guarantee of Fujian Jintai and the right to collect resort ticket sales at Yunding resort as additional collateral. (Note (a))		10,722,392			-
		13,367,770			2,571,161
Less: current portion		(3,584,566	)		-
Total	$	9,783,204		$	2,571,161

Note:

(a) $156,531 (RMB1,000,000) will be due in 2011; $1,017,453 (RMB6,500,000) will be due in 2012; $1,330,516 (RMB8,500,000) will be due in 2013; $1,721,844 (RMB11,000,000) will be due in 2014; $2,113,172 (RMB13,500,000) will be due in 2015; $2,191,438 (RMB14,000,000) will be due in 2016 and $2,191,438 (RMB14,000,000) will be due in 2017.

Interest expense for the nine months ended September 30, 2011 and 2010 amounted to $596,067 and $133,254, respectively. Interest expense for the three months ended September 30, 2011 and 2010 amounted to $220,919 and $44,919, respectively. The interest expense for the nine months ended September 30, 2011 and 2010 of $446,516 and $133,254, respectively was capitalized as part of construction in progress. The interest expense for the three months ended September 30, 2011 and 2010 of $218,628 and $44,919, respectively was capitalized as part of construction in progress.

Management right of the tourist resort with a net book value of $3,621,960 is used as collateral for the long-term debt from Taining Credit Union.  The loan from Industrial and Commercial Bank of China Limited is secured by credit guarantee of Fujian Jintai and the right to collect resort ticket sales at Yunding resort as additional collateral.

10.   OBGLIATION UNDER AIRTIME RIGHTS COMMITMENT

Obligation under airtime rights commitment (See note 7) consists of the following:

Remainder of 2011	$	563,513
2012		2,441,888
2013		1,577,835
		4,583,236
Less: deferred interest		(158,712	)
		4,424,524
Less: current portion		(2,241,135	)
	$	2,183,389
Maturities of the long-term obligation:
Remainder of 2011	$	534,779
2012		2,348,091
2013		1,541,654
	$	4,424,524

- 13 -

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

11.   ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consist of the following:

	September 30, 2011		December 31, 2010
Subsidies receipt for land use right acquisition	$	892,228	$	-
Construction holdback		482,993		-
Unearned revenue		128,457		22,616
Payroll		340,501		179,935
Welfare		77,646		125,403
Other		389,436		310,072
	$	2,311,261	$	638,026

Subsidies receipt for land use right acquisition represents the subsidies from the local government for acquiring the land use rights and will be offset against the cost of land use rights after the completion of the acquisition of these rights.

Construction holdback represents an amount that Fujian Yida is withholding from the contractor who built the attractions and buildings. Fujian Yida will pay the money to the contractors three months after the construction was completed if there are no defects found by Fujian Yida.

12.   INCOME TAX

The Company is subject to Hong Kong (“HK”) and People’s Republic of China (“PRC”) profit tax. For certain operations in HK and PRC, the Company has incurred net accumulated operating losses for income tax purposes.

United States

The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the year. The applicable income tax rate for the Company for the nine months ended September 30, 2011 and 2010 was 35% and 35%, respectively.  No tax benefit has been realized since a valuation allowance has offset the deferred tax asset resulting from the net operating losses.

Cayman Islands

Keenway Limited, a wholly owned subsidiary of the Company, is incorporated in the Cayman Islands and, under the current laws of the Cayman Islands, is not subject to income taxes.

Hong Kong

Hong Kong Yi Tat, a wholly owned subsidiary of the Company, is incorporated in Hong Kong. Hong Kong Yi Tat is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. No provisions for income taxes have been made as Hong Kong Yi Tat has no taxable income for the year. The applicable statutory tax rate for the subsidiary for the nine months ended September 30, 2011 and 2010 was 16.5% and 16.5%, respectively.

PRC

Effective on January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules impose an unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign investment enterprises in PRC, unless they qualify under certain limited exceptions. As such, starting from January 1, 2008, the Company’s subsidiaries in PRC are subject to an enterprise income tax rate of 25%.

- 14 -

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

12. INCOME TAX (CONTINUED)

The provision for income tax consists of the following:

	For The Nine Months Ended September 30,						For The Three Months Ended September 30,
	2011			2010			2011			2010
Current
USA	$	-		$	-					$	-
China		5,381,528			7,381,950			1,706,842			1,989,280
		5,381,528			7,381,950			1,706,842			1,989,280
Deferred
USA
Deferred tax asset for NOL carry forwards		878,407			638,511			85,760			312,929
Valuation allowance		(878,407	)		(638,511	)		(85,760	)		(312,929	)
		-			-			-			-
China
Current portion
Temporary difference from general and administrative expenses		(71	)		-			(24	)		-
Net deferred income tax liabilities under current liabilities		(71	)		-			(24	)		-
Non current portion
Deferred tax asset for NOL carry forwards		129,541			458,956			62,823			(195,010	)
Temporary difference from airtime rights expenses		(56,068	)		-			(10,967	)		-
Temporary difference from capitalized interest		4,225			-			2,137			-
Valuation allowance		(129,541	)		(458,956	)		(62,823	)		195,010
Net deferred income tax assets under non current assets		(51,843	)		-			(8,830	)		-
Less : Net deferred income tax expenses		(51,914	)		-			(8,854	)		-
Total provision of income tax	$	5,433,442		$	7,381,950		$	1,715,696		$	1,989,280

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the net operating losses and temporary differences become deductible. Management considered projected future taxable income and tax planning strategies in making this assessment.

The change in total allowance for the nine months ended September 30, 2011 and 2010 was an increase of $466,373 and $735,484 respectively. The change in total allowance for the three months ended September 30, 2011 and 2010 was an increase of $148,584 and $117,951 respectively.

- 15 -

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

13.   STOCKHOLDERS’ EQUITY

1) WARRANTS

The remaining 773,812 Class A Warrants expired on September 6, 2011.

2) STOCK-BASED COMPENSATION

On January 21, 2011 (the “CFO Stock Option Grant Date”), the Company entered into a Non-qualified Stock Option Agreement with the Company’s Chief Financial Officer, pursuant to which, the Company issued non-qualified stock options (the “CFO Stock Options”) to purchase a total of 75,000 shares of the Company’s common stock as compensation for his services to be rendered as the Company’s Chief Financial Officer. 15,000 CFO Stock Options vested on the CFO Stock Option Grant Date; 20,000 CFO Stock Options shall vest on the one-year anniversary of the CFO Grant Date; 20,000 CFO Stock Options shall vest on the second-year anniversary of the CFO Grant Date; and 20,000 CFO Stock Options shall vest on the third-year anniversary of the CFO Grant Date. The exercise price for all of the shares was determined as the fair value of our common stock using the closing price on the grant date.

On January 21, 2011 (the “VPIR Stock Option Grant Date”), the Company entered into a Non-qualified Stock Option Agreement with the Company’s VP of Investor Relation, pursuant to which, the Company issued non-qualified stock options (the “VPIR Stock Options”) to purchase a total of 75,000 shares of the Company’s common stock as compensation for his services to be rendered as the Company’s VP of Investor Relation. 15,000 VPIR Stock Options shall vest on the VPIR Stock Option Grant Date; 20,000 VPIR Stock Options shall vest on the one-year anniversary of the VPIR Grant Date; 20,000 VPIR Stock Options shall vest on the second-year anniversary of the VPIR Grant Date; and 20,000 VPIR Stock Options shall vest on the third-year anniversary of the VPIR Grant Date. The exercise price for all of the shares was determined as the fair value of our common stock using the closing price on the grant date.

On March 17, 2011 (the “ID Stock Option Grant Date”), the Company entered into a Non-qualified Stock Option Agreement with the Company’s Independent Director, pursuant to which, the Company issued non-qualified stock options (the “ID Stock Options”) to purchase a total of 30,000 shares of the Company’s common stock as compensation for his services to be rendered as the Company’s Independent Director. One half of the ID Stock Options vested on the ID Grant Date and the second half of ID Stock Options vested on June 10, 2011.  The exercise price for all of the shares was determined as the fair value of our common stock using the closing price on the grant date.

On July 27, 2011, the Company entered into an agreement with the Company’s Independent Director, pursuant to which, the Company granted 20,000 restricted shares of the Company’s common stock as compensation for his services to be rendered as the Company’s Independent Director from June 10, 2011 to June 9, 2012. The estimated value of the 20,000 shares was $73,000 on June 10, 2011. The unrecognized share based compensation expense as of September 30, 2011 was approximately $68,700, which is expected to be recognized over a weighted average period of approximately 0.7 year.

The Company valued the stock options using the Black-Scholes model with the following assumptions:

Type of Stock Option	Number of Options		Expected Term		Expected Volatility			Dividend Yield			Risk Free Interest  Rate			Estimated Value as at grant date		Unrecognized compensation as at September 30, 2011
Options to Chief Financial Officer		75,000		10		60	%		0	%		3.44	%		522,649		321,513
Options to VP of Investor Relation		75,000		10		60	%		0	%		3.44	%		522,649		321,513
Options to Independent Director		30,000		10		60	%		0	%		3.25	%		169,979		-
		180,000													1,215,277		643,026

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CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

13. STOCKHOLDERS’ EQUITY (CONTINUED)

The following is a summary of the option activity:

	Number of Options
Outstanding as of December 31, 2009 and 2010		30,000
Granted		180,000
Exercised		-
Forfeited		-
Outstanding as of September 30, 2011		210,000

For the nine months ended September 30, 2011 and 2010, the Company recognized approximately $576,536 and $83,994, respectively, as stock-based compensation expense, in which $572,252 and $83,994 for its stock option plan and $4,284 and $0 for its restricted shares, which is included in general and administrative expenses.

For the three months ended September 30, 2011 and 2010, the Company recognized approximately $74,543 and $0, respectively, as stock-based compensation expense, in which $70,259 and $0 for its stock option plan and $4,284, and $0 for its restricted shares, which is included in general and administrative expenses.

14.   NON-CONTROLLING INTEREST

On April 15, 2010, the Company established a new subsidiary, Anhui Yida.  The Company has a 60% interest and Anhui Xingguang Group, an unrelated entity, holds a 40% interest.  Anhui Yida has not commenced operations as of September 30, 2011. Non-controlling interest consisted of the following:

	September 30, 2011			December 31, 2010
Capital contributed by non-controlling interest	$	6,049,790		$	6,049,790
Accumulated deficits		(109,766	)		(25,751	)
Accumulated other comprehensive income		(1,314	)		(650	)
		5,938,710			6,023,389
Less: Loan to non-controlling interest		(3,381,075	)		(5,928,794	)
	$	2,557,635		$	94,595

- 17 -

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

15.   COMMITMENTS AND CONTINGENCIES

(1) Operating commitments

Operating commitments consist of leases for office space under various operating lease agreements which expire in April 2021.

Operating lease agreements generally contain renewal options that may be exercised at the Company’s discretion after the completion of the terms. The Company's obligations under various operating leases are as follows:

Remainder of 2011	$	29,361
2012		90,825
2013		71,562
2014		65,242
2015		70,161
Thereafter		232,567
Total minimum payments	$	559,718

The Company incurred rental expenses of $126,395 and $74,042 for the nine months ended September 30, 2011 and 2010, respectively and which included $6,935 and $6,602, respectively, paid to Xin Hengji Holding Company Limited, a related party.

The Company incurred rental expenses of $55,940 and $21,388 for the nine months ended September 30, 2011 and 2010, respectively and which included $2,383 and $2,213, respectively, paid to Xin Hengji Holding Company Limited, a related party.

(2) Capital commitment

Jiangxi Zhangshu Yangsheng TianTang Resort

As at September 30, 2011, the total estimated contract costs to complete Jiangxi Zhangshu Yangsheng TianTang resort are approximately $14,000,000 (RMB90.57 million) of which the Company has completed and paid for approximately $11,000,000 (RMB70.11 million). The remaining $3,000,000 (RMB20.46 million) will be completed and paid by the end of 2012. Jiangxi Zhangshu signed a contract with the local government to pay compensation to the existing land user for acquisition of the land for $7,127,000 (RMB45.53 million) of which the Company paid $4,696,000 (RMB30 million) and is recorded in advances and prepayments. The remaining $2,431,000 (RMB 15.53 million) will be paid before December 31, 2011.

