NEW YORK and BEIJING, May 17, 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 third quarter ended March 31, 2011.
Mr. Kun Liu, chief executive officer of China Lithium Technologies, commented, "We are pleased to report another strong quarter with revenue increasing 27.8% to $3.4 million and gross margins increasing 77 basis points to 38.4%. The improvement in both revenue and gross margin reflects our shift in focus to higher margin product categories, including our battery chargers and battery modules. This increase in higher margin sales was partially offset by stock-based compensation expense to attract and retain key employees, as well as an increase in our administrative expenses as a newly public company. We have established a very solid foundation and anticipate benefitting from significant operating leverage as we continue to grow."
Mr. Kun Liu continued, "Looking ahead, we are well positioned to benefit from the trend toward electric vehicles. Our battery management technology is at the forefront of the industry and seamlessly allows the replacement of lead-acid battery with lithium-ion batteries, without further modification to the vehicle. This is just one of many important differentiators for our technology, and we continue to enhance our capabilities to address rapid changes in the technology arena."
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.
| CHINA LITHIUM TECHNOLOGIES, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| ASSETS | March 31, 2011 | June 30, 2010 |
| (Unaudited) | ||
| Current Assets: | ||
| Cash and Cash Equivalents | $ 2,864,970 | $ 2,761,427 |
| Accounts Receivable | 4,596,655 | 4,054,189 |
| Other Accounts Receivable | 55,489 | 48,621 |
| Advanced to Suppliers | 30,011 | 12,297 |
| Inventory | 1,497,566 | 786,013 |
| Prepaid Expenses | 61,594 | 68,169 |
| Total Current Assets | 9,106,285 | 7,730,716 |
| Plant & Equipment, net | 621,626 | 261,811 |
| Patent and Other Intangibles, net | 69,393 | 72,907 |
| Total Assets | 9,797,304 | 8,065,434 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | March 31, 2011 | June 30, 2010 |
| (Unaudited) | ||
| Current Liabilities: | ||
| Accounts Payable | 1,311,605 | 1,832,512 |
| Advance from Customers | 3,440 | 3,329 |
| Payroll Payable | 63,960 | 57,186 |
| Tax Payable | 144,016 | 310,989 |
| Other Accounts Payables | 9,645 | 4,495 |
| Accrued Expenses | 46,573 | 45,074 |
| Loan from Shareholders | 193,407 | 83,492 |
| Warranty Accrual | 321,462 | 237,374 |
| Total Current Liabilities | 2,094,108 | 2,574,452 |
| Total Liabilities | 2,094,108 | 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 March 31, 2011 | -- | -- |
| Common Stock, par value $0.001, 783,000,000 shares authorized; 20,159,811 shares issued and outstanding as of June 30, 2010, 21,659,811 shares issued and outstanding, including 1,500,000 unvested restricted stock award, as of March 31, 2011 | 21,659 | 20,159 |
| Additional Paid in Capital | 1,387,117 | 252,771 |
| Reserved Funds | 467,186 | 467,186 |
| Accumulated Other Comprehensive Income | 326,203 | 98,594 |
| Retained Earnings | 5,501,030 | 4,652,272 |
| Total Stockholders' Equity | 7,703,195 | 5,490,982 |
| Total Liabilities and Stockholders' Equity | $ 9,797,304 | $ 8,065,434 |
| CHINA LITHIUM TECHNOLOGIES, INC. | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
| (UNAUDITED) | ||||
| Three Months Ended March 31 | Nine Months Ended March 31 | |||
| 2011 | 2010 | 2011 | 2010 | |
| Revenues | $ 3,361,885 | $ 2,631,041 | $ 11,334,652 | $ 10,059,560 |
| Cost of Goods Sold | 2,070,107 | 1,640,307 | 7,237,284 | 6,854,846 |
| Gross Profit | 1,291,778 | 990,734 | 4,097,368 | 3,204,715 |
| Operating Expenses: | ||||
| Manufacturing Expenses | 64,525 | 51,667 | 181,359 | 144,925 |
| R & D Expenses | 28,326 | 48,930 | 68,321 | 80,260 |
| Sales Expenses | 278,342 | 154,639 | 663,079 | 289,182 |
| General and Administrative Expenses | 610,516 | 195,907 | 1,659,122 | 476,311 |
| Total Operating Expenses | 981,709 | 451,143 | 2,571,880 | 990,677 |
| Income from Operations before Other Income and (Expenses) | 310,069 | 539,592 | 1,525,488 | 2,214,037 |
| Other Expenses and (Income): | ||||
| Financial Expenses (Income) | (7,722) | -- | (19,352) | 229 |
| Other Expenses (Income) | (5,942) | 15 | (6,531) | (1,237) |
| Total Other Expenses and (Income) | (13,663) | 15 | (25,884) | (1,008) |
| Income Before Income Taxes | 323,732 | 539,577 | 1,551,371 | 2,215,046 |
| Provision For Income Taxes | 153,538 | 134,894 | 702,613 | 554,400 |
| Net Income | 170,194 | 404,683 | 848,758 | 1,660,646 |
| Other Comprehensvie Income: | ||||
| Unrealized Gain (loss) on Foreign Currency Translation | 25,640 | 142 | 227,609 | 35,704 |
| Comprehensive Income | $ 195,834 | $ 404,825 | $ 1,076,367 | $ 1,696,350 |
| Earnings Per Common Share - Basic and Diluted | $ 0.01 | $ 0.02 | $ 0.05 | $ 0.08 |
| Weighted Average Common Share - Basic and Diluted | 20,159,811 | 20,159,811 | 20,159,811 | 20,159,811 |