China Ritar Power Announces Second Quarter Fiscal 2010 Results
SHENZHEN, China, Aug. 16 /PRNewswire-Asia-FirstCall/ -- China Ritar Power Corp. (Nasdaq: CRTP) ("China Ritar" or the "Company"), a leading Chinese manufacturer of innovative nano gel and environmentally friendly batteries, today announced its financial results for the second quarter of fiscal year 2010 ended on June 30, 2010.
Second Quarter Highlights
-- Revenue increased 57% year-over-year to $33.6 million
-- Domestic and international sales accounted for 32% and 68%,
respectively, of total revenue
-- Gross profit increased 34% year-over-year to $5.5 million
-- Net income increased 27% year-over-year to $2.3 million
-- Fully diluted earnings per share were $0.10, up from $0.09 in second
quarter 2009
"We are pleased with our financial results for the quarter. Our growth is the result of continued demand for our lead acid batteries resulting in revenue from domestic and international markets increasing 104% and 41%, respectively," Mr. Jiada Hu, China Ritar's Chairman and Chief Executive Director commented.
Revenue was $33.6 million for the second quarter of 2010, up 57% from revenue of $21.4 million in the second quarter of 2009. This increase in revenue was due to an increase in sales volume of 42% and a 10% increase in the Company's average selling price (ASP). Batteries used for Telecom, alternative energy, UPS and light electronic vehicles (LEV) markets accounted for 25%, 26%, 41% and 8% of total sales of the second quarter of 2010, respectively. International sales represented 68% of total sales with domestic sales representing the balance of 32%.
Gross profit for the quarter increased 35% to $5.5 million from $4.1 million in the same period of 2009. Gross margin for second quarter of 2010 was 16.4% compared to 19.0% in the second quarter of 2009.
Operating expenses were $2.2 million or 6.7% of sales, compared to $1.6 million or 7.5% of sales in the second quarter of 2009.
Operating income for the second quarter was $3.3 million compared to $2.5 million in the second quarter of 2009.
Net income was $2.3 million in the second quarter of 2010, up 27% from $1.8 million in net income from the same period a year ago. Fully diluted earnings per share were $0.10 compared to fully diluted earnings per share of $0.09 in the second quarter of 2009.
Financial Condition
As of June 30, 2010, China Ritar had $14.6 million in cash and equivalents and restricted cash, $44.5 million in working capital and $39.7 million in total liabilities. Shareholders' equity stood at $59.8 million, up from $55.4 million at year end 2009.
Business Outlook
China Ritar Power has been granted a new industrial park by the Hengyang government. The industrial park will be completed during the forth quarter of 2010 and the Company expects to begin installing equipment in the forth quarter of the year. Total number of production lines will increase from 19 to 29.
"We are upbeat on the outlook for 2010 as opportunities in our target niche markets remain robust," commented Mr. Hu. "We have been approved as a qualified supplier for China Unicom and China Mobile and expect to be approved by China Telecom this year."
Conference Call
China Ritar will host a conference call at 8:30 am EDT on Monday, August 16, 2010 to discuss the 2010 second quarter results. To participate in the conference call, please dial the following number fifteen minutes prior to the scheduled conference call time: 866 839 8029. International callers should dial +852 2598 7556 or 10800 6400 091, 10800 2640 090 in China . The pass code for the call is 1083226. If you are unable to participate in the call at this time, a replay will be available on Monday, August 16, 2010 at 11:00 AM ET through Monday, August 23, 2010. To access the replay, dial 866 820 8960, international callers should dial +852 3018 0000 or 800 876 8083 in China. The conference pass code is 1083226. This conference call will be broadcast live over the Internet and can be accessed by all interested parties by clicking on http://ir.ritarpower.com/en/ . Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a 90- day replay will be available shortly after the call by accessing the same link.
About China Ritar Corp.
China Ritar designs, develops, manufactures and markets environmentally friendly, lead acid batteries with a wide range of capacities and applications, including telecommunications, Uninterruptible Power Supply (UPS) devices, Light Electrical Vehicles (LEV), and alternative energy systems (solar and wind power). China Ritar sells, markets and services six series and 197 models of Ritar-branded, cadmium-free valve-regulated lead-acid (VRLA) batteries. Products are sold worldwide with sales in 81 countries including China, India, and numerous markets in Europe and the Americas. Additional information can be found at the Company's website http://www.ritarpower.com .
Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Ritar on its conference call in relation to this release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included herein are forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You 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 and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or 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.
For more information, please contact:
Adam Jigang Sun
Tel: +86-139-1186-1878 (China)
Email: [email protected]
-FINANCIAL TABLES FOLLOW-
CHINA RITAR POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30 December 31
2010 2009
(Unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $9,500,664 $20,459,361
Restricted cash 5,104,315 5,900,649
Accounts receivable, net
of allowances of
$1,121,447 and
$1,115,321 32,749,884 24,920,825
Receivable from sale of
a subsidiary -- 417,387
Due from a former
subsidiary 3,152,997 3,925,348
Inventory 22,201,193 19,484,224
Advance to suppliers 2,876,943 1,643,689
Other current assets 5,063,388 3,915,605
Total current assets 80,649,384 80,667,088
Non-current assets:
Property, plant and
equipment, net 16,793,774 16,248,551
Construction in progress 94,676 136,443
Intangible assets, net 7,094 9,407
Land use right 466,784 468,265
Rental and utility
deposits 379,299 82,439
Deposits for purchase of
property, plant and
equipment 1,010,831 833,760
Deferred income tax
assets 120,171 115,064
Total assets $99,522,013 $98,561,017
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $16,643,818 $16,658,868
Income and other taxes
payable 6,402,807 3,986,935
Accrued salaries 537,623 502,978
Bills payable 6,993,329 13,498,001
Other current
liabilities 2,542,855 2,800,879
Derivative instruments 41,997 --
Current portion of long
term loans 1,349,846 1,342,473
Short-term loans 2,944,872 1,464,515
Total current
liabilities 37,457,147 40,254,649
Long-term loans 2,226,140 2,881,188
Total liabilities 39,683,287 43,135,837
Stockholders' equity:
Preferred stock, $.001
par value, 10,000,000
shares authorized, none
issued and outstanding -- --
Common stock at $.001
par value; authorized
100,000,000 shares
authorized, 21,858,925
and 21,450,238 shares
issued and outstanding 21,859 21,450
Additional paid-in
capital 31,721,124 31,461,723
Retained earnings 24,607,083 20,745,985
Accumulated other
comprehensive income 3,488,660 3,196,022
Total stockholders'
equity 59,838,726 55,425,180
Total liabilities and
stockholders' equity $99,522,013 $98,561,017
CHINA RITAR POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
Six months ended June 30, Three months ended June 30,
2010 2009 2010 2009
CONTINUING OPERATIONS
Net revenue $58,362,748 $37,781,035 $33,554,388 $21,397,374
Cost of sales 48,100,168 30,424,848 28,062,204 17,333,703
Gross profit 10,262,580 7,356,187 5,492,184 4,063,671
Operating expenses:
Salaries 1,136,573 853,334 570,731 458,441
Sales commission 791,834 926,582 260,283 177,358
Shipping and handling
cost 675,840 507,477 390,580 225,531
Other selling and
administrative expenses 2,173,899 1,664,038 1,015,257 740,962
4,778,146 3,951,431 2,236,851 1,602,292
Operating profit 5,484,434 3,404,756 3,255,333 2,461,379
Other income and
(expenses):
Interest income 62,815 65,849 17,988 8,200
Other income 6,402 3,277 6,402 737
Interest expenses (286,574) (313,494) (138,415) (166,070)
Foreign currency exchange
(loss) gain (242,020) 5,089 (175,126) 54,405
Other expenses (3,051) (1,664) (302) (1)
Other expenses, net (462,428) (240,943) (289,453) (102,729)
Income from continuing
operations before income
taxes 5,022,006 3,163,813 2,965,880 2,358,650
Income taxes (1,160,908) (528,479) (689,928) (411,432)
Income from continuing
operations 3,861,098 2,635,334 2,275,952 1,947,218
DISCONTINUED OPERATIONS
Loss from discontinued
operations, net of taxes -- (314,424) -- (160,567)
Net income 3,861,098 2,320,910 2,275,952 1,786,651
Add: Loss from discontinued
operations attributable to
noncontrolling interest -- 15,722 -- 8,028