Jiangxi Fenyi Dongdou Resort

As at September 30, 2011, the total estimated contract costs to complete Jiangxi Fenyi Dongdou resort are approximately $12,715,000 (RMB81.23 million) of which the Company has completed and paid for approximately $10,371,000 (RMB66.26 million). The remaining $2,344,000 (RMB14.97 million) will be completed and paid by the end of 2012.

(3) Litigation

The Company may be a party to various legal actions arising in the ordinary course of business.  The Company’s management does not expect the legal matters involving the Company would have a material impact on the Company’s consolidated financial position or results of operations.

- 18 -

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

16.   EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution of securities by including other potential common stock, including convertible preferred stock, stock options and warrants, in the weighted average number of common shares outstanding for the period, if dilutive.  The numerators and denominators used in the computations of basic and dilutive earnings per share are presented in the following table:

	For The Nine Months Ended September 30,				For The Three Months Ended September 30,
	2011		2010		2011		2010
BASIC
Numerator for basic earnings per share attributable to the Company’s common stockholders:
Net income used in computing basic earnings per share	$	10,653,241	$	19,922,489	$	3,208,606	$	4,673,065
Basic earnings per share	$	0.54	$	1.03	$	0.16	$	0.24
Basic weighted average shares outstanding		19,551,785		19,343,858		19,551,785		19,551,785
	For The Nine Months Ended September 30,				For The Three Months Ended September 30,
		2011		2010		2011		2010
DILUTED
Numerator for basic earnings per share attributable to the Company’s common stockholders:
Net income used in computing diluted earnings per share	$	10,653,241	$	19,922,489	$	3,208,606	$	4,673,065
Diluted earnings per share	$	0.54	$	0.99	$	0.16	$	0.23
Weighted average outstanding shares of common stock		19,551,785		19,343,858		19,551,785		19,551,785
Warrants		-		773,812		-		773,812
Restricted common shares		9,836				3,651
Diluted weighted average shares outstanding		19,561,621		20,117,670		19,555,436		20,325,597
Potential common shares outstanding as of September 30:
Warrants outstanding		-		773,812		-		773,812
Options outstanding		90,000		30,000		110,000		30,000
Unvested restricted common shares		20,000		-		20,000		-

For nine months ended September 30, 2011 and 2010, 90,000 and 30,000 options, respectively were not included in the diluted earnings per share because the average stock price was lower than the strike price of these options.

For three months ended September 30, 2011 and 2010, 90,000 and 30,000 options, respectively were not included in the diluted earnings per share because the average stock price was lower than the strike price of these options.

- 19 -

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

17.   BUSINESS SEGMENTS

During the nine months ended and three months ended September 30, 2011 and 2010, the Company is organized into two main business segments: advertisement and tourism. The primary business relates to tourism at the Great Golden Lake, Yunding resort and Tulou resort. The Company offers bamboo rafting, parking lot service, photography services and ethnic cultural communications. The primary business related to advertisement is focused on advertisements, including media publishing, television, cultural and artistic communication activities, and performance operation and management activities. The following table presents a summary of operating information and certain balance sheet information for the two segments for the periods ended:

		For The Nine Months Ended September 30,						For The Three Months Ended September 30,
		2011			2010		2011				2010
Revenues:
Advertisement	$	26,675,530		$	27,820,997	$	8,322,439			$	9,726,192
Tourism		7,299,124			14,383,404		2,885,042				1,299,966
Total	$	33,974,654		$	42,204,401	$	11,207,481			$	11,026,158
Operating income:
Advertisement	$	19,234,964		$	20,668,136	$	6,148,461			$	7,341,963
Tourism		(1,832,147	)		7,231,243		(998,249		)		(458,593	)
Other		(1,205,865	)		(668,192	)	(244,602		)		(259,654	)
Total	$	16,196,952		$	27,231,187	$	4,905,610			$	6,623,716
Net income:
Advertisement	$	14,185,447		$	15,386,580	$	4,576,021			$	5,477,872
Tourism		(2,357,224	)		5,183,116		(1,154,085		)		(564,633	)
Other		(1,258,997	)		(668,797	)	(254,182		)		(257,731	)
Total	$	10,569,226		$	19,900,899	$	3,167,754			$	4,655,508
Capital expenditure:
Advertisement	$	2,324		$	1,819,530	$	17			$	1,817,059
Tourism		8,539,295			22,032,201		2,994,437				22,032,201
Total	$	8,541,619		$	23,851,731	$	2,994,454			$	23,849,260
					September 30, 2011						December 31, 2010
Identifiable assets:
Advertisement				$	9,852,173					$	9,990,752
Tourism					165,296,814						136,088,730
Others					1,081,022						1,742,327
				$	176,230,009					$	147,821,809

Others represent reconciling amounts including certain assets which are excluded from segments and adjustments to eliminate inter-company transactions.    

- 20 -

Item 2.                      Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion of our financial condition and results of operations should also be read in conjunction with our unaudited condensed consolidated financial statements and the notes to those financial statements appearing elsewhere in this Form 10-Q. The following discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to future events or our future performance. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this prospectus. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

Overview

The Company was formed on June 4, 1999 to serve as a vehicle to effect a merger, capital stock exchange, asset acquisition or other similar business combination with a company having its primary operations in the PRC. On November 19, 2007, we consummated the acquisition of Keenway Limited, Hong Kong Yi Tat, and the then shareholders of Keenway Limited, including Chen Minhua, Fan Yanling, Zhang Xinchen, Extra Profit International Limited, and Lucky Glory International Limited (collectively, the “Keenway Limited Shareholders”), received 90,903,246 newly issued shares of our common stock and 3,641,796 shares of our common stock which were transferred from some of our then existing shareholders (the “Merger”). As a result of the closing of the Merger, the Keenway Limited Shareholders owned approximately 94.5% of our then issued and outstanding shares on a fully diluted basis and Keenway Limited became our wholly owned subsidiary.

We are subject to risks common to companies operating in China, including risks inherent in our distribution and commercialization efforts, uncertainty of foreign regulatory approvals and laws, the need for future capital and retention of key employees. We cannot provide assurance that we will generate revenues or achieve and sustain profitability in the future.

Results of Operations

The Company is organized into two main business segments, tourism and advertisement.

The following table presents a summary of operating information by segments for the three months ended September 30, 2011 and 2010:

	For the three months			For the three months
	ended			ended			Increase/			Increase/
	September 30,			September 30,			(Decrease)			(Decrease)
	2011			2010			U. S. Dollar ($)			Percentage (%)
Net revenue
Advertisement	$	8,322,439		$	9,726,192		$	(1,403,753	)		(14.43	)
Tourism		2,885,042			1,299,966			1,586,076			121.93
Total net revenue		11,207,481			11,026,158			181,323			1.64
Cost of revenue
Advertisement		2,141,129			2,118,790			22,339			1.05
Tourism		1,389,869			654,551			735,318			112.34
Total cost of revenue		3,530,998			2,773,341			757,657			27.32
Gross profit		7,676,483			8,252,817			(576,334	)		(6.98	)
Selling expenses		1,596,304			604,444			991,860			164.09	)
General and administrative expenses		1,174,569			1,024,657			149,912			14.63
Operating income		4,905,610			6,623,716			(1,718,106	)		(25.94	)
Other (expense)		(23,648	)		(5,593	)		(18,055	)		322.81
Interest income		27,942			45,764			(17,822	)		(38.94)
Interest expenses		(26,454	)		(19,099	)		(7,355	)		38.51
Income tax expenses		(1,715,696	)		(1,989,280	)		(273,584	)		(13.75	)
Net income		3,167,754			4,655,508			(1,487,754	)		(31.96	)
Net loss attributable to non-controlling interest		40,852			17,557			23,295			132.68
Net income	$	3,208,606		$	4,673,065		$	(1,464,459	)		(31.34	)

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Three months ended September 30, 2011 compared to Three months ended September 30, 2010

Net Revenue:

Net revenue increased by approximately $0.18 million or approximately 2%, from approximately $11.03 million for the three months ended September 30, 2010 to approximately $11.21 million for the three months ended September 30, 2011.

Advertisement

Advertisement revenue decreased by approximately $1.41 million or approximately 14% from approximately $9.73 million to approximately $8.32 million. This decrease was primarily due to the instability of the railway media broadcast revenue as compared with the same period of 2010.

Tourism

Tourism revenue increased by approximately $1.59 million or approximately 122%, from approximately $1.30 million to approximately $2.89 million. The increase was primarily due to an increase in the number of tourists visiting the Great Golden Lake Resort in the third quarter of 2011. The effect of the flooding that occurred at the Great Golden Lake Resort during the second half of 2010 reduced the number of tourists visiting which was recovered in the third quarter of 2011 and combined with additional tourists visiting the Great Golden Lake Resort than ever before.

Cost of Revenue:

Cost of revenues increased by approximately $0.76 million or approximately 27%, from approximately $2.77 million for the three months ended September 30, 2010 to approximately $3.53 million for the three months ended September 30, 2011.

Advertisement

Cost of revenue from advertisement increased by approximately $0.02 million or approximately 1%, from approximately $2.12 million to approximately $2.14 million. Cost of revenue remained constant primarily due to the fixed costs associated with FETV’s commercial airtime.

Tourism

Cost of revenue from tourism increased by approximately $0.74 million or approximately 112%, from approximately $0.65 million to approximately $1.39 million. The increase was due to the effects of the flooding that occurred at the Great Golden Lake Resort during the second half of 2010 resulting in a decrease in the number of visitors which was recovered in the third quarter of 2011 and combined with additional tourists visiting the Great Golden Lake Resort than ever before.  The corresponding variable costs therefore increased significantly.

Gross profit:

Gross profit decreased approximately $0.58 million, or approximately 7%, from approximately $8.26 million for the three months ended September 30, 2010 to approximately $7.68 million for the three months ended September 30, 2011. Our gross profit margin was approximately 68% in 2011, as compared to approximately 75% for the same period in 2010.

Advertisement

Gross profit from advertisement decreased by approximately $1.43 million, or approximately 19%, from approximately $7.61 million to approximately $6.18 million. Gross profit margin from advertisement was approximately 74% for 2011, as compared to approximately 78% for the same period in 2010. This decrease was primarily attributable to the instability of revenue generated from the railway media broadcasts, as compared with the same period in 2010 and that the fixed costs associated with FETV’s commercial airtime remained constant.

Tourism

Gross profit from tourism increased by approximately $0.85 million, or approximately 132%, from approximately $0.65 million to approximately $1.50 million. Gross profit margin from tourism was approximately 52% in 2011, as compared to approximately 50% for the same period in 2010. The slight increase of gross profit margin was primarily attributable to the effect of the flooding that occurred at the Great Golden Lake Resort during the second half of 2010 which was recovered in the third quarter of 2011 and combined with an increase in tourists visiting the Great Golden Lake Resort than ever before. The fixed costs at the resorts remained constant.

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Selling Expenses:

Selling expenses were approximately $1.60 million for the three months ended September 30, 2011, compared to approximately $0.6 million for the three months ended September 30, 2010, which represents an increase of approximately $1 million, or approximately 164%. The increase in selling expense was primarily due to (i) the effects on the flooding that occurred at the Great Golden Lake during the second half of 2010 resulting in a decrease in the number of visitors and a corresponding decrease in variable costs which was recovered in the third quarter of 2011 and combined with an increase in tourists visiting the Great Golden Lake Resort than ever before, the corresponding variable costs increased, and (ii) the business expansions in our newly opened Yunding resort during 2011, as the resort had not been operational during the same period in 2010.

General and Administrative Expenses:

General and administrative expenses were approximately $1.17 million for the three months ended September 30, 2011, as compared to approximately $1.02 million for the three months ended September 30, 2010, an increase of approximately $0.15 million, or approximately 15%. The increase was primarily due to an increase in stock based compensation expense related to the issuance of stock options and an increase in management fees for new projects in 2011.

