NEW YORK and BEIJING, Oct. 14, 2011 (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 fourth quarter and full year ended June 30, 2011.
Mr. Kun Liu, chief executive officer of China Lithium Technologies, commented, "For the fiscal year ended June 30, 2011, we achieved revenue growth of 11.9% to $15.8 million and gross profit improvement of 27.3%. In the fourth quarter alone, our revenue increased 18.2% and our gross profit increased 30.7%. The improvement was due, in part, to pricing increases and additional customers. We added six new customers that accounted for 8% of our total revenue for the year. We also made a change in our product mix by eliminating battery packs, which have lower gross margins. Instead, we are now focusing on higher-margin battery modules, power supplies and chargers."
"As a newly-public company, we incurred additional expenses associated with the change in our status which impacted our bottom line. Net income for 2011 was $1.3 million compared to $2.4 million in fiscal 2010. Demand for electric vehicles has dramatically increased recently and we expect favorable trends to continue, placing us in an excellent position to benefit from the popularity of these vehicles. Our goal is to continue to increase market share while expanding our relationships with existing customers."
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 China Lithium Technologies Inc. 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.
(tables follow)
| CONSOLIDATED BALANCE SHEETS | ||
| ASSETS | June 30, 2011 | June 30, 2010 |
| Current Assets: | ||
| Cash and Cash Equivalents | $ 2,649,523 | $2,761,427 |
| Accounts Receivable | 5,612,622 | 4,054,189 |
| Other Accounts Receivable | 54,413 | 48,621 |
| Advances to Suppliers | 29,180 | 12,297 |
| Inventories | 972,867 | 786,013 |
| Prepaid Expenses | 417,133 | 68,169 |
| Total Current Assets | 9,735,739 | 7,730,716 |
| Property, Plant and Equipment, net | 777,732 | 261,811 |
| Patent and Other Intangibles, net | 68,396 | 72,907 |
| Total Assets | 10,581,867 | 8,065,434 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | June 30, 2011 | June 30, 2010 |
| Current Liabilities: | ||
| Accounts Payable | 870,204 | 1,832,512 |
| Advance from Customers | 3,159 | 3,329 |
| Payroll Payable | 79,878 | 57,186 |
| Tax Payable | 438,532 | 310,989 |
| Other Accounts Payable | 2,044 | 4,495 |
| Accrued Expenses | 71,089 | 45,074 |
| Loans from Shareholders | 283,638 | 83,492 |
| Short-term Loans | 80,000 | -- |
| Warranty Accrual | $ 198,611 | 237,374 |
| Total Current Liabilities | 2,027,155 | 2,574,452 |
| Total Liabilities | 2,027,155 | 2,574,452 |
| Stockholders' Equity: | ||
| Preferred Stock, par value $0.001, 20,000,000 shares authorized; | ||
| 0 share issued and outstanding as of June 30, 2010 and 2011 | -- | -- |
| Common Stock, par value $0.001, 780,000,000 shares authorized; | ||
| 20,159,811 shares issued and outstanding as of June 30, 2010; | ||
| 21,659,811 shares issued and outstanding, including 1,050,000 | ||
| unvested restricted stock award, as of June 30, 2011 | 21,659 | 20,159 |
| Additional Paid in Capital | 1,532,021 | 252,771 |
| Reserved Funds | 1,043,916 | 467,186 |
| Retained Earnings | 5,369,454 | 4,652,271 |
| Accumulated Other Comprehensive Income | 587,661 | 98,594 |
| Total Stockholders' Equity | 8,554,712 | 5,490,982 |
| Total Liabilities and Stockholders' Equity | $ 10,581,867 | $8,065,434 |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
| FOR THE YEARS ENDED JUNE 30, 2011 AND 2010 | ||
| 2011 | 2010 | |
| (Restated) | ||
| Revenues | $ 15,767,978 | $ 14,089,484 |
| Cost of Goods Sold | 10,011,593 | 9,568,363 |
| Gross Profit | 5,756,385 | 4,521,121 |
| Operating Expenses: | ||
| Manufacturing Expenses | 243,650 | 250,037 |
| R & D Expenses | 329,059 | 114,995 |
| Sales Expenses | 692,792 | 419,547 |
| General and Administrative Expenses | 2,263,776 | 471,414 |
| Total Operating Expenses | 3,529,276 | 1,255,993 |
| Income from Operations before Other Expenses (Income) | 2,227,109 | 3,265,128 |
| Other Expenses (Income): | ||
| Interest Expense (Income), net | (25,328) | -- |
| Other Expenses (Income) | (2,692) | (1,324) |
| Total Other Expenses (Income) | (28,020) | (1,324) |
| Income before Income Taxes | 2,255,129 | 3,266,452 |
| Provision for Income Taxes | 961,217 | 837,486 |
| Net Income | 1,293,912 | 2,428,966 |
| Other Comprehensive Income: | ||
| Unrealized Gain (Loss) on Foreign Currency Translation | 489,067 | 27,207 |
| Comprehensive Income | $ 1,782,980 | $ 2,456,173 |
| Earnings Per Common Share: | ||
| Basic | $ 0.06 | $ 0.12 |
| Diluted | $ 0.06 | $ 0.12 |
| Weighted Average Common Share: | ||
| Basic | 20,609,811 | 19,436,314 |
| Diluted | 21,560,847 | 19,436,314 |