WEIFANG, China, July 11, 2011 /PRNewswire-Asia/ -- Xinde Technology Company (OTCBB: WTFS), a widely respected China based designer and manufacturer of internal combustion engines and parts, primarily for the $100 billion diesel engine and parts market in China, today reported the Company's 6CT/6LT series of diesel engines has been well received in China's domestic market with sales of more than 1000 units since their introduction a little over a year ago in May 2010.
"In fact," stated Mr. Dianjun Liu, President and Chief Executive Officer of the Company, "due to the high performance to cost ratio and rapid adoption of this new line we have been unable to keep up as yet with the strong demand. In particular, our 6CT/6CLT diesel engine series has compared quite favorably with other products in the market, namely the Dongfeng Cummins engines which sell for roughly 20% more than our new engines."
Capacity Increase to 50,000 Units
In May 2010, Xinde also raised $3.1 million to construct a 3,000 square meter workshop dedicated to the production of 6CT/6LT engines, which is now expected to be completed in December 2011. On completion, production capacity for the new combustion engines will increase to 50,000 sets annually.
Mr. Liu commented, "If we are able to sell all the units we can produce, we anticipate sales of our 6CT/6LT line will grow to approximately $62 million. We also anticipate operating profits of roughly $14 million, based on the approximately 25% operating profit currently being generated by sales of these products."
About Xinde Technology Company
Based in China's Shandong Province in the city of Weifang, Xinde Technology Company, with fiscal 2010 revenues of $123 million, competes in three primary product segments, namely (1) fuel injection system products, (2) diesel engine products and (3) generator products. The Company has a broad range of products including non-vehicle diesel engines, diesel generators, injection pumps, injectors and three-coupling components, agricultural machinery and construction machinery which greatly reduces its comprehensive costs which, in turn, increases its competitiveness. The Company's focus is on the domestic market in China, where its customers include several of China's largest companies in the country's most rapidly growing industries. As a consequence, the Company's production volume has been growing approximately 30% annually.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, financing and other factors as discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, In addition, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date hereof. No securities regulatory authority has either approved or disapproved the contents of this new release. This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The Company filings with the US Securities and Exchange Commission, including the quarterly report for the three months ended March 31, 2011 on Form 10-Q, can be viewed on EDGAR Online or www.sec.gov.
SOURCE Xinde Technology Company