Delaware
|
3699
|
98-0509431
|
(State
or other jurisdiction of
incorporation
or organization)
|
(Primary
Standard Industrial
Classification
Code Number)
|
(I.R.S.
Employer
Identification
No.)
|
Guoshen
Tu
4/F,
East 3/B
Saige
Science & Technology Park
Huaqiang,
Shenzhen, China 518028
(86)
755-83765666
|
Louis
A. Bevilacqua, Esq.
Thomas
M. Shoesmith, Esq.
Joseph
R. Tiano, Jr., Esq.
Thelen
Reid & Priest LLP
701
8th Street, N.W.
Washington,
D.C. 20001
(202)
508-4000
|
Title
of each class of securities to be registered
|
Amount
to be registered(1)(3)
|
Proposed
maximum offering price per share(2)
|
Proposed
maximum aggregate offering price(2)
|
Amount
of
registration
fee
|
||||
Common
stock, $0.0001
par value
|
4,883,334
|
$7.19
|
$35,111,171
|
$3,757
(4)
|
PROSPECTUS
SUMMARY
|
1
|
|
RISK
FACTORS
|
4
|
|
CAUTIONARY
STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
|
11
|
|
USE
OF PROCEEDS
|
12
|
|
DETERMINATION
OF OFFERING PRICE
|
12
|
|
DIVIDEND
POLICY
|
12
|
|
MARKET
FOR OUR COMMON STOCK AND RELATED STOCKHOLDER
MATTERS
|
12
|
|
DILUTION
|
13
|
|
SELECTED
CONSOLIDATED FINANCIAL DATA
|
13
|
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATION
|
15
|
|
DESCRIPTION
OF BUSINESS
|
27
|
|
MANAGEMENT
|
35
|
|
CHANGE
IN ACCOUNTANTS
|
42
|
|
DESCRIPTION
OF SECURITIES
|
42
|
|
SHARES
ELIGIBLE FOR FUTURE SALE
|
43
|
|
PLAN
OF DISTRIBUTION
|
44
|
|
LEGAL
MATTERS
|
46
|
|
EXPERTS
|
46
|
|
WHERE
YOU CAN FIND MORE INFORMATION
|
46
|
|
FINANCIAL
STATEMENTS
|
47
|
Common
stock offered by selling stockholders
|
4,883,334
shares
|
|
Common
stock outstanding before the offering
|
29,209,259
shares
(1)
|
|
Common
stock outstanding after the offering
|
29,209,259
shares
|
|
Proceeds
to us
|
We
will not receive any proceeds from the sale of common stock covered
by
this prospectus.
|
(1) |
Represents
the
number of shares outstanding on the effective date of the merger
where
CSST BVI will be merged with and into CSST Delaware, with CSST
Delaware
being the surviving company. The purpose of such merger is to
reincorporate CSST BVI from a BVI company to a Delaware company.
The
merger is hereinafter referred as the “Reincorporation
Merger.”
