NEW YORK and HARBIN, China, Aug. 27, 2010 (GLOBE NEWSWIRE) -- American Jianye Greetech Holdings, Ltd. (OTCBB:AJGH), a leading China-based developer, manufacturer and distributor of alcohol-based automobile fuels and civil-use fuels, including methanol, ethanol, and blended fuels, today announced financial results for the three and six months ended June 30, 2010.
Q2 2010 financial highlights:
- Revenue of $22.9 million versus $9.6 million for Q1 2010 and $0.0 million for Q2 2009
- Gross profit of $2.9 million versus $1.5 million for Q1 2010 and $0.0 million for Q2 2009
- Operating income of $2.9 million versus $1.4 million for Q1 2010 and $0.0 million for Q2 2009
- Net income of $2.1 million, or $0.07 per share, versus $1.1 million, or $0.03 per share for Q1 2010 and $0.0 million for Q2 2009
Mr. Haipeng Wang, Chairman and Chief Executive Officer, stated, "We are extremely pleased to announce record revenue and net income for the second quarter of 2010. Our revenue increased sequentially by 138% versus the first quarter of 2010. We attribute this improvement to our expanded sales and marketing initiatives and growing demand for methanol-based and ethanol-based fuels. Our alcohol-based fuels burn with higher efficiency and significantly lower toxic waste emissions than unleaded gasoline. Additionally, due to the lower costs of the raw materials used in the manufacturing process, the cost of these fuels is, on average, about 20-30% less than comparable unleaded gasoline in China."
"Overall, we see demand for these fuels continuing to increase as China encourages the use of alcohol fuel as a substitute for gasoline. It is estimated that by 2010 the annual production capacity of domestic alcohol-based automobile fuel in China will reach 2 million tons. In China alone, there are approximately 35 million cars on the road today and experts predict that number will reach 120 million by 2020. At the same time, worldwide demand for alcohol fuel is increasing, due to the limited supply and the high costs of gasoline. We believe we are extremely well positioned to capitalize on these trends due to our strong industry relationships and established distribution channels. This fact is best illustrated by our growth from a startup in 2009 to now generating over $30 million of sales in the first 6 months of this year alone."
Mr. Haipeng Wang concluded, "The next phase of our growth entails not only distributing, but also manufacturing alcohol-based fuels. Our plan is to construct fuel producing facilities in Tieling City, Liaoning Province and another in the Guangxi Zhuang Autonomous Region of Southern China. As a vertically integrated manufacturer and distributor, we believe we can further reduce the cost of these fuels and provide an even more compelling value proposition for the end customer. We look forward to providing regular updates to our shareholders regarding this strategy in the coming months."
Revenue for the second quarter ended June 30, 2010 was $22.9 million, compared to $0 for the second quarter ended June 30, 2009, reflecting the commencement of operations in September 2009. Gross profit was $2.9 million for the three months ended June 30, 2010. Operating income was $2.9 million for the three months ended June 30, 2010. Net income for the three months ended June 30, 2010 was $2.1 million, or $0.07 per diluted share.
Revenue for the six months ended June 30, 2010 was $32.6 million, compared to $0 for the six months ended June 30, 2009, reflecting the commencement of operations in September 2009. Gross profit was $4.5 million for the six months ended June 30, 2010. Operating income was $4.3 million for the six months ended June 30, 2010. Net income for the six months ended June 30, 2010 was $3.2 million, or $0.10 per diluted share.
About American Jianye Greentech Holdings
American Jianye Greentech Holdings, headquartered in Harbin, China, is a leading developer, manufacturer and distributor of alcohol-based fuel. The company's alcohol-based fuels burn with higher efficiency and significantly lower toxic waste emissions than unleaded gasoline. The unique combination of catalysts in the fuel enhance fuel octane rating and engine power, inhibit the premature oxidation of the fuel, help remove sediment in the carburetor, and prevent the erosion of the engine cylinder surface. Additional information about the company is available at: www.americanjianyegroup.com.