Net income attributable to
China Ritar shareholders 3,861,098 2,336,632 2,275,952 1,794,679
Other comprehensive income
attributable to
noncontrolling interest -- 3 -- 3
Foreign currency translation
adjustment 292,638 117,938 278,702 10,517
Comprehensive income
attributable to China
Ritar shareholders $4,153,736 $2,454,573 $2,554,654 $1,805,199
Comprehensive loss (income)
attributable to non-
controlling interest -- $(15,725) $-- $(8,031)
Comprehensive income $4,153,736 $2,438,848 $2,554,654 $1,797,168
Earnings per share
attributable to China
Ritar stockholders:
Basic:
- Income from continuing
operations $0.18 $0.14 $0.10 $0.10
- Income (loss) from
discontinued operations -- (0.02) -- (0.01)
- Net income $0.18 $0.12 $0.10 $0.10
Diluted
-Income from continuing
operations $0.18 $0.14 $0.10 $0.10
-Income (loss) from
discontinued operations -- (0.02) -- (0.01)
- Net income $0.18 $0.12 $0.10 $0.09
Weighted average number of
shares outstanding:
- Basic 21,787,179 19,134,992 21,787,179 19,134,992
- Diluted 21,787,179 19,134,992 21,787,179 19,134,992
CHINA RITAR POWER CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Six Months Ended
June 30,
2010 2009
Cash Flows from Continuing
Operating Activities:
Net income $3,861,098 $2,320,910
Loss from discontinued operations,
net of taxes -- 314,424
Income from continuing operations 3,861,098 2,635,334
Adjustments to reconcile net income
to net cash provided by operating
activities:
Deferred income tax assets (4,452) --
Depreciation of property, plant and
equipment 760,166 562,453
Amortization of intangible assets and
land use right 6,384 6,377
Loss (gain) on disposal of property,
plant and equipment 671 (365)
Loss (gain) on derivative instruments 41,787 (23,005)
Changes in operating working capital
items:
Accounts receivable (7,653,633) 3,204,540
Inventory (2,596,870) (2,782,015)
Advance to suppliers (1,303,755) (83,226)
Notes receivable 11,761 (2,195)
Other current assets (714,819) (1,228,918)
Rental and utility deposits (294,919) --
Accounts payable (105,908) 358,680
Income and other tax payable 2,381,978 588,192
Accrued salaries 31,722 (136,233)
Bills payable (6,545,846) 637,495
Other current liabilities (304,617) (815,346)
Net cash (used in) provided by
operating activities (12,429,252) 2,921,768
Cash Flows from Continuing Investing
Activities:
Repayment from (Advance to) a former
subsidiary - Shanghai Ritar 789,933 (1,103,170)
Purchase of property, plant and
equipment (1,184,092) (1,140,133)
Sales proceeds of disposal of
property, plant and equipment 11,868 4,390
Payment of deposit for purchase of
property, plant and equipment (85,963) --
Net cash used in investing activities (468,254) (2,238,913)
Cash Flows from Continuing Financing
Activities:
Proceeds from stock issued for
warrants exercised 259,810 --
Proceeds from bank borrowings 5,860,720 3,091,483
Repayment of bank borrowings (5,063,296) (4,592,848)
Restricted cash 824,592 1,043,812
Net cash provided by (used in)
financing activities 1,881,826 (457,553)
Cash Flows from Discontinued
Operations Activities:
Net cash used in discontinued
operating activities -- (1,125,512)
Net cash provided by discontinued
investing activities -- (14,134)
Net cash provided by discontinued
financing activities -- 1,103,170
Effect of exchange rate changes on
cash -- 293
Change in cash from discontinued
operations -- 36,183
Net cash used in discontinued
operations -- --
Effect of exchange rate changes 56,983 (177,086)
Net (decrease) increase in cash and
cash equivalents (10,958,697) 48,216
Cash and cash equivalents, beginning
of period 20,459,361 7,541,697
Cash and cash equivalents, end of
period $9,500,664 $7,589,913
Supplemental disclosure of cash flow
information
Cash paid for interest $286,574 $313,494
Cash paid for income taxes $281,809 $544,409
Non-cash investing and financing
activities
Issuance of common stock for cashless
exercise of warrants $316 $--
SOURCE China Ritar Power Corp.
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