|
Statement
of Income Data
|
Years
Ended December
31,
|
Six
Months Ended
June
30,
|
||||||||||||||||||||
2001
|
|
2002
|
|
2003
|
|
2004
|
|
2005
|
|
2005
|
|
2006
|
||||||||||
Revenues
|
$
|
4,045,098
|
$
|
10,330,847
|
$
|
11,794,869
|
$
|
16,055,704
|
$
|
32,688,582
|
$
|
12,729,441
|
$
|
22,609,172
|
||||||||
Income
From Operations
|
302,445
|
2,234,128
|
3,262,057
|
6,130,779
|
7,478,842
|
2,441,937
|
6,279,225
|
|||||||||||||||
Net
Income
|
257,078
|
1,899,009
|
2,752,123
|
5,724,026
|
7,265,957
|
2,618,780
|
6,036,481
|
|||||||||||||||
Weighted
Average Shares (Basic & Diluted)
|
17,000,000
|
17,000,000
|
17,000,000
|
17,000,000
|
18,521,479
|
17,000,000
|
23,046,766
|
|||||||||||||||
Basic
& Diluted Net Income per Share
|
0.015
|
0.11
|
0.16
|
0.34
|
0.39
|
0.15
|
0.26
|
Balance
Sheet Data
|
Years
Ended December
31,
|
Six
Months Ended
June
30,
|
|||||||||||||||||
2001
|
|
2002
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|||||||||
Total
Assets
|
$
|
10,687,966
|
$
|
13,581,661
|
$
|
16,976,999
|
$
|
22,008,920
|
$
|
29,116,672
|
$
|
59,150,650
|
|||||||
Total
Current Liabilities
|
1,766,061
|
4,126,166
|
5,900,469
|
5,208,364
|
4,504,926
|
20,076,451
|
|||||||||||||
Net
Assets
|
8,921,905
|
9,455,495
|
11,076,530
|
16,800,556
|
24,611,746
|
39,074,198
|
|||||||||||||
Total
Shareholders’ Equity
|
8,592,637
|
8,849,715
|
11,076,530
|
16,800,556
|
24,611,746
|
39,074,198
|
· |
diversion
of management’s attention from running our existing
business;
|
· |
increased
expenses, including travel, legal, administrative and compensation
expenses resulting from newly hired
employees;
|
· |
increased
costs to integrate personnel, customer base and business practices
of the
acquired company with our own;
|
· |
adverse
effects on our reported operating results due to possible write-down
of
goodwill associated with
acquisitions;
|
· |
potential
disputes with sellers of acquired businesses, technologies, services,
products and potential liabilities;
and
|
· |
dilution
to our earnings per share if we issue common stock in any
acquisition.
|
· |
enhance
our existing products and services;
|
· |
anticipate
changing customer requirements by designing, developing, and launching
new
products and services that address the increasingly sophisticated
and
varied needs of our current and prospective customers;
and
|
· |
respond
to technological advances and emerging industry standards and practices
on
a cost-effective and timely basis.
|
· |
quarantines
or closures of some of our offices which would severely disrupt our
operations;
|
· |
the
sickness or death of our key officers and employees;
and
|
· |
a
general slowdown in the Chinese
economy.
|
· |
deny
holders of CSST Delaware common stock cumulative voting rights in
the
election of directors, meaning that stockholders owning a majority
of CSST
Delaware outstanding shares of common stock will be able to elect
all of
CSST Delaware’s directors;
|
· |
any
stockholder wishing to properly bring a matter before a meeting of
stockholders must comply with specified procedural and advance notice
requirements; and
|
· |
any
vacancy on the board of directors, however the vacancy occurs, may
only be
filled by the directors.
|
· |
the
anticipated closing date of the Reincorporation
Merger;
|
· |
the
benefit expected to result from the Reincorporation
Merger;
|
· |
our
future business activity, performance and financial condition following
the Reincorporation Merger;
|
· |
the
perceived advantages resulting from the Reincorporation Merger;
and
|
· |
the
ability to retain key personnel before and after the Reincorporation
Merger.
