NEW YORK and HARBIN, China, Nov. 17, 2010 (GLOBE NEWSWIRE) -- American Jianye Greentech Holdings, Ltd. (OTCBB:AJGH), a leading China-based developer, manufacturer and distributor of alcohol-based automobile fuels and civil-use fuels, including methanol, ethanol, and blended fuels, today announced financial results for the third quarter ended September 30, 2010.
Q3 2010 financial highlights:
- Revenue of $24.8 million versus $22.9 million for Q2 2010 and $0.0 million for Q3 2009
- Gross profit of $3.3 million versus $2.9 million for Q2 2010 and $0.0 million for Q3 2009
- Net income of $2.5 million, or $0.08 per share, versus $2.1 million, or $0.07 per share, for Q2 2010 and $0.0 million for Q2 2009
Mr. Haipeng Wang, Chairman and Chief Executive Officer stated, "We are pleased to announce that the third quarter of 2010 has been another record quarter for American Jianye. Our revenue continued increasing sequentially, this time a full 8.3% higher than our already strong second quarter of 2010. We achieved these impressive results due to growing demand for our high-quality, alcohol-based fuels. These fuels are lower cost than petroleum fuels and burn with higher efficiency as well as significantly lower toxic waste emissions due to our proprietary and patented catalysts. We can provide customized blended fuels with alcohol content ranging between 15% and 85% depending upon the needs of the customer. And unlike conventional alcohol blends, our fuels do not require any modification to the automobile engine or gas station equipment—a major competitive advantage."
Mr. Haipeng Wang continued, "As China's economy and the number of domestic automobiles continues to grow, the demand for fuel has increased dramatically. This, in turn, has inspired a growing number of Chinese fuel distributors to promote alcohol-blended fuel. American Jianye has a strong position within this fast-growing industry as a result of its cutting-edge technology and established sales channels. As evidence, we achieved a number of major milestones this past quarter. First, the Harbin City Government is considering our recommendation to reduce its emissions of greenhouse gas by means of requiring taxis and buses to use American Jianye's alcohol-based fuels. Secondly, the Harbin City Government has supported our proposal to officially promote American Jianye Clean Fuel in the city of Harbin."
"Additionally, our clean fuel took part in tests in Australia, performed by the Australia Race Car Association, under the sponsorship of the Ford Company. In these objective third-party tests, a car using American Jianye's clean fuel performed a full 2 seconds faster than the same car using a leading competitor's fuel."
"Finally, we announced the opening of our first gas station in Tieling, located a short distance from our fuel refinery. By establishing our own gas stations, devoted to promoting American Jianye fuels, we are able to raise awareness of our brand while capturing additional margin."
"In response to the growing demand for our fuels, we are in the process of building two new production facilities. These facilities are strategically located in the north, within Tieling, and in the south, within Guangxi. These two production facilities will have combined capacity of more than 400,000 tons per year. Once operating at full capacity, we believe these facilities can support close to $200 million per year each, with 10% operating profit margins. We expect the Guangxi facility to commence operations during the first quarter of 2011, followed by the Tieling facility, which should commence operations by end of 2011."
Mr. Haipeng Wang concluded, "As a result of our rapid growth, our investment in new production facilities, and the need to cover raw material costs upfront, our working capital has been constrained. Nevertheless, we have successfully kept 20% of our DSOs to less than 30 days with the remaining 80% at less than 60 days, which is better than the industry average and we have complete confidence in the quality of our receivables given the size and reputation of our customers. Looking ahead, we see our balance sheet and cash flow continuing to improve and we remain extremely confident in our prior guidance of at least $90 million in sales and net income of more than $9 million, or $0.29 per share."
Revenue for the third quarter ended September 30, 2010 was $24.8 million, compared to $0 for the third quarter ended September 30, 2009. Gross profit was $3.3 million for the three months ended September 30, 2010. Net income for the three months ended September 30, 2010 was $2.5 million, or $0.08 per diluted share.
Revenue for the nine months ended September 30, 2010 was $57.3 million, compared to $0 for the nine months ended September 30, 2009. Gross profit was $7.8 million for the nine months ended September 30, 2010. Net income for the nine months ended September 30, 2010 was $5.7 million, or $0.18 per diluted share.
About American Jianye Greentech Holdings
American Jianye Greentech Holdings, headquartered in Harbin, China, is a leading developer, manufacturer and distributor of alcohol-based fuel. The company's alcohol-based fuels burn with higher efficiency and significantly lower toxic waste emissions than unleaded gasoline. The unique combination of catalysts in the fuel enhance fuel octane rating and engine power, inhibit the premature oxidation of the fuel, help remove sediment in the carburetor, and prevent the erosion of the engine cylinder surface. Additional information about the company is available at: www.americanjianyegroup.com.
