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Mon, June 29, 2009 Chisen Electric Corporation: Chisen Electric Corporation Announces That Revenues in the Fiscal Year Ended March 31, 2009 Grew 6
ZHEJIANG, CHINA--(Marketwire - June 29, 2009) - Chisen Electric Corporation (
In the fiscal year ended March 31, 2009, revenues rose approximately US$43,633,000, from US$65,387,000 in the prior year, a 67% increase, while net income increased 32.5% to US$8,880,000 compared with US$6,701,000 a year earlier. Earnings per share grew to $0.18 in the fiscal year ended March 31, 2009, up from $0.13 per share in the prior fiscal year. These increases were mainly attributable to continuing strong sales of the Company's battery products as a result of rapid growth in China's electric bicycle market. This was reflected in increased demand from the Company's existing customers as well as orders from new customers including a major new customer in Tianjin.
Growing Sales of Electric Bicycles
Commenting on these results, Mr. Xu Kecheng, President, CEO and a Director of Chisen Electric, stated, "We are very pleased to be able to report another year of very strong growth in sales and net income. This is mainly a consequence of the growing sales of electric bicycles in China, which are seen as a very practical, non-polluting means of transportation for many people. We also have shifted our product mix to high power battery products with higher unit selling prices. Looking ahead, we remain optimistic about continuing growth as we focus on increased sales of our high quality products to current customers and further expansion of our customer base."
The Company also reported that in the fiscal year ended March 31, 2009, general and administrative expenses increased to US$4,007,000 from US$1,650,000 a year earlier. The increase of US$2,357,000 was mainly due to increases in employee compensation, research and development costs, as well as leases and taxes associated with the Company's business expansion. Also contributing to the increase were fees and expenses related to the Company's reverse merger, which closed on November 12, 2008.
Increased Working Capital
Net cash provided by operations was approximately US$11,289,000 in the fiscal year ended March 31, 2009, compared with US$10,513,000 in the prior year. This increase was mainly attributable to the use of bank bills for the settlement of accounts payable.
During the fiscal year ended March 31, 2009, working capital increased by approximately US$8,230,000 to US$12,506,000, compared to approximately US$4,726,000 in the prior year. This increase is primarily due to the increase in the Company's cash and cash equivalents, restricted bank balances, accounts receivable and inventories, totaling approximately US$33,693,000, offset by the increase in its accounts and notes payable of approximately US$28,449,000.
Description of Chisen Electric Corporation
Chisen Electric Corporation, incorporated in Nevada, USA, and headquartered in Zhejiang Province, the People's Republic of China, is a leading lead-acid motive battery producer for China's personal transportation device market. The Company's battery products are sold under its own brand names and are predominantly used in electric bicycles. Among all types of batteries for electric bicycles, the lead-acid motive battery is the preferred choice for electric bicycle manufacturers in China because of its cost efficiency. In the fiscal year ended March 31, 2009, the Company manufactured more than 7,740,000 batteries and had more than 2,000 employees.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results my differ materially depending on a variety important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, financing and other factors as discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, In addition, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date hereof. No securities regulatory authority has either approved or disapproved the contents of this new release. This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The Company filings with the US Securities and Exchange Commission, including the annual report for the fiscal year ended March 31, 2009 on Form 10-K, can be viewed on EDGAR Online or [ www.sec.gov ].
Chisen Electric Corporation Consolidated Statements of Operations and Other Comprehensive Income For the years ended March 31, 2009 and 2008 Years ended March 31, ------------------------ 2009 2008 US$'000 US$'000 Operating revenues: Net sales to third parties 109,020 65,387 Cost of sales (88,823) (51,964) ----------- ----------- Gross income 20,197 13,423 Operating expenses: Sales, marketing and distribution (5,337) (4,878) General and administrative (4,007) (1,650) ----------- ----------- Operating income 10,853 6,895 Other income, net 758 671 Interest income 362 62 Interest expense (1,232) (815) ----------- ----------- Income before income taxes 10,741 6,813 Income taxes expenses (1,861) (112) ----------- ----------- Net income 8,880 6,701 Other comprehensive income Foreign currency translation adjustment 278 731 ----------- ----------- Comprehensive income 9,158 7,432 =========== =========== Shares Shares Earnings per share Weight average number of common stock outstanding - basic and diluted 50,000,000 50,000,000 =========== =========== US$ US$ Net income per share of common stock - basic and diluted 0.18 0.13 =========== ===========
