CHINA YIDA HOLDING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Management Discussion and Analysis
Net revenue from continuing operations increased by approximately $0.94 million or approximately 31.9%, from approximately $2.93 million for the three months ended September 30, 2013 to approximately $3.87 million for the three months ended September 30, 2014. The increase in net revenue was primarily due to the increase in the revenue from tourism revenue which was partially offset by the decrease in advertisement revenue.
As a result of the above factors, we have net loss of approximately $12.68 million for the three months ended September 30, 2014 as compared to net loss of approximately $3.63 million for the three months ended September 30, 2013, representing an increase of loss of approximately $9.05 million or approximately 249.58%. The increase of loss was primarily attributable to the decrease in advertisement revenue because the agreement with FETV expired in July 2013, the increase in cost of revenue and general and administrative expenses for the operation of China Yang-sheng paradise for the three months ended September 30, 2014 as compared with that for the three months ended September 30, 2013.
Item 1.01 Entry into a Material Definitive Agreement.
On August 26, 2014 (the “Effective Date”), Hong Kong Yi Tat International Investment Co., Ltd. (“Hong Kong Yi Tat”), a wholly owned subsidiary of China Yida Holding, Co. (the "Company"), a Nevada corporation, entered into a certain share transfer agreement (the “Share TransfeR Agreement”) with Fujian Taining Great Golden Lake Tourism Economic Development Industrial Co., Ltd. (the “Purchaser”), a wholly owned subsidiary of the Management Committee of the Fujian Taining Great Golden Lake Tourism Economic Development Zone, an affiliate of the Taining County Government (the “Lake Management Committee”), pursuant to which Hong Kong Yi Tat agreed to sell 100% of its equity interest in Fujian Jintai Tourism Industrial Development Co., Ltd., its wholly owned operating subsidiary (“Fujian Jintai”) to the Purchaser (the “Sale”) for a price of RMB 228,801,359, or approximately $36,608,217.44 (the “Purchase Price”), less any deductions as described below. The Purchaser shall pay ninety percent (90%) of the Purchase Price within one (1) month after the Effective Date and the remainder of the Purchase Price within three (3) months after the Effective Date. Fujian Jintai’s primary business is tourism operation and management of the Great Golden Lake tourist destination.