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China Power Equipment Reports Dramatically Higher Revenues a

新闻来源:K8 发布时间:2019-01-17

XI'AN, China, Nov. 18 /PRNewswire-Asia/ -- China Power Equipment, Inc. ("China Power Equipment," OTC Bulletin Board: CPQQ), the manufacturer of a new generation of energy saving electric transformers and transformer cores in the People's Republic of China, reported dramatically higher revenues and net income for the three months ended September 30, 2009.

Third Quarter 2009 Highlights

-- Net revenues increased 252% to $7.89 million in the 搜狐娱乐third quarter 2009

from $2.24 million in the third quarter 2008.

-- Gross profit increased 280% to $1.96 million in the third quarter 2009

from $0.52 million in the third quarter 2008.

-- Net income increased 516% to $1.41 million in the third quarter 2009

from $0.23 million in the third quarter 2008.

-- Diluted earnings per share increased 350% to $ 0.09 per share in the

third quarter 2009 from $ 0.02 per share in the third quarter 2008.

Net revenues were $7.89 million in the third quarter 2009, up 252% from $2.24 million in the third quarter 2008. Net income was $1.41 million in the third quarter 2009, up 516% from $0.23 million in the third quarter 2008. Diluted earnings per share were $0.09 per share in the third quarter 2009, up 350% from $0.02 per share in third quarter 2008.

Net revenues were $16.48 million in the nine months ended September 30, 2009, up 142% from $6.81 million in the nine months ended September 30, 2008. Net income was $3.05 million in the nine months ended September 30, 2009, up 175% from $1.11 million in the nine months ended September 30, 2008. Diluted earnings per share were $0.20 per share in the nine months ended September 30, 2009, up 186% from $0.07 per share in nine months ended September 30, 2008.

Mr. Yong Xing Song, Chairman of the Board of China Power Equipment, said, "The third quarter 2009 was a dramatic improvement in our financial performance over the third quarter 2008, led by amorphous alloy transformer cores that were up 322 percent in revenues and up 354 percent in gross profit from the third quarter 2008. Amorphous alloy transformers in the third quarter were up 159 percent in revenues and up 169 percent in gross profit from the third quarter 2008. To help fulfill the large increase in our customers' orders, we contracted out some production to a manufacturer for whom we provide technical support.

"Our revenues from silicon steel cores and transformer declined because we have exited that product line to focus on amorphous alloy products as our major product lines and are no longer actively marketing steel core products.

"In addition to higher revenues, our expenses remained under good control and our interest expense was lower, so our net income increased 516 percent to $1.41 million in the third quarter compared with the third quarter 2008.

"We have funded our recent operations mainly through cash generated from operations. We believe our existing cash and cash equivalents will be sufficient to maintain our operations at the present level for at least the next 12 months."

The Chinese government has mandated that in the next few years, China's traditional steel core electric transformers will be gradually replaced by amorphous alloy transformers, because they are far more energy efficient.

For example, a typical amorphous alloy core transformer consumes 150 watts to operate, which is 77.6 percent less electricity than a comparable silicon steel core transformer, which requires 670 watts to operate.

Since an amorphous alloy transformer consumes less electricity, it reduces the need to generate electricity. In turn, less coal is burned to provide the same net electricity to the consumers. The result is lower air pollution. To illustrate the pollution reduction, it is estimated that compared to a silicon steel core transformer with the same capacity, each amorphous alloy core transformer reduces pollutants from coal combustion each year by 3,972 kilograms of carbon dioxide, 120 kilograms of sulfur dioxide, and 60 kilograms of nitrous oxide each year. Both transformers in this comparison are assumed to be operating at 315 kilovolt-amperes while stepping down 10,000 volts to 220 volts, which is the consumer voltage in China.

Mr. Song continued, "China is upgrading to amorphous alloy electric transformers in urban areas, as well as selecting them as it extends and improves electric service in rural regions. As a result, the demand for China Power Equipment's amorphous alloy products is expected to continue to increase."

China Power Equipment, Inc.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2009 2008 2009 2008

Revenues, net $7,893,399 $2,239,265 $16,484,070 $6,805,514

Cost of goods sold (5,931,174) (1,722,363) (12,594,625) (5,034,438)

Gross profit 1,962,225 516,902 3,889,445 1,771,076

Operating expenses:

Selling, general and

administrative expenses 318,471 191,336 743,688 527,129

Stock-based compensation 10,887 -- 10,887 --

Total operating expenses 329,358 191,336 754,575 527,129

Net income (loss) from

operations 1,632,867 325,566 3,134,870 1,243,947

Other income (expenses):

Gain on investment 8,827 9,356 60,200 71,609

Other income 20,465 69,754 371,346 83,690

Interest income 31 999 5,846 3,231

Interest expense -- (42,577) (117) (65,879)

Foreign exchange loss -- -- -- (2,712)

Total other income 29,323 37,532 437,275 89,939

Net income before income

taxes 1,662,190 363,098 3,572,145 1,333,886

Income taxes 250,864 133,953 526,436 226,621

Net income $1,411,326 $229,145 $3,045,709 $1,107,265

Earnings per share-

basic $0.09 $0.02 $0.20 $0.10

Earnings per share-

diluted $0.09 $0.02 $0.20 $0.07

Weighted average common

shares outstanding:

Basic 14,908,313 10,886,413 14,908,313 10,881,652

Diluted 14,908,313 14,908,313 14,908,313 14,903,552

The accompanying notes are an integral part of these financial statements.

