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Wed, June 30, 2010
Tue, June 29, 2010
Mon, June 28, 2010 Chisen Electric Corporation Full Year Revenues Grew 62.53% and Net Income Advanced 6.98% Compared With Prior Fiscal Year Result
ZHEJIANG, CHINA--(Marketwire - June 28, 2010) - Chisen Electric Corporation (
Units Sold Increased 85.64%
In the fiscal year ended March 31, 2010, revenues generated primarily by product sales rose approximately to $177,192,000 from $109,020,000 in the prior year, while net income increased to $9,500,000 from $8,880,000 a year earlier. Earnings per share were $.19 compared with $.18 in the prior fiscal year. As of March 31, 2010, the Company's cash position increased to $6,019,000 from $2,620,000 at the same time last year. Reflecting strong price competition, the Company's unit sales growth during the year exceeded the growth in revenues, as units sold increased by approximately 85.64% to 14,480,000 units for the year ended March 31, 2010 compared with 7,800,000 units in the prior year. The unit increase reflected the continuing rapid growth of China's electric bicycle market, where electric vehicle sales grew to approximately 100 million units in 2009 and are expected to grow to approximately 120 million vehicles in 2010.
Continuing Demand for Chisen's Battery Products
Commenting on the fiscal year results, Mr. Xu Kecheng, President and CEO, stated, "We are pleased to report another year of strong growth in the sales of our products. The growing popularity in China of electric bicycles -- a very clean, practical and energy efficient form of transportation -- has continued to propel the growth of Chisen Electric. Intense competition has led the Company to lower the prices of some of its products in order to maintain or expand market share. Nevertheless, looking ahead we expect to remain very competitive with a continuing focus on new product development primarily aimed at providing products with increased power and reduced weight. We also will continue to emphasize development of long term relationships with important electric bicycle manufacturers, while also focusing on strengthening our position in the growing replacement market and with key suppliers and vendors." He added, "With the steadily increasing interest in China in the development of alternative transportation vehicles with low emissions and reduced reliance on oil and gas, we also continue to explore the market for electric powered motorcycles and electric cars. Additionally, we are continuing to expand our product mix with items such as chargers, controllers and motors for personal transportation devices. Our goal remains to become the largest battery developer and producer in China with a first class national sales and services network."
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, 2010, the Company manufactured more than 14.48 million batteries and achieved a market share of approximately 11.84% for its Lead Acid Motive Batteries for electric bicycles in China.
"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. 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 at [ www.sec.gov ].
Chisen Electric Corporation Consolidated Statements of Operations and Other Comprehensive Income For the years ended March 31, 2010 and 2009 Years ended March 31, ---------------------- 2010 2009 US$'000 US$'000 Operating revenues: Net sales to third parties 177,192 109,020 Cost of sales (153,708) (88,823) ---------- ---------- Gross income 23,484 20,197 Operating expenses: Sales, marketing and distribution (8,696) (5,337) General and administrative (3,647) (4,007) ---------- ---------- Operating income 11,141 10,853 Other income, net 1,671 758 Interest income 343 362 Interest expense (2,068) (1,232) ---------- ---------- Income before income taxes 11,087 10,741 Income taxes expenses (1,587) (1,861) ---------- ---------- Net income 9,500 8,880 Other comprehensive income Foreign currency translation adjustment 106 278 ---------- ---------- Comprehensive income 9,606 9,158 ========== ========== Shares Shares Earnings per share Weight average number of common stock outstanding - basic and diluted 50,000,000 50,000,000 ========== ========== US$ US$ Net income per share of common stock - basic and diluted 0.19 0.18 ========== ==========
