KAIFENG, China, March 12 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (Nasdaq: CVVT) ("China Valves" or the "Company"), a leading metal valve manufacturer with operations in the People's Republic of China (the "PRC"), today announced net income guidance for fiscal year 2010.
The Company expects to achieve approximately $40 million in net income for fiscal year 2010, representing a 74% increase from the Company's 2009 net income guidance of $23 million. The guidance includes the impact of the acquisition of Hanwei Valve, which the Company expects to close in March 2010, but does not include the impact of any additional potential acquisitions. The guidance excludes any non-cash stock compensation charges associated with the make good provisions in the Company's private placement financing in August 2008. For the nine months ended September 30, 2009, the Company recorded $11.3 in non-cash stock compensation expenses.
"This guidance reflects our strong backlog, the quick ramp up of our expanded production capacity throughout 2009 and strong relationships with high-profile customers in core end-user industries such as water supply and power generation," said Siping Fang, Chief Executive Officer of China Valves. "As we successfully closed the acquisitions of Yangzhou Rock and Able Delight Changsha Valve in the beginning of the year, and further expect to close Hanwei Valve by the end of this quarter, we believe we are well positioned to achieve this significant growth in net income in 2010."
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co, Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., Tai Zhou Tai De Valve Co., Ltd., Yangzhou Rock Valve Lock Technology Co., Ltd., and Able Delight (Changsha) Valve Co., Ltd., is engaged in development, manufacture and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries. The Company has one of the best-known brand names in China's valve industry, and its history can be traced back to 1959 when it was formed as a state-owned enterprise. The Company develops valve products by extensive research and development and owns a number of patents. It enjoys significant domestic market shares and exports to Asia and Europe. For more information, visit http://www.cvalve.com .
Safe Harbor Statements
Any statements set forth above that are not historical facts are forward- looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise. This press release was developed by China Valves, and is intended solely for informational purposes and is not to be construed as an offer or solicitation of an offer to buy or sell the Company's stock. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by China Valves to be accurate, nor does China Valves purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
For more information, please contact: China Valves Technology, Inc. Ray Chen, VP of Investor Relations Phone: +1-650-281-8375 +86-139-2527-9478 Email: [email protected] Web: http://www.cvalve.com CCG Investor Relations Linda Salo, Sr. Financial Writer Phone: +1-646-922-0894 Email: [email protected] Crocker Coulson, President Phone: +1-646-213-1915 Email: [email protected] Web: http://www.ccgirasia.com
SOURCE China Valves Technology, Inc.