NEW YORK and HARBIN, China, April 28, 2011 (GLOBE NEWSWIRE) -- American Jianye Greentech 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 year ended December 31, 2010.
2010 financial highlights:
- Revenue of $92.8 million versus $9.7 million for 2009
- Gross profit of $12.4 million versus $1.3 million for 2009
- Net income of $8.8 million, or $0.28 per share, versus $943,342, or $0.03 per share in 2009
Mr. Haipeng Wang, Chairman and Chief Executive Officer, stated, "We are extremely pleased to report an 853% increase in sales to $92.8 million. Not only have we achieved strong year-over-year growth, we but we also achieved strong sequential growth each quarter in 2010. These impressive results clearly illustrate the growing demand for our high-quality, alcohol-based fuels. These fuels are lower cost than petroleum fuels and burn with higher efficiency as well as significantly lower toxic waste emissions due to our proprietary and patented catalysts. Most important, unlike conventional fuel blends that are unable to exceed 15% alcohol content, our fuels can go up to 85% alcohol without any modification to the automobile engine or gas station equipment."
"In response to the growing demand for our fuels, we are in the process of building two new production facilities. These facilities are strategically located in the north, within Tieling, and in the south, within Guangxi. These two production facilities will have combined capacity of more than 400,000 tons per year. Once operating at full capacity, we believe these facilities can support close to $200 million per year each, with 10% operating profit margins. We expect the Guangxi facility to commence operations during the first half of 2011, followed by the Tieling facility, which should commence operations by the end of 2011."
Revenue for the year ended December 31, 2010 was $92.8 million, compared to $9.7 million for the year ended December 31, 2009. Gross profit was $12.4 million for the year ended December 31, 2010 compared to $1.3 million for 2009. Net income for 2010 was $8.8 million, or $0.28 per diluted share, compared to $943,342, or $0.03 per diluted share for 2009.
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. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| December 31, | December 31, | |
| 2010 | 2009 | |
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | 655,640 | 80,366 |
| Accounts receivable, net | 198,239 | 9,698,078 |
| Prepaid construction costs | 18,718,399 | -- |
| Notes receivable for stock subscription | 510,000 | -- |
| Other current assets | 38,165 | 75,059 |
| 20,120,443 | 9,853,503 | |
| Property, plant and equipment | 4,857,036 | 841 |
| Deposits for acquisition of a land use right | 1,668,740 | -- |
| Other deposits | -- | 146,700 |
| Total Assets | 26,646,219 | 10,001,044 |
| Liabilities and Stockholders' Equity | ||
| Current Liabilities | ||
| Accounts payable | 10,458,783 | 6,089,600 |
| Accounts payable- related parties | 792,457 | 2,304,098 |
| Accrued expenses | 382,751 | 32,693 |
| Income tax payable | 3,757,791 | 314,511 |
| Due to related parties | 178,055 | 266,582 |
| Due to a shareholder | 107,922 | -- |
| Total liabilities | 15,677,759 | 9,007,484 |
| Stockholders' Equity | ||
|
Common stock, $0.001 par value, 394,500,000 shares authorized, 32,010,148 and 31,100,770 fully-paid shares issued and outstanding as of December 31, 2010 and 2009 respectively |
32,010 | 31,101 |
|
1,100,000 and 0 unpaid shares issued and outstanding as of December 31, 2010 and 2009 respectively |
1,100 | -- |
|
Preferred stock, $0.001 par value, 5,500,000 shares authorized, 0 shares issued and outstanding |
-- | -- |
| Additional paid-in capital | 926,890 | 18,899 |
| Accumulated other comprehensive income | 261,489 | 218 |
| Retained earnings | 9,746,971 | 943,342 |
| Total stockholders' equity | 10,968,460 | 993,560 |
| Total Liabilities and Stockholders' Equity | 26,646,219 | 10,001,044 |
| AMERICAN JIANYE GREENTECH HOLDINGS LTD. | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| For the Year Ended | ||
|
December 31, 2010 |
December 31, 2009 |
|
| Sales | $92,834,176 | $9,740,392 |
| Cost of sales | 80,411,956 | 8,391,981 |
| Gross profit | 12,422,220 | 1,348,411 |
| Operating expenses: | ||
| Selling, general and administrative | 583,793 | 90,622 |
| Income from operations | 11,838,427 | 1,257,789 |
| Provision for income taxes | 3,034,798 | 314,447 |
| Net Income | 8,803,629 | 943,342 |
| Other comprehensive income | ||
| Foreign currency translation adjustment | 261,271 | -- |
| Comprehensive income | $9,064,900 | $943,342 |
| Net Income Per Share-- | ||
| Basic and Diluted | $0.28 | $0.03 |
| Weighted Average Shares Outstanding: | ||
| Basic and Diluted | 31,465,277 | 28,407,773 |
| AMERICAN JIANYE GREENTECH HOLDINGS, LTD. | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| For the Year Ended | ||
|
December 31, 2010 |
December 31, 2009 |
|
| Cash flows from operating activities | ||
| Net income | $8,803,629 | $943,342 |
| Adjustments to reconcile net income to net cash | ||
| used in operating activities: | ||
| Depreciation expense | 323 | -- |
| Changes in assets and liabilities: | ||
| Accounts receivable | 9,614,815 | (9,696,095) |
| Other current assets | 38,698 | (75,043) |
| Other deposits | 38,302 | (146,670) |
| Accounts payable | 2,481,551 | 8,391,981 |
| Accrued expenses | 340,885 | 32,671 |
| Income tax payable | 3,345,941 | 314,447 |
| Net cash provided by operating activities | 24,664,144 | (235,367) |
| Cash flows from investing activities | ||
| Capital contribution | -- | 50,000 |
| Construction in process | (4,734,604) | -- |
| Prepaid construction costs | (18,251,305) | -- |
| Deposit payment for land use right | (1,517,036) | -- |
| Purchases of property, plant and equipment | (704) | (841) |
| Net cash used in investing activities | (24,503,649) | 49,159 |
| Cash flows from financing activities | ||
| Advances from related parties | (95,994) | 119,857 |
| Amount due to a shareholder | 105,291 | 146,670 |
| Subscription receivable | (510,000) | -- |
| Issuance of common stock | 910,000 | -- |
| Net cash used in financing activities | 409,297 | 266,527 |
| Net increase in cash and cash equivalents | 569,792 | 80,319 |
| Effect of exchange rate changes on cash and cash equivalent | 5,482 | 47 |
| Cash and cash equivalents | ||
| Beginning | 80,366 | -- |
| Ending | $655,640 | $80,366 |