NEW YORK and HARBIN, China, Sept. 29, 2010 (GLOBE NEWSWIRE) -- China Digital Animation Development, Inc. (OTCBB:CHDA) today provided a business update and announced financial results for its fiscal year ended June 30, 2010.
Mr. Fu Qiang, Chairman and Chief Executive Officer, commented, "We are pleased to report that China Digital Animation had a milestone year in which we realized our vision to become a streamlined entity focused on creating the best in digital animation. As a result, China Digital's animation services revenue grew an impressive 45% in fiscal 2010 to $5.1 million versus $3.6 million in fiscal 2009."
The company completed a number of key projects in 2010. They include post-production effects on Mooh Brothers and I Have a Dream, production services on Kitty Brocci, post-production animation on Fireman Sam and post-production animation of Q Dog and Red Square.
China Digital is currently working on 39 episodes for a fantasy series called Tritans in joint production with the Monstrous Studio in Singapore. These shows will be distributed in three languages worldwide: Chinese, English and Malay.
Revenue for fiscal 2010 totaled $6.1 million versus $6.0 million in fiscal 2009. The company derived 84% of its revenue from animation activities versus 60% of revenue from these activities in fiscal 2009. Gross profit for the year was $4.4 million, about even with fiscal 2009. The IT network installation business was terminated in fiscal 2009 and the online financial information delivery service at the beginning of 2010. Eliminating these divisions enabled China Digital Animation to reduce general and administrative expenses by 14% and selling expense by 6% year-over-year. The company's income from operations grew by 8%, even though overall revenue increased by only 1%, reflecting the discontinuation of IT systems and financial data services. Net income was approximately $2.5 million or $0.13 per share, versus $2.5 million or $0.13 per share in fiscal 2009.
As of June 30, 2010, the company had cash and cash equivalents of $6.2 million, working capital of $6.7 million, no long-term debt, and shareholders' equity of $14.7 million.
About China Digital Animation Development, Inc.
China Digital Animation Development, Inc. is a premier China-based digital animation development company, operating in Harbin (one of the largest animation development centers in China) as well as Beijing in The People's Republic of China. The Company also has an administrative office in New York City. The Company is engaged in animation post-stage processing, animation outsourcing, and information transmission services. The Company also operates an animation development skills training center located in Harbin, China, which provides its students with different types of animation skill training programs such as motion graphics, product modeling, character animation, and more. The Company's technical team has extensive experience in animation production and outsourcing.
Safe Harbor Statement
In addition to historical information, this press release 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 Digital Animation Development, 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 Section 1A: "Risk Factors" In the Company's Annual Report on Form 10-K for the year ended June 30, 2010. Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.
| CHINA ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
| JUNE 30, | ||
| 2010 | 2009 | |
| Revenues | $6,087,486 | $6,014,045 |
| Cost of Goods Sold | 1,657,885 | 1,638,764 |
| Gross Profit | 4,429,601 | 4,375,281 |
| Operating Expenses: | ||
| Sales Expenses | 322,859 | 342,488 |
| General and Administrative Expenses | 1,021,721 | 1,186,617 |
| Total Operating Expenses | 1,344,581 | 1,529,106 |
| Income from Operations before other Income and (expenses) | 3,085,020 | 2,846,175 |
| Other Income and (Expense): | ||
| Interest income | -- | 73,516 |
| Gains from Disposal of Fixed Assets | -- | 239,745 |
| Gain from Investment | 275,006 | 219,036 |
| Other expense | (26) | (103,715) |
| Total Other Income and (Expense) | 274,980 | 428,581 |
| Income Before Income Taxes | 3,360,001 | 3,274,757 |
| Provision For Income Taxes | 898,662 | 823,142 |
| Net Income | 2,461,339 | 2,451,614 |
| Other Comprehensive Items: | ||
| Unrealized Gain on Foreign Currency Translation | 111,955 | 116,491 |
| Net Comprehensive Income | $2,573,294 | $2,568,105 |
| Earnings Per Common Share-Basic and Diluted | $0.13 | $0.13 |
| Weighted Average Common Share - Basic and Diluted | 20,020,000 | 20,002,000 |
|
CHINA ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES |
||
| CONSOLIDATED BALANCE SHEETS | ||
| 2010 | 2009 | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $6,219,438 | $2,282,786 |
| Accounts receivable, net | 976,304 | 1,388,599 |
| Employee advances | 3,616 | 2,234 |
| Advanced to suppliers | -- | 1,443,440 |
| Interest receivable | -- | 54,786 |
| Prepaid expenses | -- | 84,202 |
| Total Current Assets | 7,199,358 | 5,256,047 |
| Non-current Assets | ||
| Property, plant & equipment, net | 5,575,027 | 3,929,257 |
| Land use right and other intangible assets, net | 2,756,604 | 1,106,870 |
| Long term investment | -- | 2,191,457 |
| Total Non-current Assets | 8,331,630 | 7,227,584 |
| Total Assets | $15,530,988 | $12,483,631 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $34,338 | $29,219 |
| Payroll payable | 6,648 | -- |
| Tax payable | 410,339 | 214,471 |
| Accrued expenses and other payable | 50,391 | 64,964 |
| Total Current Liabilities | 501,717 | 308,654 |
| Long-Term Liabilities: | ||
| Loan payable | 286,000 | 5,000 |
| Total Long-Term Liabilities | 286,000 | 5,000 |
| Total Liabilities | 787,717 | 313,654 |
| Stockholders' Equity: | ||
|
Common Stock, par value $0.001, 500,000,000 authorized 20,020,000 shares issued and outstanding |
20,020 | 20,020 |
| Additional Paid in Capital | 6,223,697 | 6,223,697 |
| Accumulated other comprehensive income | 1,873,933 | 1,761,978 |
| Reserved Fund | 705,738 | 341,524 |
| Retained Earnings | 5,919,884 | 3,822,758 |
| Total Stockholders' Equity | 14,743,271 | 12,169,977 |
| Total Liabilities and Stockholders' Equity | $15,530,988 | $12,483,631 |