NEW YORK and HARBIN, China, Nov. 17, 2009 (GLOBE NEWSWIRE) -- China Digital Animation Development, Inc. (OTCBB:CHDA) today provided a business update and announced financial results for its fiscal first quarter ended September 30, 2009.
Mr. Qiang Fu, Chairman and Chief Executive Officer, commented, "Our decision to refocus our company on digital animation has proven to be a successful strategic move, as illustrated by a 54% year-over-year increase in revenue from these services. Demand for high-end special effects for film, television and Internet productions is strong and we are at a competitive advantage given our extraordinary and highly recognized team of digital animation experts, many of whom have worked together since 2003. The strength of our team is evidenced by the number and quality of high profile projects we have been involved with over the past year, including production services for Animal Planet, post production animation services for 26 episodes of Les Miserables, and 32 episodes of Red Square under subcontract from Beijing Wanfang Xinxing Digital Animation, Inc., as well as other projects. We are currently developing 39 episodes of a fantasy series called Tritans through joint production with the Monstrous Studio of Singapore. Activity is brisk for China Digital Animation and demand for our services continues to grow as evidenced by our strong pipeline of new projects."
Mr. Fu continued, "We are staffing up to meet demand for our animated services. There is a shortage of skilled animation technicians in China, so earlier this year we set up a school for animation training where students pay to attend a course of instruction lasting from 30 to 60 days, after which qualified students are invited to join our studio." Mr. Fu continued, "We see a lucrative future in digital animation, especially in the area of 3-D, and we are taking strategic steps to help ensure a prominent position in the industry. The government has set up an Animation Development Area in Heilongjiang Province where we have established our new state-of-the-art facilities. We believe we are in an ideal position to be a key industry player in the years ahead as we continue to build our portfolio of top quality projects and attract top talent in the industry."
Revenue for the first quarter of fiscal 2010 totaled $1.1 million versus $1.1 million in the first quarter of fiscal 2009. Revenue from animation design and development increased approximately 54% to $1.0 million, while the company shifted its focus away from financial information services. Gross profit was $0.9 million versus $0.9 million in the same period last year, reflecting an increase in revenue from animation design and development, offset by a decrease in financial information services. Net income was $577,011, or $0.03 per share versus $613,364, or $0.03 per share in the first quarter of last year.
As of September 30, 2009, the company had cash and cash equivalents of $2.6 million, working capital of $4.9 million, no long-term debt, and shareholders' equity of $12.8 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, 2009. 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
(Unaudited)
Three Months Ended
September 30,
2009 2008
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Revenues $ 1,143,915 $ 1,133,934
Cost of Goods Sold 221,352 173,465
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Gross Profit 922,564 960,469
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Operating Expenses:
Sales Expenses 64,631 54,210
General and Administrative Expenses 169,612 97,928
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Total Operating Expenses 234,243 152,139
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Income from Operations before other
Income and (expenses) 688,321 808,330
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Other Income and (Expense):
Interest income 84,595 7,085
Loss from Disposal of Fixed Assets (26)
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Total Other Income and (Expense) 84,570 7,085
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Income Before Income Taxes 772,890 815,415
Provision For Income Taxes 195,879 215,177
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Income from Continuing Operations 577,011 600,239
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Discontinued Operations
Loss from Operations of
discontinued Component -- (661)
Less :Taxes -- 0
------------ ------------
Loss from discontinued operations -- (661)
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Minority Interest -- (13,786)
------------ ------------
Net Income $ 577,011 $ 613,364
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Basic and diluted income per share 0.03 0.03
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Weighted average common
shares outstanding 20,000,000 20,000,000
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CHINA ANIMATION DEVELOPMENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited) (Audited)
------------ ------------
Sept. 30, June 30,
2009 2009
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ASSETS
Current Assets:
Cash and cash equivalents $ 2,635,808 $ 2,282,786
Accounts Receivable, net 1,091,188 1,388,599
Employee advances 2,223 2,234
Advanced to suppliers 1,254,826 1,443,440
Interest Receivable 137,110 54,786
Prepaid Expenses 79,854 84,202
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Total Current Assets 5,201,009 5,256,047
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Non-current Assets
Property, Plant & Equipment, net 4,635,827 3,929,257
Land use right and other
intangible assets, net 1,086,917 1,106,870
Long Term Investment 2,193,752 2,191,457
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Total Non-current Assets 7,916,496 7,227,584
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Total Assets $ 13,117,505 $ 12,483,631
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LIABILITIES
Current Liabilities:
Accounts Payable $ 70,539 $ 29,219
Tax Payable 199,681 214,471
Accrued expenses and other payable 56,230 64,964
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Total Current Liabilities 326,449 308,654
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Long-Term Liabilities:
Loan Payable 31,000 5,000
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Total Long-Term Liabilities 31,000 5,000
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Total Liabilities 357,449 313,654
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Stockholders' Equity:
Common Stock, par value
$0.001, 500,000,000 authorized
20,000,000 shares issued
and outstanding 20,000 20,000
Additional Paid in Capital 6,223,717 6,223,717
Accumulated other
comprehensive income 1,775,045 1,761,978
Reserved Fund 341,524 341,524
Retained Earnings 4,399,769 3,822,758
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Total Stockholders' Equity 12,760,055 12,169,977
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Total Liabilities and
Stockholders' Equity $ 13,117,504 $ 12,483,631
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