Income Tax:

Income tax expense was approximately $1.72 million for the three months ended September 30, 2011, a decrease of approximately $0.27 million or approximately 14%, as compared to the approximately $1.99 million income tax expense for the three months ended September 30, 2010. The decrease was primarily attributable to lower net income attributable to lower revenue generated from the railway media broadcasts.

Net Income:

As a result of the above factors, net income was approximately $3.17 million for the three months ended September 30, 2011, as compared to net income of approximately $4.66 million for the three months ended September 30, 2010, a decrease of approximately $1.49 million or approximately 32%. The decrease was primarily attributable to the decrease in revenue generated from railway media broadcasts, as compared with the same period in 2010.

The following table presents a summary of operating information by segments for the nine months ended September 30, 2011 and 2010:

	For the nine months			For the nine months
	ended			ended			Increase/			Increase/
	September 30,			September 30,			(Decrease)			(Decrease)
	2011			2010			U. S. Dollar ($)			Percentage (%)
Net revenue
Advertisement	$	26,675,530		$	27,820,997		$	(1,145,467)			(4.12)	)
Tourism		7,299,124			14,383,404			(7,084,280	)		(49.25	)
Total net revenue		33,974,654			42,204,401			(8,229,747	)		(19.50	)
Cost of revenue
Advertisement		6,847,683			5,855,415			992,268			16.95
Tourism		3,681,633			2,958,141			723,492			24.46
Total cost of revenue		10,529,316			8,813,556			1,715,760			19.47
Gross profit		23,445,338			33,390,845			(9,945,507	)		(29.79	)
Selling expenses		3,704,622			2,839,638			864,984			30.46
General and administrative expenses		3,543,764			3,320,020			223,744			6.74
Operating income		16,196,952			27,231,187			(11,034,235	)		(40.52	)
Other income (expense)		(41,430	)		1,650			(43,080	)		(2,610.91	)
Interest income		75,358			69,111			6,247			9.04
Interest expenses		(228,212	)		(19,099	)		(209,113	)		1,094.89
Income tax expenses		(5,433,442	)		(7,381,950	)		(1,948,508	)		(26.40	)
Net income		10,569,226			19,900,899			(9,331,673	)		(46.89	)
Net loss attributable to non-controlling interest		84,015			21,590			62,425			289.14
Net income	$	10,653,241		$	19,922,489		$	(9,269,248	)		(46.53	)

- 23 -

Nine Months ended September 30, 2011 compared to Nine Months ended September 30, 2010

Net Revenue:

Net revenue decreased by approximately $8.23 million or approximately 20%, from approximately $42.21 million for the nine months ended September 30, 2010 to approximately $33.98 million for the nine months ended September 30, 2011.

Advertisement

Advertisement revenue decreased by approximately $1.15 million or approximately 4% from approximately $27.83 million to approximately $26.68 million. The decrease was primarily due to the instability of revenue generated from railway media broadcasts, as compared with the same period in 2010.

Tourism

Tourism revenue decreased by approximately $7.08 million or approximately 49%, from approximately $14.38 million to approximately $7.30 million. The decrease was primarily due to a reduction in the number of tourists visiting the Great Golden Lake Resort. The number of tourists decreased as a direct result of the flooding that occurred at the Great Golden Lake Resort during the second half of 2010. The effects of the flooding have started to recover during the third quarter of 2011.

Cost of Revenue:

Cost of revenues increased by approximately $1.71 million or approximately 19%, from approximately $8.82 million for the nine months ended September 30, 2010 to approximately $10.53 million for the nine months ended September 30, 2011.

Advertisement

Cost of revenue from advertisement increased by approximately $0.99 million or approximately 17%, from approximately $5.86 million to approximately $6.85 million. The increase was due to the increase in costs associated with acquiring the rights to redistribute FETV’s commercial airtime by renewal of the new contracts in the third quarter of 2010.

Tourism

Cost of revenue from tourism increased by approximately $0.72 million or approximately 24%, from approximately $2.96 million to approximately $3.68 million. The increase was due to the high depreciation expense on property and equipment in the resorts.

Gross profit:

Gross profit decreased approximately $9.94 million, or approximately 30%, from approximately $33.39 million for the nine months ended September 30, 2010 to approximately $23.45 million for the nine months ended September 30, 2011. Our gross profit margin was approximately 69% in 2011, as compared to approximately 79% for the same period in 2010.

Advertisement

Gross profit from advertisement decreased by approximately $2.14 million, or approximately 10%, from approximately $21.97 million to approximately $19.83 million. Gross profit margin from advertisement was approximately 75% for 2011, as compared to approximately 79% for the same period in 2010. This decrease was primarily attributable to the increase in costs associated with acquiring the rights to redistribute FETV’s commercial airtime by renewal of the new contracts in the third quarter of 2010.

Tourism

Gross profit from tourism decreased by approximately $7.81 million, or approximately 68%, from approximately $11.43 million to approximately $3.62 million. Gross profit margin from tourism was approximately 50% in 2011, as compared to approximately 79% for the same period in 2010. The decrease of gross profit margin was primarily attributable to (i) the effect on the revenue and the number of tourists visiting the Great Golden Lake Resort during the restoration of the resort and (ii) the increased depreciation expense on property and equipment in the new resorts.

Selling Expenses:

Selling expenses were approximately $3.71 million for the nine months ended September 30, 2011, as compared to approximately $2.84 million for the nine months ended September 30, 2010, an increase of approximately $0.87 million, or approximately 30%. The increase was primarily due to the business expansions in our newly engaged operations in Yunding resort during 2011 as the resort had not been operational for the same period in 2010.

- 24 -

General and Administrative Expenses

General and administrative expenses were approximately $3.54 million for the nine months ended September 30, 2011, as compared to approximately $3.32 million for the nine months ended September 30, 2010, an increase of approximately $0.22 million, or approximately 7%. The increase was primarily due to an increase in stock based compensation expense related to the issuance of stock options and an increase in management fees for new projects in 2011.

Income Tax:

Income tax expense was approximately $5.43 million for the nine months ended September 30, 2011, a decrease of approximately $1.95 million or approximately 26%, as compared to approximately $7.38 million in income tax expense for the nine months ended September 30, 2010. The decrease was primarily attributable to lower net income attributable to lower revenue generated from the Great Golden Lake Resort.

Net Income:

As a result of the above factors, net income was approximately $10.57 million for the nine months ended September 30, 2011 as compared to net income of approximately $19.90 million for the nine months ended September 30, 2010, a decrease of approximately $9.33 million or approximately 47%. The decrease was primarily attributable to the effect of the restoration of the Great Golden Lake Resort.

LIQUIDITY AND CAPITAL RESOURCES

Our principal sources of liquidity include cash from operations and proceeds from long term debt. The debt provided net proceeds of approximately $10.8 million.

At September 30, 2011, we had cash and cash equivalents of approximately $14.36 million as compared to approximately $31.40 million as of September 30, 2010, representing a decrease of $17.04 million. The decrease was primarily due to no issuance of common stock in connection with a registered direct offering that we closed in the same period in 2010, the adverse effect of restoration of the Great Golden Lake Resort which was offset by the proceeds from long term debt. At September 30, 2011, our working capital was approximately $16.35 million.

Net cash provided by operating activities was approximately $16.27 million for 2011 as compared to approximately $23.36 million in 2010. The decrease of $7.09 million was primarily due to a decrease in net income resulting from a decrease in the number of tourists visiting the Great Golden Lake Resort during the restoration of the resort.

Net cash used in investing activities was approximately $18.52 million in 2011 as compared to approximately $30.52 million in 2010, representing a significant decrease in capital expenditures of approximately $12.00 million due to the fact that the construction of the various resorts was nearly complete during the nine months ended September 30, 2011.

Net cash provided by financing activities amounted to approximately $9.14 million in 2011, compared to approximately $32.27 million in 2010, representing a decrease of approximately $23.13 million, mainly due to no issuances of common stock in connection with a registered direct offering that we closed in the same period in 2010.

Bank loans

The Company has four bank loans from four institutional lenders for the development of the tourism destinations.

1.   A loan for approximately $0.59 million from Construction Bank. The loan bears interest at 5.56% per annum, and is due December 15, 2011.  It is collateralized by the Tulou property.

2.   A loan for approximately $1.25 million from Fujian Haixia bank (formerly known as Merchant bank of Fuzhou).  The loan bears interest rate at 6.67% per annum, and is due November 5, 2011, guaranteed by Fujian Jintai Tourism Development Co., Ltd.

3.   A loan for approximately $2.65 million from Taining Credit Union, interest rate at 7.02% per annum, which is due March 20, 2012, and is collateralized by the management rights of the Great Golden Lake Resort.

4.   A loan for approximately $10.72 million from Industrial Commercial Bank of China Limited. The loan bears interest at 6.40% per annum, $0.16 million is due in 2011; $1.02 million is due in 2012; $1.33 million is due in 2013; $1.72 million is due in 2014; $2.11 million is due in 2015; $2.19 million is due in 2016 and $2.19 million is due in 2017.

- 25 -

In the coming 12 months, we have approximately $5.43 million in bank loans that will mature. We plan to replace these loans with new bank loans in approximately the same aggregate amounts.

We believe that our currently available working capital, credit facilities referred to above and the expected additional credit facility should be adequate to sustain our operations at the current level for the next twelve months.

Obligations Under Material Contracts

Below is a table setting forth the Company’s material contractual obligations as of September 30, 2011:

			Payment due by period
Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Bank Loans	$	15,214,839	$	5,431,635	$	2,974,094	$	4,226,344	$	2,582,766
Operating Lease Obligations		559,718		29,361		227,629		302,728		-
Obligation under airtime rights		4,424,524		2,241,135		2,183,389		-		-
Total	$	20,199,081	$	7,702,131	$	5,385,112	$	4,529,072	$	2,582,766

Capital commitment

Jiangxi Zhangshu Yangsheng TianTang Resort

At September 30, 2011, the total estimated contract costs to complete the Jiangxi Zhangshu Yangsheng TianTang resort are approximately $14,000,000 (RMB90.57 million) of which the Company has completed and paid for approximately $11,000,000 (RMB70.11 million). The remaining $3,000,000 (RMB20.46 million) is anticipated to be completed and paid for by the end of 2012.

Jiangxi Fenyi Dongdou Resort

At September 30, 2011, the total estimated contract costs to complete the Jiangxi Fenyi Dongdou resort are approximately $12,715,000 (RMB81.23 million) of which the Company has completed and paid for approximately $10,371,000 (RMB66.26 million). The remaining $2,344,000 (RMB14.97 million) is anticipated to be completed and paid for by the end of 2012.

2011-2012 Outlook

In 2011, we have been constructing and developing Yunding Park’s second phase of construction and three new tourism projects, the Ming Dynasty Entertainment World in Bengbu City, Anhui province, the China Yang-sheng (Nourishing Life) Paradise in Zhangshu City, Jiangxi province, and the City of Caves in Fenyi City, Jiangxi province, which represent our commitment to expanding our business operations by applying our current business model to the development of other valuable tourist destinations out of Fujian province, and throughout China. The construction was in line with our schedule. We expect that we will complete the first phase construction of these three new projects and open them to the public by the end of 2012. In addition, in June 2011, we announced the establishment of our new subsidiary, Fujian Yida Travel Service Co., Ltd. Over the next three years, we will mainly focus on developing our existing six tourist destinations.  All required construction funds will be funded either from our net income and operating cash flow or will be financed through bank loans.

- 26 -

Critical Accounting Policies

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires our management to make assumptions, estimates, and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our condensed consolidated financial statements. These accounting policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management’s difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our condensed consolidated financial statements.

The unaudited condensed consolidated financial statements include all adjustments including normal recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows of the Company for the periods presented. The results of operations for the three and nine months ended September 30, 2011 are not necessarily indicative of operating results expected for the full year or future interim periods. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report of Form 10-K for the year ended December 31, 2010, filed on March 16, 2011.