|
|
Closing
Bid Price (US $) *
|
||||||
|
High
|
Low
|
|||||
Year
Ended December 31, 2006
|
|
||||||
1st
quarter 2006
|
4.40
|
3.50
|
|||||
2nd
quarter 2006
|
8.10
|
3.60
|
|||||
3rd
quarter 2006
|
6.50
|
4.00
|
|||||
4th
quarter 2006 (through November 3, 2006)
|
8.24
|
7.05
|
|||||
|
|||||||
Year
Ended December 31, 2005
|
|
||||||
1st
quarter 2005
|
N/A
|
N/A
|
|||||
2nd
quarter 2005 (from June 23, 2005)
|
0.25
|
0.05
|
|||||
3rd
quarter 2005
|
4.50
|
0.05
|
|||||
4th
quarter 2005
|
3.00
|
1.85
|
|||||
|
|||||||
Year
Ended December 31, 2004
|
|
||||||
1st
quarter 2004
|
N/A
|
N/A
|
|||||
2nd
quarter 2004
|
N/A
|
N/A
|
|||||
3rd
quarter 2004
|
N/A
|
N/A
|
|||||
4th
quarter 2004
|
N/A
|
N/A
|
Year
Ended December 31,
|
Six
Months Ended
June
30,
|
|||||||||||||||||||||
2001
|
|
2002
|
|
2003
|
|
2004
|
|
2005
|
|
2005
|
|
2006
|
||||||||||
(in
thousands)
|
||||||||||||||||||||||
Statement
of operations data:
|
|
|
|
|
|
|
|
|||||||||||||||
Sales
Revenues:
|
$
|
4,045
|
$
|
10,331
|
$
|
11,795
|
$
|
16,055
|
$
|
32,689
|
$
|
12,729
|
$
|
22,609
|
||||||||
Cost
of Sales
|
3,349
|
7,030
|
7,581
|
8,796
|
23,473
|
9,849
|
15,175
|
|||||||||||||||
Gross
profit
|
696
|
3,301
|
4,214
|
7,259
|
9,216
|
2,880
|
7,434
|
|||||||||||||||
Other
income
|
42
|
30
|
7
|
467
|
568
|
241
|
700
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||||
Administrative
expenses
|
61
|
233
|
317
|
507
|
1,183
|
79
|
673
|
|||||||||||||||
Amortization
and depreciation
|
346
|
432
|
135
|
225
|
260
|
239
|
189
|
|||||||||||||||
Operating
expenses
|
-
|
424
|
507
|
391
|
288
|
120
|
293
|
|||||||||||||||
Other
operating expenses
|
29
|
8
|
-
|
6
|
7
|
-
|
-
|
|||||||||||||||
Provision
for doubtful debt
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Selling
expenses
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
||||||||||||||||||||||
|
436
|
1,097
|
959
|
1,129
|
1,738
|
438
|
1,155
|
|||||||||||||||
Income
from continuing operations before taxes
|
302
|
2,234
|
3,262
|
6,597
|
8,046
|
2,683
|
6.979
|
|||||||||||||||
Income
taxes
|
45
|
334
|
517
|
873
|
780
|
64
|
943
|
|||||||||||||||
Net
income
|
257
|
1,899
|
2,752
|
5,724
|
7,266
|
2,619
|
6,036
|
|||||||||||||||
|
||||||||||||||||||||||
Earnings
per share - basic
|
$
|
0.015
|
$
|
0.11
|
$
|
0.16
|
$
|
0.34
|
$
|
0.39
|
$
|
0.15
|
$
|
0.26
|
||||||||
Earnings
per share - diluted
|
0.015
|
0.11
|
0.16
|
0.34
|
0.39
|
0.15
|
0.26
|
|||||||||||||||
|
||||||||||||||||||||||
Weighted
average number of shares outstanding — basic
|
17,000
|
17,000
|
17,000
|
17,000
|
17,000
|
17,000
|
23,047
|
|||||||||||||||
Weighted
average number of shares outstanding —diluted
|
17,000
|
17,000
|
17,000
|
17,000
|
17,000
|
17,000
|
23,140
|
|||||||||||||||
|
||||||||||||||||||||||
Cash
dividend declared per common share
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
