JRSIS HEALTH CARE Corp - FORM 10-Q

Attached files

file	filename
EX-32.2 - EXHIBIT 32.2 - JRSIS HEALTH CARE Corp	v424254_ex32-2.htm
EX-31.2 - EXHIBIT 31.2 - JRSIS HEALTH CARE Corp	v424254_ex31-2.htm
EX-31.1 - EXHIBIT 31.1 - JRSIS HEALTH CARE Corp	v424254_ex31-1.htm
EX-32.1 - EXHIBIT 32.1 - JRSIS HEALTH CARE Corp	v424254_ex32-1.htm

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, 2015

¨	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: 333-194359

JRSIS HEALTH CARE CORPORATION.

(Exact name of Registrant as specified in its charter)

Florida

8099

46-4562047

(State or other jurisdiction of incorporation
or organization)

(Primary Standard Industrial Classification
Code Number)

(I.R.S. Employer

Identification Number)

1 ^st – 7 ^th Floor, Industrial and Commercial Bank Building,

Xingfu Street, Hulan Town, Hulan District, Harbin City,

Heilongjiang Province, China 150025

(Address, including zip code, and telephone number, including area code,

of Registrant’s principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (Exchange Act) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, 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 ¨

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 the definition of “large accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	o	Accelerated Filer	o

Non-accelerated Filer	o (Do not check if a smaller reporting company)	Smaller reporting company	Yes x

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

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

As of the date of filing of this report, there were outstanding 13,915,000 shares of the issuer’s common stock, par value $0.001 per share.

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION		3

Item 1	Consolidated Financial Statements	F1-17

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4

Item 3	Quantitative and Qualitative Disclosures About Market Risk	12

Item 4	Controls and Procedures	12

PART II – OTHER INFORMATION		13

Item 1	Legal Proceedings	13

Item 1A	Risk Factors	13

Item 2	Unregistered Sale of Equity Securities and Use of Proceeds	13

Item 3	Defaults Upon Senior Securities	13

Item 4	Other Information	13

Item 5	Exhibits	13

	Signatures	14

PART I – FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Item Regulation S-X, Rule 10-01(c) Interim Financial Statements, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders’ equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that can be expected for the year ended December 31, 2015.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page

JRSIS HEALTH CARE CORPORATION

Consolidated Balance Sheets— September 30, 2015 (Unaudited) and December 31, 2014	F-2

Consolidated Statements of Operations and Comprehensive Income for the Three and Nine Months Ended September 30, 2015 and 2014 (Unaudited)	F-3

Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2015 and 2014 (Unaudited)	F-4

Notes to Consolidated Financial Statements (Unaudited)	F5-17

F-1

JRSIS HEALTH CARE CORPORATION

CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN USD, EXCEPT SHARES)

	September 30,			December 31,
	2015			2014
	(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	471,680		$	1,046,485
Accounts receivable, net		1,650,697			661,665
Inventories		394,726			180,630
Other receivables		3,347			1,755
Prepayments		30,714			691,802
Advance to related parties		79,539			185,391
Deferred expenses		46,119			-
Deposits for capital leases - current portion		55,627			92,630
Total current assets		2,732,449			2,860,358

Property and equipment, net		22,760,108			20,331,864
Long term deferred expenses		184,477			-
Deposits for capital leases		822,106			677,013
Total assets	$	26,499,140		$	23,869,235

Liabilities and shareholders’ equity
Current Liabilities:
Accounts payable	$	348,329		$	291,097
Short-term bank loans		455,703			471,277
Deposits received		6,819			6,526
Due to related parties		51,096			1,297,036
Other payable		28,573			71,562
Payroll payable		41,399			30,808
Capital lease obligations - current portion		1,685,564			807,478
Total current liabilities		2,617,483			2,975,784

Capital lease obligations		17,343,972			15,903,211
Total liabilities	$	19,961,455		$	18,878,995

Shareholders’ equity
Common stock; $0.001 par value, 100,000,000 shares authorized; 13,915,000 and 13,604,000 issued and outstanding at September 30, 2015 and December 31, 2014, respectively		13,915			13,604
Additional Paid-in capital		1,132,423			954,686
Retained earnings		2,094,316			1,011,471
Other comprehensive income		(145,311	)		14,045
Total shareholders’ equity of the Company		3,095,343			1,993,806
Non-controlling interest		3,442,342			2,996,434
Total shareholders’ equity		6,537,685			4,990,240
Total liabilities and shareholders’ equity	$	26,499,140		$	23,869,235

See notes to consolidated financial statements

F-2

JRSIS HEALTH CARE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(AMOUNTS IN USD, EXCEPT SHARES) (UNAUDITED)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014

Revenue:
Medicine	$	1,388,861		$	651,220	$	3,790,553		$	2,200,601
Patient services		1,539,039			714,814		4,276,284			2,231,807
Total revenue		2,927,900			1,366,034		8,066,837			4,432,408
Operating costs and expenses:
Cost of medicine sold		836,741			392,506		2,325,239			1,296,135
Medical consumables		239,678			124,778		558,089			340,418
Salaries and benefits		491,110			307,238		1,313,726			852,373
Office supplies		136,260			29,156		236,950			79,427
Vehicle expenses		9,193			5,420		24,605			25,992
Utilities expenses		62,851			11,776		354,609			50,146
Rentals and leases		-			41,622		-			125,795
Advertising and promotion expenses		-			115		-			2,650
Interest expense		316,151			165,867		903,737			664,996
Professional fee		4,929			10,875		129,948			90,577
Depreciation		230,606			37,793		629,927			108,284
Total operating costs and expenses		2,327,519			1.127,146		6,476,830			3,636,793
Earnings from operations before other income and income taxes		600,381			238,888		1,590,007			795,615
Other (expenses) income		(3,392	)		3		9,201			11,762
Earnings from operations before income taxes		596,989			238,891		1,599,208			807,377
Income tax		925			710		1,699			2,156
Net income		596,064			238,181		1,597,509			805,221
Less: net income attributable to non-controlling interests		199,293			74,816		514,664			269,383
Net income attributable to the Company	$	396,771		$	163,365	$	1,082,845		$	535,838
Comprehensive income:
Foreign currency translation adjustment attributable to non-controlling interests		(81,019	)		439		(68,756	)		(6,783	)
Foreign currency translation adjustment attributable to the Company		(189,157	)		1,325		(159,356	)		(14,385	)
Comprehensive income	$	325,888		$	239,945	$	1,369,397		$	784,053
Less: Comprehensive income attributable to non-controlling interests		118,274			75,255		445,908			262,600
Comprehensive income attributable to the Company	$	207,614		$	164,690	$	923,489		$	521,453
Basic and diluted earnings per share	$	0.0288		$	0.0120	$	0.0783		$	0.0398
Weighted average number of shares outstanding		13,788,872			13,589,000		13,830,915			13,459,526

See notes to consolidated financial statements

F-3

JRSIS HEALTH CARE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(AMOUNTS IN USD, EXCEPT SHARES)

	Nine Months Ended September 30,
	2015			2014
	(Unaudited)			(Unaudited)
Cash Flows From Operating Activities
Net income	$	1,597,509		$	805,221
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		629,927			108,284
Interest		903,737
Gain on disposal of fixed assets		(12,481	)		(1,829	)
Changes in operating assets and liabilities:
Accounts receivable, net		(1,042,058	)		(275,813	)
Inventories		(226,848	)		(21,632	)
Advance to related parties		(65,498	)		126,825
Prepayments and other current assets		(425,795	)		(98,197	)
Accounts payable		68,913			497,449
Due to related parties		(1,121,619	)		99,063
Deposits received		525			(2,533	)
Accrued expenses and other current liabilities		1,121,548			4,147
Net cash provided by operating activities		1,427,860			1,240,985

