LOS ANGELES, May 7, 2007 (PRIME NEWSWIRE) -- Tank Sports, Inc. (OTCBB:TNSP) Vice President Mr. Wei Luo today briefs on the integration progress of the company's post-acquisition of Redcat Motors.
"Integration is an on-going process since we obtained 100% ownership of Redcat on Jan. 30th," said Mr. Luo, "we have constructed a consolidation plan for the merger, which has been in execution since February. The accounts payable reorganization has been done to facilitate a more efficient operation. The connections with the product suppliers in China have been further enhanced. In March, we initiated the integrations of ERP system. Combination of dealer network, products and parts mix on website was also completed. After the acquisition, the first shipment of Redcat ATVs from China started to arrive in five warehouses. In April, consolidation of ERP system has completed. We've also cut staffing redundancies to avoid overlapping duties and save expenses. Compared to right after the merger, employee headcount was reduced by 16.3% and payroll expenses by approximately 8.9% (un-audited)."
According to un-audited statistics, with the addition of Redcat, the Company's sales revenues increased 18% in Feb, 20% in March, and 43% in April, compared to the same period of last year. As sales target, the company plans to reach sales revenue of $2,300,000 (un-audited) this June, which is the combined sales revenue of the two companies last June.
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 annual (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 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. 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.