Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, November 17, 2009
Mon, November 16, 2009 Chisen Electric Corporation Results Continue to Benefit From Rapidly Growing Chinese Electric Bicycle Market; Company Reports 2
ZHEJIANG, CHINA--(Marketwire - November 16, 2009) - Chisen Electric Corporation (
The Company reported that revenues in the 2009 second quarter increased 42% to $50,392,000 from $35,588,000 in the second quarter last year. Net income in the period increased to $4,917,000 from $4,154,000 in the second quarter of 2008, an 18% gain. 2009 second quarter EPS, based on 50,000,000 shares outstanding, increased to $0.10 from $0.08 in the same period last year.
Through the first six months of 2009, the Company said revenues grew 38% to $79,867,000, compared with $57,813,000 in the first six months of 2008. Net income in the first six months of 2009 was $6,923,000, or $0.14 per share, up 14.15% compared with $6,065,000 or $0.12 per share in the same period a year earlier.
Citing its strong relationships with leading electric bicycle-makers in the PRC, the Company said it has continued to benefit from the rapid growth in the electric bicycle market there. At the same time, the Company experienced cost reductions in raw materials and in a competitive environment reduced prices on most products by approximately 25%. As a consequence, unit sales growth in the quarter advanced more sharply than revenues.
Mr. Xu Keching, Chairman of the Board, and CEO of the Company, stated, "We remain excited by the rapid growth of the Chinese Electric Bicycle Market, which has continued to be a catalyst for increasing sales of the Company's battery products. With consumers continuing to look for alternative transportation methods that reduce their reliance on oil and gas, and reduce their emissions, the Company intends to continue to leverage its experience and expertise in the lead-acid battery market to expand its line of products and customer base."
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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. Today, the Company manufactures over 15,000,000 batteries each year, has more than 2,000 employees and is one of China's largest manufacturers of lead-acid batteries for electric-powered bicycles (LABEBs).
"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 For The Six(6) Months Ended September 30 (Unaudited) 2009 2008 2009 2008 ------------ ------------ ----------- ----------- Revenues $ 79,867,000 $ 57,813,000 100.00% 100.00% Cost of sales $ 65,813,000 $ 46,715,000 82.40% 80.80% Gross income $ 14,054,000 $ 11,098,000 17.60% 19.20% Sales, marketing and distribution $ 3,953,000 $ 2,442,000 4.95% 4.22% General and administrative expenses $ 2,086,000 $ 1,594,000 2.61% 2.76% Operating income $ 8,015,000 $ 7,062,000 10.04% 12.22% Other income, net $ 725,000 $ 293,000 0.91% 0.51% Interest Income $ 55,000 $ 149,000 0.07% 0.26% Net Income from Operations before Interest and Tax Expenses $ 8,794,000 $ 7,504,000 11.01% 12.98% Interest expenses $ 692,000 $ 384,000 0.87% 0.66% Income before income taxes $ 8,048,000 $ 6,971,000 10.08% 12.06% Income taxes expenses $ 1,125,000 $ 906,000 1.41% 1.57% Net income $ 6,923,000 $ 6,065,000 8.67% 10.49% Other comprehensive income $ 24,000 $ 264,000 0.03% 0.46% Comprehensive income $ 6,947,000 $ 6,329,000 8.70% 10.95% For The Three (3) Months Ended September 30 (Unaudited) 2009 2008 2009 2008 ------------ ------------ ----------- ----------- Revenues $ 50,392,000 $ 35,588,000 100.00% 100.00% Cost of sales $ 41,708,000 $ 28,521,000 82.77% 80.14% Gross income $ 8,684,000 $ 7,067,000 17.23% 19.86% Sales, marketing and distribution $ 2,167,000 $ 1,337,000 4.30% 3.76% General and administrative expenses $ 1,030,000 $ 982,000 2.04% 2.76% Operating income $ 5,487,000 $ 4,748,000 10.89% 13.34% Other income, net $ 578,000 $ 88,000 1.15% 0.25% Interest Income $ 0 $ 142,000 0% 0.40% Net Income from Operations before Interest and Tax Expenses $ 6,065,000 $ 4,978,000 12.04% 13.99% Interest expenses $ 378,000 $ 246,000 0.75% 0.69% Income before income taxes $ 5,687,000 $ 4,732,000 11.29% 13.30% Income taxes expenses $ 770,000 $ 578,000 1.53% 1.62% Net income $ 4,917,000 $ 4,154,000 9.76% 11.67% Other comprehensive income $ 24,000 $ 38,000 0.05% 0.11% Comprehensive income $ 4,941,000 $ 4,192,000 9.81% 11.78%
