OTC Bulletin Board S & P Company Insight for SOYO GROUP INC
Profile
	Business Summary: Soyo Group, Inc. distributes consumer electronics and computer products.   Address   1420 South Vintage Avenue   Ontario , CA 91761   Phone: 909-292-2500   Fax: 909-937-0783   Website: http://www.soyogroup.com Auditor   Vasquez & Co. Transfer Agent   Securities Transfer Corp. Employees:  42 ShareHolders:  1100 Founded:  1994 Domicile:  Nevada
Background
	Soyo Group, Inc. distributes consumer electronics and computer products. Its consumer electronics include a line of LCD display televisions and monitors, as well as Bluetooth wireless devices; and computer products include a line of designer motherboards and related peripherals for intensive multimedia applications, corporate alliances, telecommunications, and specialty market requirements. The company also provides bare bone systems, flash memory, and small hard disk drives for corporate and mobile users; and internal multimedia reader/writer and wireless networking solutions products for small office and home office users, as well as hard disk accessories. It offers SOYO brands of products in the United States, Canada, and Latin America. Its brands include Prive, SOYO, Honeywell, and Le Vello, as well as the Honeywell Brand of licensed consumer electronics products. The company also serves its customers in the United Kingdom, Europe, Asia, and South Africa. It offers its product through a network of distributors to resellers, system integrators, and value-added resellers, as well as through retailers, mail-order catalogs, and e-tailers to consumers. The company is headquartered in Ontario, California. History:  INCORPORATED in Nevada Sept. 16, 2002 as Vermont Witch Hazel Company, Inc.; and on Oct. 8, 2002, merged Vermont Witch Hazel Company, a Vermont concern, in a share-for-share transaction. Name changed to SOYO Group, Inc. Nov. 20, 2002. The Vermont Witch Hazel Company (Vermont) was incorporated Aug. 3, 1994 as Witch Hazel Company. Name changed to Vermont Witch Hazel Company Oct. 4, 1994; and to The Vermont Witch Hazel Company Sept. 16, 1996. October 24, 2002, acquired SOYO, Inc., a Nevada concern incorporated Oct. 22, 1998, in exchange for 1,000,000 Conv. Preferred and 28,182,750 Common shares of the company.   Subsidiaries: SOYO, Inc.     Capital Expenditures, thousand. US Dollars   Year   Amount   2006   49   2005   622   2004   159
Management
	Management Officers Position  Ming Tung  Chok President & Chief Executive Officer  Nancy  Chu Chief Financial Officer  Yvonne  Kao Secretary Directors  Ming Tung  Chok  Nancy  Chu  Chin Keung  Chung  Jay  Schrankler  Henry  Song
Annual Report
	Annual Report   Income Statement   2007 2006 2005 Net revenues $110,922,809 $56,758,688 $38,263,032 Cost of sales 96,501,474 47,534,249 34,905,874 Prior years' purchase discounts and allowances settled in 2005 -- -- (1,335,812) Cost of revenues - net 96,501,474 47,534,249 33,570,062 Gross margin 14,421,335 9,224,439 4,692,970 Costs and expenses: Sales and marketing 1,544,042 1,143,475 911,039 General and administrative 7,922,210 5,610,810 3,659,338 Bad debts 385,387 907,065 34,513 Adjustment of allowance -- -- (462,234) Depreciation and amortization 91,818 43,818 35,394 Total cost and expenses 9,943,457 7,705,168 4,178,050 Income (loss) from operations 4,477,878 1,519,271 514,290 Other income (expenses): Interest income 85,144 10,561 5,301 Interest expense (1,364,059) (901,900) (129,567) Other income (expenses) (87,705) (106,262) 150,456 Loss on sale of VOIP division (159,714) -- -- Other income (expenses) - net (1,526,334) (997,601) 26,190 Income before provision (benefit) for income taxes 2,951,544 521,670 541,110 Provision (benefit) for income taxes Current income tax (839,000) (53,000) (800) Deferred income tax 1,203,000 -- -- Net income (loss) 3,315,544 468,670 540,310 Less: Dividends on Convertible Preferred Stock (268,191) (216,488) (1,173,753) Net income (loss) attributable to common shareholders $3,047,353 $252,182 $(633,443) Net income (loss) per common share - basic and diluted $0.06/$0.06 $0.01/$0.01 ($0.01)/$0.01) Weighted average number of shares of 49,354,963/ 49,025,511/ 48,511,681/ common stock outstanding - basic and diluted 53,594,176 59,786,042 52,868,673 Operating Income As Calculated Depr. and Amort. Fixed Charges Coverage: Available for Fixed Charges Gross Fixed Charges Fixed Charges Times Earnings Fixed Charges Coverages and Preferred Dividends Times Earnings Capital Expenditures Research & Development Expenditures   Balance Sheet   2007 2006 ASSETS Current Assets Cash and cash equivalents $1,848,249 $1,501,040 Accounts receivable, net of allowance for doubtful accounts of $783,573 and $388,958 at December 31, 2007 and 2006, respectively 27,123,985 16,467,135 Inventories, net of allowance for inventory obsolescence of $168,600 and $88,114 as of December 31, 2007 and 2006, respectively 12,221,265 7,792,621 Prepaid expenses 187,749 36,633 Deferred income tax assets - current 544,688 -- Deposits 8,808,408 243,095 Total current assets 50,734,344 26,040,524 Investment in 247MGI 400,000 -- Property and equipment 316,287 711,015 Less: accumulated depreciation and amortization (141,613) (159,300) * 174,674 551,715 Deferred income tax - noncurrent 658,312 -- Total Assets $51,967,330 $26,592,239 LIABILITIES Current Liabilities Accounts payable $14,336,196 $16,073,617 Accrued liabilities 789,526 519,457 Advances from officers, directors and major stockholders -- 100,000 Receivables sold with recourse -- 3,588,403 Commercial loans due to UCB 27,824,490 -- Income tax payable 889,518 53,000 Total current liabilities 43,839,730 20,334,477 Long term payable -- 3,735,198 Total liabilities 43,839,730 24,069,675 EQUITY Class B cumulative convertible Preferred stock, $0.001 par value, authorized -10,000,000 shares, issued and outstanding - 2,614,195 shares * 2,187,165 1,918,974 Preferred stock backup withholding (230,402) (149,945) Common stock, $0.001 par value. Authorized - 75,000,000 shares, issued and outstanding - 52,004,656 shares (49,025,511 shares - 2006) 52,005 49,026 Additional paid-in capital 20,233,500 17,866,531 Accumulated deficit (14,114,668) (17,162,022) Total shareholders' equity 8,127,600 2,522,564 Total Liabilities and Shareholders' Equity $51,967,330 $26,592,239 See accompanying notes to consolidated financial statements Net Working Capital Equity per Share Depr. and Amort. Reserve Preferred Shares Issued Common Shares Issued Treasury Shares - Preferred Treasury Shares - Common
Interim Report
	Interim Report      Data Not Available
Pro Forma Report
	Pro Forma Report      Data Not Available
Quarterly Report
	Quarterly Report Information      Quarterly Revenue, US$ Year Quarter Revenue   2008   1 24,800,000   2008   2 32,190,000   2008   3 29,480,000   2007   1 14,690,000   2007   2 24,200,000   2007   3 33,440,000   2007   4 38,590,000   2007   Full Year 110,920,000   2006   1 11,550,000   2006   2 10,790,000   2006   3 10,010,000   2006   4 24,420,000   2006   Full Year 56,760,000   2005   4 16,600,000   2005   Full Year 38,260,000   2004   Full Year 32,400,000     Quarterly Net Income, US$ Year Quarter Revenue   2008   1 460,000   2008   2 (70,000)   2008   3 130,000   2007   1 520,000   2007   2 350,000   2007   3 2,510,000   2007   4 (70,000)   2007   Full Year 3,320,000   2006   1 (270,000)   2006   2 560,000   2006   3 320,000   2006   4 70,000   2006   Full Year 678,500   2005   4 650,000   2005   Full Year 540,300   2004   Full Year (3,920,000)   2003   Full Year (980,000)     Quarterly EPS, US$ Year Quarter Revenue   2008   1 Nil   2008   2 Nil   2008   3 Nil   2007   1 .01   2007   2 .01   2007   3 .05   2007   4 Nil   2007   Full Year .06   2006   1 (.01)   2006   2 .01   2006   3 Nil   2006   4 (.01)   2006   Full Year .01   2005   4 (.03)   2005   Full Year (.01)   2004   Full Year (.10)
Stock Data
	Capitalization as of 03/31/2008:     Authorized Shares Outstanding Shares Preferred $0.001 par 10,000,000 3,181,357so1 Common $0.001 par 75,000,000 52,179,656   LONG TERM DEBT: None.   Common $0.001 par   COMMON OFFERED: February 15, 2001, the company offered 250,000 Common shares at $2.50 per share in a self-underwritten offering.   Stockholders:  12/31/2007, 1100. Transfer Agent:  Securities Transfer Corp.   Dallas , TX   OTC Bulletin Board( Primary): SOYO   Exchange Year High Low OTC Bulletin Board 2008 1.3500 0.1900 OTC Bulletin Board 2007 1.8000 0.2300 OTC Bulletin Board 2006 0.7400 0.2720 OTC Bulletin Board 2005 0.8100 0.5500 OTC Bulletin Board 2004 0.4700 0.1000 OTC Bulletin Board 2003 1.0500 0.1000 OTC Bulletin Board 2002 0.1500 0.1500 OTC Bulletin Board 2001 0.2500 0.2000   DIVIDENDS: Common $0.001 par: No cash.       so1Closely held. Represents Cl. B Conv. shares, convertible into Common at fair market value, but not less than $0.25 per share. Any Cl. B Conv. shares not converted by Dec. 31, 2008 automatically convert into Common shares. Cl. B Conv. Preferred has a liquidation value of $1.00 per share.