||||||||||||||||||||||
Cash
flows data:
|
||||||||||||||||||||||
Net
cash flows provided by operating activities
|
$
|
(9
|
)
|
$
|
(13
|
)
|
$
|
1,019
|
$
|
684
|
$
|
799
|
$
|
1,442
|
$
|
(81
|
)
|
|||||
Net
cash flows used in investing activities
|
-
|
(2,673
|
)
|
(676
|
)
|
(111
|
)
|
(79
|
)
|
(139
|
)
|
(1
|
)
|
|||||||||
Net
cash flows used in financing activities
|
-
|
(1,629
|
)
|
72
|
(1,056
|
)
|
1,062
|
1,007
|
7,360
|
December
31,
|
June
30,
|
||||||||||||||||||
2001
|
|
2002
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|||||||||
Balance
sheet data:
|
(in
thousands)
|
||||||||||||||||||
Cash
and cash equivalents
|
$
|
970
|
$
|
101
|
$
|
515
|
$
|
33
|
$
|
2,277
|
$
|
9,618
|
|||||||
Working
capital
|
4,311
|
5,591
|
7,918
|
8,495
|
20,547
|
35,232
|
|||||||||||||
Total assets
|
10,688
|
13,582
|
16,977
|
22,009
|
29,117
|
59,150
|
|||||||||||||
Total
current liabilities
|
1,766
|
4,126
|
5,900
|
5,208
|
4,505
|
20,076
|
|||||||||||||
Long
term liability
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Total
liabilities
|
1,766
|
4,126
|
5,900
|
5,208
|
4,505
|
20,076
|
|||||||||||||
Total
stockholders’ equity
|
8,593
|
8,850
|
11,077
|
16,801
|
24,612
|
39,074
|
Three
Months Ended June 30,
|
|||||||||||||
Item
|
2006
|
2005
|
Increase
|
%
Increase
|
|||||||||
Revenue
|
$
|
8.0
|
$
|
5.5
|
$
|
2.5
|
46.3
|
%
|
|||||
Cost
of Goods Sold
|
5.0
|
4.1
|
0.9
|
20.3
|
%
|
||||||||
Gross
Profit
|
3.0
|
1.3
|
1.7
|
126.9
|
%
|
||||||||
Operating
Expenses
|
0.6
|
0.5
|
0.1
|
29.5
|
%
|
||||||||
Other
Income (expense)
|
0.5
|
0.1
|
0.4
|
279
|
%
|
||||||||
Provision
for Taxes
|
0.3
|
(0.2
|
)
|
0.5
|
-
|
||||||||
Net
Income
|
2.5
|
1.2
|
1.3
|
109.6
|
%
|
|
Three
months ended June 30,
|
||||||
|
2006
|
2005
|
|||||
|
|
|
|||||
Security
systems and installation
|
$
|
6.5
|
$
|
5.2
|
|||
Sales
of parts
|
1.5
|
0.3
|
|||||
|
|||||||
Total
|
$
|
8.0
|
$
|
5.5
|
Six
Months Ended June 30,
|
|||||||||||||
Item
|
2006
|
2005
|
Increase
|
%
Increase
|
|||||||||
Revenue
|
$
|
22.6
|
$
|
12.7
|
$
|
9.9
|
77.6
|
%
|
|||||
Cost
of Goods Sold
|
15.2
|
9.8
|
5.4
|
54.1
|
%
|
||||||||
Gross
Profit
|
7.4
|
2.9
|
4.5
|
158.1
|
%
|
||||||||
Operating
Expenses
|
1.2
|
0.4
|
0.8
|
163.7
|
%
|
||||||||
Other
Income (expense)
|
0.7
|
0.2
|
0.5
|
190.7
|
%
|
||||||||
Provision
for Taxes
|
0.9
|
0.06
|
0.84
|
1375.5
|
%
|
||||||||
Net
Income
|
6.0
|
2.6
|
3.4
|
130.5
|
%
|
|
Six
months ended June 30,
|
||||||
|
2006
|
2005
|
|||||
Security
systems and installation
|
$
|
19.6
|
$
|
12.0
|
|||
Sales
of parts
|
3.0
|
0.7
|
|||||
Total
|
$
|
22.6
|
$
|
12.7
|
Year
Ended December 31,
|
|||||||||||||
Item
|
2005
|
2004
|
Increase
(decrease)
|
%
Increase (decrease)
|
|||||||||
Revenue
|
32.69
|
16.06
|
16.63
|
103.55
|
%
|
||||||||
Cost
of Goods Sold
|
23.47
|
8.80
|
