Sino Assurance Inc. Reports First Quarter 2010 Results
SHENZHEN, China, May 11 /PRNewswire-Asia-FirstCall/ -- Sino Assurance Inc. (OTC: SNAS) today reported its first quarter results ended March 31, 2010. Sino Assurance's net income was $585,697 and EPS was $0.01, compared with $14,749 or $0.00 in the first quarter of 2009.
First-Quarter Financial Results
During the first quarter of 2010, the Company's revenues totaled $1,894,270, up 160% versus $727,416 in the first quarter of last year. Higher balances of cash advance guarantee services contributed the largest share of the growth in total revenue during the first quarter. Gross profit margin for the quarter was 82% up from 74% in the first quarter of 2009. The increase reflected the growing demand for credit services, success of bank facility arrangement and effective cost control measures.
Income from operations reached $765,942 in the first quarter of 2010 compared with $19,847 in the same period in 2009 driven by growth in net revenue and lower level of insurance claims. GAAP diluted earnings per share for the first quarter of 2010 was $0.01, compared with $0.00 for the first quarter in 2009.
Financial Outlook
Our management believes that sustained growth in revenue and earnings will be largely associated with the demands for the financial services, primarily in the form of credit guaranty. Other expected drive elements include company's new personal credit products and services as well as potential impact of the regulatory governance in credit guaranty market.
Revenue projection for whole year 2010 is between $14 million and $15 million, and expected EPS for 2010 is between $0.08 and $0.09.
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as 'will,' 'believes,' 'expects' or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov .
SINO ASSURANCE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2010 AND DECEMBER 31, 2009
(Currency expressed in United States Dollars ("US$"),
except for number of shares)
March 31, 2010 December 31, 2009
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 86,284 $ 559,105
Restricted cash 6,727,309 5,817,191
Guarantee fee receivable 104,454 790
Prepayments and other receivable 237,695 197,984
Loans receivable 4,437,646 3,268,244
Total current assets 11,593,388 9,843,314
Non-current assets:
Plant and equipment, net 361,481 275,232
TOTAL ASSETS $ 11,954,869 $ 10,118,546
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Accounts payable, trade $ 9,079 $ 7,004
Customer collateral 4,642,194 3,729,734
Deferred revenue 478,001 364,636
Amount due to related parties 59,592 59,582
Income tax payable 62,007 29,113
Deferred tax liabilities 459,811 345,577
Accrued liabilities and other payable 652,356 576,768
Total current liabilities 6,363,040 5,112,414
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 200,000,000
shares authorized; 60,000,000 shares issued
and outstanding as of March 31, 2010 and
December 31, 2009 60,000 60,000
Additional paid-in capital 2,915,121 2,915,121
Accumulated other comprehensive income 172,859 172,065
Statutory reserve 158,314 158,314
Retained earnings 2,285,535 1,700,632
Total stockholders' equity 5,591,829 5,006,132
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 11,954,869 $ 10,118,546
SINO ASSURANCE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
(Currency expressed in United States Dollars ("US$"))
(Unaudited)
Three months ended March 31,
2010 2009
REVENUES, NET
Guarantee fee income $ 1,871,679 $ 711,282
Interest income 22,591 16,134
Total revenues, net 1,894,270 727,416
COST OF REVENUE (345,901) (189,529)
GROSS PROFIT 1,548,369 537,887
Operating expenses:
Depreciation (29,524) (20,582)
Selling, general and administrative (645,249) (442,686)
Reserve for guarantee losses (107,654) (54,772)
Total operating expenses (782,427) (518,040)
INCOME FROM OPERATIONS 765,942 19,847
Other income (expense):
Other income -- 3
Other expense -- (7,214)
INCOME BEFORE INCOME TAXES 765,942 12,636
Income tax expense (181,039) (1,453)
NET INCOME $ 584,903 $ 11,183
Other comprehensive income:
- Foreign currency translation gain 794 3,566
COMPREHENSIVE INCOME $ 585,697 $ 14,749
Net income per share - basic and diluted $ 0.01 $ 0.00
Weighted average shares outstanding during
the period - basic and diluted 60,000,000 60,000,000
SINO ASSURANCE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
(Currency expressed in United States Dollars ("US$"))
(Unaudited)
Three months ended March 31,
2010 2009
Cash flows from operating activities:
Net income $ 584,903 $ 11,183
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Depreciation 29,524 20,582
Loss on disposal of plant and equipment -- 2,764
Reserve for guarantee losses 107,654 54,772
Unrealized interest income (20,561) (14,811)
Deferred tax expense 114,180 1,453
Changes in operating assets and liabilities:
Guarantee fee receivable (103,666) 2,725
Prepayments and other receivable (39,680) (42,374)
Accounts payable, trade 2,074 25,724
Deferred revenue 113,308 (29,803)
Income tax payable 32,890 --
Accrued liabilities and other payable (32,159) (114,304)
Net cash provided by (used in) operating
activities 788,467 (82,089)
Cash flows from investing activities:
Change in restricted cash, net of customer
collateral 2,677 122,698
Payment on loans receivable (1,148,332) --
Proceeds from disposal of plant and
equipment -- 616
Purchase of plant and equipment (115,730) --
Net cash (used in) provided by investing
activities (1,261,385) 123,314
Effect of exchange rate changes in cash and
cash equivalents 97 121
NET CHANGE IN CASH AND CASH EQUIVALENTS (472,821) 41,346
CASH AND CASH EQUIVALENT, BEGINNING OF
PERIOD 559,105 90,158
CASH AND CASH EQUIVALENT, END OF PERIOD $ 86,284 $ 131,504
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid for income taxes $ 29,118 $ --
Cash paid for interest $ -- $ --
SOURCE Sino Assurance Inc.
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