China Power Equipment, Inc.

Consolidated Balance Sheets

September 30, December 31,

2009 2008

(Unaudited)

Assets

Current assets

Cash $1,754,576 $1,071,038

Accounts receivable, net 3,107,758 2,013,305

Advances to suppliers 115,925 771,407

Inventory, net 627,574 461,634

Prepaid expenses and other

receivables 321,105 257,700

Total current assets 5,926,938 4,575,084

Related party receivables 22,879 97,248

Property, plant, and equipment, net 3,868,178 3,116,422

Intangible assets, net 409,941 220,742

Long-term investment 253,334 236,384

Deposit on contract rights 1,316,251 1,313,064

Deposit for purchase of equipment 767,813 --

Prepaid capital lease 112,851 116,694

Total assets $12,678,185 $9,675,638

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable $545,483 $710,480

Accrued liabilities and other

payables 409,529 409,040

Advances from customers 32,758 142,156

Lease payable-- current portion 1,949 1,944

Note payable 58,500 58,358

Value-added tax payable 118,916 64,686

Income taxes payable 379,613 235,262

Related party payable 1,170 1,167

Total current liabilities 1,547,918 1,623,093

Long-term liabilities

Lease payable- noncurrent portion 117,612 117,327

Total long-term liabilities 117,612 117,327

Shareholders' equity

Preferred stock: par value $0.001 per

share, 10,000,000 shares authorized;

none issued and outstanding at

September 30, 2009 and December 31,

2008 -- --

Common stock: par value $0.001 per

share, 100,000,000 shares

authorized; 14,908,313 shares issued

and outstanding at September 30,

2009 and December 31, 2008 14,908 14,908

Additional paid-in capital 7,186,928 7,176,041

Statutory surplus reserve fund 202,665 202,665

Retained earnings (Accumulated

deficit) 2,582,738 (462,971)

Accumulated other comprehensive

income 1,025,416 1,004,575

Total shareholders' equity 11,012,655 7,935,218

Total liabilities and shareholders'

equity $12,678,185 $9,675,638

The accompanying notes are an integral part of these financial statements.

China Power Equipment, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

Nine Months Ended

September 30,

2009 2008

Cash Flows from Operating Activities

Net income $3,045,709 $1,107,265

Adjustments to reconcile net income

to net cash:

Depreciation expense 150,202 152,912

Amortization expense 30,692 24,654

Stock-based compensation 10,887 --

Provision of bad debts -- 51,778

Gain on investment (60,200) (71,609)

Changes in operating assets and

liabilities:

Accounts receivable (1,089,566) 298,076

Advances to suppliers 657,035 80,416

Inventory (164,502) (397,721)

Prepaid expenses and other

receivables (62,763) 15,952

Accounts payable (166,641) (179,271)

Accrued expenses and other payables (567) (289,664)

Value added tax payable 54,115 (114,327)

Income taxes payable 143,776 62,790

Advances from customers (109,599) 140,440

Net cash provided by (used in)

operating activities 2,438,578 881,691

Cash Flows from Investing Activities

Acquisitions of property, plant, and

equipment (17,681) (49,214)

Addition in construction in progress (872,341) --

Acquisitions of intangible assets (219,301) --

Deposit for purchase of equipment (767,420) --

Repayment from related parties 74,582 119,612

Dividend from equity interest

subsidiary 43,860 --

Net cash provided by (used in)

investing activities (1,758,301) 70,398

Cash Flows from Financing Activities

Repayment to related parties -- (217,942)

Repayment to short-term loans -- (1,116,312)

Net cash provided by (used in)

financing activities -- (1,334,254)

Effect of exchange rate changes on

cash and cash equivalents: 3,261 98,199

Increase (decrease) in cash and cash

equivalents 683,538 (283,966)

Cash and cash equivalents, beginning

of period 1,071,038 1,073,895

Cash and cash equivalents, end of

period $1,754,576 $789,929

Supplemental disclosure of cash flow

information

Interest paid in cash $117 $112,051

Income taxes paid in cash $382,660 $166,386

Non-cash investing and financing

activities:

Issuance of stocks for advance from

investor -- $100,000

Dividend receivable from equity

interest subsidiary -- $72,962

Reclass long-term investment to

advance to suppliers -- $718,100

The accompanying notes are an integral part of these financial statements.

About China Power Equipment, Inc.

China Power Equipment, Inc., through its wholly-owned subsidiary, Xi'an Amorphous Zhongxi Co., Ltd., has developed a proprietary patented technology to produce a new generation of energy saving transformers and transformer cores. The company currently manufactures 59 different products, primarily amorphous transformers in four product series that are sold throughout China. The company was formed in 2006 as a U.S. corporation, and in November 2006, created a Chinese subsidiary that was granted a license as a privately held wholly owned foreign enterprise by the Chinese government.

Safe harbor

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China.

Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at http://www.sec.gov .

We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.

For more information on China Power Equipment please visit our website at http://www.chinapower-equipment.com .

本文源自: 环亚娱乐



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