Cash Flows From Investing Activities
Purchases of property and equipment		(3,753,997	)		(1,898,359	)
Purchases of construction in progress		-			(341,451	)
Prepayment for property and equipment acquisition		566,997			(648,187	)
Proceeds from disposal of property and equipment		45,355			30,893
Net cash used in investing activities		(3,141,645	)		(2,857,104	)

Cash Flows From Financing Activities
Proceeds from shareholders		178,048			909,703
Payments on capital lease obligation		(1,931,772	)		(510,155	)
(Payments to) proceeds from related parties		(1,109,581	)		1,698,798
Proceeds from capital lease		3,849,970			-
Net cash provided by financing activities		986,665			2,098,346

Effect of exchange rate fluctuation on cash and cash equivalents		152,315			(2,459	)
Net (increase) decrease in cash and cash equivalents		(574,805	)		479,768

Cash and cash equivalents, beginning of period		1,046,485			631,288
Cash and cash equivalents, ending of period	$	471,680		$	1,111,056

Supplemental disclosure of cash flow information
Cash paid for income taxes		(1,699	)		(2,156	)
Cash paid for interest		(903,737	)		(661,186	)

See notes to consolidated financial statements

F-4

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

NOTE 1. DESCRIPTION OF BUSINESS AND ORGANIZATION

JRSIS HEALTH CARE CORPORATION (the “Company” or “JHCC”) was incorporated on November 20, 2013 under the laws of the United States and the State of Florida. The general nature of the business shall be to engage in any and all lawful business permitted under the laws of the United States and the State of Florida.

JRSIS HEALTH CARE LIMITED (“JHCL”), formally named China Runteng Medical Group Co., Ltd, which is a privately held Limited Liability Company registered in British Virgin Island (“BVI”) on February 25, 2013. JHCL was authorized to issue 50,000 shares of a single class each with par value of $1.00 per share to its sole shareholder Ms. Yanhua Xing. On November 20, 2013, China Runteng Medical Group Co., Ltd has changed its name to JRSIS HEALTH CARE LIMITED.

Runteng Medical Group Co., Ltd (“Runteng”) is a privately held limited liability company registered in Hong Kong on September 17, 2012. Runteng was authorized to issue up to 10,000 shares with par value of HK$1 per share to its sole shareholder Ms. Yanhua Xing.

Harbin Jiarun Hospital Co., Ltd (“Jiarun”) was a privately held, for-profit hospital, incorporated in Harbin city of Heilongjiang, China in February 2006. Jiarun is a private hospital serving patients on a municipal and county level and providing both Western and Chinese medical practices to the residents of Harbin. After a series of share exchanges mentioned here after in note 1, Jiarun became a 70% owned subsidiary of the Company.

JHCC, JHCL, Runteng and Jiarun are collectively referred as the “Group”. The Group provides full health care services in the Heilongjiang region in China through Jiarun, its 70% owned subsidiary.

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation”, the consolidated financial statements presented herein include the accounts of JHCC, JHCL, Runteng and its 70% owned subsidiary, Jiarun.

Reorganization

On December 23, 2012, in accordance with the “Foreign Investment Enterprise Law” under the People’s Republic of China (“PRC”), Runteng and Jiarun entered into an agreement that Runteng and the original owner of Jiarun should invest a total of $7,936,508 (equivalent to RMB50,000,000), in which Runteng and the original owner should contribute $5,555,556 (equivalent to RMB35,000,000) or 70% and $2,380,952 (equivalent to RMB15,000,000) or 30% of the total capital, respectively. According to the Article of Association (Joint venture investment agreement) and the amendment of Article of Association (Joint venture investment agreement), Runteng has the obligation to pay $5,555,556 (RMB35,000,000) within five years after the issuance of the joint venture business license. As of September 30, 2015, Jiarun has received $1,081,000 from Runteng.

On July 8, 2014, Jiarun obtained joint venture business license. Runteng has already completed “cooperation restructuring”. Up to completion of the legal structures, Jiarun are compliance with the Company Law of People’s Republic of China and all other requirements imposed by PRC authorities.

On February 25, 2013, JHCL issued 50,000 authorized shares to its sole shareholder Ms. Yanhua Xing. After the issuance, the total shares issued by JHCL were 50,000 with par value of US$1.00 per share.

On March 7, 2013, JHCL acquired all 100 issued and outstanding shares of through share exchanges to obtain 100% controlling interests of Runteng.

On June 1, 2013, Junsheng Zhang, the owner of Jiarun, entered into a supplemental agreement with Runteng for the attribution of accumulated retained earnings of Jiarun. In which, the historical accumulated profit of Jiarun up to June 30, 2013 should be 100% attributed to Junsheng Zhang; the profit generated from Jiarun after July 1, 2013 should be attributed to Runteng and Junsheng Zhang on the basis of 70% and 30%, respectively.

On July 29, 2013, the Joint Venture Investment Agreement between Runteng and Junsheng Zhang has been approved by the Development and Reform Commission of Hulan District, Harbin City and Harbin Investment Promotion Bureau. On the same date, Jiarun has obtained Certificate of Approval for Establishment of Enterprises with Investment of Taiwan, Hong Kong, Macao and Overseas Chinese in the People’s Republic of China; the Joint Venture Jiarun duration of operation is twenty years.

F-5

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

NOTE 1. DESCRIPTION OF BUSINESS AND ORGANIZATION (CONTINUED)

On October 3, 2013, Ms. Yanhua Xing transferred 23,275 JHCL shares to Mr. Junsheng Zhang, 23,225 JHCL shares to Ms. Chunlan Tang, and 1,050 JHCL shares to Mr. Weiguang Song.

On November 8, 2013, Ms. Chunlan Tang transferred all 23,225 JHCL shares to Mr. Junsheng Zhang, subsequently making Mr. Junsheng Zhang holdings 46,500 JHCL shares.

On December 20, 2013, a share exchange agreement was entered by and among JHCC, JHCL and the shareholders of JHCL, Junsheng Zhang, Yanhua Xing and Weiguang Song. JHCC desires to issue a total of 12,000,000 shares of its Common Stock (the “JHCC Shares”) to the Shareholders of JHCC, pro rata, in exchange for one hundred percent (100%) of the JHCL Shares owned by the Shareholders. At the Closing, the Shareholders shall allot and deliver to JHCC a total of 50,000 shares of the ordinary share of JHCL which represents one hundred percent (100%) of the issued and outstanding shares of JHCL. JHCL shall become a wholly-owned subsidiary of JHCC, and JHCC will effectively acquire all business and an assets of JHCL as now or hereafter existing, including all business and assets of any and all subsidiaries of JHCL, including Seventy percent (70%) ownership interest in Jiarun, the operating company in PRC through JHCL wholly holds subsidiary, Runteng, a Hong Kong registered investment company.

Before and after the reorganization mentioned above, Junsheng Zhang continued to serve as chairman of Jiarun (the “Operating Subsidiary”), and together with the other management of the Company, continued to direct both day-to-day operation and management of the Operating Subsidiary, as well as its strategic direction. The reorganization effectively resulted in Junsheng Zhang continuing to bear the residual risks and rewards related to the Operating Subsidiary. Because of the reasons described above, the Company is substantively controlled by Junsheng Zhang, and the Company continued to consolidate the Operating subsidiary during the reorganization. And the reorganization transactions are considered as a series of transactions between the parties under common control and did not establish a new basis in the assets and liabilities of the Operating Subsidiary.

During the reorganization, JHCC, JHCL, Runteng and Jiarun were under common control of Junsheng Zhang. Therefore, the reorganization was effectively a legal recapitalization accounted for as transactions between entities under common control at the carry over basis, in a manner similar to pooling-of-interests accounting. The effect of the reorganization was applied retroactively to the prior years’ consolidated financial statements as if the current structure existed since inception.

