purchase its six (6) Soybean Milk production lines for a total amount
of RMB 30,000,000 (approximately US$4.1 million), including production
equipments, technique know-how and marketing resources. The Agreement
calls for the Company ("Buyer") to make three installment payments of
the full purchase price before January 31, 2008. Once the payments are
made in full, the Seller will transfer the ownership of the equipments
and all related resources to the Buyer. As of December 31, 2007, the
Company made all three-installment payments and recorded the entire
amount as investment advance since the transaction has not been
completed yet. Upon closing of this transaction, the Company will
reclassify the amount to fixed assets and other related accounts.
"We are very excited about the opportunities for organic soy milk," Ms.
Jiao stated. "If all goes as expected, we will have these production lines
fully operational by mid-year. We believe these production lines could
enable us to grow our sales faster than planned and develop new channels of
-- Other receivables typically represent cash advances to employees and
sales representatives for normal business purposes. Included in the
other receivables was also an advanced payment in the amount of
RMB13,800,000 (approximately US$1.9 million) made to a organic rice
growing project in Donghai, Jiangsu Province, in anticipation of a good
harvest year. The advance was not utilized because the actual output of
the rice was less than expected. The Company collected the full amount
in the first quarter of 2008.
As of March 31, 2008, the Donghai receivable has been fully collected.
-- As of December 31, 2007, the Company has loans receivable from related
parties in the amount of $2,037,551
|SOURCE China Yingxia International, Inc.|
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