Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - KAOPU GROUP INC | v455497_8k.htm |
| EX-99.1 - EXHIBIT 99.1 - KAOPU GROUP INC | v455497_ex99-1.htm |
| EX-99.3 - EXHIBIT 99.3 - KAOPU GROUP INC | v455497_ex99-3.htm |
| EX-99.4 - EXHIBIT 99.4 - KAOPU GROUP INC | v455497_ex99-4.htm |
| EX-99.2 - EXHIBIT 99.2 - KAOPU GROUP INC | v455497_ex99-2.htm |
| EX-10.1 - EXHIBIT 10.1 - KAOPU GROUP INC | v455497_ex10-1.htm |
| EX-10.2 - EXHIBIT 10.2 - KAOPU GROUP INC | v455497_ex10-2.htm |
Exhibit 99.5
Unaudited Pro Forma Combined Financial Information
The following unaudited pro forma combined financial statements were prepared by applying certain pro forma adjustments to the historical financial statements of Longbau. The pro forma adjustments give effect to the following transactions (the “Transactions”):
| · | Our acquisition of Long Bao Life Technology Co., Ltd. ("Long Bao Life) |
| · | Our acquisition of Ho-Cheng Insurance Brokers Co., Ltd. ("Ho-Cheng Insurance") |
The unaudited pro forma combined statements of operations for the year ended December 31, 2015 and for the nine months ended September 30, 2016 give effect to the Transactions as if each of them had occurred on January 1.
The historical financial statements of Long Bao Life and Ho Cheng Insurance appear elsewhere in this Form 8-K. We determined that each acquisition shown involved the acquisition of a business, considering the guidance in Rule 11-01 (d) of Regulation S-X, and individually, as well as in aggregate, met the significance test of Rule 3-05 of Regulation S-X.
We have based the pro forma adjustments upon available information and certain assumptions that we believe are reasonable under the circumstances. We describe in greater detail the assumptions underlying the pro forma combined financial statements in the notes to the unaudited pro forma combined financial statements. In many cases, we based these assumptions on preliminary information and estimates. The actual adjustments to our pro forma combined financial statements will depend upon a number of factors and additional information that will be available on or after the closing date of this offering. Accordingly, the actual adjustments that will appear in our financial statements will differ from these pro forma adjustments, and those differences may be material.
For Longbau's acquisitions of Long Bao Life and Ho-Cheng Insurance, management has made the determination that the acquisitions should be accounted for as entities under common control and therefore the assets acquired and liabilities assumed were recorded at their book value on the acquisition date. Pro forma adjustments were made to reflect the share changes between Longbau and Long Bao Life and between Longbau and Ho-Cheng Insurance.
These unaudited pro forma combined financial statements do not purport to represent what our results of operations or financial condition would have been had the Transactions actually occurred on the assumed dates, nor do they purport to project our results of operations or financial condition for any future period or future date.
Longbau Group, Inc.
Long Bao Life Technology Co., Ltd.
Ho-Cheng Insurance Brokers Co., Ltd.