30% of Jiarun hospital interest held by Junsheng Zhang is subjecting to non-controlling interest (“NCIs”), which was stated under ASC810-10-45, the ownership interest in the subsidiary that are held by owners other than the parent is a non-controlling interest. 70% held by Runteng is applying to its holding Runteng. According to the supplemental agreement signed between Junsheng Zhang and Runteng on June 1, 2013, the comprehensive income from Jiarun would be attributable to retained earnings and non-controlling interest for 70% and 30% respectively, from July 1, 2013.

NOTE 2. SUMMARIES OF SIGNIFICANT ACCOUNTING POLICIES

A.	Basis of presentation

The accompanying consolidated balance sheet as of December 31, 2014, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements as of September 30, 2015 and for the nine month periods ended September 30, 2015 and 2014 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and disclosures, which are normally included in financial statements prepared in accordance with United States generally accepted accounting principles (U.S. GAAP), have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to provide for fair presentation. The interim financial information should be read in conjunction with the Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, previously filed with the SEC.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2015, its consolidated results of operations and cash flows for the nine month periods ended September 30, 2015 and 2014, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

F-6

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

B.	Principles of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Non-controlling interests represent the equity interest in Jiarun that is not attributable to the Company. In the opinion of management, all adjustments and normal recurring accruals considered necessary for a fair statement of the results for the period have been included.

C.	Use of estimates

The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue 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 from those estimates. Significant items subject to such estimates and assumptions include valuation allowances for receivables and recoverability of carrying amount and the estimated useful lives of long-lived assets. These estimates are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable. Actual results could differ from these estimates.

D.	Functional currency and foreign currency translation

JHCC and JHCL’s functional currency is the United States dollar (“US$”). Runteng’s functional currency is the Hong Kong dollar (“HK$”). The functional currency of Jiarun is the Renminbi (“RMB”).

The Company’s reporting currency is US$. Assets and liabilities of Runteng and Jiarun are translated at the current exchange rate at the balance sheet dates, revenues and expenses are translated at the average exchange rates during the reporting periods, and equity accounts are translated at historical rates. Translation adjustments are reported in other comprehensive income.

E.	Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are cash, accounts receivable and other receivables arising from its normal business activities. The Company places its cash in what it believes to be credit-worthy financial institutions. The Company has a diversified customer base. The majority of sales are either cash receipt in advance or cash receipt upon delivery. For the nine months ended September 30, 2015 and 2014, no customer accounted for more than 10% of net revenue. As of September 30, 2015 and December 31, 2014,1 and 1 customer accounted for more than 10% of net accounts receivable, respectively. For those credit sales, the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.

F.	Cash and cash equivalents

Cash and cash equivalents include all cash, deposits in banks and other liquid investments with initial maturities of three months or less.

G.	Accounts receivable

Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

F-7

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

I.	Construction in progress

Construction in progress represents the new hospital painting and decoration costs. And all direct costs relating to the polishing and decoration are capitalized as construction in progress. No depreciation is provided in respect of construction in progress.

J.	Property and equipment

Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. Depreciation is recorded on a straight-line basis reflective of the useful lives of the assets. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from accounts and any gain or loss is reflected in income.

Buildings and improvement	10-40 years
Medical equipment	5-15 years
Transportation instrument	5-10 years
Office equipment	5-10 years
Electronic equipment	5-10 years
Software	5-10 years

Leases

Operating lease

Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Minimum lease payments, including scheduled rent increases, made under operating leases are charged to the consolidated statements of operations and other comprehensive income (loss) on a straight-line basis over the lease term. Contingent rentals are excluded from minimum lease payments, and are recognized as expense when the achievement of the specified target is considered probable.

Capital lease

Leases which substantially transfer all of the benefits and risks inherent in ownership to the lessee are classified as capital leases. In a capital lease, assets and liabilities are recorded at the amount of the lesser of (a) the fair value of the leased asset at the inception of the lease or (b) the present value of the minimum lease payments (excluding executing costs) over the lease term. Recorded assets are depreciated over their estimated useful lives. During the lease term, each minimum lease payment is allocated between a reduction of the obligation and interest expense to produce a constant periodic rate of interest on the remaining balance of the obligation. Leasehold improvements are depreciated over the depreciable lives of the corresponding fixed asset or the related lease term, whichever is shorter.

F-8

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

L.	Fair Value Measurement

The Company applies the provisions of ASC Subtopic 820-10, Fair Value Measurements, for fair value measurements of financial assets and financial liabilities and for fair value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements. ASC 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements.

Fair value is defined as the price that would be received when selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value for the assets and liabilities required or permitted to be recorded, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

ASC 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs that is observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

There were no transfers between level 1, level 2 or level 3 measurements for the nine months ended September 30, 2015 and 2014.

Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities are reflected in the accompanying consolidated financial statements at amounts that approximate fair value because of the short-term nature of these instruments. The fair value of the Company’s capital lease obligations also approximate carrying value as they bear interest at current market rates.

M.	Segment and geographic information

The Company is operating in one segment in accordance with the accounting guidance FASB ASC topic 280, “Segment Reporting”. The company’s revenues are from customers in People’s Republic of China (“PRC”). All assets of the company are located in PRC.

N.	Revenue recognition

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that economic benefits will flow to the entity and specific criteria have been met for each of the Company’s activities as described below.

Medicine sales

Revenue from the sale of medicine is recognized when it is both earned and realized. The Company’s policy is to recognize the sale of medicine when the title of the medicine, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds is reasonably assured, all of which generally occur when the patient receives the medicine.

Given the nature of this revenue source of the Company’s business and the applicable rules guiding revenue recognition, the revenue recognition practices for the sale of medicine do not contain estimates that materially affect results of operations nor any policy for return of products.

Patient Services

In accordance with the medical licenses of Jiarun, the approved medical patient service scope of the Company include medical consulting, surgery, obstetrics and gynecology, pediatrics, anesthesia, clinic laboratory, medical imaging, and traditional Chinese medicine, etc.

F-9

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

N.	Revenue recognition(continued)

Patient service revenue is recognized when it is both earned and realized. The Company’s policy is to recognize patient service revenue when the medical service has been provided to the patient and collection of the revenue is reasonably assured.

The Company provides services to both patients covered by social insurance and patients who are not covered by social insurance. The Company charges the same rates for patient services regardless of the coverage by social insurance.

Patients who are not covered by social insurance are liable for the total cost of medical treatment.

For out-patient medical services, revenue is recognized when the Company provides medical service to the patient. The Company collects payment when the patient checks out from the hospital, which is the same day the services are provided.

For in-patient medical services, the Company estimates the approximate fee the patients will spend in the hospital based on patients’ symptom. This is when the patients check in to the hospital. At that time, the Company collects the estimated fees from the patient and records the payment as deposits received.

During the in-patient services period, the Company recognizes revenue when the patient service is provided and deducts the cost of service from the deposit received. The Company records these transactions based on daily reports generated by the respective medical department. When medical services exceed patient deposits received the Company records revenue and accounts receivable when the patient services are provided.

When patients check out from the hospital, the Company calculates and determines the remaining deposit, if any, and refunds the unused portion of the deposit to the patients. In the case where the patients have a balance in accounts receivable during the in-patient period, accounts receivable are required to be paid in full at checkout.

Patients covered by social insurance will receive a portion or full medical services reimbursed or paid by the social insurance agencies via prepaid cards or insurance claim settlement process.

Settlement process

The Company is a registered medical service vendor under the state social insurance system for various social insurance agencies; the insurance agencies include “Social Medical Insurance funded by PRC and Heilongjiang Province” and “Heilongjiang Province New Rural Cooperative Medical Care System”. The Company utilizes an online system maintained by the social insurance agencies for patients’ who are covered by social insurance agencies.

