Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

	December 31, 2012		December 31, 2011
	US$		US$
Assets
Current assets:
Cash and cash equivalents		30,851		494,340
Notes receivable, net of allowance for doubtful accounts of $3,350,056 as of December 31, 2012 and 2011 respectively		—		—
Other receivables		3,154		3,154
Income tax receivable		—		670
Total current assets		34,005		498,164
Other assets:
Due from subsidiaries		87,643,750		87,643,750
Investment in subsidiaries		188,783,841		159,115,372
Total assets		276,461,596		247,257,286
Liabilities
Current liabilities:
Accounts payable		465,000		472,164
Other payables		930,282		442,600
Advances from employees		—		105,000
Accrued interest-current		—		395,783
Redeemable common stock (US$0.001 par value, nil and 1,312,500 shares issued and outstanding as of December 31, 2012 and 2011, respectively)		—		32,696,658
Total current liabilities		1,395,282		34,112,205
Due to subsidiaries		12,193,504		4,230,102
Unrecognized tax benefits - non-current		1,892,605		1,727,142
Accrued interest-non current		—		170,555
Other long term loans		59,222,577		32,803,289
Total liabilities		74,703,968		73,043,293
Shareholders’ equity		201,757,628		174,213,993
Total liabilities, redeemable common stock and equity		276,461,596		247,257,286

	For the years ended December 31,
	2012			2011			2010
	US$			US$			US$
General and administrative		(4,083,009	)		(2,796,072	)		(4,422,488	)
Operating loss		(4,083,009	)		(2,796,072	)		(4,422,488	)
Other operating income, net		—			429,972			12,851
Other income (expenses):
Interest and finance costs		(17,013	)		(30,124	)		(1,361	)
Loss before income tax expenses		(4,100,022	)		(2,396,224	)		(4,410,998	)
Income tax benefits (expenses)		(388,816	)		(1,481,133	)		267,729
Loss before equity in earnings (losses) of subsidiaries		(4,488,838	)		(3,877,357	)		(4,143,269	)
Equity in earnings (losses) of subsidiaries		25,651,139			949,559			(5,440,602	)
Net income (loss)		21,162,301			(2,927,798	)		(9,583,871	)
Accretion of redemption premium on redeemable common stock		—			—			(1,086,622	)
Settlement of redeemable common stock		—			1,033,738			—
Net income (loss) attributable to common shareholders of Feihe International, Inc.		21,162,301			(1,894,060	)		(10,670,493	)
Net income (loss) attributable to common shareholders of Feihe International, Inc.		21,162,301			(2,801,496	)		(10,670,493	)
Other comprehensive income, net of tax
Foreign currency translation adjustments		2,742,037			12,236,588			7,181,945
Change in fair value of available for sale investments		6,094			(28,178	)		2,828
Disposal of Dairy Farms		—			(2,341,550	)		—
Other comprehensive income		2,748,131			9,866,860			7,184,713
Comprehensive income attributable to common shareholders of Feihe International, Inc.		23,910,432			7,065,364			(3,485,720	)

	For the years ended December 31,
	2012			2011			2010
	US$			US$			US$
Cash flows from operating activities:
Net income (loss)		21,162,301			(2,927,798	)		(9,583,871	)
Adjustments to reconcile net (loss) income to net cash used in provided by operating activities:
Equity in (earnings) losses of subsidiaries		(25,651,139	)		(949,559	)		5,440,602
Share-based compensation		2,364,004			1,742,646			2,599,646
Changes in assets and liabilities:
Decrease in tax receivable		670			—			—
Decrease in due from related parties		—			—			500,716
(Increase) decrease in other receivable, prepayments and other assets		—			(1,556	)		179,137
Decrease in accounts payable		(7,163	)		(6,075	)		(486,374	)
Increase in accrued expenses, other payable and income taxes payable		487,682			—			956,115
(Decrease) increase in due from subsidiaries and impairment		—			(3	)		652,412
Increase in due to subsidiaries		7,963,400			—			—
(Decrease) increase in employee advances		(105,000	)		105,000			—
Increase (decrease) of unrecognized tax benefits - non-current		165,463			1,480,768			(1,254,144	)
Net cash provided by (used in) operating activities		6,380,218			(556,577	)		(995,761	)
Cash flows from financing activities:
Proceeds from option exercise		—			—			96,000
Proceeds from other long term loans		25,852,951			33,369,627			—
Redemption of redeemable common stock		(32,696,658	)		(32,383,322	)		—
Net cash provided by (used in) financing activities		(6,843,707	)		986,305			96,000
Net (decrease) increase in cash and cash equivalents		(463,489	)		429,728			(899,761	)
Cash and cash equivalents, beginning of year		494,340			64,612			964,373
Cash and cash equivalents, end of year		30,851			494,340			64,612

BASIS FOR PREPARATION

The condensed financial information of the parent company, Feihe International, Inc., has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the parent company has used the equity method to account for its investment in its subsidiaries.