NEW YORK and HARBIN, China, May 24, 2011 (GLOBE NEWSWIRE) -- American Jianye Greentech Holdings, Ltd. (OTCQB: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 first quarter ended March 31, 2011.
Q1 2011 financial highlights:
- Revenue of $18.7 million versus $9.7 million for Q1 2010
- Gross profit of $2.9 million versus $1.5 million for Q1 2010
- Net income of $2.1 million, or $0.07 per share, versus $1.1 million, or $0.03 per share, for Q1 2010
Mr. Haipeng Wang, Chairman and Chief Executive Officer, stated, "We are pleased to report another strong quarter with revenue increasing 94% and net income increasing 96% compared to the same period last year. China's growing demand for alcohol-based fuel and strong support for our technology from the government continue to drive both revenue and profits. As a result, we expect another record year in 2011."
"China has recently adopted fuel-efficiency standards for vehicles that are stricter than the U.S. Our unique ability to blend up to 85% alcohol with conventional fuel sets us apart from the competition. Our blended alcohol-based fuels burn with higher efficiency as well as significantly lower toxic waste emissions than traditional fuels. These fuels are also lower cost than traditional petroleum fuels and conventional alcohol blends."
Revenue for the first quarter ended March 31, 2011 was $18.7 million, compared to $9.7 for the quarter ended March 31, 2010. Gross profit was $2.9 million for the three months ended March 31, 2011 compared to $1.5 million for the quarter ended March 31, 2010. Net income for the three months ended March 31, 2011 was $2.1 million, or $0.07 per diluted share compared to $1.1 million, or $0.03 per diluted share, for the same period last year.
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.
(tables follow)
| AMERICAN JIANYE GREENTECH HOLDINGS, LTD. | ||
| CONSOLIDATED BALANCE SHEETS | ||
|
March 31, 2011 |
December 31, 2010 |
|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | 79,019 | 655,640 |
| Accounts receivable, net | 4,278,312 | 198,239 |
| Prepaid construction costs | 18,837,841 | 18,718,399 |
| Notes receivable for stock subscription | -- | 510,000 |
| Due from a shareholder | 577,772 | -- |
| Other current assets | 147,234 | 38,165 |
| 23,920,178 | 20,120,443 | |
| Restricted Cash | 60,000 | -- |
| Property, plant and equipment | 4,887,832 | 4,857,036 |
| Deposits for acquisition of a land use right | 1,679,364 | 1,668,740 |
| Other deposits | -- | -- |
| Total Assets | 30,547,374 | 26,646,219 |
| Liabilities and Stockholders' Equity | ||
| Current Liabilities | ||
| Accounts payable | 15,806,701 | 10,458,783 |
| Accounts payable- related parties | -- | 792,457 |
| Accrued expenses | 392,767 | 382,751 |
| Income tax payable | 1,048,818 | 3,757,791 |
| Due to related parties | 169,440 | 178,055 |
| Due to a shareholder | -- | 107,922 |
| Total liabilities | 17,417,726 | 15,677,759 |
| Stockholders' Equity | ||
| Common stock, $0.001 par value, 394,500,000 shares authorized, | ||
| 33,110,148 and 32,010,148 fully-paid shares issued and | ||
| outstanding as of March 31, 2011 and December 31, 2010 | ||
| respectively | 33,110 | 32,010 |
| 0 and 1,100,000 unpaid shares issued and outstanding as of | ||
| March 31, 2011 and December 31, 2010 respectively | -- | 1,100 |
| Preferred stock, $0.001 par value, 5,500,000 shares | ||
| authorized, 0 shares issued and outstanding | -- | -- |
| Additional paid-in capital | 926,890 | 926,890 |
| Accumulated other comprehensive income | 332,838 | 261,489 |
| Retained earnings | 11,836,810 | 9,746,971 |
| Total stockholders' equity | 13,129,648 | 10,968,460 |
| Total Liabilities and Stockholders' Equity | 30,547,374 | 26,646,219 |
| AMERICAN JIANYE GREENTECH HOLDINGS, LTD. | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| For the three months ended | ||
| March 31, 2011 | March 31, 2010 | |
| Sales | $18,742,380 | $9,654,458 |
| Cost of sales | 15,818,070 | 8,132,783 |
| Gross profit | 2,924,310 | 1,521,675 |
| Operating expenses: | ||
| Selling, general and administrative | 134,233 | 99,090 |
| Income from operations | 2,790,077 | 1,422,585 |
| Provision for income taxes | 700,238 | 355,665 |
| Net Income | 2,089,839 | 1,066,920 |
| Other comprehensive income | ||
| Foreign currency translation adjustment | 71,349 | 363 |
| Comprehensive income | $2,161,188 | $1,067,283 |
| Net Income Per Share-- | ||
| Basic and Diluted | $0.07 | $0.03 |
| Weighted Average Shares Outstanding: | ||
| Basic and Diluted | 31,465,277 | 31,100,770 |
| AMERICAN JIANYE GREENTECH HOLDINGS, LTD. | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| For the three months ended | ||
| March 31, 2011 | March 31, 2010 | |
| Cash flows from operating activities | ||
| Net income | $2,089,839 | $1,066,920 |
| Adjustments to reconcile net income to net cash | ||
| used in operating activities: | ||
| Depreciation expense | 126 | 70 |
| Changes in assets and liabilities: | ||
| Accounts receivable | (4,065,653) | (9,613,010) |
| Increase in prepayment | (274) | |
| Other current assets | (108,475) | (58,993) |
| Other deposits | -- | -- |
| Accounts payable | 4,469,367 | 8,132,783 |
| Accrued expenses | 7,745 | 36,538 |
| Decrease in other current liabilities | (16) | |
| Income tax payable | (2,724,080) | 355,698 |
| Net cash provided by operating activities | (331,405) | (80,010) |
| Cash flows from investing activities | ||
| Restricted Cash | (60,000) | |
| Construction in process | -- | (293,400) |
| Prepaid construction costs | -- | -- |
| Deposit payment for land use right | -- | -- |
| Purchases of property, plant and equipment | -- | |
| Net cash used in investing activities | (60,000) | (293,400) |
| Cash flows from financing activities | ||
| Advances from related parties | (9,718) | 298,972 |
| Amount due from a shareholder | (686,503) | |
| Subscription receivable | 510,000 | -- |
| Issuance of common stock | -- | -- |
| Net cash used in financing activities | (186,221) | 298,972 |
| Net increase in cash and cash equivalents | (577,626) | (74,438) |
| Effect of exchange rate changes on cash and cash equivalent | 1,005 | 75 |
| Cash and cash equivalents | ||
| Beginning | 655,640 | 80,366 |
| Ending | $79,019 | $6,003 |
| Supplemental disclosure of cash flows | ||
| Cash paid during the period for: | ||
| Interest paid | $ -- | $ -- |
| Income tax | $1,136,080 | $ -- |