NEW YORK and HARBIN, China, Aug. 11, 2008 (PRIME NEWSWIRE) -- Advanced Battery Technologies, Inc. (Nasdaq:ABAT) today announced financial results for the Company's second quarter and first half ended June 30, 2008.
Financial Highlights for the second quarter 2008 compared to second quarter 2007:
* Revenues increased 53% to $11.7 million * Gross profit increased 63% to $6.0 million * Net income increased 42% to $4.7 million * Fully diluted earning per share increased 42% to $0.09
Mr. Zhiguo Fu, CEO and chairman of ABAT, said, "We are very pleased that we are continuing to demonstrate a strong growth in our earnings; it speaks to the fundamental strength of our business. During the second quarter of 2008, we further improved our production capabilities by maximizing the utilization of our raw materials, while making sure that our production process is even more efficient than before, thanks to the intensive and innovative education that our employees now receive. We are successfully implementing our strategy to pursue the new and rapidly growing large-capacity battery cell market which is currently made up of the electric vehicle, stationary and other large applications. The competition for that market currently is less intense than the small-capacity battery cells markets. We are successfully establishing a footprint in the large-capacity battery cell markets, while at the same time securing market share."
Mr. Fu added: "With our strong cash position and the recently obtained financing, we will immediately start the process of outfitting buildings C and D with state-of-the-art assembly lines made according to our patented specifications. In addition, we will also upgrade our current assembly lines in buildings A and B in order to have those lines yield an extra 25%. Upon completion of buildings C and D and the upgrade of buildings A and B, we expect our production capacity to be approximately 165% greater than it is today."
Revenue for the second quarter of 2008 was $11.7 million, an increase of 53% compared to $7.7 million in the second quarter of 2007. The increase in revenue was due primarily to increased sales volume, especially from the large and medium capacity battery cells. The total revenue from sales of large capacity battery cells used by electric vehicles and other large scale battery applications has reached a record level of $5.9 million -- generating 50% of the total revenue in the second quarter of 2008. Medium capacity battery cells contributed $5.1 million, generating 43% of total revenue in the second quarter of 2008. Sales of small capacity battery cells totaled $800,000, generating 7% of the total revenue in the second quarter of 2008.
Gross profits increased 63% to $6.0 million in the second quarter of 2008 from $3.7 million in the second quarter of 2007. Gross margin reached 51%, compared to 48% in the second quarter of 2007, due to increased utilization of raw materials, improved efficiency of the Company's production process and the improved employee education model. In the second quarter of 2008, the Company's operating income increased to $5.4 million from $3.3 million in the second quarter of 2007. This increase reflects expenses relating to the operation of the Company's production facility in China, as well as expenses incurred by the Company's U.S. offices. These numbers include the expense attributable to the Company's listing on the NASDAQ Capital Market in March 2008. Net income was $4.7 million for the second quarter of 2008 or $0.09 per diluted share, compared to $3.3 million, or $0.07 per diluted share, in the second quarter of 2007.
Balance Sheet:
* As of June 30, 2008, the Company had $22.2 million in cash and cash equivalents on hand, compared to $2.7 million on December 31, 2007.
* Backlog is approximately $58 million as August 7, 2008. These firm orders are due for delivery within the next 18 months.
ABAT's management invites its shareholders, brokers, fund managers, analysts, and all other interested parties to listen in on a telephonic presentation held by management to discuss the Company's second quarter 2008 results, and the Company's overview and future plans. A press release later this week will give all the pertinent information.
ADVANCED BATTERY TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2008 2007
(Unaudited) (Audited)
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $22,177,552 $ 2,704,823
Accounts receivable 7,846,359 16,026,604
Inventory 1,860,909 1,159,474
Other receivables 47,439 84,950
Advance to suppliers 2,409,867 1,608,967
----------- -----------
Total Current Assets 34,342,126 21,584,818
----------- -----------
Property, plant and equipment, net 13,647,662 13,243,236
and 2,016,275 as of December 31, 2007 ----------- -----------
Other assets:
Security deposit 6,000 6,000
Intangible assets, net 1,615,985 1,563,037
Goodwill 2,473,809 2,326,119
----------- -----------
Total other assets 4,095,794 3,895,156
----------- -----------
Total Assets $52,085,582 $38,723,210
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,258,749 $ 406,454
Customer deposits 84,101 75,116
Accrued expenses and other payables 1,484,347 618,173
Loan from officers 1,168,031 735,700
----------- -----------
Total Current Liabilities 3,995,229 1,835,444
Long-term liabilities:
Note payable -- 411,263
----------- -----------
Total Liabilities 3,995,229 2,246,707
----------- -----------
Commitments and Contingencies
Stockholders' Equity
Common stock, $0.001 par value,
60,000,000 shares authorized;
49,722,743 shares issued and
outstanding as of June 30, 2008 and
49,688,998 shares issued and
outstanding as of December 31, 2007 49,723 49,689
Additional paid-in-capital 18,485,257 18,029,891
Accumulated other comprehensive income 5,734,694 3,099,994
Retained earnings 23,820,679 15,296,930
----------- -----------
Total Stockholders' Equity 48,090,353 36,476,504
----------- -----------
Total Liabilities and
Stockholders' Equity $52,085,582 $38,723,210
=========== ===========
ADVANCED BATTERY TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the three and six months ended June 30, 2008 and 2007
Three-Month Ended
June 30,
2008 2007
(Restated)
----------- -----------
Revenues $11,748,284 $ 7,697,363
Cost of Goods Sold 5,776,054 4,023,604
----------- -----------
Gross Profit 5,972,230 3,673,759
51% 48%
Operating Expenses
Selling, general and administrative 579,974 393,589
----------- -----------
Operating income 5,392,256 3,280,170
46% 43%
Other Income (Expenses) 8,526 4,778
----------- -----------
Income Before Income Taxes 5,400,783 3,284,948
Provision for Income Taxes 725,511 --
----------- -----------
Net Income $ 4,675,272 $ 3,284,948
Other Comprehensive Income
Foreign currency translation adjustment 1,043,721 353,534
----------- -----------
Comprehensive Income $ 5,718,993 $ 3,638,482
=========== ===========
Basic and diluted income
per common share $ 0.09 $ 0.07
=========== ===========
Weighted average number of
common shares outstanding 49,709,786 49,627,710
=========== ===========
About Advanced Battery Technologies, Inc.
Advanced Battery Technologies, Inc., founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. ABAT's batteries combine high-energy chemistry with state-of-the-art polymer technology to overcome many of the shortcomings associated with other types of rechargeable batteries. The Company has a New York office, with its executive offices and manufacturing facilities in China. For more information about Advanced Battery Technologies, Inc. (ABAT), please visit: http://www.abat.com.cn
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, risks that the results of future performance will not be consistent with the forward-looking statements, risks that the backlog will not be fulfilled due to reasons of either the Company or the customer, and the risks that the batteries of competitors receive better market acceptance than those of the Company's PLI batteries. We undertake no obligation to revise or update publicly any forward-looking statements.