14.67
|
166.70
|
%
|
||||||||
Gross
Profit
|
9.22
|
7.26
|
1.96
|
27.00
|
%
|
||||||||
Operating
Expenses
|
1.74
|
1.14
|
0.60
|
52.63
|
%
|
||||||||
Other
Income (expense)
|
0.57
|
0.47
|
0.10
|
21.28
|
%
|
||||||||
Provision
for Taxes
|
0.78
|
0.87
|
(0.09
|
)
|
(10.34
|
%)
|
|||||||
Net
Income
|
7.27
|
5.72
|
1.55
|
27.10
|
%
|
Year
Ended December 31,
|
|||||||||||||
Item
|
2004
|
2003
|
Increase
|
%
Increase
|
|||||||||
Revenue
|
16.06
|
11.79
|
4.27
|
36.22
|
%
|
||||||||
Cost
of Goods Sold
|
8.80
|
7.58
|
1.22
|
16.09
|
%
|
||||||||
Gross
Profit
|
7.26
|
4.21
|
3.05
|
72.45
|
%
|
||||||||
Operating
Expenses
|
1.14
|
0.95
|
0.19
|
20.00
|
%
|
||||||||
Other
Income (expense)
|
0.47
|
0.007
|
0.463
|
6614.28
|
%
|
||||||||
Provision
for Taxes
|
0.87
|
0.52
|
0.35
|
67.31
|
%
|
||||||||
Net
Income
|
5.72
|
2.75
|
2.97
|
108.00
|
%
|
Revenue
|
2005
|
2004
|
2003
|
|||||||
Project
income from supply and installation of security and surveillance
equipment
|
30.56
|
15.53
|
10.06
|
|||||||
Outright
sale of security and surveillance equipment
|
2.13
|
0.53
|
1.73
|
Cost
Item
|
2005FY
|
2004FY
|
2003FY
|
|||||||
Salary
|
1.09
|
1.01
|
0.25
|
|||||||
Percentage
|
4.64
|
%
|
11.48
|
%
|
3.30
|
%
|
||||
Purchase
|
22.38
|
7.79
|
7.33
|
|||||||
Percentage
|
95.36
|
%
|
88.52
|
%
|
96.70
|
%
|
||||
Total
|
23.47
|
8.80
|
7.58
|
|||||||
Percentage
|
100
|
%
|
100
|
%
|
100
|
%
|
· |
Basis
of Consolidation
-
The consolidated financial statements of the Company and its subsidiaries
are prepared in accordance with accounting principles generally accepted
in the United States of America and include the accounts of the Company
and its subsidiaries. All material intercompany accounts and transactions
have been eliminated in the
consolidation.
|
· |
Deferred
Income - Deferred
income represents amount billed for contracts for supply and installation
of security and surveillance equipment which have not been fully
completed
at the balance sheet date.
|
· |
Intangible
Assets - Intangible
assets represent a surveillance recording system acquired from Yuan
Da.
The value was established by an independent accounting firm. The
value of
the recording system is to be amortized using the straight-line method
over its estimated useful life of five
years.
|
· |
Inventories
-
Inventories are stated at the lower of cost, determined on a weighted
average basis, and net realizable value. Net realizable value is
the
estimated selling price in the ordinary course of business less the
estimated cost of completion and the estimated costs necessary to
make the
sale.
|
· |
Accounts
Receivable - Trade
receivables are recognized and carried at the original invoice amount
less
allowance for any uncollectible amounts. An estimate for doubtful
accounts
is made when collection of the full amount is no longer probable.
