LOS ANGELES, April 13, 2007 (PRIME NEWSWIRE) -- Tank Sports (OTCBB:TNSP) today announced that after the combined audit of Tank and Redcat Motors, and the filing of SEC form 8-K/A, Tank CEO Jiangyong Ji has made projections for the 2008 fiscal year based on detailed evaluations and analysis of the company after the merger of Tank Sports with Redcat Motors.
After the final audit report was completed, the management team of Tank made analytical evaluations of the current financial status. "The merger of the two companies not only increased Tank's market share, but it also improved the company's operational system, including management, sales, logistics, and increased the variety of our product line," says CEO Jiangyong Ji. "In order to achieve our final goal, we are pursuing our three primary objectives: one, expand and strengthen Tank's dealer network by building our distribution system based on Chinese manufacturing and western style of marketing; two, raise funds and grow via mergers and acquisitions; and three, strengthen the Chinese power sports industry. According to our estimates, the merger with Redcat has accelerated us towards our goal by as much as three years."
The combined company management team has estimated the revenue of the company in FY 2008 can reach $23.18 to $30.00 million with a growth rate of 257% to 333%. Gross profit is estimated to be $5.7 to $7.5 million with a net profit of $1.49 to $3.20 million. CEO Ji emphasized, "Our projected earning per share is $0.046 to $0.10, and we are looking forward to growing with our investors."
(For detailed financial projection and analysis, please see the most recent SEC filing of 8-K/A)
About Tank Sports, Inc.
Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles and scooters, as well as off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes the so-called "China Concept" to participate in the $31.5 billion annually (data: Motor Industry Council) motorcycle/ATV market.
The Tank Sports, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3000
About Redcat Motors
Established in 2001, Redcat Motors is an importer and distributor of off-road power-sports products from China. The company has 5 regional warehouse locations and a dealership network of over 300 dealers. Redcat has revenue of $70,000 per month for parts, and in 2005 the company had a revenue of $19,000,000. With gross profit of $3.40 million, the company realized a net earning of approximately $643,000 in 2005.
Safe Harbor Statement
The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor" for certain forward-looking statements. Forward-looking statements in this news release relating to business developments are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with a small business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.