Forward Looking Statements
This release contains certain "forward-looking statements" relating to the business of the Company. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
| AMERICAN JIANYE GREENTECH HOLDINGS, LTD. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
|
June 30, 2010 |
December 31, 2009 |
|
| (Unaudited) | ||
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | 149,028 | 80,366 |
| Accounts receivable, net | 12,115,538 | 9,698,078 |
| Other current assets | 142,887 | 75,059 |
| 12,407,453 | 9,853,503 | |
| Property and Equipment | 1,833,440 | 841 |
| Deposits | 160,861 | 146,700 |
| Total Assets | 14,401,754 | 10,001,044 |
| Liabilities and Stockholders' Equity | ||
| Current Liabilities | ||
| Accounts payable | 5,642,261 | 6,089,600 |
| Accounts payable- related parties | -- | 2,304,098 |
| Accrued expenses | 175,345 | 32,693 |
| Income tax payable | 2,002,542 | 314,511 |
| Due to related parties | 327,293 | 266,582 |
| Due to shareholders | 2,038,816 | -- |
| Total liabilities | 10,186,257 | 9,007,484 |
| Stockholders' Equity | ||
|
Common stock, $0.001 par value, 394,500,000 shares authorized, 31,100,770 shares issued and outstanding as of June 30, 2010 and December 31, 2009 |
31,101 | 31,101 |
|
Preferred stock, $0.001 par value, 5,500,000 shares authorized, 0 shares issued and outstanding |
-- | -- |
| Additional paid-in capital | 18,899 | 18,899 |
| Other comprehensive income | 13,707 | 218 |
| Retained earnings | 4,151,790 | 943,342 |
| Total stockholders' equity | 4,215,497 | 993,560 |
| Total Liabilities and Stockholders' Equity | 14,401,754 | 10,001,044 |
| AMERICAN JIANYE GREENTECH HOLDINGS LTD. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| For the Six Months Ended | For the Three Months Ended | |||
| 30-Jun-10 | 30-Jun-09 | 30-Jun-10 | 30-Jun-09 | |
| Sales | 32,571,833 | $ -- | 22,943,933 | $ -- |
| Cost of sales | 28,105,265 | -- | 19,994,978 | -- |
| Gross profit | 4,466,568 | -- | 2,948,955 | -- |
| Operating expenses: | ||||
| Selling, general and administrative | 164,081 | -- | 65,232 | -- |
| Income from operations | 4,302,487 | -- | 2,883,723 | -- |
| Provision for income taxes | 1,094,039 | -- | 739,333 | -- |
| Net Income | 3,208,448 | -- | 2,144,390 | -- |
| Other comprehensive income | ||||
| Foreign currency translation adjustment | 13,489 | -- | 7,699 | -- |
| Comprehensive income | $ 3,221,937 | $ -- | 2,152,089 | $ -- |
| Net Income Per Share -- | ||||
| Basic and Diluted | $ 0.10 | $ -- | 0.07 | $ -- |
| Weighted Average Shares Outstanding: | ||||
| Basic and Diluted | 31,100,770 | 28,000,000 | 31,100,770 | 0 |
| AMERICAN JIANYE GREENTECH HOLDINGS, LTD. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (Unaudited) | ||
| For the Six Months Ended | ||
| 30-Jun-10 | 30-Jun-09 | |
| Cash flows from operating activities | ||
| Net income | $ 3,208,448 | $ -- |
|
Adjustments to reconcile net income to net cash used in operating activities: |
||
| Depreciation expense | 4,784 | |
| Changes in assets and liabilities: | ||
| Increase in accounts receivable | (2,367,633) | |
| Increase in other current assets | (67,255) | |
| Increase in deposits | (14,055) | |
| Increase in accounts payable | (471,110) | |
| Increase in accrued expenses | 141,969 | |
| Increase in income tax payable | 1,680,259 | |
| Net cash provided by operating activities | 2,115,407 | -- |
| Cash flows from investing activities | ||
| Purchases of property and equipment | (1,830,370) | |
| Net cash used in investing activities | (1,830,370) | -- |
| Cash flows from financing activities | ||
| Advances from related parties | (2,245,564) | |
| Amount due to shareholders | 2,031,581 | |
| Net cash used in financing activities | (213,983) | -- |
| Effect of exchange rate changes on cash and cash equivalent | (2,392) | -- |
| Net increase in cash and cash equivalents | 71,054 | -- |
| Cash and cash equivalents | ||
| Beginning | 80,366 | -- |
| Ending | $ 149,028 | $ -- |
| Supplemental disclosure of cash flows | ||
| Cash paid during the period for: | ||
| Interest paid | $ -- | $ -- |
| Income tax | $ 372,598 | $ -- |