JIANGSU, China, March 30, 2011 (GLOBE NEWSWIRE) -- China Green Energy Industries, Inc. (OTCBB:CGRE), a leading manufacturer and distributor of high tech and environmentally friendly consumer products, today announced financial results for the fourth quarter and full year ended December 31, 2010.
Financial Highlights for 2010:
- Revenue increased 136.4% to $28.6 million
- Gross profit increased 131.3% to $8.2 million
- Operating income increased 135.9% to $5.5 million
- Net income increased 155.5% to $4.1 million, or $0.19 per share
- $1.1 million of cash and no long term debt as of December 31, 2010
Mr. Jianliang Shi, Chairman and Chief Executive Officer commented, "We are pleased to report that sales were strong across all of our product lines in 2010. Cable products showed strong growth at 148.1% reaching a revenue level of $18.4 million for the year. Cryogen-free refrigerator sales increased by 106.3% to $9.5 million with orders stemming from both existing customers and new ones.
"The highest percentage gain in revenue came from our light electric vehicles (LEVs); however, the sales growth of 783.8% in 2010 came off a low base of $80,000. LEVs will play a much greater role in our business this year. In January 2011 we acquired the NICONIA brand of LEVs along with a sales network of 350 retail stores. NICONIA typically sells over 200,000 LEVs annually. Given the brand recognition, reputation and distribution for NICONIA LEVs, we believe this acquisition places us in a whole different league within the industry. We expect our LEV division to achieve sales of approximately $45 million in 2011 with gross margins of 25%. LEVs will comprise approximately 54% of our revenue in 2011, up from 2.5% in 2010. We expect favorable trends to continue based on heightened environmental awareness in China and government policies promoting the use of clean technology."
The company reiterates its net income guidance of $14 million, or $0.60 per diluted share for 2011.
Revenue for the year ended December 31, 2010 increased 136.4% to $28.6 million from $12.1 million for the same period the previous year. Gross profit for the twelve months ended December 31, 2010 increased 131.3% to $8.2 million compared to $3.5 million for the same period in 2009. Operating income for the twelve months ended December 31, 2010 increased 135.9% to $5.5 million compared to $2.3 million for the same period the previous year. Net income for the twelve months ended December 31, 2010 increased 155.5%, to $4.1 million, or $0.19 per diluted share, compared to $1.6 million, or $0.08 per diluted share, for the same period the previous year.
About China Green Energy Industries
China Green Energy Industries is a leading manufacturer and distributor of high tech and environmentally-friendly consumer products. The company has three main product lines: light weight electric vehicles (LEV), cryogen-free refrigerators, and network/HDMI cables. It has well-established sales channels in China, with significant exports to Europe. China Green Energy Industries manufactures and distributes its own products under the brand name "Best," and also sells its product under private label to leading OEMs and Fortune 500 companies such as Wal-Mart, Carrefour, Home Depot, Ford, Pepsi, Coca-Cola, Carlsberg, Disney, etc. Additional information about the company is available at: www.chinagei.com.
This press release may contain statements that constitute "forward looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. The words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," and similar expressions are intended to identify forward-looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief or expectation of the company, its directors or its officers with respect to events, conditions, and financial trends that may affect future plans of operations, business strategy, operating results, and financial position. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and that actual results may differ materially from those included within the forward-looking statements as a result of various factors. These risks and uncertainties include, but are not limited to, the factors mentioned in the "Risk Factors" section of the company's Current Report on Form 8-K filed on June 11, 2010, and other risks mentioned in this press release or in our other reports filed with the Securities and Exchange Commission (the "SEC") since the filing date of the Registration Statement. Although these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the company's current judgment regarding the direction of the business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by law, the company undertakes no responsibility or obligation to update publicly these forward-looking statements, but may do so in the future in written or oral statements.
