Since 2010, due to a combination of temporary Chinese government policies trying to cool down the rapid growing housing price in mainland China, the property investment demand have gone down significantly, which also impacted the Yabuli area. At the same time, with a tight expense budget and shortage of working capital, the Company had decided for the time being not to take the risk by inputting its limited working capital into the villa's remaining public infrastructure construction (for example: public lighting, roads, landscape engineering) and a full scale marketing and advertising regime. However, the Company does have confidence with its first of a kind skiing in and skiing out villas in China. And the Company will be reasonably flexible with its pricing when the market shows sign of a turn around. No other detail milestones for the above matter are available from the Company as the related government policies are set to be temporary but with durations undetermined.
Financial HighlightsSummary Financial Results--------------------------------------------------------------------------- For the For the year ended year ended(in thousands of Canadian dollars except for per December December share data) 31, 2012 31, 2011---------------------------------------------------------------------------Revenue $9,453 $6,658---------------------------------------------------------------------------Operating expenses (8,084) (6,428)------------------------------------------------------------------------------------------------------------------------------------------------------Other income 2,680 435---------------------------------------------------------------------------General and administrative expenses (1,508) (1,459)---------------------------------------------------------------------------Depreciation and amortization (11,176) (12,383)---------------------------------------------------------------------------Operating loss (8,635) (13,177)------------------------------------------------------------------------------------------------------------------------------------------------------Total non-operating income and expenses (9,350) (31,190)---------------------------------------------------------------------------Deferred income tax recovery 133 1,712---------------------------------------------------------------------------Results of discontinued operation - ----------------------------------------------------------------------------Net loss $(17,852) $(42,655)------------------------------------------------------------------------------------------------------------------------------------------------------Net loss per share (Basic and Diluted) (0.06) (0.21)------------------------------------------------------------------------------------------------------------------------------------------------------Weighted average number of shares outstanding (Basic and Diluted) 294,130,414 203,143,543---------------------------------------------------------------------------Balance Sheet Key Indicators December December(in thousands of Canadian dollars except for ratios) 31, 2012 31, 2011Current Ratio(1) 0.40:1 0.41:1Free Cash 9,080 772Working Capital(2) (60,611) (62,787)Total Assets 151,815 168,207Total Debt(3) 120,511 118,152Total Equity(4) 31,304 50,055Total Debt to Total Equity Ratio 3.85:1 2.36:1(1) Current ratio is defined as total current assets divided by total current liabilities.(2) Working capital is defined as total current assets less total current liabilities.(3) Total debt is defined as total current liabilities plus total non- current liabilities.(4) Total equity is equal to the total shareholders' equity.