The Company records patients’ information in the social insurance system at check in. The system determines the covered portion and amounts based on the information input to the system.

At the time of check out, the Company collects payment for services the patients are liable for and records accounts receivable from the social insurance agencies for the portion of services covered by the social insurances. In the case that the patients have made payment during the in-patient services period, the Company refunds any amount in excess of the portion they are liable for.

The Company is responsible for submitting supporting documents of patient services provided to the social insurance agencies for their review. The Company also requires reconciling its records with the social insurance agencies once a month. Once the social insurance agencies approve the reconciliation, the insurance agencies will settle the accounts receivable balance in the next month following the approval.

F-10

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

O.	Income taxes

The Company adopts FASB ASC Topic 740, “Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

In July 2006, the FASB issued FIN 48(ASC 740-10), Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109 (ASC 740), which requires income tax positions to meet a more-likely-than-not recognition threshold to be recognized in the financial statements. Under FIN 48(ASC 740-10), tax positions that previously failed to meet the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met.

The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy, changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities or deferred tax asset valuation allowance.

As a result of the implementation of FIN 48 (ASC 740-10), the company made a comprehensive review of its portfolio of tax positions in accordance with recognition standards established by FIN 48 (ASC 740-10). The Company recognized no material adjustments to liabilities or shareholder’s equity as a result of the implementation. The adoption of FIN 48 did not have a material impact on the Company’s unaudited consolidated financial statements.

Enterprise income tax is defined under the Provisional Regulations of PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income.

Jiarun’s medical services have been exempt from enterprise income tax since March 1, 2006, which has been approved by the Local Taxation Bureau.

Jiarun was incorporated in accordance with the law of medical and health institutions, mainly provide medical services, with the “PRC Business Tax Tentative Regulations” Article 8 (3) medical service income tax-free provisions (hospital, clinics and other medical institutions to provide medical services shall be exempt from business tax). The Company’s medical services have been exempted from business tax since March 1, 2006.

In considering the achievement of the hospital, it could not have been done without the support of local authorities, Jiarun hospital has voluntarily paid income tax of $1,699 and $2,156 for the nine months ended September 30, 2015 and 2014, respectively to support the local tax bureau’s economical obligations.

P.	Earnings per share

Basic earnings per common share is computed by using net income divided by the weighted average number of shares of common stock outstanding for the periods presented. Diluted earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding for the periods presented.

Q.	Recently accounting pronouncements

From time to time, new accounting standards issued by the Financial Accounting Standards Board (“FASB”) are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

F-11

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

NOTE 3. Accounts Receivable, Net

	September 30		December 31
	2015		2014
	(Unaudited)
Accounts receivable	$	1,677,018	$	688,885
Less: allowance for doubtful debts		26,321		27,220
	$	1,650,697	$	661,665

The Company experienced nil bad debts during nine months ended September 30, 2015 and 2014.

NOTE 4. Inventories

At September 30, 2015 and December 31, 2014, inventories consist of the following:

	September 30		December 31
	2015		2014
	(Unaudited)
Western medicine	$	298,962	$	174,907
Chinese herbal medicine		5,886		5,723
Medical material		89,878		-
	$	394,726	$	180,630

NOTE 5. Prepayment

At September 30, 2015 and December 31, 2014, prepayment consists of the following:

	September 30		December 31
	2015		2014
	(Unaudited)
Deposits on medical equipment	$	18,385	$	662,631
Others		12,329		29,171
	$	30,714	$	691,802

NOTE 6. Property and Equipment

At September 30, 2015 and December 31, 2014, property and equipment, at cost, consist of:

	September 30,		December 31,
	2015		2014
	(Unaudited)
Transportation equipment	$	780,979	$	309,099
Medical equipment		6,810,195		4,003,566
Electrical equipment		815,104		677,626
Office equipment and others		86,385		6,234
Buildings		15,259,460		15,780,963
Software		89,725		87,103
Total fixed assets at cost		23,841,848		20,864,591
Accumulated depreciation		1,081,740		532,727
Total fixed assets, net	$	22,760,108	$	20,331,864

The Company recorded depreciation expense of $629,927 and $108,284 for the nine months ended September 30, 2015 and 2014, and $230,606 and $37,793 for the three months ended September 30, 2015 and 2014, respectively.

F-12

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

NOTE 7. Long term deferred expenses

On May 7, 2015 and July 3 2015, Jiarun entered into two lease agreements to lease medical equipment from Hair Finance Leasing(China) Co., Ltd.(“Hair”), a third party, for a five-year period, in which Jiarun is required to pay consulting fee to Hair for the services provided over the five years. The consulting fee paid but attributable to the current and subsequent accounting periods was accounted for as deferred expenses and long term deferred expenses. The current portion of the prepaid consulting fee was recorded as deferred expenses $46,119 and nil as of September 30, 2015 and December 31, 2014. The long-term deferred expenses were $184,477 and nil as of September 30, 2015 and December 31, 2014.

The Company recorded consulting fee of $12,764 and $nil for the nine months ended September 30, 2015 and 2014, and $7,923 and $nil for the three months ended September 30, 2015 and 2014, respectively.

NOTE 8. Capital Lease Obligations and Deposit for Capital Leases

On June 5, 2013, Jiarun entered into a lease agreement to lease hospital building from Harbin Baiyi Real Estate Development Co., Ltd, which is owned by Junsheng Zhang, a related party. The Leasing terms consist of principal plus 30 payments. Each payments will be made on an annual basis when 7 million RMB per payment will be paid upfront for each leasing period. The first payment was made on September 1st, 2014. At the end of the leasing period, a final payment will be made to settle the total leasing amount. Both parties agreed for the leasee to pay 3 million RMB as deposit at the execution of the Leasing agreement, which will be deducted from the final rental settlement. The lending interest rate was calculated at 6.55%, which is the benchmark interest rate announced from The People’s Bank of China. After the completion of all payments, the ownership of the lease item will be transferred to the Leasee (Jiarun hospital).

According to the Financial Leasing Contract, Jiarun has committed CNY 3 million ($490,677) of premium for lease which shall be paid in full prior to commencement of the leasing period to the Leasor. In accordance to accounting principles and treatment, this payment was booked as deposit in our accounts. The Leasor shall return the premium for lease to the Leasee at expiration of this Contract, or pledge this deposit as part of rents for the last period or periods in 2043.

The leasing agreement for our hospital building contains the following provisions:

•

Rental payments of RMB7,000,000 (equivalent to $1,144,913) per year, payable at the beginning of September.

•

An option allowing the lessor to extend the lease for thirty years beyond the last renewal option exercised by the company

•

A guarantee by the company that the lessor will realize $nil, from selling the asset at the expiration of the lease This lease is a capital lease because its term (30 years) exceeds 75% of the building’s estimated economic life. In addition, the present value ($15,185,032) of the minimum lease payments exceeds 90% of the fair value of the building ($15,721,295).

•

Accumulated annual amounts resulting from applying an interesting rate 6.55% to the balance of the lease obligation at the beginning of each year. The lease obligation is increased by the amount of the prior year’s interest, the amount of the net rental payment at the beginning of each year; and this amount represents the guaranteed residual value at the end of the lease term.

On September 1, 2014, October 22, 2014, March 26, 2015, May 7, 2015 and July 3, 2015, Jiarun entered into several lease agreements to lease medical equipment and elevator from three lease finance companies, which are all third parties, for three to five year periods, in which Jiarun is required to make monthly or quarterly payments toward the leases. The Company was also required to pay deposits up front, which deposits will later be used to offset against the last quarterly payment. The medical equipment and elevator will be transferred to Jiarun upon the completion of the agreement.