Consolidation of Variable Interest Entities

According to the requirements of ASC 810, an Interpretation of Accounting Research Bulletin No. 51 that requires a Variable Interest Entity ("VIE"), the Company has evaluated the economic relationships of Fujian Jiaoguang which signed an exclusive right agreement with the Company. Therefore, Fujian Jiaoguang is considered to be a VIE, as defined by ASC Topic 810-10, of which the Company is the primary beneficiary.

Use of estimates and assumptions

The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results. The most significant estimates reflected in the condensed consolidated financial statements include depreciation, useful lives of property and equipment, deferred income taxes, useful life of intangible assets and contingencies. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the condensed consolidated financial statements in the period they are determined to be necessary.

Impairment

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.

Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available, judgments and projections are considered necessary.

Revenue recognition

Revenue is recognized at the date of service rendered to customers when a formal arrangement exists, the price is fixed or determinable, the services rendered, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before satisfaction of all of the relevant criteria for revenue recognition are recorded as unearned revenue.

- 27 -

Revenues from advance resort ticket sales are recognized when the tickets are used. Revenues from our contractors who have tourism contracts with us are generally recognized over the period of the applicable agreements commencing with the tourists visiting the resort. The Company also sells admission and activities tickets for a resort which the Company has the management right.

The Company sells the television airtime to third parties. The Company records advertising sales when advertisements are aired.

The Company has no allowance for product returns or sales discounts because services that are rendered and accepted by the customers are normally not refundable and discounts are normally not granted after service has been rendered. 

Post-retirement and post-employment benefits

Full time employees of subsidiaries of the Company participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, employee housing, and other welfare benefits are provided to employees. Chinese labor regulations require that the subsidiaries of the Company make contributions to the government for these benefits based on a certain percentages of employees’ salaries. The Company has no legal obligation for the benefits beyond the contributions made.

Foreign currency translation

The Company uses the United States dollar ("U.S. dollars") for financial reporting purposes. The Company's subsidiaries maintain their books and records in their functional currency, being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, the Company translates the subsidiaries' assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet dates, and the statements of income are translated at average exchange rates during the reporting periods. Gain or loss on foreign currency transactions are reflected on the income statement. Gain or loss on financial statement translation from foreign currency are recorded as a separate component in the equity section of the balance sheet and is included as part of accumulated other comprehensive income. The functional currency of the Company and its subsidiaries in China is the Chinese Renminbi.

Income taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized.

Fair values of financial instruments

The carrying amounts reported in the condensed consolidated financial statements for current assets and currently liabilities approximate fair value due to the short-term nature of these financial instruments. The carrying amount of long-term loans approximates fair value since the interest rate associated with the debt approximates the current market interest rate.

In 2008, the Company adopted ASC 820-10, “Fair Value Measurements and Disclosures”, which establishes a single authoritative definition of fair value and a framework for measuring fair value and expands disclosure of fair value measurements for both financial and nonfinancial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flows) and the cost approach (cost to replace the service capacity of an asset or replacement cost).

Statutory Reserves

In accordance with the relevant laws and regulations of the PRC and the articles of association of the Company, the Company is required to allocate 10% of their net income reported in the PRC statutory accounts, after offsetting any prior years’ losses, to the statutory surplus reserve, on an annual basis. When the balance of such reserve reaches 50% of the respective registered capital of the subsidiaries, any further allocation is optional.

As at September 30, 2011, the statutory reserve of the subsidiaries already reached 50% of the registered capital of the subsidiaries and the Company did not have any further allocation on it.

- 28 -

The statutory surplus reserves can be used to offset prior years’ losses, if any, and may be converted into registered capital, provided that the remaining balances of the reserve after such conversion is not less than 25% of registered capital. The statutory surplus reserve is non-distributable.

Segment reporting

ASC 250, "Disclosure About Segments of an Enterprise and Related Information" requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. 

Item 3.                      Quantitative and Qualitative Disclosures About Market Risk.

Interest Rates. Our exposure to market risk for changes in interest rates relates primarily to our short-term investments and short-term obligations; thus, fluctuations in interest rates would not have a material impact on the fair value of these securities. At September 30, 2011, we had approximately $14,358,935 in cash and cash equivalents. A hypothetical 10% increase or decrease in interest rates would not have a material impact on our earnings or loss, or the fair market value or cash flows of these instruments.

Foreign Exchange Rates. The majority of our revenues derived and expenses and liabilities incurred are in Renminbi (the currency of the PRC). Thus, our revenues and operating results may be impacted by exchange rate fluctuations in the currency of Renminbi. We have not tried to reduce our exposure to exchange rate fluctuations by using hedging transactions. However, we may choose to do so in the future. We may not be able to do this successfully. Accordingly, we may experience economic losses and negative impacts on earnings and equity as a result of foreign exchange rate fluctuations.

Item 4.                      Controls and Procedures.

(a)  Evaluation of disclosure controls and procedures. Our disclosure controls and procedures are designed to ensure (i) that information required to be disclosed by us in the reports we file or submit under the Exchange Act are recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms; and (ii) that information required to be disclosed by us in the reports it files or submits under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2011 we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this report, our disclosure controls and procedures were effective at the reasonable assurance level.

(b)  Changes in internal control over financial reporting. During the period covered by this report, there was no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

- 29 -

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

There are no material changes from risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on March 16, 2011.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3.Defaults Upon Senior Securities.

None.

Item 4. (Removed and Reserved).  

Item 5. Other Information.

Dr. Minhua Chen, our Chairman and Chief Executive Officer, intends touse his personal funds to purchase up to $250,000 of our stock in open market transactions until December 31, 2011, pursuant to a Rule 10b5-1 plan, subject to the restrictions of and consistent with the Company’s securities trading policy. As of the filing date hereof, none of the shares has been purchased under the plan.

Item 6. Exhibits.

Exhibit Number	Exhibit Description
2.1	Share Exchange Agreement, dated November 19, 2007, among the Company, the stockholders of the Company, Keenway Limited and Hong Kong Yi Tat International Investment, Ltd.  (1)
3.1	Certificate of Incorporation (9)
3.11	Articles of Incorporation of the Company as filed with the Secretary of State of Delaware on June 4, 1999 (1)
3.12	Certificate of Amendment to Certificate of Incorporation changing the corporate name from Apta Holdings, Inc. to InteliSys Aviation Systems of America, Inc. filed with the Secretary of State of Delaware on July 21, 2007 (1)
3.13	Certificate of Good Standing from the State of Delaware dated November 9, 2007 (1)
3.14	Certificate of Amendment to Articles of Incorporation filed on November 28, 2007 (2)
4.1	Securities Purchase Agreement (3)
4.2	Registration Rights Agreement (3)
4.3	Lock-Up Agreement (3)
4.4	Make Good Agreement (3)
4.5	Sample Warrant (3)
10.1	Operating Agreement dated October 9, 2004 between Hong Kong Yi Tat International Investment Limited and Fujian Jiaoguang Media Co., Ltd. (1)
10.2	Proxy Agreement dated October 9, 2004 between Hong Kong Yi Tat International Investment Limited and Fujian Jiaoguang Media Co., Ltd. (1)
10.3	Consulting Services Agreement dated October 9, 2004 between Hong Kong Yi Tat International Investment Limited and Fujian Jiaoguang Media Co., Ltd. (1)
10.4	Option Agreement dated October 9, 2004 between Hong Kong Yi Tat International Investment Limited and Fujian Jiaoguang Media Co., Ltd. (1)
10.5	Equity Pledge Agreement dated October 9, 2004 between Hong Kong Yi Tat International Investment Limited and Fujian Jiaoguang Media Co., Ltd. (1)
10.6	Fujian Education Television Channel Project Management Agreement between Fuzhou Fuyu Advertising, Co. and Fujian Education Media Limited Company, dated August 1, 2010. (2)
10.7	Leasing Agreement (4)
10.8	Leasing Agreement (4)
10.9	Employment Agreement on Chief Financial Officer (6)

- 30 -

10.10	Employment Agreement with George Wung (7)
10.11	Placement Agency Agreement (10)
10.12	Form of Subscription Agreement (10)
10.13	Equity Transfer Agreements Dated March 15, 2010 (11)
10.14	Fujian Education Television Station Channel Management Agreement (12)
24.1	Power of Attorney (7)
31.1	Certification of Chen Minhua pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of George Wung pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chen Minhua pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of George Wung pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.1	2008 Development Report of Chinese Radio and Television (4)
101.INS	XBRL Instance Document
101.SCH	RL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

(1)	Previously filed as Exhibits to Form 8K filed on November 26, 2007.
(2)	Previously filed as Exhibits to Form 8K filed on March 6, 2008.
(3)	Previously filed as Exhibits to Form 8K filed on March 11, 2008.
(4)	Previously filed as Exhibits to Form S-1/A filed on July 8, 2008.
(5)	Previously filed as Exhibits to Form S-1/A filed on August 22, 2008.
(6)	Previously filed as Exhibits to Form 8K filed on September 18, 2008.
(7)	Previously filed as Exhibits to Form 8K filed on September 18, 2008.
(8)	Previously filed as Exhibits to Form 8K filed on January 14, 2009.
(9)	Previously filed as Exhibits to Form S3 filed on December 11, 2009.
(10)	Previously filed as Exhibits to Form 8K filed on January 22, 2010.
(11)	Previously filed as Exhibits to Form 8K filed on May 14, 2010.
(12)	Previously filed as Exhibits to Form 8K filed on August 4, 2010.

In accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed.

- 31 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CHINA YIDA HOLDING, CO.
Date: November 7, 2011	By:	/s/ Chen Minhua
		Chen, Minhua Chief Executive Officer (Duly Authorized Officer and Principal Executive Officer)
Date: November 7, 2011	By:	/s/ George Wung
		George Wung Chief Financial Officer (Principal Financial Officer)

- 32 -

EX-31.1

Exhibit 31.1

CERTIFICATION

OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

 I, Chen Minhua, Chief Executive Officer certify that:

1. I have reviewed this Quarterly report on Form 10-Q of China Yida Holding, Co.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods present in this report;

4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;

(c) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the small business issuer's internal control over financing reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involved management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: November 7, 2011	By:	/s/ Chen Minhua
		Chen, Minhua Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

 I, George Wung, Chief Financial Officer certify that:

1. I have reviewed this Quarterly report on Form 10-Q of China Yida Holding, Co.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods present in this report;

4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;

(c) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the small business issuer's internal control over financing reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involved management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: November 7, 2011	By:	/s/ George Wung
		George Wung Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of China Yida Holding, Co. (the "Company") on Form 10-Q for the period ended September 30, 2011, as filed with the Securities and Exchange Commission (the "Report"), I, Chen Minhua, Chief Executive Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition of the Company as of the dates presented and the results of operations of the Company.

Date: November 7, 2011	By:	/s/ Chen Minhua
		Chen, Minhua Chief Executive Office (Principal Executive Officer)

EX-32

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of China Yida Holding, Co. (the "Company") on Form 10-Q for the period ended September 30, 2011 as filed with the Securities and Exchange Commission (the "Report"), I, George Wung, Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition of the Company as of the dates presented and the results of operations of the Company.

