BP (x1-53409) Teda Travel 8KA Exhibit 10.3










EXHIBIT 10.3
















TEDA TRAVEL GROUP, INC.

AND SUBSIDIARY

PRO FORMA CONSOLIDATED

FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2003


















TEDA TRAVEL GROUP, INC. AND SUBSIDIARY

PRO FORMA CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2003

(UNAUDITED)







	 	 	Historical

	 	 	 	 	 	 	 	 
	 	 	Teda Hotels

Management

Company,

Limited

	 	Teda Travel

Group, Inc.

	 	 	 	Pro Forma

Adjustments

	 	Pro Forma

Teda Travel

Group, Inc.

	 
	                                                                                     

	   

	 	 	     

	 	 	     

	 	     

	 	     

	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CURRENT ASSETS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash

	 	$

	98,079

	 	$

	882

	 	 	 	 	 	$

	98,961

	 
	Accounts receivable, net

	 	 	88,509

	 	 	6,000

	 	 	 	 	 	 	94,509

	 
	Prepaid expenses and other current assets

	 	 	55,355

	 	 	—

	 	 	 	 	 	 	55,355

	 
	Total Current Assets

	 	 	241,943

	 	 	6,882

	 	 	 	 	 	 	248,825

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PROPERTY AND EQUIPMENT – NET

	 	 	13,064

	 	 	284

	 	 	 	 	 	 	13,348

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	INVESTMENT IN AFFILIATE

	 	 	3,661,868

	 	 	—

	 	 	 	 	 	 	3,661,868

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL ASSETS

	 	$

	3,916,875

	 	$

	7,166

	 	 	 	 	 	$

	3,924,041

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CURRENT LIABILITIES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts payable and accrued expenses

	 	$

	47,334

	 	$

	3,161

	 	 	 	 	 	$

	50,495

	 
	Due to related parties

	 	 	3,263,724

	 	 	—

	 	 	 	 	 	 	3,263,724

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL LIABILITIES

	 	 	3,311,058

	 	 	3,161

	 	 	 	 	 	 	3,314,219

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	STOCKHOLDERS’ EQUITY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Preferred stock, $.001 par value, 5,000,000

shares authorized, no shares issued 

and outstanding

	 	 	





—

	 	 	





—

	 	 	 	 	 	 	





—

	 
	Class A common stock, $.001 par value, 

100,000,000 shares authorized, 

18,899,586 shares issued and outstanding

	 	 	





100

	 	 	





39,505

	 	





(1)

	 	





(20,705

	





)

	 	





18,900

	 
	Class B common stock, $.001 par value,

2,000,000 shares authorized, no shares 

issued and outstanding

	 	 	





—

	 	 	





2,000

	 	





(1)

	 	





(2,000

	





)

	 	





—

	 
	Additional paid-in capital

	 	 	—

	 	 	3,569,426

	 	(1)

	 	(3,584,221

	)

	 	(14,795

	)


	Retained earnings (deficit)

	 	 	605,717

	 	 	(3,606,926

	)

	(1)

	 	3,606,926

	 	 	605,717

	 
	Total Stockholders’ Equity

	 	 	605,817

	 	 	4,005

	 	 	 	 	 	 	609,822

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL LIABILITIES AND 

   STOCKHOLDERS’ EQUITY

	 	


$

	


3,916,875

	 	


$

	


7,166

	 	 	 	 	 	


$

	


3,924,041

	 









See accompanying notes to pro forma consolidated financial statements.




1








TEDA TRAVEL GROUP, INC. AND SUBSIDIARY

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

DECEMBER 31, 2003

(UNAUDITED)







	 	 	Historical

	 	 	 	 	 	 
	 	 	Teda Hotels

Management

Company

Limited

	 	Teda Travel

Group, Inc.

	 	Pro Forma

Adjustments

	 	Pro Forma

Teda Travel

Group, Inc.

	 
	                                                                                            

	   

	 	 	     

	 	 	     

	                    

	     

	 	 	 
	REVENUE, NET

	 	$

	396,794

	 	$

	—

	 	 	 	$

	396,794

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	EXPENSES

	 	 	 	 	 	 	 	 	 	 	 	 
	Management fees

	 	 	31,400

	 	 	—

	 	 	 	 	31,400

	 
	Payroll

	 	 	117,784

	 	 	—

	 	 	 	 	117,784

	 
	Other selling, general and administrative

	 	 	313,046

	 	 	—

	 	 	 	 	313,046

	 
	Total Expenses

	 	 	462,230

	 	 	—

	 	 	 	 	462,230

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	LOSS FROM OPERATIONS

	 	 	(65,436

	)

	 	—

	 	 	 	 	(65,436

	)


	 	 	 	 	 	 	 	 	 	 	 	 	 
	OTHER INCOME (EXPENSE)

	 	 	 	 	 	 	 	 	 	 	 	 
	Equity in earnings of affiliate

	 	 	51,409

	 	 	—

	 	 	 	 	51,409

	 
	Loss on disposal of property and equipment

	 	 	(3,202

	)

	 	—

	 	 	 	 	(3,202

	)


	Other income

	 	 	370

	 	 	—

	 	 	 	 	370

	 
	Total Other Income (Expenses)

	 	 	48,577

	 	 	—

	 	 	 	 	48,577

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	LOSS BEFORE TAXES

	 	 	(16,859

	)

	 	—

	 	 	 	 	(16,859

	)


	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income taxes

	 	 	23,795

	 	 	—

	 	 	 	 	23,795

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	NET LOSS

	 	$

	(40,654

	)

	$

	—

	 	 	 	$

	(40,654

	)


	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pro forma net loss per common share – basic and diluted

	 	 	 	 	 	 	 	 	 	$

	—

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pro forma weighted average number of 

common shares outstanding – basic and diluted

	 	 	 	 	 	 	 	 	 	 	


17,856,443

	 
























See accompanying notes to pro forma consolidated financial statements.




2








TEDA TRAVEL GROUP, INC. AND SUBSIDIARY

NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS 

DECEMBER 31, 2003

(UNAUDITED)







NOTE: (1)

To record the reverse merger and recapitalization of Teda Travel Group, Inc. by Teda Hotels Management Company, Limited.








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