| China Green Energy Industries, Inc. | ||
| (Formerly TradeOn, Inc.) | ||
| Consolidated Balance Sheets | ||
| As of December 31, 2010 and 2009 | ||
| As of December 31, | ||
| 2010 | 2009 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $1,080,787 | $757,742 |
| Restricted cash - Note 3 | 3,408,750 | 3,656,468 |
| Trade accounts receivables, net - Note 4 | 11,537,053 | 2,691,560 |
| Other receivables, prepayments and deposits - Note 5 | 638,553 | 931,662 |
| Inventories, net - Note 6 | 2,733,369 | 1,966,989 |
| Loans to third parties - Note 7 | 3,333,000 | 2,734,428 |
| Loans to a related party - Note 8 | 3,159,388 | -- |
| Amounts due from related parties - Note 9 | 1,461,156 | 784,690 |
| Deferred tax asset | 113,002 | 70,664 |
| Total current assets | 27,465,058 | 13,594,203 |
| Long-term equity investment - Note 10 | 165,640 | 159,909 |
| Property, plant and equipment, net - Note 11 | 6,875,566 | 4,222,825 |
| Land use rights - Note 12 | 1,037,606 | 1,023,258 |
| Deferred tax asset | 123,462 | 57,143 |
| TOTAL ASSETS | $35,667,332 | $19,057,338 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| LIABILITIES | ||
| Current liabilities | ||
| Trade accounts payable | $9,152,372 | $3,701,489 |
| Bills payable - Note 3 | 6,817,500 | 6,552,390 |
| Other payables and accrued charges - Note 13 | 2,857,780 | 940,960 |
| Income tax payable | 2,241,102 | 685,076 |
| Short-term bank loans - Note 14 | 8,926,380 | 5,575,382 |
| Amount due to a related party - Note 9 | -- | 234,525 |
| Total current liabilities | 29,995,134 | 17,689,822 |
| TOTAL LIABILITIES | 29,995,134 | 17,689,822 |
| COMMITMENTS AND CONTINGENCIES - Note 19 | ||
| STOCKHOLDERS' EQUITY | ||
| Preferred stock : par value $0.01 per share | ||
| Authorized 50,000,000 shares; none issued and outstanding | -- | -- |
| Common stock : par value $0.0001 per share | ||
|
Authorized 100,000,000 shares; issued and outstanding 23,529,411 and 20,734,531 shares, respectively |
2,352 | 2,073 |
| Additional paid-in capital | 1,309,175 | 1,301,731 |
| Accumulated other comprehensive income | 220,954 | 60,470 |
| Retained earnings | 4,139,717 | 3,242 |
| TOTAL STOCKHOLDERS' EQUITY | 5,672,198 | 1,367,516 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $35,667,332 | $19,057,338 |
| China Green Energy Industries, Inc. | ||
| (Formerly TradeOn, Inc.) | ||
| Consolidated Statements of Income and Comprehensive Income | ||
| For the years ended December 31, 2010 and 2009 | ||
| Year ended December 31, | ||
| 2010 | 2009 | |
| Revenues | $ 28,589,395 | $ 12,092,837 |
| Cost of revenues | (20,398,286) | (8,550,998) |
| Gross profit | 8,191,109 | 3,541,839 |
| Operating expenses: | ||
| General and administrative expenses | (2,031,956) | (902,136) |
| Selling expenses | (649,198) | (303,965) |
| (2,681,154) | (1,206,101) | |
| Income from operations | 5,509,955 | 2,335,738 |
| Interest income | 345,745 | 65,506 |
| Other income - Note 15 | 183,722 | 88,980 |
| Finance costs - Note 16 | (472,307) | (331,785) |
| Income before income taxes | 5,567,115 | 2,158,439 |
| Income taxes - Note 17 | (1,430,640) | (539,610) |
| Net income | $ 4,136,475 | $ 1,618,829 |
| Other comprehensive income (loss) | ||
| Foreign currency translation adjustments | 160,484 | (2,784) |
| Total comprehensive income | $ 4,296,959 | $ 1,616,045 |
| Earnings per share | ||
| - Basic | $0.19 | $0.08 |
| - Diluted | $0.19 | $0.08 |
| Weighted average number of shares outstanding | ||
| - Basic | 22,311,915 | 20,734,531 |
| - Diluted | 22,311,915 | 20,734,531 |