Date: November 7, 2011	By:	/s/ George Wung
		George Wung Chief Financial Officer (Principal Financial Officer)

XML

Condensed Consolidated Balance Sheets Parenthetical (USD $)	Sep. 30, 2011	Dec. 31, 2010
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	19,551,785	19,551,785
Common stock, shares outstanding	19,551,785	19,551,785

XML

Condensed Consolidated Statements of Income and Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net revenue
Advertisement	$ 8,322,439	$ 9,726,192	$ 26,675,530	$ 27,820,997
Tourism	2,885,042	1,299,966	7,299,124	14,383,404
Total net revenue	11,207,481	11,026,158	33,974,654	42,204,401
Cost of revenue
Advertisement	2,141,129	2,118,790	6,847,683	5,855,415
Tourism	1,389,869	654,551	3,681,633	2,958,141
Total cost of revenue	3,530,998	2,773,341	10,529,316	8,813,556
Gross profit	7,676,483	8,252,817	23,445,338	33,390,845
Operating expenses
Selling expenses	1,596,304	604,444	3,704,622	2,839,638
General and administrative expenses	1,174,569	1,024,657	3,543,764	3,320,020
Total operating expenses	2,770,873	1,629,101	7,248,386	6,159,658
Income from operations	4,905,610	6,623,716	16,196,952	27,231,187
Other income (expense)
Other income (expense), net	(23,648)	(5,593)	(41,430)	1,650
Interest income	27,942	45,764	75,358	69,111
Interest expenses	(26,454)	(19,099)	(228,212)	(19,099)
Total other income (expense)	(22,160)	21,072	(194,284)	51,662
Income before income tax and non-controlling interest	4,883,450	6,644,788	16,002,668	27,282,849
Less: Provision for income tax	1,715,696	1,989,280	5,433,442	7,381,950
Net income	3,167,754	4,655,508	10,569,226	19,900,899
Net loss attributable to non-controlling interest	40,852	17,557	84,015	21,590
Net income attributable to China Yida Holding Co.	3,208,606	4,673,065	10,653,241	19,922,489
Net income	3,167,754	4,655,508	10,569,226	19,900,899
Other comprehensive income
Foreign currency translation	1,741,244	1,997,105	5,005,563	2,165,824
Comprehensive income	4,908,998	6,652,613	15,574,789	22,066,723
Other comprehensive income	41,469	17,907	84,678	21,956
Comprehensive income attributable to China Yida Holding Co.	$ 4,950,647	$ 6,670,520	$ 15,659,467	$ 22,088,679
Earnings per share
Weighted Average Number Of Shares Outstanding, Diluted	19,555,436	20,325,597	19,561,621	20,117,670
- Basic	$ 0.16	$ 0.24	$ 0.54	$ 1.03
- Diluted	$ 0.16	$ 0.23	$ 0.54	$ 0.99
Weighted average shares outstanding
- Basic	19,551,785	19,551,785	19,551,785	19,343,858
- Diluted	19,555,436	20,325,597	19,561,621	20,117,670

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2011	Nov. 04, 2011
Document and Entity Information [Abstract]
Amendment Flag	false
Document Period End Date	Sep. 30, 2011
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Registrant Name	CHINA YIDA HOLDING, CO.
Entity Central Index Key	0001091325
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		19,551,785

XML

Intangible Assets, Net

9 Months Ended

Sep. 30, 2011

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets Disclosure [Text Block]

7.   INTANGIBLE ASSETS, NET

Intangible assets consist of the following:

	September 30, 2011			December 31, 2010
Management right of tourist resort	$	5,478,594		$	5,293,566
Advertising boards		-			6,806,013
Commercial airtime rights		6,584,945			6,362,551
Land use right		2,064,514			1,994,790
		14,128,053			20,456,920
Accumulated amortization		(4,469,059	)		(6,414,488	)
Intangible assets, net	$	9,658,994		$	14,042,432

The Company acquired a 30 year tourist resort management right in August 2001 from unrelated parties for purchase consideration of $5,478,594 (RMB35,000,000).

The Company entered into an agreement with a third party on February 29, 2008 and obtained a five-year advertising right for 30 outside advertising boards in Fuzhou City for purchase consideration of RMB45,000,000. The agreement had a five-year term. However, due to the expansion of the highways in Fuzhou City, the advertising boards needed to be demolished.  On August 31, 2011, the Company entered into an agreement with the original third party supplier to have early termination of the term of the advertising right due to the expansion of the highways by government.  The original third party supplier agreed to compensate the Company at the net book value in cash of $2,080,636 (RMB13,500,000). No gain or loss arose from this transaction.

On August 1, 2010, the Company entered into a commercial airtime rights agreement with a television station. Under the terms of the agreement, the Company can obtain commercial airtime and resell to advertisers from August 1, 2010 to July 31, 2013 for a monthly fee of $154,121 (RMB 1,000,000) for the period from August 1, 2010 to July 31, 2011. The fee is increased by 20% annually on every August 1.  From August 1, 2011 to July 31, 2012, the monthly fee is $184,945 (RMB1,200,000).  From August 31, 2012 to July 30, 2013, the monthly fee will be $221,934 (RMB1,440,000) for the period.  The agreement can be renewed for two additional years, with mutual agreement between the parties. Since the Company is reselling the commercial airtime to advertisers, the Company has present-valued the monthly payments, including the 20% annual increase, using the market borrowing rate of 7% for three years and recorded $6,584,945 (RMB42,067,917) as commercial airtime rights as an intangible asset, $6,837,286 (RMB43,680,000) as obligation under airtime rights commitment, and $252,341 (RMB1,612,083) as deferred interest at inception (See note 10).

At inception, the Company had made an initial assessment that there is no assurance the Company will exercise the option for two additional years and therefore, the Company has only considered the present value of the monthly fee for the first three years under the terms of the agreement.

During the nine months ended September 30, 2011 and 2010, amortization expense amounted to $2,718,586 and $1,463,586, respectively, and was included in cost of sales.

During the three months ended September 30, 2011 and 2010, amortization expense amounted to $844,271 and $720,437, respectively, and was included in cost of sales.

Estimated amortization for the next five years and thereafter is as follows:

Remainder of 2011	$	607,303
2012		2,429,214
2013		1,514,638
2014		234,233
2015		234,233
Thereafter		4,639,373
	$	9,658,994

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Income Taxes

9 Months Ended

Sep. 30, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

12.   INCOME TAX

The Company is subject to Hong Kong (“HK”) and People’s Republic of China (“PRC”) profit tax. For certain operations in HK and PRC, the Company has incurred net accumulated operating losses for income tax purposes.

United States

The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the year. The applicable income tax rate for the Company for the nine months ended September 30, 2011 and 2010 was 35% and 35%, respectively.  No tax benefit has been realized since a valuation allowance has offset the deferred tax asset resulting from the net operating losses.

Cayman Islands

Keenway Limited, a wholly owned subsidiary of the Company, is incorporated in the Cayman Islands and, under the current laws of the Cayman Islands, is not subject to income taxes.

Hong Kong

Hong Kong Yi Tat, a wholly owned subsidiary of the Company, is incorporated in Hong Kong. Hong Kong Yi Tat is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. No provisions for income taxes have been made as Hong Kong Yi Tat has no taxable income for the year. The applicable statutory tax rate for the subsidiary for the nine months ended September 30, 2011 and 2010 was 16.5% and 16.5%, respectively.

PRC

Effective on January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules impose an unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign investment enterprises in PRC, unless they qualify under certain limited exceptions. As such, starting from January 1, 2008, the Company’s subsidiaries in PRC are subject to an enterprise income tax rate of 25%.

The provision for income tax consists of the following:

	For The Nine Months Ended September 30,						For The Three Months Ended September 30,
	2011			2010			2011			2010
Current
USA	$	-		$	-					$	-
China		5,381,528			7,381,950			1,706,842			1,989,280
		5,381,528			7,381,950			1,706,842			1,989,280
Deferred
USA
Deferred tax asset for NOL carry forwards		878,407			638,511			85,760			312,929
Valuation allowance		(878,407	)		(638,511	)		(85,760	)		(312,929	)
		-			-			-			-
China
Current portion
Temporary difference from general and administrative expenses		(71	)		-			(24	)		-
Net deferred income tax liabilities under current liabilities		(71	)		-			(24	)		-
Non current portion
Deferred tax asset for NOL carry forwards		129,541			458,956			62,823			(195,010	)
Temporary difference from airtime rights expenses		(56,068	)		-			(10,967	)		-
Temporary difference from capitalized interest		4,225			-			2,137			-
Valuation allowance		(129,541	)		(458,956	)		(62,823	)		195,010
Net deferred income tax assets under non current assets		(51,843	)		-			(8,830	)		-
Less : Net deferred income tax expenses		(51,914	)		-			(8,854	)		-
Total provision of income tax	$	5,433,442		$	7,381,950		$	1,715,696		$	1,989,280

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the net operating losses and temporary differences become deductible. Management considered projected future taxable income and tax planning strategies in making this assessment.

The change in total allowance for the nine months ended September 30, 2011 and 2010 was an increase of $466,373 and $735,484 respectively. The change in total allowance for the three months ended September 30, 2011 and 2010 was an increase of $148,584 and $117,951 respectively.

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Other Receivables, Net

9 Months Ended

Sep. 30, 2011

Other Receivables, Net, Current [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3.   OTHER RECEIVABLES, NET

Other receivables consist of the following:

	September 30, 2011			December 31, 2010
Tender for the acquisition of land use rights	$	4,695,938		$	-
Other		511,008			180,035
		5,206,946			180,035
Less: Allowance		(20,597	)		(19,902	)
	$	5,186,349		$	160,133

Anhui Yida participates in a bid for land use rights in Anhui Province, with the intention to develop tourism destinations. Anhui Yida deposited $4,695,938 (RMB30 million) with local government of Anhui province to participate in the bid. The amount will be used as payment for the land use rights if the Company wins the bid or the funds will be refunded to the Company.

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Bank Loans

9 Months Ended

Sep. 30, 2011

Loans Payable To Bank [Abstract]

Debt Disclosure [Text Block]

9.   BANK LOANS

Short-term loans

Short-term loans represent borrowings from commercial banks that are due within one year. These loans consisted of the following:

	September 30, 2011		December 31, 2010
Loan from Construction Bank, interest rate at 5.56% per annum, due December 15, 2011, collateralized by the Tulou’s property with a net book value of $1,206,200.	$	594,819	$	574,730
Loan from Fujian Haixia Bank (formerly known as Merchant bank of Fuzhou), interest rate at 6.67% per annum, due November 5, 2011, guaranteed by Fujian Jintai Tourism Development Co., Ltd.		1,252,250		1,209,957
Total	$	1,847,069	$	1,784,687

The Company is applying for an extension for the loan from Fujian Haixia Bank and the due date to be extended to November 5, 2012.

Interest expense for the nine months ended September 30, 2011 and 2010 amounted to $94,968 and $81,702, respectively. Interest expense for the three months ended September 30, 2011 and 2010 amounted to $32,722 and $27,653, respectively. The interest expense for the nine months ended September 30, 2011 and 2010 of $64,977 and $81,702, respectively was capitalized as part of construction in progress. The interest expense for the three months ended September 30, 2011 and 2010 of $32,262 and $27,653, respectively was capitalized as part of construction in progress.

Long-term debt

Long term debt consists of the following:

	September 30, 2011			December 31, 2010
Loan from Taining Credit Union, interest rate at 7.02% per annum, due March 20, 2012, collateralized by the management rights of the Great Golden Lake.	$	2,645,378		$	2,571,161
Loan from Industrial and Commercial Bank of China Limited, interest rate at 6.40% per annum, final installment due December 15, 2017, secured by credit guarantee of Fujian Jintai and the right to collect resort ticket sales at Yunding resort as additional collateral. (Note (a))		10,722,392			-
		13,367,770			2,571,161
Less: current portion		(3,584,566	)		-
Total	$	9,783,204		$	2,571,161

Note:

(a) $156,531 (RMB1,000,000) will be due in 2011; $1,017,453 (RMB6,500,000) will be due in 2012; $1,330,516 (RMB8,500,000) will be due in 2013; $1,721,844 (RMB11,000,000) will be due in 2014; $2,113,172 (RMB13,500,000) will be due in 2015; $2,191,438 (RMB14,000,000) will be due in 2016 and $2,191,438 (RMB14,000,000) will be due in 2017.

Interest expense for the nine months ended September 30, 2011 and 2010 amounted to $596,067 and $133,254, respectively. Interest expense for the three months ended September 30, 2011 and 2010 amounted to $220,919 and $44,919, respectively. The interest expense for the nine months ended September 30, 2011 and 2010 of $446,516 and $133,254, respectively was capitalized as part of construction in progress. The interest expense for the three months ended September 30, 2011 and 2010 of $218,628 and $44,919, respectively was capitalized as part of construction in progress.

Management right of the tourist resort with a net book value of $3,621,960 is used as collateral for the long-term debt from Taining Credit Union.  The loan from Industrial and Commercial Bank of China Limited is secured by credit guarantee of Fujian Jintai and the right to collect resort ticket sales at Yunding resort as additional collateral.