Forward Looking Statements
This release contains certain "forward-looking statements" relating to the business of the Company. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
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AMERICAN JIANYE GREENTECH HOLDINGS, LTD CONDENSED CONSOLIDATED BALANCE SHEETS |
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September 30, 2010 |
December 31, 2009 |
||
| Assets | (Unaudited) | ||
| Current Assets | |||
| Cash and cash equivalents | 24,761 | 80,366 | |
| Accounts receivable, net | 17,703,614 | 9,698,078 | |
| Other current assets | 136,722 | 75,059 | |
| 17,865,097 | 9,853,503 | ||
| Property and Equipment | 2,605,709 | 841 | |
| Deposits | 161,047 | 146,700 | |
| Total Assets | 20,631,853 | 10,001,044 | |
| Liabilities and Stockholders' Equity | |||
| Current Liabilities | |||
| Accounts payable | 8,059,155 | 6,089,600 | |
| Accounts payable- related parties | -- | 2,304,098 | |
| Accrued expenses | 163,508 | 32,693 | |
| Income tax payable | 2,568,165 | 314,511 | |
| Due to related parties | 357,934 | 266,582 | |
| Due to shareholders | 2,842,230 | -- | |
| Total liabilities | 13,990,992 | 9,007,484 | |
| Stockholders' Equity | |||
|
Common stock, $0.001 par value, 394,500,000 shares authorized, 31,100,770 shares issued and outstanding as of September 30, 2010 and December 31, 2009 |
31,101 |
31,101 |
|
|
Preferred stock, $0.001 par value, 5,500,000 shares authorized, 0 shares issued and outstanding |
- | - | |
| Additional paid-in capital | 18,899 | 18,899 | |
| Other comprehensive income | (12,861) | 218 | |
| Retained earnings | 6,603,722 | 943,342 | |
| Total stockholders' equity | 6,640,861 | 993,560 | |
| Total Liabilities and Stockholders' Equity | 20,631,853 | 10,001,044 | |
| AMERICAN JIANYE GREENTECH HOLDINGS LTD. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (Unaudited) | ||
| For the Three Months Ended | ||
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September 30, 2010 |
September 30, 2009 |
|
| Sales | $ 24,812,027 | $ 300 |
| Cost of sales | 21,488,984 | 90 |
| Gross profit | 3,323,043 | 210 |
| Operating expenses: | ||
| Selling, general and administrative | 44,692 | 3,435 |
| Income from operations | 3,278,351 | $ (3,225) |
| Provision for income taxes | 822,050 | -- |
| Net Income | 2,456,301 | $ (3,225) |
| Other comprehensive income | ||
| Foreign currency translation adjustment | 82,405 | -- |
| Comprehensive income | $ 2,538,706 | $ (3,225) |
| Net Income Per Share-- | ||
| Basic and Diluted | $ 0.08 | $ (0.0004) |
| Weighted Average Shares Outstanding: | ||
| Basic and Diluted | 31,100,770 | 8,343,000 |
| AMERICAN JIANYE GREENTECH HOLDINGS LTD. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (Unaudited) | ||
| For the Nine Months Ended | ||
|
September 30, 2010 |
September 30, 2009 |
|
| Sales | $57,340,164 | $ 3,800 |
| Cost of sales | 49,556,124 | 540 |
| Gross profit | 7,784,040 | 3,260 |
| Operating expenses: | ||
| Selling, general and administrative | 208,979 | 12,841 |
| Income from operations | 7,575,061 | (9,581) |
| Provision for income taxes | 1,914,681 | -- |
| Net Income | 5,660,380 | $ (9,581) |
| Other comprehensive income | ||
| Foreign currency translation adjustment | 117,771 | -- |
| Comprehensive income | $ 5,778,151 | $ (9,581) |
| Net Income Per Share-- | ||
| Basic and Diluted | $ 0.18 | $ ( 0.0011) |
| Weighted Average Shares Outstanding: | ||
| Basic and Diluted | 31,100,770 | 8,343,000 |
| AMERICAN JIANYE GREENTECH HOLDINGS, LTD. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (Unaudited) | ||
| For the Nine Months Ended | ||
|
September 30, 2010 |
September 30, 2009 |
|
| Cash flows from operating activities | ||
| Net income | $ 5,660,380 | $ (9,581) |
| Adjustments to reconcile net income to net cash used in operating activities: | ||
| Depreciation expense | 9,677 | 288 |
| Changes in assets and liabilities: | ||
| Increase in accounts receivable | (7,668,693) | (2,000) |
| Increase in other current assets | (59,061) | -- |
| Increase in deposits | (13,695) | -- |
| Increase in accounts payable | 1,811,105 | 5,003 |
| Increase in accrued expenses | 127,878 | |
| Increase in income tax payable | 2,208,123 | (710) |
| Net cash provided by operating activities | 2,075,714 | (7,000) |
| Cash flows from investing activities | ||
| Purchases of property and equipment | (2,569,320) | |
| Net cash used in investing activities | (2,569,320) | -- |
| Cash flows from financing activities | ||
| Advances from related parties | (2,226,802) | |
| Amount due to shareholders | 2,795,494 | 7,000 |
| Net cash used in financing activities | 568,692 | 7,000 |
| Effect of exchange rate changes on cash and cash equivalent | (130,691) | -- |
| Net increase in cash and cash equivalents | 75,086 | -- |
| Cash and cash equivalents | ||
| Beginning | 80,366 | 383 |
| Ending | $ 24,761 | $ 383 |
| Supplemental disclosure of cash flows | ||
| Cash paid during the period for: | ||
| Interest paid | $ -- | $ -- |
| Income tax | $ 1,096,983 | $ -- |