Pro Forma Combined Balance Sheet
As of September 30, 2016
(Unaudited)
| Longbau | Long Bao | Ho-Cheng | ||||||||||||||||||
| Group | Life | Insurance | Adjustments | Pro Forma | ||||||||||||||||
| (historical) | (historical) | (historical) | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current Assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 16,672 | $ | 15,694 | $ | 344,009 | $ | - | $ | 376,375 | ||||||||||
| Accounts receivable | - | 16,043 | 633,979 | - | 650,022 | |||||||||||||||
| Other receivables - related parties | - | 861 | - | - | 861 | |||||||||||||||
| Inventory | - | 499,786 | - | - | 499,786 | |||||||||||||||
| Deferred tax assets | - | 10,240 | - | - | 10,240 | |||||||||||||||
| Prepaid expenses and other current assets | 919 | 17,288 | 1,024 | - | 19,231 | |||||||||||||||
| Total current assets | 17,591 | 559,912 | 979,012 | - | 1,556,515 | |||||||||||||||
| Property and equipment, net of accumulated depreciation | 866 | 2,106,626 | 106,283 | - | 2,213,775 | |||||||||||||||
| Trust investments, restricted | - | 6,308,574 | - | - | 6,308,574 | |||||||||||||||
| Deferred commission cost | - | 1,098,377 | - | - | 1,098,377 | |||||||||||||||
| Deferred tax assets - noncurrent | - | 237,015 | - | - | 237,015 | |||||||||||||||
| Patents | - | 11,094 | - | - | 11,094 | |||||||||||||||
| Other assets | 6,605 | 5,006 | 63,978 | - | 75,589 | |||||||||||||||
| TOTAL ASSETS | $ | 25,062 | $ | 10,326,604 | $ | 1,149,273 | $ | - | $ | 11,500,939 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current Liabilities: | ||||||||||||||||||||
| Accounts payable and accrued expenses | $ | 260,497 | $ | 141,091 | $ | 677,903 | $ | - | $ | 1,079,491 | ||||||||||
| Accounts payable and accrued expenses - related party | 255 | - | - | - | 255 | |||||||||||||||
| Other payable - land purchase | - | 1,230,667 | - | - | 1,230,667 | |||||||||||||||
| Other payable - related party | - | 319,471 | - | - | 319,471 | |||||||||||||||
| Income taxes payable | - | 9,249 | 30,377 | - | 39,626 | |||||||||||||||
| Other payables | - | 22,177 | 58,089 | - | 80,266 | |||||||||||||||
| Total current liabilities | 260,752 | 1,722,655 | 766,369 | - | 2,749,776 | |||||||||||||||
| Deferred preneed contract revenues | - | 8,081,269 | - | 8,081,269 | ||||||||||||||||
| 260,752 | 9,803,924 | 766,369 | - | 10,831,045 | ||||||||||||||||
| Commitments and contingencies | ||||||||||||||||||||
| STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
| Common stock | 300 | 928,836 | 154,735 | (1,083,566 | )(1) | 305 | ||||||||||||||
| Additional paid-in capital | 149,700 | - | - | 1,083,566 | (1) | 1,233,266 | ||||||||||||||
| Legal capital reserve | - | 25,519 | 53,132 | - | 78,651 | |||||||||||||||
| Accumulated other comprehensive income (loss) | (9,625 | ) | 29,479 | 7,231 | - | 27,085 | ||||||||||||||
| Retained earnings (accumulated deficit) | (376,065 | ) | (461,154 | ) | 167,806 | - | (669,413 | ) | ||||||||||||
| Total stockholders' equity (deficit) | (235,690 | ) | 522,680 | 382,904 | - | 669,894 | ||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ | 25,062 | $ | 10,326,604 | $ | 1,149,273 | $ | - | $ | 11,500,939 | ||||||||||
| (1) | Reflects the share exchanges between Longbau and Long Bao Life and between Longbau and Ho-Cheng Insurance. The adjustment also reflects the elimination of Long Bao Life and Ho-Cheng Insurance common stock accounts. |
Longbau Group, Inc.
Long Bao Life Technology Co., Ltd.
Ho-Cheng Insurance Brokers Co., Ltd.