These leases have been classified as capital leases. The cost of the medical equipment included in these leases is included in the consolidated balance sheets as property and equipment and construction in progress.

F-13

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

NOTE 8. Capital Lease Obligations and Deposit for Capital Leases (Continued)

The future minimum lease payments for annual capital lease obligation as of September 30, 2015 are as follows:

Year	Amounts (Unaudited)
2015	$	142,207
2016		1,699,390
2017		1,645,510
Thereafter		15,542,429
Total	$	19,029,536

The Company recorded finance lease fees of $893,883 and $661,186 for the nine months ended September 30, 2015 and 2014, and $325,062 and $164,567 for the three months ended September 30, 2015 and 2014, respectively.

NOTE 9. Short-term Bank Loans

	September 30		December 31
	2015		2014
	(Unaudited)
Short- term bank loans	$	455,703	$	471,277

As of September 30, 2015, the above bank loans were for working capital and capital expenditure purposes. The loans were primarily obtained from Harbin Bank with interest rate of 7.84% per annum, from December 2, 2014 to December 1, 2015. The interest expenses were $28,030 and nil for the nine months ended September 30, 2015 and 2014, respectively, and $9,265 and $nil for the three months ended September 30, 2015 and 2014, respectively.

NOTE 10. Non-controlling Interests

Jiarun is the Company’s majority-owned subsidiary which is consolidated in the Company’s financial statements with a non-controlling interest recognized. The Company holds 70% interest of Jiarun as of September 30, 2015 and December 31, 2014.

As of September 30, 2015 and December 31, 2014, NCI in the consolidated balance sheet was $3,442,342 and $2,996,434, respectively. For the nine months ended September 30, 2015, the comprehensive income attributable to shareholders’ equity and NCI is $923,489 and $445,908 respectively. For the nine months ended September 30, 2014, the comprehensive income attributable to shareholders’ equity and NCIs is $521,453 and $262,600, respectively. For the three months ended September 30, 2015, the comprehensive income attributable to shareholders’ equity and NCI is $207,614 and $118,274 respectively. For the three months ended September 30, 2014, the comprehensive income attributable to shareholders’ equity and NCIs is $164,690 and $75,255, respectively.

NOTE 11. Revenue

The Company’s revenue consists of medicine sales and patient care revenue.

	Nine Months Ended September 30,
	2015		2014
	(Unaudited)		(Unaudited)
Medicine:
Western medicine	$	2,980,213	$	1,885,582
Chinese medicine		710,009		263,419
Herbal medicine		100,331		51,600
Total medicine	$	3,790,553	$	2,200,601

Patient services:
Medical consulting	$	2,117,967	$	884,928
Medical treatment		2,131,441		1,287,898
Others		26,876		58,981
Total patient services	$	4,276,284	$	2,231,807

	$	8,066,837	$	4,432,408

F-14

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

NOTE 11. Revenue (Continued)

	Three Months Ended September 30
	2015		2014
	(Unaudited)		(Unaudited)
Medicine:
Western medicine		1,089,956		540,362
Chinese medicine		263,576		96,470
Herbal medicine		35,329		14,388
Total medicine		1,388,861		651,220

Patient services
Medical consulting		802,512		278,858
Medical treatment		728,002		404,799
Others		8,525		31,157
Total patient services		1,539,039		714,814

		2,927,900		1,366,034

NOTE 12. Income Tax Expense

The Company uses the asset-liability method of accounting for income taxes prescribed by ASC 740 Income Taxes. The Company and its subsidiaries each files their taxes individually.

United States

JHCC is subject to the United States of America Tax law at tax rate of 34%. No provision for the US federal income taxes has been made as the Company had no US taxable income for the periods presented, and its earnings are permanently invested in PRC.

BVI

JHCL was incorporated in the BVI and, under the current laws of the BVI, it is not subject to income tax.

Hong Kong

Runteng was incorporated in Hong Kong and is subject to Hong Kong profits tax. Runteng is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. The applicable statutory tax rate is 16.5%.

PRC

Jiarun’s medical services have been exempt from enterprise income tax since March 1, 2006, which has been approved by the Local Taxation Bureau.

F-15

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

NOTE 13. Related Party Transactions

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

As of September 30, 2015 and December 31, 2014, the Company has an accounts payable balance due to Heilongjiang Dahua Medicine Wholesale Co., Ltd owned by Junsheng Zhang, for the amount of $18,686 and $94,680, respectively.

During the nine months ended September 30, 2015 and 2014, the Company purchased from Heilongjiang Dahua Medicine Wholesale Co., Ltd for $441,509 and $ $256,327 respectively. During the three months ended September 30, 2015 and 2014, the Company had purchased from Heilongjiang Dahua Medicine Wholesale Co., Ltd for $208,540 and $103,448, respectively.

As of September 30, 2015 and December 31, 2014, the Company has a balance due to Harbin Jiarun Pharmacy Co., Limited owned by Junsheng Zhang, of $18,752 and $86,812, respectively.

During the nine months ended September 30, 2015 and 2014, the Company purchased from Harbin Jiarun Pharmacy Co., Limited for $216,574 and $165,507, respectively. During the three months ended September 30, 2015 and 2014, the Company purchased from Harbin Jiarun Pharmacy Co., Limited for $48,295 and $50,068, respectively.

As of September 30, 2015 and December 31, 2014, the Company has a balance due to Heilongjiang Province Runjia Medical Equipment Company Limited owned by Junsheng Zhang of $9,792 and $107,987, respectively.

During the Nine months ended September 30, 2015 and 2014, the Company had purchased from Heilongjiang Province Runjia Medical Equipment Company Limited for $95,559 and $27,609, respectively. During the three months ended September 30, 2015 and 2014, the Company had purchased from Heilongjiang Province Runjia Medical Equipment Company Limited for $36,651 and $9,456, respectively.

As of September 30, 2015 and December 31, 2014, the Company has a balance due to Jiarun Super Market Co., Ltd owned by Junsheng Zhang of $nil and $877,549.

As of September 30, 2015 and December 31, 2014, the Company has a balance due to Harbin Qi-run pharmacy limited owned by Junsheng Zhang of $3,866 and $130,007.

During the nine months ended September 30, 2015 and 2014, the Company had purchased from Harbin Qi-run pharmacy limited for $30,498 and $Nil, respectively. During the three months ended September 30, 2015 and 2014, the Company had purchased from Harbin Qi-run pharmacy limited for $2,039 and $Nil, respectively.

The Company has a total balance due to related parties of $51,096 and $1,297,036 as of September 30, 2015 and December 31, 2014, respectively.

As of September 30, 2015 and December 31, 2014, the Company has a balance due to Junsheng Zhang for the amount of $5,162 and $3,162.

As of September 30, 2015 and December 31 2014, the shareholder of JHCL owed the company $50,000 and $50,000 for paid-in capital respectively.

On June 5, 2013, Jiarun entered into a Lease Agreement to lease new hospital building from Harbin Baiyi Real Estate Development Co., Ltd, which is owned by Junsheng Zhang, a related party. As of September 30, 2015 and December 31, 2014, Harbin Baiyi Real Estate Development Co., Ltd received decoration fee paid in advance from the Company in the total amount of $29,539 and $135,391, respectively. As of September 30, 2015 and December 31, 2014, the company has balance of deposits for capital leases of $471,416 and $487,527 respectively. As of September 30, 2015 and December 31, 2014, the company has balance of Capital lease obligations of $14,027,485 and $14,927,776 respectively.