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Non-Controlling Interest

9 Months Ended

Sep. 30, 2011

Non-Contolling Interest [Abstract]

Non-Contolling Interest [Text Block]

14.   NON-CONTROLLING INTEREST

On April 15, 2010, the Company established a new subsidiary, Anhui Yida.  The Company has a 60% interest and Anhui Xingguang Group, an unrelated entity, holds a 40% interest.  Anhui Yida has not commenced operations as of September 30, 2011. Non-controlling interest consisted of the following:

	September 30, 2011			December 31, 2010
Capital contributed by non-controlling interest	$	6,049,790		$	6,049,790
Accumulated deficits		(109,766	)		(25,751	)
Accumulated other comprehensive income		(1,314	)		(650	)
		5,938,710			6,023,389
Less: Loan to non-controlling interest		(3,381,075	)		(5,928,794	)
	$	2,557,635		$	94,595

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Obligation Under Airtime Rights Commitment

9 Months Ended

Sep. 30, 2011

Obligation Under Airtime Rights Commitment [Abstract]

Obligation Under Airtime Rights Commitment [Text Block]

10.   OBGLIATION UNDER AIRTIME RIGHTS COMMITMENT

Obligation under airtime rights commitment (See note 7) consists of the following:

Remainder of 2011	$	563,513
2012		2,441,888
2013		1,577,835
		4,583,236
Less: deferred interest		(158,712	)
		4,424,524
Less: current portion		(2,241,135	)
	$	2,183,389
Maturities of the long-term obligation:
Remainder of 2011	$	534,779
2012		2,348,091
2013		1,541,654
	$	4,424,524

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Long-term Prepayments

9 Months Ended

Sep. 30, 2011

Long-Term Prepayments [Abstract]

Long-Term Prepayments [Text Block]

8.    LONG-TERM PREPAYMENTS

Long-term prepayments consist of the following:

	September 30, 2011		December 31, 2010
Prepayments for project planning, assessments and consultation fees	$	2,217,140	$	193,593
Prepayments for development right for resort, deferred financing costs and others		804,774		-
	$	3,021,914	$	193,593

Prepayments for project planning, assessments and consultation fees represent advances relating to the planning, assessment and consultation for the development of other tourism destinations in Anhui province and Jiangxi province.

Prepayments included in development for resort, deferred financing costs and others were $302,510 (RMB1.9 million) for development rights for other resorts and $339,896 (RMB2.17 million) for deferred financing costs.

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Organization and Description of Business

9 Months Ended

Sep. 30, 2011

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1.   ORGANIZATION AND DESCRIPTION OF BUSINESS

China Yida Holding Co. (“China Yida”) and its subsidiaries (collectively the "Company”, “we”, “us”, or “our”) engage in tourism and advertisement businesses in the People’s Republic of China.

Keenway Limited was incorporated under the laws of the Cayman Islands on May 9, 2007 for the purpose of functioning as an off-shore holding company to obtain ownership interests in Hong Kong Yi Tat International Investment Co., Ltd (“Hong Kong Yi Tat”), a company incorporated under the laws of Hong Kong. Immediately prior to the Merger (defined below), Mr. Chen Minhua and his wife, Ms. Fan Yanling, were the majority shareholders of Keenway Limited.

On November 19, 2007, we entered into a share exchange and stock purchase agreement with Keenway Limited, Hong Kong Yi Tat, and with the shareholders of Keenway Limited at that time, including Chen Minhua, Fan Yanling, Zhang Xinchen, Extra Profit International Limited, and Lucky Glory International Limited (collectively, the “Keenway Limited Shareholders”), pursuant to which in exchange for all of their shares of Keenway Limited common stock, the Keenway Limited Shareholders received 90,903,246 newly issued shares of our common stock and 3,641,796 shares of our common stock which was transferred from some of our then existing shareholders (the “Merger”). As a result of the closing of the Merger, the Keenway Limited Shareholders owned approximately 94.5% of our then issued and outstanding shares on a fully diluted basis and Keenway Limited became our wholly owned subsidiary.

Hong Kong Yi Tat was incorporated as the holding company of our operating entities, Fujian Jintai Tourism Development Co., Ltd., and Fujian Jiaoguang Media Co., Ltd., Yida (Fujian) Tourism Group Limited, and Fujian Yida Tulou Tourism Development Co., Ltd. (“Tulou”).  Hong Kong Yi Tat does not have any other operation.  

Fujian Jintai Tourism Development Co., Ltd. (“Fujian Jintai”) has a wholly owned subsidiary, Fuzhou Hongda Commercial Services Co., Ltd., (“Hongda”).  The operation of Fujian Jintai is to develop the Great Golden Lake, one of our tourism destinations.

Hongda does not have any operation except for owning 100% of the ownership interest in Fuzhou Fuyu Advertising Co., Ltd. (“Fuyu”) which is engaged in the operations of our media business. On March 15, 2010, Hongda entered into an equity transfer agreement with Fujian Yunding Tourism Industrial Co., Ltd, (currently known as Yida (Fujian) Tourism Group Limited, “Fujian Yunding”), pursuant to which Fujian Yunding acquired 100% of the issued and outstanding shares of Fuyu from Hongda at the aggregate purchase price of RMB3,000,000.  As a result, Fujian Yunding became the 100% holding company of Fuyu.

Fujian Jintai originally also owned 100% of the ownership interest in Fujian Yintai Tourism Co., Ltd. (“Yintai”). On March 15, 2010, Fujian Jintai entered into an equity transfer agreement with Fujian Yunding, pursuant to which Fujian Yunding acquired 100% of the issued and outstanding common stock of Yintai from Fujian Jintai at the aggregate purchase price of RMB5,000,000. As a result, Yintai became a wholly owned subsidiary of Fujian Yunding.  Yintai was deregistered on November 18, 2010.

Fujian Yida Tulou Tourism Development Co., Ltd.’s (“Tulou”) primary business relates to the operation of the Hua’An Tulou cluster, one of our tourism destinations.

On April 12, 2010, our operating subsidiary “Fujian Yunding Tourism Industrial Co., Ltd.” changed its name to “Yida (Fujian) Tourism Group Limited” for our expanding business in operations of domestic tourism destinations in China by acquiring new tourism destinations. Yida (Fujian) Tourism Group Limited’s (“Fujian Yida”) primary business relates to the operations of our Yunding tourism destination and all of our newly engaged tourism destinations, and the management of our media business. 

On March 16, 2010, Fujian Yida formed a wholly owned subsidiary, Yongtai Yunding Resort Management Co., Ltd. (“Yongtai Yunding”) which currently has no material business operations. We plan to develop Yongtai Yunding into a business entity primarily focusing on the operations of our Yunding tourism destination.

Fujian Jiaoguang Media Co., Ltd. (“Fujian Jiaoguang”) and the Company’s contractual relationship comply with the requirements of the Accounting Standard Codification ("ASC") 810, to consolidate Fujian Jiaoguang’s financial statements as a Variable Interest Entity. During the current period, Fujian Jiaoguang had no material business operations.

Fuzhou Fuyu Advertising Co., Ltd. (“Fuyu”) concentrates on the mass media segment of our business.  Its primary business is focused on advertisements, including media publishing, television, cultural and artistic communication activities, and performance operation and management activities.

On April 15, 2010, we entered into agreement with Anhui Xingguang Group to set up a new subsidiary – Anhui Yida Tourism Development Co., Ltd. ("Anhui Yida") by investing 60% of the equity interest, and Anhui Xingguang Group owns 40% of the equity interest of Anhui Yida. The total paid-in capital of Anhui Yida was $14,687,307 (equals RMB100 million). Anhui Yida's primary business relates to the operation of our tourism destinations, specifically, Ming dynasty culture tourist destination.

On July 6, 2010 Fujian Yida formed a wholly owned subsidiary, Jiangxi Zhangshu (Yida) Tourism Development Co., Ltd. (“Jiangxi Zhangshu”) which currently has no material business operations. The initial paid-in capital of Jiangxi Zhangshu was $2,937,461 (equals RMB20 million). On July 5, 2011, Fujian Yida and Fuyu further injected capital amounted to RMB49 million and RMB1 million to Jiangxi Zhangshu.  The total paid-in capital increased to $10,957,189 (equals RMB70 million). We plan to develop Jiangxi Zhangshu into a business entity primarily focusing on the operations of a new tourist destination.

On July 7, 2010 Fujian Yida formed a wholly owned subsidiary, Jiangxi Fenyi (Yida) Tourism Development Co., Ltd. (“Jiangxi Fenyi”) which currently has no material business operations. The initial paid-in capital of Jiangxi Fenyi was $1,762,477 (equals RMB12 million).  On July 7, 2011, Fujian Yida further injected capital amounted to RMB48 million to Jiangxi Fenyi and the total paid-in capital increased to $9,391,876 (equals RMB60 million). We plan to develop Jiangxi Fenyi into a business entity primarily focusing on the operations of a new tourist destination.

On June 24, 2011, Fujian Yida formed a wholly owned subsidiary, Fujian Yida Travel Service Co., Ltd (the “Yida Travel”). The total paid-in capital of Yida Travel was $1,546,670 (equals RMB10 million).  Its primary business is to conduct domestic and international traveling services in China, including operating the direct sales of travel services for our current tourist destinations at the Great Golden Lake, Yunding Recreational Park, and Hua’An Tulou Cluster, and our three tourist destinations currently under construction, Ming Dynasty Entertainment World, China Yang-sheng (Nourishing Life) Paradise, and the City of Caves.

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Advances and Prepayments

9 Months Ended

Sep. 30, 2011

Advances and Prepayments [Abstract]

Advances and Prepayments [Text Block]

4.   ADVANCES AND PREPAYMENTS

Advances and prepayments consist of the following:

	September 30, 2011			December 31, 2010
Advance payment for the acquisition of land use rights	$	7,480,434		$	574,730
Other		772,082			448,249
		8,252,516			1,022,979
Less: Allowance		(3,083	)		(2,979	)
	$	8,249,433		$	1,020,000

Advance payment for the acquisition of land use rights represents the payment relating for the acquisition of land use rights. Jiangxi Zhangshu and Jiangxi Fenyi paid compensation to the local government for the compensation to the existing user of the land.  The land use right located on the targeted land which the Company will acquire for the development of the tourism destinations in Jiangxi province. As of September 30, 2011, advance payment made by Jiangxi Zhangshu and Jiangxi Fenyi for the compensation were $4,695,938 (RMB30 million) and $376,338 (RMB2.4 million), respectively. Anhui Yida paid $1,719,420 (RMB10.98 million) for the tax regarding the acquisition of the land use right. Yunding paid $688,738 (RMB4.4 million) for the acquisition of land use rights.

As of December 31, 2010, advance payment made by Yunding for the acquisition of land use rights was $574,730 (RMB3.8 million).

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Property and Equipment, Net

9 Months Ended

Sep. 30, 2011

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

5.   PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following:

	September 30, 2011			December 31, 2010
Buildings, Improvements and Attractions	$	115,464,773		$	91,824,909
Electronic Equipment		532,789			315,037
Transportation Equipment		2,348,135			2,099,199
Office Furniture		51,884			38,417
		118,397,581			94,277,562
Less: Accumulated Depreciation		(7,337,049	)		(4,538,190	)
Property and equipment, net	$	111,060,532		$	89,739,372

During the nine months ended September 30, 2011, depreciation expense was $2,599,582, of which $2,563,190 and $36,392 was included as cost of sales and as general and administrative expenses, respectively.

During the nine months ended September 30, 2010, depreciation expense was $1,247,957, of which $961,845 and $286,112 was included as cost of sales and as general and administrative expenses, respectively.

During the three months ended September 30, 2011, depreciation expense was $904,149, of which $890,354 and $13,795 was included as cost of sales and as general and administrative expenses, respectively.