Pro Forma Combined Statement of Operations
For the Nine Months Ended September 30, 2016
(Unaudited)
| Longbau | Long Bao | Ho-Cheng | ||||||||||||||||||
| Group | Life | Insurance | Adjustments | Pro Forma | ||||||||||||||||
| (historical) | (historical) | (historical) | ||||||||||||||||||
| Revenues | $ | - | $ | 1,022,077 | $ | 4,696,929 | $ | - | $ | 5,719,006 | ||||||||||
| Cost of revenues | - | 737,516 | 3,521,266 | - | 4,258,782 | |||||||||||||||
| Gross profit | - | 284,561 | 1,175,663 | - | 1,460,224 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| General and administrative | 135,296 | 256,333 | 920,660 | - | 1,312,289 | |||||||||||||||
| Depreciation and amortization expense | 890 | 27,368 | 27,486 | - | 55,744 | |||||||||||||||
| Total operating expenses | 136,186 | 283,701 | 948,146 | - | 1,368,033 | |||||||||||||||
| Income (loss) from operations | (136,186 | ) | 860 | 227,517 | - | 92,191 | ||||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Realized and unrealized investment losses, net | - | (57,660 | ) | - | - | (57,660 | ) | |||||||||||||
| Other income (expense) | 49 | 47,761 | (20,549 | ) | - | 27,261 | ||||||||||||||
| Total other income (expense) | 49 | (9,899 | ) | (20,549 | ) | - | (30,399 | ) | ||||||||||||
| Income (loss) before provision for income taxes | (136,137 | ) | (9,039 | ) | 206,968 | - | 61,792 | |||||||||||||
| Income tax provision | - | 19,745 | 39,162 | - | 58,907 | |||||||||||||||
| Net income (loss) | $ | (136,137 | ) | $ | (28,784 | ) | $ | 167,806 | $ | - | $ | 2,885 | ||||||||
| Weighted average shares outstanding | 30,000,000 | 500,000 | (1) | 30,500,000 | ||||||||||||||||
| Income (loss) per share | $ | (0.00 | ) | $ | 0.00 | |||||||||||||||
| (1) | Reflects the shares issued to shareholders of Long Bao Life and Ho-Cheng Insurance. |
Longbau Group, Inc.
Long Bao Life Technology Co., Ltd.
Ho-Cheng Insurance Brokers Co., Ltd.
Pro Forma Consolidated Statements of Operations
For the Year Ended December 31, 2015
(Unaudited)
| Longbau | Long Bao | Ho-Cheng | ||||||||||||||||||
| Group | Life | Insurance | Adjustments | Pro Forma | ||||||||||||||||
| (historical) | (historical) | (historical) | ||||||||||||||||||
| Revenues | $ | 109,046 | $ | 1,917,356 | $ | 5,816,603 | $ | - | $ | 7,843,005 | ||||||||||
| Cost of revenues | 24,803 | 1,637,297 | 4,398,519 | - | 6,060,619 | |||||||||||||||
| Gross profit | 84,243 | 280,059 | 1,418,084 | - | 1,782,386 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| General and administrative | 212,429 | 415,399 | 1,303,381 | - | 1,931,209 | |||||||||||||||
| Depreciation and amortization expense | 1,185 | 29,405 | 34,513 | - | 65,103 | |||||||||||||||
| Total operating expenses | 213,614 | 444,804 | 1,337,894 | - | 1,996,312 | |||||||||||||||
| Income (loss) from operations | (129,371 | ) | (164,745 | ) | 80,190 | - | (213,926 | ) | ||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Realized and unrealized investment losses, net | - | (221,016 | ) | - | - | (221,016 | ) | |||||||||||||
| Other income (expense) | 137 | 123,104 | 3,579 | - | 126,820 | |||||||||||||||
| Total other income (expense) | 137 | (97,912 | ) | 3,579 | - | (94,196 | ) | |||||||||||||
| Income (loss) before provision for income taxes | (129,234 | ) | (262,657 | ) | 83,769 | - | (308,122 | ) | ||||||||||||
| Income tax provision (benefit) | - | (16,522 | ) | 19,856 | - | 3,334 | ||||||||||||||
| Net income (loss) | $ | (129,234 | ) | $ | (246,135 | ) | $ | 63,913 | $ | - | $ | (311,456 | ) | |||||||
| Weighted average shares outstanding | 30,000,000 | 500,000 | (1) | 30,500,000 | ||||||||||||||||
| Loss per share | $ | (0.00 | ) | $ | (0.01 | ) | ||||||||||||||
| (1) | Reflects the shares issued to shareholders of Long Bao Life and Ho-Cheng Insurance. |