Bad
debts are written off as incurred.
|
· |
Advances
to Suppliers -
Advances
to suppliers represent the cash paid in advance for purchasing of
inventory items from suppliers.
|
· |
Revenue
Recognition - The
Company derives the bulk of its revenue from the supply and installation
of security and surveillance equipment, and the two deliverables
do not
meet the separation criteria under EITF issue 00-21. The installation
is
not considered to be essential to the functionality of the equipment
having regard to the following criteria as set out in SAB
104:
|
· |
Foreign
Currency Translation - The
functional currency of the Company is Renminbi (RMB) and RMB is not
freely
convertible into foreign currencies. The Company maintains its financial
statements in the functional currency. Monetary assets and liabilities
denominated in currencies other than the functional currency are
translated into the functional currency at rates of exchange prevailing
at
the balance sheet date. Transactions denominated in currencies other
than
the functional currency are translated into the functional currency
at the
exchange rates prevailing at the dates of the transactions. Exchange
gains
or losses arising from foreign currency transactions are included
in the
determination of net income for the respective
periods.
|
2005
|
|
2004
|
|
2003
|
||||||
Year
end RMB/US $: exchange rate
|
8.07
|
8.28
|
8.28
|
|||||||
Average
yearly RMB/US $: exchange rate
|
8.19
|
8.28
|
8.28
|
· |
Use
of Estimates -
The preparation of the financial statements in conformity with generally
accepted accounting principles in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting periods. Management
makes these estimates using the best information available at the
time the
estimates are made; however actual results could differ materially
from
those estimates.
|
· |
Income
Taxes -
Income tax expense is based on reported income before income taxes.
Deferred income taxes reflect the effect of temporary differences
between
assets and liabilities that are recognized for financial reporting
purposes and the amounts that are recognized for income tax purposes.
In
accordance with Statement of Financial Accounting Standard (SFAS)
No. 109,
“Accounting for Income Taxes,” these deferred taxes are measured by
applying currently enacted tax
laws.
|
Years
Ended December 31,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2003
|
2004
|
2005
|
2005
|
2006
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Net
cash provided by (used in) operating activities
|
$
|
1,019
|
$
|
684
|
$
|
799
|
$
|
1,443
|
$
|
(81
|
)
|
|||||
Net
cash provided by (used in) investing activities
|
$
|
(676
|
)
|
$
|
(110
|
)
|
$
|
(79
|
)
|
$
|
(139
|
)
|
$
|
(1
|
)
|
|
Net
cash provided by (used in) financing activities
|
$
|
72
|
$
|
(1,056
|
)
|
$
|
1,063
|
$
|
1,007
|
$
|
7,360
|
|||||
Cash
and cash equivalents at end of period
|
$
|
516
|
$
|
33
|
$
|
2,277
|
$
|
2,344
|
$
|
9,618
|
|
Payments
due by period
|
|||||||||||||||
Total
|
Less
than 1
year
|
1-3
years
|
3-5
years
|
More
than
5
years
|
||||||||||||
Long-Term
Debt Obligations
|
0
|
0
|
0
|
0
|
0
|
|||||||||||
Capital
(Finance) Lease Obligations
|
0
|
0
|
0
|
0
|
0
|
|||||||||||
Operating
Lease Obligations
|
$
|
93,286
|
$
|
34,982
|
$
|
58,304
|
0
|
0
|
||||||||
Purchase
Obligations
|
0
|
0
|
0
|
0
|
0
|
|||||||||||
Other
Long-Term Liabilities Reflected on the Company’s
Balance Sheet under GAAP of the primary financial
statements
|
0
|
0
|
0
|
0
|
0
|
|||||||||||
Total
|
$
|
93,286
|
$
|
34,982
|
$
|
58,304
|
0
|
0
|
· |
participating
in various industrial shows to display our
products;
|
· |
advertising
in industrial magazines and periodicals to introduce and promote
our
products;
|
· |
publishing
our own magazine which is distributed to our suppliers and sales
agents so
that they can better understand our company and strengthen their
confidence in us; and
|
· |
utilizing
the Internet to promote our products, such as the public safety network,
Chinese Security Association network and HuiChong
Network.
|
|
Name
|
Trademark
No.