During the three months ended September 30, 2010, depreciation expense was $525,985, of which $425,851 and $100,134 was included as cost of sales and as general and administrative expenses, respectively.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2011

Stockholders Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

13.   STOCKHOLDERS’ EQUITY

1) WARRANTS

The remaining 773,812 Class A Warrants expired on September 6, 2011.

2) STOCK-BASED COMPENSATION

On January 21, 2011 (the “CFO Stock Option Grant Date”), the Company entered into a Non-qualified Stock Option Agreement with the Company’s Chief Financial Officer, pursuant to which, the Company issued non-qualified stock options (the “CFO Stock Options”) to purchase a total of 75,000 shares of the Company’s common stock as compensation for his services to be rendered as the Company’s Chief Financial Officer. 15,000 CFO Stock Options vested on the CFO Stock Option Grant Date; 20,000 CFO Stock Options shall vest on the one-year anniversary of the CFO Grant Date; 20,000 CFO Stock Options shall vest on the second-year anniversary of the CFO Grant Date; and 20,000 CFO Stock Options shall vest on the third-year anniversary of the CFO Grant Date. The exercise price for all of the shares was determined as the fair value of our common stock using the closing price on the grant date.

On January 21, 2011 (the “VPIR Stock Option Grant Date”), the Company entered into a Non-qualified Stock Option Agreement with the Company’s VP of Investor Relation, pursuant to which, the Company issued non-qualified stock options (the “VPIR Stock Options”) to purchase a total of 75,000 shares of the Company’s common stock as compensation for his services to be rendered as the Company’s VP of Investor Relation. 15,000 VPIR Stock Options shall vest on the VPIR Stock Option Grant Date; 20,000 VPIR Stock Options shall vest on the one-year anniversary of the VPIR Grant Date; 20,000 VPIR Stock Options shall vest on the second-year anniversary of the VPIR Grant Date; and 20,000 VPIR Stock Options shall vest on the third-year anniversary of the VPIR Grant Date. The exercise price for all of the shares was determined as the fair value of our common stock using the closing price on the grant date.

On March 17, 2011 (the “ID Stock Option Grant Date”), the Company entered into a Non-qualified Stock Option Agreement with the Company’s Independent Director, pursuant to which, the Company issued non-qualified stock options (the “ID Stock Options”) to purchase a total of 30,000 shares of the Company’s common stock as compensation for his services to be rendered as the Company’s Independent Director. One half of the ID Stock Options vested on the ID Grant Date and the second half of ID Stock Options vested on June 10, 2011.  The exercise price for all of the shares was determined as the fair value of our common stock using the closing price on the grant date.

On July 27, 2011, the Company entered into an agreement with the Company’s Independent Director, pursuant to which, the Company granted 20,000 restricted shares of the Company’s common stock as compensation for his services to be rendered as the Company’s Independent Director from June 10, 2011 to June 9, 2012. The estimated value of the 20,000 shares was $73,000 on June 10, 2011. The unrecognized share based compensation expense as of September 30, 2011 was approximately $68,700, which is expected to be recognized over a weighted average period of approximately 0.7 year.

The Company valued the stock options using the Black-Scholes model with the following assumptions:

Type of Stock Option	Number of Options		Expected Term		Expected Volatility			Dividend Yield			Risk Free Interest  Rate			Estimated Value as at grant date		Unrecognized compensation as at September 30, 2011
Options to Chief Financial Officer		75,000		10		60	%		0	%		3.44	%		522,649		321,513
Options to VP of Investor Relation		75,000		10		60	%		0	%		3.44	%		522,649		321,513
Options to Independent Director		30,000		10		60	%		0	%		3.25	%		169,979		-
		180,000													1,215,277		643,026

The following is a summary of the option activity:

	Number of Options
Outstanding as of December 31, 2009 and 2010		30,000
Granted		180,000
Exercised		-
Forfeited		-
Outstanding as of September 30, 2011		210,000

For the nine months ended September 30, 2011 and 2010, the Company recognized approximately $576,536 and $83,994, respectively, as stock-based compensation expense, in which $572,252 and $83,994 for its stock option plan and $4,284 and $0 for its restricted shares, which is included in general and administrative expenses.

For the three months ended September 30, 2011 and 2010, the Company recognized approximately $74,543 and $0, respectively, as stock-based compensation expense, in which $70,259 and $0 for its stock option plan and $4,284, and $0 for its restricted shares, which is included in general and administrative expenses.

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Construction in Progress

9 Months Ended

Sep. 30, 2011

Construction In Progress [Abstract]

Construction In Progress [Text Block]

6.   CONSTRUCTION IN PROGRESS

The construction in progress consists of the projects related to the construction of the following:

	September 30, 2011		December 31, 2010
Great Golden Lake	$	2,926,764	$	2,785,712
Yunding resort (Phases I and II)		-		14,406,456
Jiangxi Zhangshu Yangsheng TianTang resort		10,973,498		9,127,911
Jiangxi Fenyi Dongdou resort		10,371,995		8,871,613
	$	24,272,257	$	35,191,692

The construction in progress mainly related to the construction of new tourist resorts which the Company has developed. The estimated completion date of all these construction projects in progress will be September 30, 2012. The amount of capitalized interest included in construction in progress for the nine months ended September 30, 2011 and 2010 amounted to $511,493 and $214,956, respectively. The amount of capitalized interest included in construction in progress for the three months ended September 30, 2011 and 2010 amounted to $250,890 and $72,572, respectively.

The tourist resort in Yunding opened on September 28, 2010 at which time the Company then transferred the related construction in progress of $50,019,707 to property and equipment during the year ended December 31, 2010. The second phase of construction of the Yunding resort was completed as of September 30, 2011.  Construction in progress of $14,680,446 and $52,991,179 were transferred to property and equipment during the nine months ended September 30, 2011 and 2010, respectively.

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Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

16.   EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution of securities by including other potential common stock, including convertible preferred stock, stock options and warrants, in the weighted average number of common shares outstanding for the period, if dilutive.  The numerators and denominators used in the computations of basic and dilutive earnings per share are presented in the following table:

	For The Nine Months Ended September 30,				For The Three Months Ended September 30,
	2011		2010		2011		2010
BASIC
Numerator for basic earnings per share attributable to the Company’s common stockholders:
Net income used in computing basic earnings per share	$	10,653,241	$	19,922,489	$	3,208,606	$	4,673,065
Basic earnings per share	$	0.54	$	1.03	$	0.16	$	0.24
Basic weighted average shares outstanding		19,551,785		19,343,858		19,551,785		19,551,785
	For The Nine Months Ended September 30,				For The Three Months Ended September 30,
		2011		2010		2011		2010
DILUTED
Numerator for basic earnings per share attributable to the Company’s common stockholders:
Net income used in computing diluted earnings per share	$	10,653,241	$	19,922,489	$	3,208,606	$	4,673,065
Diluted earnings per share	$	0.54	$	0.99	$	0.16	$	0.23
Weighted average outstanding shares of common stock		19,551,785		19,343,858		19,551,785		19,551,785
Warrants		-		773,812		-		773,812
Restricted common shares		9,836				3,651
Diluted weighted average shares outstanding		19,561,621		20,117,670		19,555,436		20,325,597
Potential common shares outstanding as of September 30:
Warrants outstanding		-		773,812		-		773,812
Options outstanding		90,000		30,000		110,000		30,000
Unvested restricted common shares		20,000		-		20,000		-

For nine months ended September 30, 2011 and 2010, 90,000 and 30,000 options, respectively were not included in the diluted earnings per share because the average stock price was lower than the strike price of these options.

For three months ended September 30, 2011 and 2010, 90,000 and 30,000 options, respectively were not included in the diluted earnings per share because the average stock price was lower than the strike price of these options.

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Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 10,569,226	$ 19,900,899
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,599,582	1,247,957
Amortization	2,718,586	1,463,586
Stock-based compensation	576,536	83,994
Deferred tax	51,914	0
Changes in operating assets and liabilities:
Accounts receivable	(106,811)	0
Other receivables, net	(319,681)	119,823
Advances and prepayments	282,239	(808,288)
Accounts payable	(1,098,386)	1,063,947
Accrued expenses and other payables	1,539,620	861,250
Taxes payable	(544,244)	(575,416)
Net cash provided by operating activities	16,268,581	23,357,752
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of loan from (loan to) non-controlling interest	2,712,533	(5,750,836)
Other receivables - acquisition of land use rights	(4,623,636)	0
Advances and prepayments - acquisition of land use rights	(7,365,260)	0
Additions to property and equipment	(5,823,616)	(1,819,530)
Additions to construction in progress	(2,718,003)	(22,032,201)
Proceeds from disposal of intangible assets	2,080,636	0
Additions to long-term prepayments for acquisition of property and equipment	(2,778,112)	(921,312)
Net cash used in investing activities	(18,515,458)	(30,523,879)
CASH FLOWS FROM FINANCING ACTIVITIES
Capital contributed by non-controlling interest	0	5,868,200
Net proceeds from issuance of common stock	0	26,682,957
Payments of obligation under airtime rights commitment	(1,400,069)	(276,103)
Repayment of long-term loans	(246,594)	0
Proceeds from long-term loans	10,788,484	0
Net cash provided by financing activities	9,141,821	32,275,054
EFFECT OF EXCHANGE RATE CHANGES ON CASH	317,307	512,892
NET INCREASE IN CASH AND CASH EQUIVALENTS	7,212,251	25,621,819
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	7,146,684	5,776,678
CASH AND CASH EQUIVALENTS, ENDING OF PERIOD	14,358,935	31,398,497
Non-cash investing and financing activities:
Transfer from construction in progress to property and equipment	14,680,446	52,991,179
Transfer from advances and prepayments to property and equipment	0	1,173,640
Capitalized interest in construction in progress	511,493	214,956
Capitalized airtime rights commitment	0	6,209,282
Cash paid during the period for:
Income tax	5,830,819	7,940,410
Interest	$ 691,035	$ 234,055

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Business Segments

9 Months Ended

Sep. 30, 2011

Business Segments [Abstract]

Business Segments [Text Block]

17.   BUSINESS SEGMENTS

During the nine months ended and three months ended September 30, 2011 and 2010, the Company is organized into two main business segments: advertisement and tourism. The primary business relates to tourism at the Great Golden Lake, Yunding resort and Tulou resort. The Company offers bamboo rafting, parking lot service, photography services and ethnic cultural communications. The primary business related to advertisement is focused on advertisements, including media publishing, television, cultural and artistic communication activities, and performance operation and management activities. The following table presents a summary of operating information and certain balance sheet information for the two segments for the periods ended:

		For The Nine Months Ended September 30,						For The Three Months Ended September 30,
		2011			2010		2011				2010
Revenues:
Advertisement	$	26,675,530		$	27,820,997	$	8,322,439			$	9,726,192
Tourism		7,299,124			14,383,404		2,885,042				1,299,966
Total	$	33,974,654		$	42,204,401	$	11,207,481			$	11,026,158
Operating income:
Advertisement	$	19,234,964		$	20,668,136	$	6,148,461			$	7,341,963
Tourism		(1,832,147	)		7,231,243		(998,249		)		(458,593	)
Other		(1,205,865	)		(668,192	)	(244,602		)		(259,654	)
Total	$	16,196,952		$	27,231,187	$	4,905,610			$	6,623,716
Net income:
Advertisement	$	14,185,447		$	15,386,580	$	4,576,021			$	5,477,872
Tourism		(2,357,224	)		5,183,116		(1,154,085		)		(564,633	)
Other		(1,258,997	)		(668,797	)	(254,182		)		(257,731	)
Total	$	10,569,226		$	19,900,899	$	3,167,754			$	4,655,508
Capital expenditure:
Advertisement	$	2,324		$	1,819,530	$	17			$	1,817,059
Tourism		8,539,295			22,032,201		2,994,437				22,032,201
Total	$	8,541,619		$	23,851,731	$	2,994,454			$	23,849,260
					September 30, 2011						December 31, 2010
Identifiable assets:
Advertisement				$	9,852,173					$	9,990,752
Tourism					165,296,814						136,088,730
Others					1,081,022						1,742,327
				$	176,230,009					$	147,821,809

Others represent reconciling amounts including certain assets which are excluded from segments and adjustments to eliminate inter-company transactions.   