F-16

JRSIS HEALTH CARE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(AMOUNTS IN USD)

NOTE 14. Basic and Diluted Earnings Per Share

Basic net income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares comprise shares issuable upon the exercise of share based awards, using the treasury stock method. The reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for income from continuing operations is shown as follows:

	Nine Months Ended September 30,
	2015		2014
	(Unaudited)		(Unaudited)
Numerator:
Net income available to common stockholders	$	1,082,845	$	535,838
Denominator:
Basic and diluted weighted-average number of shares outstanding		13,830,915		13,459,526
Net income per share:

Basic and diluted	$	0.0783	$	0.0398

NOTE 15. Contingencies and Commitment

Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. There was no contingency of this type as of September 30, 2015 and December 31, 2014.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. There was no contingency of this type as of September 30, 2015 and December 31, 2014.

Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.

NOTE 16. Subsequent Events

The Management of the Company determined that there were no reportable subsequent events to be disclosed.

F-17

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of such financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate these estimates, including those related to useful lives of real estate assets, bad debts, impairment, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There can be no assurance that actual results will not differ from those estimates. The analysis set forth below is provided pursuant to applicable SEC regulations and is not intended to serve as a basis for projections of future events. See “Cautionary Statement Regarding Forward Looking Statements” above.

Overview

Harbin Jiarun Hospital Company Limited (“Jiarun”) was established in Harbin in the Province of Heilongjiang of the People’s Republic of China (“PRC”) by the owner Junsheng Zhang on February 17, 2006

Jiarun is a private hospital serving patients on a municipal and county level and providing both Western and Chinese medical practices to the residents of Harbin. Jiarun specializes in the areas of Pediatrics, Dermatology, ENT, Traditional Chinese Medicine (TCM), Ophthalmology, Internal Medicine Dentistry, General Surgery, Rehabilitation Science, Gynecology, General Medical Services, etc.

On November 20, 2013, Junsheng Zhang, the officer of Jiarun Hospital established JRSIS HEALTH CARE CORPORATION, a Florida corporation (“JHCC” or the “Company”). On February 25, 2013, the officer of Jiarun Hospital established JRSIS HEALTH CARE LIMITED (“JHCL”), a wholly owned subsidiary of the Company, and On September 17, 2012, the officer of Jiarun Hospital established Runteng Medical Group Co., Ltd (“Runteng”), a wholly owned subsidiary of JHCL. Runteng, a Hong Kong registered Investment Company, holds a seventy percent (70%) ownership interest in Harbin Jiarun Hospital Company Ltd, a Heilongjiang registered company.

On December 20, 2013, the Company acquired One Hundred Percent (100%) of the issued and outstanding capital stock of JRSIS Health Care Limited, a privately held Limited Liability Company registered in the British Virgin Islands (“JHCL”) for Twelve Million (12,000,000) shares of our common stock. JHCL, through its wholly owned subsidiary, Runteng Medical Group Co., Ltd (“Runteng”), holds majority ownership in Harbin Jiarun Hospital Co., Ltd, a company duly incorporated, organized and validly existing under the laws of China (“Jiarun”). As the parent company, JHCC rely on Jiarun Hospital to conduct One Hundred Percent (100%) of our businesses and operations.

We have two sources of patient revenues: in-patient service revenues and out-patient service revenues. In addition to provide services to our patients, we also sell pharmaceutical medicines to our patients. Revenues from such sales are included in either our in-patient service revenues or our out-patient service revenues. Our revenues come from individuals as well as third-party payers, including PRC government programs and insurance providers, under which the hospital is paid based upon local government established charges. Revenue from the sale of medicine is recognized when it is both earned and realized. The Company’s policy is to recognize the sale of medicine when the title of the medicine, ownership and risk of loss have transferred to the purchasers, and collection of the sales proceeds is reasonably assured, all of which generally occur when the patient receives the medicine. Patient service revenue is recognized when it is both earned and realized. The Company’s policy is to recognize patient service revenue when the medical service has been provided to the patient and collection of the revenue is reasonably assured.

Plan of Operation

Over the next twelve months, we will concentrate on the following four areas to grow our operations:

●

Capital and Funding – Seek to obtain capital from all available sources to complete our hospital expansion and acquisition targets.

●

Advertising and Marketing – Work with several marketing companies to develop brand identity, marketing materials, and update our web site. Utilize all available marketing venues and public relations opportunities to promote the Company and its medicine and services. In April, 2014, we also bought a mobile clinic to provide free health examinations in the hospital area. Management believes this free service will bring us much higher brand reputation and potential customers locally.

Critical Accounting Policies and Management Estimates

Our discussion and analysis of our financial condition and results of operations relates to our consolidated financial statements, which have been prepared in accordance with the United States generally accepted accounting principles (“U.S. GAAP”).The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

Principles of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates

Revenue Recognition

Medicine sales

Patient Services

Patients who are not covered by social insurance are liable for the total cost of medical treatment.

Patients covered by social insurance will receive a portion or full medical services reimbursed or paid by the social insurance agencies via prepaid cards or insurance claim settlement process.

Settlement process

The Company records patients’ information in the social insurance system at check in. The system determines the covered portion and amounts based on the information input to the system.

Income Taxes and Uncertain Tax Positions

Jiarun’s medical services have been exempt from enterprise income tax since March 1, 2006, which has been approved by the Local Taxation Bureau.

Accounts Receivable

Property and equipment

Buildings and improvement		10-40 years
Medical equipment		5-15 years
Transportation instrument		5-10 years
Office equipment		5-10 years
Electronic equipment		5-10 years
Software		5-10 years

Foreign currency transactions and translations

Results of Operations for Three Months Ended September 30, 2015 and 2014

The following table shows key components of the results of operations during three months ended September 30, 2015 and 2014:

	Three Months Ended September 30,					Change
	2015			2014		$			%

Revenue:
Medicine	$	1,388,861		$	651,220	$	737,641			113	%
Patient services		1,539,039			714,814		824,225			115	%
Total revenue		2,927,900			1,366,034		1,561,866			114	%
Operating costs and expenses:
Cost of medicine sold		836,741			392,506		444,235			113	%
Medical consumables		239,678			124,778		114,900			92	%
Salaries and benefits		491,110			307,238		183,872			60	%
Office supplies		136,260			29,156		107,104			367	%
Vehicle expenses		9,193			5,420		3,773			70	%
Utilities expenses		62,851			11,776		51,075			434	%
Rentals and leases		-			41,622		(41,622	)		(100	)%
Advertising and promotion expenses		-			115		(115	)		(100	)%
Interest expense		316,151			165,867		150,284			91	%
Professional fee		4,929			10,875		(5,946	)		(55	)%
Depreciation		230,606			37,793		192,813			510	%
Total operating costs and expenses		2,327,519			1,127,146		1,200,373			106	%
Earnings from operations before other income and income taxes		600,381			238,888		361,493			151	%
Other (expenses) income		(3,392	)		3		(3,395	)		(113167	)%
Earnings from operations before income taxes		596,989			238,891		358,098			150	%
Income tax		925			710		215			30	%
Net income		596,064			238,181		357,883			150	%
Less: net income attributable to non-controlling interests		199,293			74,816		124,477			166	%
Net income attributable to the Company	$	396,771		$	163,365	$	233,406			143	%
Comprehensive income:
Foreign currency translation adjustment attributable to non-controlling interests		(81,019	)		439		(81,458	)		(18555	)%
Foreign currency translation adjustment attributable to the Company		(189,157	)		1,325		(190,482	)		(14376	)%
Comprehensive income	$	325,888		$	239,945	$	85,943			36	%

Revenue

Operating revenue for the three months ended September 30, 2015, which resulted primarily from medicine revenue and patient services revenue, was $2,927,900, an increase of 114% as compared with the operating revenue of $1,366,034 for the three months ended September 30, 2014. The increase was primarily a result of the number of treated inpatients growing to 2,568 patients, about 1,430 more than the 1,138 patients treated in three months ended September 30, 2014. In December 2014, the hospital moved into the new hospital building whose capacity are 650 beds, 500 beds more than the 150 beds before.