|
Type
|
Expiration
Date
|
Status
|
|||||
1
|
Golden
Group
|
4108508
|
Word
(Chinese)
|
July
2014
|
Approved
|
|||||
2
|
DVR
|
4108509
|
Word
|
July
2014
|
Approved
|
|||||
3
|
4108511
|
Word
and Logo
|
July
2014
|
Approved
|
||||||
4
|
4108510
|
Logo
|
July
2014
|
Approved
|
||||||
5
|
威勒
|
3814725
|
Word
and logo
|
December
2013
|
Approved
|
|||||
6
|
JDR
|
N/A
|
Word
|
N/A
|
Pending
|
Location
|
Type
of Facility
|
Size
of the Land
(Square
Meters)
|
Size
of the Building
(Square
Meters)
|
|||||||
Shangtian,
Taihe County, Jiangxi Province
|
Manufacturing
|
64,533
|
45,877.5
|
|||||||
No.
45 Jifu Road, Jiangxi Province
|
Manufacturing
|
28,592.66
|
5,224.34
|
|||||||
Jishui
County, Jiangxi Province
|
Manufacturing
|
24,866.52
|
10,404.67
|
|||||||
4th
Floor, Building 3, Shaige Technology Park, Futian District,
Shenzhen
|
Office
and Manufacturing
|
1,252.47
|
1,252.47
|
|||||||
Total
|
119,244.65
|
62,758.98
|
NAME
|
AGE
|
POSITION
|
||
Guoshen
Tu
|
41
|
CEO
and Chairman of the Board
|
||
Shufang
Yang
|
36
|
COO
and Director
|
||
Jianguo
Jiang
|
40
|
Vice
President and Director
|
||
Jinxu
Wu
|
35
|
Chief
Financial Officer
|
||
Lingfeng
Xiong
|
54
|
Vice
President and Director
|
||
Yong
Zhao
|
43
|
Chief
Technology Officer
|
||
Terence
Yap
|
35
|
Vice
Chairman of the Board and Vice
President
|
Annual
Compensation
|
Long-Term
Compensation
|
||||||||||||||||||||||||
Awards
|
Payouts
|
||||||||||||||||||||||||
Name
And
Principal Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Other
Annual
Compensation
($)
|
Restricted
Stock
Awards
($)
|
Securities
Underlying
Options/
SARs
(#)
|
LTIP
Payouts
($)
|
All
Other
Compensation
($)
|
|||||||||||||||||
Sze
Tang Li,
|
2005
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Chairman
and
|
2004
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
CEO
(2)
|
2003
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Guoshen
Tu
|
2005
|
15,000
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Chairman
and
|
2004
|
15,000
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
CEO
(1)
|
2003
|
15,000
|
-
|
-
|
-
|
-
|
-
|
-
|
(1)
|
On
September 12, 2005, we acquired Safetech through a reverse acquisition
transaction and in connection with that transaction, Mr. Tu became
our Chief Executive Officer and Chairman. Prior to the effective
date of
the reverse acquisition, Mr. Tu served at Golden as the Chairman.
The
annual, long term and other compensation shown in this table include
the
amount Mr. Tu received from Golden prior to the consummation of
the
reverse acquisition.
|
(2) |
Mr.
Li resigned
from all offices he held with our Company in September 2005.
|
Name
and Address
|
Number
of Shares Beneficially
Owned
|
|
Percent
of Class (5)
|
||||
Guoshen
Tu(1)
|
13,627,500
|
(2)
|
46.7
|
%
|
|||
Lingfeng
Xiong
(1)
|
60,000
|
*
|
|||||
Jinxu
Wu(1)
|
0
|
*
|
|||||
Yong
Zhao(1)
|
0
|
*
|
|||||
Terence
Yap(1)
|
100,000
|
*
|
|||||
Shufang
Yang (1)
(3)
|
0
|
*
|
|||||
Jianguo
Jiang(1)
|
200,000
|
*
|
|||||
All
Current Officers and Directors as a Group (7
in number)
|
13,987,500
|
47.9
|
%
|
||||
Whitehorse
Technology Ltd.
(4)
|
13,627,500
|
46.7
|
%
|
||||
Li
Zhi Qun (6)
|