NEW YORK and BEIJING, Nov. 24, 2010 (GLOBE NEWSWIRE) -- China Lithium Technologies Inc. (OTCBB:CLTT), a leading lithium-ion battery module, lithium-ion battery charger and lithium-ion battery management system manufacturer and distributor, today announced financial results for the fiscal first quarter ended September 30, 2010.
Mr. Kun Liu, chief executive officer of China Lithium Technologies, commented, "We are extremely pleased with the dramatic increase in sales of our battery modules, which illustrates the broad demand and rapid market acceptance for our technology. Our revenue was relatively flat as we deliberately culled sales of lower margin lithium-ion batteries and battery packs. As a result of the shift in our product mix, our gross profit increased by 30%, while our gross margin increased over 900 basis points."
"Demand for lithium-ion batteries continues to grow due to their inherent advantages, including high energy-to-weight ratios, lack of memory effect, and slow self-discharge when not in use; and yet, the industry requires new technologies to address the traditional challenges presented by lithium-ion batteries that prevent more widespread adoption. Specifically, when lithium-ion batteries are combined into battery packs, they encounter energy loss as a result of the imbalanced charge and discharge of multiple lithium-ion battery cells. Additionally, temperature changes will shorten the life of lithium-ion battery. Through research and development, we have developed an efficient battery management system that balances the process of charging and discharging multiple lithium-ion battery cells and adjusts the charging frequency to accommodate temperature changes."
"We believe we now offer the most advanced battery modules, battery management systems, and charging systems for lithium-ion batteries in the market today, including our new Lithium Magic Cube product series, which received high accolades at the recent Import and Export Exhibition in Guangzhou, the largest consumer products exhibition in China. These products can be used with varying voltage and capacity and easily integrated into electric automobiles through parallel connections. Our technology also makes it possible to seamlessly upgrade an automobile from lead-acid batteries to lithium-ion batteries, and represents a major advancement in electronic vehicle technology."
Mr. Kun Liu concluded, "Looking ahead, we believe our technology will enable broader adoption of lithium-ion batteries and battery systems. We believe we are at the forefront of this industry and our expanded R&D efforts will enable us to strengthen our lead. We now have four patent applications pending and we expect to begin obtaining approval on these patents in mid 2011. We are extremely excited about the outlook for the business and look forward to providing our shareholders with regular business updates."
About China Lithium Technologies Inc
China Lithium Technologies is a leading designer, manufacturer and distributor of polymer lithium-ion battery modules, lithium-ion battery chargers, lithium-ion battery management systems, as well as other lithium-ion battery management devices essential to proper power utilization. The company has also developed an efficient battery management system that balances the process of charging and discharging multiple lithium-ion battery cells, and which adjusts the charging frequency to temperature changes in the ambient environment. The company's products are widely distributed and used in electric automobiles, motorcycles and bicycles in China.
In addition to historical information, this press releases contains forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. These forward-looking statements represent Management's belief as to the future of Eastern Environment Solutions, Corp. Whether those beliefs become reality will depend on many factors that are not under Management's control. Many risks and uncertainties exist that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the section entitled "Risk Factors." Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.
| CONSOLIDATED BALANCE SHEETS | ||
| FOR THE PERIOD ENDED SEPTEMBER 30, 2010 AND YEAR ENDED JUNE 30, 2010 | ||
| ASSETS |
SEPTEMBER 30, 2010 |
JUNE 30, 2010 |
| Current Assets: | ||
| Cash and cash equivalents | $2,498,846 | $2,761,427 |
| Accounts Receivable | 5,049,839 | 4,054,189 |
| Other Accounts Receivable | 56,823 | 48,621 |
| Advanced to suppliers | 21,704 | 12,297 |
| Inventory | 672,412 | 786,013 |
| Prepaid Expenses | 45,268 | 68,169 |
| Total Current Assets | 8,344,893 | 7,730,716 |
| Plant & Equipment, net | 258,710 | 261,811 |
| Patent and other intangibles, net | 73,637 | 72,907 |
| Total Assets | 8,677,240 | 8,065,434 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts Payable | 1,702,035 | 1,832,512 |
| Advance from customers | 3,383 | 3,329 |
| Payroll payable | 56,022 | 57,186 |
| Tax Payable | 247,137 | 310,989 |
| Other Accounts Payables | 3,542 | 4,495 |
| Accrued expenses | 45,808 | 45,074 |
| Loan from shareholders | 123,638 | 83,492 |
| Sales Guarantee Accrual | 275,749 | 237,374 |
| Total Current Liabilities | 2,457,314 | 2,574,452 |
| Long-Term Liabilities: | ||
| Long Term Loan | -- | -- |
| Total Long-Term Liabilities | -- | -- |
| Total Liabilities | 2,457,314 | 2,574,452 |
| Stockholders' Equity: | ||
|
Preferred Stock, par value $0.001, 20,000,000 authorized 0 share issued and outstanding 780,000,000 shares authorized, 20,159,811 issued and outstanding |
20,159 | 20,159 |
| Additional Paid in Capital | 252,771 | 252,771 |
| Reserved Funds | 467,186 | 467,186 |
| Accumulated other comprehensive income | 197,279 | 98,594 |
| Retained Earnings | 5,282,530 | 4,652,271 |
| Total Stockholders' Equity | 6,219,925 | 5,490,981 |
| Total Liabilities and Stockholders' Equity | $8,677,240 | $8,065,434 |
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||
| FOR THE THREE MONTHS ENDED SEPTEMBER, 30, 2010 AND 2009 | ||
|
Three Months Ended September 30, |
||
| 2010 | 2009 | |
| Revenues | $3,704,678 | $3,923,046 |
| Cost of Goods Sold | 2,400,654 | 2,920,031 |
| Gross Profit | 1,304,024 | 1,003,015 |
| Operating Expenses: | ||
| Manufacturing Expenses | 62,485 | 26,901 |
| R & D Expenses | 20,320 | 10,715 |
| Sales Expenses | 249,855 | 65,700 |
| General and Administrative Expenses | 128,380 | 129,517 |
| Total Operating Expenses | 461,038 | 232,833 |
| Income from Operations before other Income and (expenses) | 842,985 | 770,181 |
| Other Expense and (Income): | ||
| Financial Expenses | (3,504) | 229 |
| Other Expenses | 182 | (1,199) |
| Total Other Income and (Expense) | (3,323) | (970) |
| Income Before Income Taxes | 846,308 | 771,152 |
| Provision For Income Taxes | 216,048 | 192,788 |
| Income After Provision for Income Taxes | 630,260 | 578,364 |
| Other Comprehensive Income; | ||
| Unrealized Gain (loss) on Foreign Currency Translation | 98,685 | 35,423 |
| Net Comprehensive Income | $728,945 | $613,787 |
| Earnings Per Common Share-Basic and Diluted | 0.03 | 0.03 |
| Weighted Average Common Share -- | ||
| Basic and Diluted | 20,159,811 | 20,159,811 |