Costs and Expenses

Total costs and expenses were $2,327,519 for the three months ended September 30, 2015, an increase of $1,200,373 or 106% as compared to $1,127,146 for the same period of 2014. This increase was primarily due to significant increase of cost of medicine sold of $444,235, utilities expenses of $51,075, office supplies of $107,104, medical consumables of $114,900, salaries and benefits of $183,872 and depreciation of $192,813.

Cost of medicine sold

Cost of medicine sold mainly consists of cost of Western medicine, Chinese medicine and herbal medicine. Total cost of medicine sold was $836,741 for the three months ended September 30, 2015, an increase of $444,235 or 113% as compared to $392,506 for the same period of 2014. This increase was primarily due to significant increases in cost of Western medicine and Chinese medicine of $436,768. For the three months ended September 30, 2015, the cost of Western medicine and Chinese medicine were $823,243, as compared to $386,475 for the same period of 2014.

Medical consumables

Medical consumables mainly consist of materials expenses, medical film expenses and test reagent. Total medical consumables were $239,678 for the three months ended September 30, 2015, an increase of $114,900 or 92% as compared to $124,778 for the same period of 2014. The increase was mainly a result of increase in materials expenses of $56,578, increase in medical film expenses of $22,522, and increase in test reagent expense of $36,487.

Utilities expenses

Utilities expenses mainly consist of charges for water and electricity and heating fee. Total utilities expenses was $62,851 for the three months ended September 30, 2015, an increase of $51,075 or 434% as compared to $11,776 for the same period of 2014. The Utilities expenses were mainly a result of increase in charges for water and electricity of $53,474.

Salaries and benefits

Salaries and benefits mainly consist of salaries expenses, and social insurance expenses. Total salaries and benefits were $491,110 for the three months ended September 30, 2015, an increase of $183,872 or 60% as compared to $307,208 for the same period of 2014. The increase was mainly a result of increase in salaries expenses of $168,099 and increase in social insurance expenses of $15,780.

Income Taxes

Jiarun’s medical services have been exempt from enterprise income tax since March 1, 2006, which has been approved by the Local Taxation Bureau.

Jiarun was incorporated in accordance with the law of medical and health institutions mainly provide medical services, with the “PRC Business Tax Tentative Regulations” Article 8 (3) medical service income tax-free provisions (hospital, clinics and other medical institutions to provide medical services shall be exempt from business tax). The Company’s medical services have been exempted from business tax since March 1, 2006.

In considering the achievements of the hospital, they could not have been reached without the support of local authorities, Jiarun hospital has voluntarily paid income tax voluntary of $925 and $710 for the three months ended September 30, 2015 and 2014, respectively to support the local tax bureau’s economical obligations.

Income from Operations and Net income

Income from Operations was $600,381 for the three months ended September 30, 2015, as compared with operating income of $238,888 for the three months ended September 30, 2014. The Company’s net income for the three months ended September 30, 2015 was $596,064 representing an increase of $357,883 or 150 %, over $238,181 for the three months ended September 30, 2014. The increases in income from operations and net income for the three months ended September 30, 2015 were primarily due to aforementioned changes in operating revenue and operating expenses.

Results of Operations for the Nine Months Ended September 30, 2015 and 2014

The following table shows key components of the results of operations during nine months ended September 30, 2015 and 2014:

	Nine Months Ended September 30,						Change
	2015			2014			$			%

Revenue:
Medicine	$	3,790,553		$	2,200,601		$	1,589,952			72	%
Patient services		4,276,284			2,231,807			2,044,477			92	%
Total revenue		8,066,837			4,432,408			3,634,429			82	%
Operating costs and expenses:
Cost of medicine sold		2,325,239			1,296,135			1,029,104			79	%
Medical consumables		558,089			340,418			217,671			64	%
Salaries and benefits		1,313,726			852,373			461,353			54	%
Office supplies		236,950			79,427			157,523			198	%
Vehicle expenses		24,605			25,992			(1,387	)		(5	)%
Utilities expenses		354,609			50,146			304,463			607	%
Rentals and leases		-			125,795			(125,795	)		(100	)%
Advertising and promotion expenses		-			2,650			(2,650	)		(100	)%
Interest expense		903,737			664,996			238,741			36	%
Professional fee		129,948			90,577			39,371			43	%
Depreciation		629,927			108,284			521,643			482	%
Total operating costs and expenses		6,476,830			3,636,793			2,840,037			78	%
Earnings from operations before other income and income taxes		1,590,007			795,615			794,392			100	%
Other income		9,201			11,762			(2,561	)		(22	)%
Earnings from operations before income taxes		1,599,208			807,377			791,831			98	%
Income tax		1,699			2,156			(457	)		(21	)%
Net income		1,597,509			805,221			792,288			98	%
Less: net income attributable to non-controlling interests		514,664			269,383			245,281			91	%
Net income attributable to the Company	$	1,082,845		$	535,838		$	547,007			102	%
Comprehensive income:
Foreign currency translation adjustment attributable to non-controlling interests		(68,756	)		(6,783	)		(61,973	)		914	%
Foreign currency translation adjustment attributable to the Company		(159,356	)		(14,385	)		(144,971	)		1008	%
Comprehensive income	$	1,369,397		$	784,053		$	585,344			75	%

Revenue

Operating revenue for the nine months ended September 30, 2015, which resulted primarily from medicine revenue and patient services revenue, was $8,066,837 and increase of 82% as compared with the operating revenue of $4,432,408 for the nine months ended September 30, 2014. The increase was primarily a result of the number of treated inpatients growing to 7,328 patients, about more than the 2,318 patients treated in nine months ended September 30, 2014. In December 2014, the hospital moved into the new hospital building whose capacity is 650 beds, 500 beds more than the 150 beds before.

Costs and Expenses

Total costs and expenses were $6,476,830 for the nine months ended September 30, 2015, an increase of $2,840,037 or 78% as compared to $3,636,793 for the same period of 2014. This increase was primarily due to significant increases in salaries and benefits of $461,353, and increases in cost of medicine supplies of approximately $1,029,104, and increase in medical consumables of $217,671, utilities expenses of $304,463, office supplies of $157,523, interest expense of $238,741 and depreciation of $521,643.

Cost of medicine sold

Cost of medicine sold mainly consists of cost of Western medicine, Chinese medicine and herbal medicine. Total cost of medicine sold was $2,325,239 for the nine months ended September 30, 2015, an increase of $1,029,104 or 79% as compared to $1,296,135 for the same period of 2014. This increase was primarily due to significant increases in cost of Western medicine and Chinese medicine of $1,011,692. For the nine months ended September 30, 2015, the cost of Western medicine and Chinese medicine were $2,286,693, as compared to $1,275,001 for the same period of 2014.

Medical consumables

Medical consumables mainly consist of materials expenses, medical film expenses and test reagent. Total medical consumables were $558,089 for the nine months ended September 30, 2015, an increase of $217,671 or 64% as compared to $340,418 for the same period of 2014. The increase was mainly a result of increase in materials expenses of $107,333 and increase in medical film expenses of $40,236, and increase in test reagent expense of $63,352.

Salaries and benefits

Salaries and benefits mainly consist of salaries expenses, and social insurance expenses. Total salaries and benefits were $1,313,726 for the nine months ended September 30, 2015, an increase of $461,353 or 54% as compared to $852,373 for the same period of 2014. The increase was mainly a result of increase in salaries expenses of $413,400 and increase in social insurance expenses of $47,957.