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2011

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

2.   BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of presentation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements.

The unaudited condensed consolidated financial statements include all adjustments including normal recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows of the Company for the periods presented. The results of operations for the three and nine months ended September 30, 2011 are not necessarily indicative of operating results expected for the full year or future interim periods. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report of Form 10-K for the year ended December 31, 2010, filed on March 16, 2011.

The functional currency is the Chinese Renminbi, however the accompanying condensed consolidated financial statements have been translated and presented in United States Dollars ($).

b. Principles of consolidation

The accompanying condensed consolidated financial statements include the accounts of China Yida and its wholly-owned subsidiaries Keenway Limited, Hong Kong Yi Tat, Fujian Jintai, Fuyu, Hongda, Fujian Yida, Tulou, Anhui Yida, Yongtai Yunding, Jiangxi Zhangshu, Jiangxi Fenyi, Yida Travel and the accounts of its variable interest entity, Fujian Jiaoguang. All significant inter-company accounts and transactions have been eliminated in consolidation.

Consolidation of Variable Interest Entities

According to the requirements of ASC 810, an Interpretation of Accounting Research Bulletin No. 51 that requires a Variable Interest Entity ("VIE"), the Company has evaluated the economic relationships of Fujian Jiaoguang which signed an exclusive right agreement with the Company. Therefore, Fujian Jiaoguang is considered to be a VIE, as defined by ASC Topic 810-10, of which the Company is the primary beneficiary.

The carrying amount and classification of Fujian Jiaoguang’s assets and liabilities included in the Condensed Consolidated Balance Sheets are as follows:

	September 30, 2011		December 31, 2010
Total current assets*	$	11,923,638	$	11,005,172
Total assets	$	11,931,490	$	11,020,336
Total current liabilities#	$	9,714,197	$	8,398,261
Total liabilities	$	9,714,197	$	8,398,261

* Including intercompany receivables of $11,915,404 and $11,001,921 as at September 30, 2011 and December 31, 2010 to be eliminated in consolidation.

# Including intercompany payables of $8,403,077 and $7,086,393 as at September 30, 2011 and December 31, 2010 to be eliminated in consolidation.

c. Use of estimates and assumptions

The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results. The most significant estimates reflected in the condensed consolidated financial statements include depreciation, useful lives of property and equipment, deferred income taxes, useful life of intangible assets and contingencies. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the condensed consolidated financial statements in the period they are determined to be necessary.

d. Impairment

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.

Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available, judgments and projections are considered necessary. There was no impairment of long-lived assets as of September 30, 2011 and December 31, 2010. 

e. Revenue recognition

Revenue is recognized at the date of service rendered to customers when a formal arrangement exists, the price is fixed or determinable, the services rendered, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before satisfaction of all of the relevant criteria for revenue recognition are recorded as unearned revenue.

Revenues from advance resort ticket sales are recognized when the tickets are used. Revenues from our contractors who have tourism contracts with us are generally recognized over the period of the applicable agreements commencing with the tourists visiting the resort. The Company also sells admission and activities tickets for a resort which the Company has the management right.

The Company sells the television airtime to third parties. The Company records advertising sales when advertisements are aired.

The Company has no allowance for product returns or sales discounts because services that are rendered and accepted by the customers are normally not refundable and discounts are normally not granted after service has been rendered. 

f. Advertising costs

The Company expenses the cost of advertising as incurred or, as appropriate, the first time the advertising takes place. Advertising costs for the nine months ended September 30, 2011 and 2010 were $400,160 and $548,212, respectively. Advertising costs for the three months ended September 30, 2011 and 2010 were $169,356 and $155,367, respectively recorded under selling expenses.

g. Post-retirement and post-employment benefits

Full time employees of subsidiaries of the Company participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, employee housing, and other welfare benefits are provided to employees. Chinese labor regulations require that the subsidiaries of the Company make contributions to the government for these benefits based on a certain percentages of employees’ salaries. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $145,730 and $100,294 for the nine months ended September 30, 2011 and 2010, respectively and were $57,162 and $35,628 for the three months ended September 30, 2011 and 2010 respectively.  Other than the above, neither the Company nor its subsidiary provide any other post-retirement or post-employment benefits.

h. Foreign currency translation

The Company uses the United States dollar ("U.S. dollars") for financial reporting purposes. The Company's subsidiaries maintain their books and records in their functional currency, being the primary currency of the economic environment in which their operations are conducted. In general, for consolidation purposes, the Company translates the subsidiaries' assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet dates, and the statements of income are translated at average exchange rates during the reporting periods. Gain or loss on foreign currency transactions are reflected on the income statement. Gain or loss on financial statement translation from foreign currency are recorded as a separate component in the equity section of the balance sheet and is included as part of accumulated other comprehensive income. The functional currency of the Company and its subsidiaries in China is the Chinese Renminbi.

i. Income taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized.

The Company applied the provisions of ASC 740-10-50, “Accounting For Uncertainty In Income Taxes”, which provides clarification related to the process associated with accounting for uncertain tax positions recognized in our financial statements. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. At September 30, 2011, management considered that the Company had no uncertain tax positions, and will continue to evaluate for uncertain positions in the future.

China Yida is subject to U.S. Federal and California state examination by tax authorities for years after 2007, and the PRC tax authority for years after 2006.

j. Fair values of financial instruments

The carrying amounts reported in the condensed consolidated financial statements for current assets and currently liabilities approximate fair value due to the short-term nature of these financial instruments. The carrying amount of long-term loans approximates fair value since the interest rate associated with the debt approximates the current market interest rate.

In 2008, the Company adopted ASC 820-10, “Fair Value Measurements and Disclosures”, which establishes a single authoritative definition of fair value and a framework for measuring fair value and expands disclosure of fair value measurements for both financial and nonfinancial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, but discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flows) and the cost approach (cost to replace the service capacity of an asset or replacement cost). For purposes of ASC 820-10-15, nonfinancial assets and nonfinancial liabilities would include all assets and liabilities other than those meeting the definition of a financial asset or financial liability as defined in ASC-820-10-15-15-1A.

k. Statutory Reserves

In accordance with the relevant laws and regulations of the PRC and the articles of association of the Company, the Company is required to allocate 10% of their net income reported in the PRC statutory accounts, after offsetting any prior years’ losses, to the statutory surplus reserve, on an annual basis. When the balance of such reserve reaches 50% of the respective registered capital of the subsidiaries, any further allocation is optional.

As at September 30, 2011, the statutory reserve of the subsidiaries already reached 50% of the registered capital of the subsidiaries and the Company did not have any further allocation on it.

The statutory surplus reserves can be used to offset prior years’ losses, if any, and may be converted into registered capital, provided that the remaining balances of the reserve after such conversion is not less than 25% of registered capital. The statutory surplus reserve is non-distributable.

l. Segment reporting

ASC 250, "Disclosure About Segments of an Enterprise and Related Information" requires use of the "management approach" model for segment reporting. The management approach model is based on the way a company's management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. 

m. Reclassification

Certain reclassifications have been made to the 2010 consolidated financial statements to conform to the 2011 consolidated financial statement presentation. These reclassifications had no effect on net loss or cash flows as previously reported.

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Accrued Expenses and Other Payables

9 Months Ended

Sep. 30, 2011

Accounts Payable and Accrued Liabilities [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

11.   ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consist of the following:

	September 30, 2011		December 31, 2010
Subsidies receipt for land use right acquisition	$	892,228	$	-
Construction holdback		482,993		-
Unearned revenue		128,457		22,616
Payroll		340,501		179,935
Welfare		77,646		125,403
Other		389,436		310,072
	$	2,311,261	$	638,026

Subsidies receipt for land use right acquisition represents the subsidies from the local government for acquiring the land use rights and will be offset against the cost of land use rights after the completion of the acquisition of these rights.

Construction holdback represents an amount that Fujian Yida is withholding from the contractor who built the attractions and buildings. Fujian Yida will pay the money to the contractors three months after the construction was completed if there are no defects found by Fujian Yida.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

15.   COMMITMENTS AND CONTINGENCIES

(1) Operating commitments

Operating commitments consist of leases for office space under various operating lease agreements which expire in April 2021.

Operating lease agreements generally contain renewal options that may be exercised at the Company’s discretion after the completion of the terms. The Company's obligations under various operating leases are as follows:

Remainder of 2011	$	29,361
2012		90,825
2013		71,562
2014		65,242
2015		70,161
Thereafter		232,567
Total minimum payments	$	559,718

The Company incurred rental expenses of $126,395 and $74,042 for the nine months ended September 30, 2011 and 2010, respectively and which included $6,935 and $6,602, respectively, paid to Xin Hengji Holding Company Limited, a related party.

The Company incurred rental expenses of $55,940 and $21,388 for the nine months ended September 30, 2011 and 2010, respectively and which included $2,383 and $2,213, respectively, paid to Xin Hengji Holding Company Limited, a related party.

(2) Capital commitment

Jiangxi Zhangshu Yangsheng TianTang Resort

As at September 30, 2011, the total estimated contract costs to complete Jiangxi Zhangshu Yangsheng TianTang resort are approximately $14,000,000 (RMB90.57 million) of which the Company has completed and paid for approximately $11,000,000 (RMB70.11 million). The remaining $3,000,000 (RMB20.46 million) will be completed and paid by the end of 2012. Jiangxi Zhangshu signed a contract with the local government to pay compensation to the existing land user for acquisition of the land for $7,127,000 (RMB45.53 million) of which the Company paid $4,696,000 (RMB30 million) and is recorded in advances and prepayments. The remaining $2,431,000 (RMB 15.53 million) will be paid before December 31, 2011.

Jiangxi Fenyi Dongdou Resort

As at September 30, 2011, the total estimated contract costs to complete Jiangxi Fenyi Dongdou resort are approximately $12,715,000 (RMB81.23 million) of which the Company has completed and paid for approximately $10,371,000 (RMB66.26 million). The remaining $2,344,000 (RMB14.97 million) will be completed and paid by the end of 2012.

(3) Litigation

The Company may be a party to various legal actions arising in the ordinary course of business.  The Company’s management does not expect the legal matters involving the Company would have a material impact on the Company’s consolidated financial position or results of operations.

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Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 14,358,935	$ 7,146,684
Accounts receivable	137,175	27,724
Other receivables, net	5,186,349	160,133
Advances and prepayments	8,249,433	1,020,000
Deferred tax assets	284,420	280,266
Total current assets	28,216,312	8,634,807
Property and equipment, net	111,060,532	89,739,372
Construction in progress	24,272,257	35,191,692
Intangible assets, net	9,658,994	14,042,432
Long-term prepayments	3,021,914	193,593
Deferred tax assets	0	19,913
Total assets	176,230,009	147,821,809
Current liabilities
Short-term loans	1,847,069	1,784,687
Long-term debt, current portion	3,584,566	0
Accounts payable	69,112	1,229,237
Current obligation under airtime rights commitment	2,241,135	1,890,657
Accrued expenses and other payables	2,311,261	638,026
Taxes payable	1,781,281	2,255,208
Deferred tax liabilities	36,155	0
Total current liabilities	11,870,579	7,797,815
Long-term obligation under airtime rights commitment	2,183,389	3,758,376
Long-term debt	9,783,204	2,571,161
Total liabilities	23,837,172	14,127,352
Stockholders' equity
Preferred stock ($0.001 par value, 10,000,000 shares authorized, none issued and outstanding)	0	0
Common stock ($0.0001 par value, 100,000,000 shares authorized, 19,551,785 issued and outstanding as of September 30, 2011 and December 31, 2010	1,955	1,955
Additional paid in capital	49,054,622	48,478,086
Accumulated other comprehensive income	12,006,402	7,000,839
Retained earnings	86,222,893	75,569,652
Statutory reserve	2,549,330	2,549,330
Total stockholders' equity attributable to parent	149,835,202	133,599,862
Non-controlling interest	2,557,635	94,595
Total equity	152,392,837	133,694,457
Total liabilities and equity	$ 176,230,009	$ 147,821,809