HispanicBusiness

PART 1 - FINANCIAL INFORMATION

Item 1.   Financial Statements.             China Carbon Graphite Group, Inc. and subsidiaries                    Condensed Consolidated Balance Sheets                                                   June 30,    December 31,                                                      2012          2011                                                 ------------- -------------                                                  (Unaudited)    (Audited)                                   ASSETS  Current AssetsCash and cash equivalents                        $   1,350,890 $     521,450Restricted cash                                     10,703,200    11,694,820Accounts receivable, Net                            13,095,700    12,541,321Notes receivable                                       444,895       188,880Advance to suppliers                                 2,410,409     5,921,970Inventories                                         44,151,224    37,430,248Prepaid expenses                                       234,917       452,730Other receivables, net of allowance of $24,397         544,646       513,000    Total current assets                            72,935,881    69,264,419  Property And Equipment, Net                       35,742,753    36,719,595  Construction In Progress                           7,518,640     6,220,451  Land Use Rights, Net                              10,359,654    10,699,059  Total Assets                                   $ 126,556,928 $ 122,903,524                    LIABILITIES AND STOCKHOLDERS' EQUITY  Current LiabilitiesAccounts payable and accrued expenses            $   3,866,990 $   1,340,498Advance from customers                               1,552,654     1,360,989Short term bank loans                               38,720,400    45,488,600Notes payable                                       17,786,200    16,763,100Other payables                                       2,951,364     3,032,671Loan from unrelated parties                            185,610             -Dividends payable                                       37,742        28,099  Total current liabilities                         65,100,960    68,013,957  Amount Due To A Related Party                      5,432,675     5,542,855  Long term bank loan                                4,690,520             -  Warrant Liabilities                                  208,605       174,805  Total Liabilities                                 75,432,760    73,731,617Redeemable convertible series B preferred stock, $0.001 par value; 3,000,000 shares authorized; 305,810 and 426,110 shares issuedand outstanding at June 30, 2012 and December 31, 2011, respectively.                                   366,972       511,332  Stockholders' EquityCommon stock, $0.001 par value; 100,000,000 shares authorized 24,231,708 and 22,981,408 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively                    24,231        22,981Additional paid-in capital                          18,044,688    17,054,045Accumulated other comprehensive income               7,933,485     7,943,542Retained earnings                                   24,754,792    23,640,007  Total stockholders' equity                        50,757,196    48,660,575  Total Liabilities and Stockholders' Equity     $ 126,556,928 $ 122,903,524                                                 ============= =============