Utilities expenses

Utilities expenses mainly consist of charges for water and electricity and heating fee. Total Utilities expenses was $354,609 for the nine months ended September 30, 2015, an increase of $304,463 or 607% as compared to $50,146 for the same period of 2014. The Utilities expenses were mainly a result of heating fee of $171,860 and increase in charges for water and electricity and heating fee of $136,096.

Income Taxes

Jiarun’s medical services have been exempt from enterprise income tax since March 1, 2006, which has been approved by the Local Taxation Bureau.

In considering the achievements of the hospital, they could not have been reached without the support of local authorities, Jiarun hospital has voluntarily paid income tax voluntary of $1,699 and $2,156 for the nine months ended September 30, 2015 and 2014, respectively to support the local tax bureau’s economical obligations.

Income from Operations and Net income

Income from Operations was $1,590,007 for the nine months ended September 30, 2015, as compared with operating income of $795,615 for the nine months ended September 30, 2014. The Company’s net income for the nine months ended September 30, 2015 was $1,597,509 representing an increase of $792,288 or 98%, over $805,221 for the nine months ended September 30, 2014. The increases in income from operations and net income for the nine months ended September 30, 2015 were primarily due to aforementioned changes in operating revenue and operating expenses.

Liquidity and Capital Resources

The accompanying financial statements have been prepared for the company to continue as a going concern which contemplates, among other things, the realization of assets and satisfaction of liabilities in the ordinary course of business.

As of September 30, 2015, the Company had $471,680 of cash and cash equivalents.

We are presently able to meet our obligations as they come due. As of September 30, 2015, we had non-controlling interest of $3,442,342 and shareholders’ equity of $3,095,343.

We anticipate that our future liquidity requirements will arise from the need to fund our growth, pay current obligations and future capital expenditures. The primary sources of funding for such requirements are expected to be cash generated from operations and raising additional funds from the public offering and/or debt financing. However, we can provide no assurances that we will be able to generate sufficient cash flow from operations and/or obtain additional financing on terms satisfactory to us, if at all, to remain a going concern.

Cash Flows and Capital Resources

We believe that we will generate cash flow from our business, which, along with our available cash, will provide sufficient liquidity and financial flexibility. Our cash flows are summarized below:

	Nine Months Ended September 30,
	2015		2014
Net cash provided by operating activities		1,427,860		1,240,985
Net cash used in investing activities		(3,141,645)		(2,857,104)
Net cash provided by financing activities		986,665		2,098,346
Effect of exchange rate fluctuation on cash and cash equivalents		152,315		(2,459)
Net (increase) decrease in cash and cash equivalents		(574,805)		479,768
Cash and cash equivalents, beginning of period		1,046,485		631,288
Cash and cash equivalents, ending of period	$	471,680	$	1,111,056

Net Cash provided by Operating Activities

For the nine months ended September 30, 2015, we had positive cash flow from operating activities of $1,427,860, an increase of $186,875 from the same period of 2014, during which we had cash flow from operating activities of $1,240,985. The net income for the nine months ended September 30, 2015 increased by $792,288 as compared to the nine months ended September 30, 2014. The increase in net cash used in operating activities was mainly as a result of the decrease of a due to related parties items totaling $1,117,401, which was due to the increase in repayment to related parties.

Net Cash Used in Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2015 was $3,141,645, compared to net cash used in investing activities of $2,857,104 for the nine months ended September 30, 2014. The cash used in investing activities for the nine months ended September 30, 2015 was mainly used for the purchase of medical equipment.

Net Cash Provided by Financing Activities

Net cash provided by financing activities for the nine months ended September 30, 2015 was $986,665, as compared to net cash provided by financing activities of $2,098,346 for the nine months ended September 30, 2014. The cash provided by financing activities for the nine months ended September 30, 2015 was mainly provided by proceeds from shareholders of $178,048 and proceeds from finance lease $3,849,970.

Trends, Events and Uncertainties

The China Ministry of Health, as well as other related agencies, may change the prices we can charge for medical services, drugs and medications. We cannot predict the impact of these proposed changes since the changes are not fully defined and we do not know whether such changes will ever be implemented or when they may take effect.

In December 2014, our operations moved into the new building. We have finished most of the decoration of the new building, part of the expansion of medical facilities and purchases of new medical equipment. The hospital will need more medical facilities to update the medical equipment and acquire one pharmaceuticals wholesale and one medicine retail company. The new hospital building is being constructed by Harbin Baiyi Real Estate Development Co., Ltd, which is owned by Junsheng Zhang, a related party. The building was leased from the related party by financial leasing, the price of leasing agreement referred to the local market price and audited by the auditor. The Leasing terms consist of 30 payments. Each payment will be made on an annual basis when 7 million RMB per payment will be paid upfront for each leasing period. The first payment was made on September 1^st, 2014. At the end of the leasing period, a final payment will be made to settle the total leasing amount. Both parties agreed for the leasee to pay 3 million RMB as deposit at the execution of the Leasing agreement, which will be deducted from the final rental settlement. The lending interest rate was calculated at 6.55%, which is the benchmark interest rate announced from The People’s Bank of China. After the completion of all payments, the ownership of the lease item will be transferred to the Leasee (Jiarun hospital). Up to September 30, 2015, we had paid approximately $485,476 for the construction of the new hospital. We borrowed the funds from our related company and banks. In addition to what we had paid for the new hospital building construction, we estimate the additional costs to complete the project and more medical facilities to update the medical equipment.

We plan to acquire other hospitals and companies involved in the healthcare industry in the PRC using cash and shares of our common stock. Substantial capital may be needed for these acquisitions and we may need to raise additional funds through the sale of our common stock, debt financing or other arrangements. We do not have any commitments or arrangements from any person to provide us with any additional capital. Additional capital may not be available to us, or if available, on acceptable terms, in which case we would not be able to acquire other hospitals or businesses in the healthcare industry.

Other than the factors listed above we do not know of any trends, events or uncertainties that have had or are reasonably expected to have a material impact on our net sales or revenues or income from continuing operations. Our business is not seasonal in nature.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet items reasonably likely to have a material effect on our financial condition.

Recent Accounting Pronouncements

Recent accounting pronouncements issued by the FASB, the AICPA and the SEC did not, or are not believed by management to, have a material effect on the Company’s present or future consolidated financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company”, we are not required to provide the information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluations of Disclosure Controls and Procedures

Under the supervision and with the participation of our management team, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, as of December 31, 2004. Based on this evaluation, we concluded that our disclosure controls and procedures are effective in timely alerting them to material information required to be included in our periodic reports.

Changes in Internal Control over Financial Reporting

During the period covered by this report, there has been no change in our internal control over financial reporting that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

The Company has no knowledge of existing or pending legal proceedings against the Company, nor is the Company involved as a plaintiff in any proceeding or pending litigation. There are no proceedings in which any of the Company’s directors, officers or any of their respective affiliates, or any beneficial stockholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A. RISK FACTORS

As a “smaller reporting company”, we are not required to provide the information required by this Item.

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS

We did not sell or issue any shares of unregistered securities during the three month period ended September 30, 2015.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable

ITEM 4. OTHER INFORMATION

On August 10, 2015, Du Qi, the Dean of the Jiarun hospital, offered his resignation as a result of health reasons, which was accepted by the Company, effective immediately. The Company is currently conducting a search and evaluating potential candidates for the position of Dean.

ITEM 5. EXHIBITS

INDEX TO EXHIBITS

Exhibit		Description
31.1		Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Chief Executive Officer and Chief Financial Officer 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 Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

JRSIS HEALTH CARE CORPORATION. (Registrant)

Signature	Title	Date

Lihua. Sun
/s/ Lihua. Sun	Chief Executive Officer	November 16, 2015


Xuewei. Zhang
/s/ Xuewei. Zhang	Chief Financial Officer	November 16, 2015

Attached files

JRSIS HEALTH CARE Corp Reports

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