CONDENSED PARENT COMPANY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2011

CONDENSED PARENT COMPANY FINANCIAL INFORMATION

NOTE 13. CONDENSED PARENT COMPANY FINANCIAL INFORMATION

Basis of Presentation

The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of BTHC XV, Inc. exceed 25% of the consolidated net assets of BTHC XV Inc. The ability of the Company’s Chinese operating subsidiaries to pay dividends may be restricted due to the foreign exchange control policies and availability of cash balances of the Chinese operating subsidiaries. Because substantially all of the Company’s operations are conducted in China and a substantial majority of the Company’s revenues are generated in China, a majority of the Company’s revenue being earned and currency received are denominated in Renminbi (“RMB”). RMB is subject to the exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC exchange control regulations that restrict the Company’s ability to convert RMB into US Dollars.

The condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries using the equity method. Refer to the consolidated financial statements and notes presented above for additional information and disclosures with respect to these financial statements.

Condensed Parent Company Balance Sheet

(US Dollars in Thousands)

	December 31,		December 31,
	2011		2010
ASSETS
Current assets
Investment in subsidiaries		19,524		14,374

TOTAL ASSETS		19,524		14,374

SHAREHOLDERS’ EQUITY
Preferred stock: 10,000,000 shares of $.001 par value authorized; None shares issued and outstanding	$	-	$	-
Common Stock (par value $0.001 per share; 40,000,000 shares authorized; 18,089,669 shares issued and outstanding as of December 31, 2011 and 2010, respectively)		18		18

Additional paid in capital		1,173		1,173
Statutory reserve		913		913
Accumulated other comprehensive income		1,857		988

Retained earnings		15,563		11,282

TOTAL SHAREHOLDERS’ EQUITY		19,524		14,374

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	19,524	$	14,374

Condensed Parent Company Statement of Operations

(US Dollars in Thousands)

	For the Years Ended December 31,
	2011		2010
Revenue		-		-
General and administrative expenses		5		-

Total expenses		5		-
Equity in undistributed income of subsidiaries		4,281		4,001

Income before income taxes		-		-
Provision for income tax		-		-

Net income	$	4,276	$	4,001

Condensed Parent Company Statement of Cash Flows

(US Dollars in Thousands)

	For the Year Ended			For the Year Ended
	December 31,			December 31,
	2011			2010

Cash Flows from Operating Activities
Net income	$	4,276		$	4,001

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity in undistributed income of subsidiaries		(4,276	)		(4,001	)
Net Cash Provided by (Used in) Operating Activities		-			-

Net Increase in Cash and Cash Equivalents		-			-
Cash and Cash Equivalents, beginning of year		-			-
Cash and Cash Equivalents, end of year	$	-		$	-

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References+ Details

BTHC XV, Inc. 10-K