Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
Search
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News Releases view all

    • News in Focus
        • Browse News Releases

        • All News Releases
        • All Public Company
        • English-only
        • News Releases Overview

        • Multimedia Gallery

        • All Multimedia
        • All Photos
        • All Videos
        • Multimedia Gallery Overview

        • Trending Topics

        • All Trending Topics
    • Business & Money
        • Auto & Transportation

        • Aerospace, Defense
        • Air Freight
        • Airlines & Aviation
        • Automotive
        • Maritime & Shipbuilding
        • Railroads and Intermodal Transportation
        • Supply Chain/Logistics
        • Transportation, Trucking & Railroad
        • Travel
        • Trucking and Road Transportation
        • Auto & Transportation Overview

        • View All Auto & Transportation

        • Business Technology

        • Blockchain
        • Broadcast Tech
        • Computer & Electronics
        • Computer Hardware
        • Computer Software
        • Data Analytics
        • Electronic Commerce
        • Electronic Components
        • Electronic Design Automation
        • Financial Technology
        • High Tech Security
        • Internet Technology
        • Nanotechnology
        • Networks
        • Peripherals
        • Semiconductors
        • Business Technology Overview

        • View All Business Technology

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Financial Services & Investing

        • Accounting News & Issues
        • Acquisitions, Mergers and Takeovers
        • Banking & Financial Services
        • Bankruptcy
        • Bond & Stock Ratings
        • Conference Call Announcements
        • Contracts
        • Cryptocurrency
        • Dividends
        • Earnings
        • Earnings Forecasts & Projections
        • Financing Agreements
        • Insurance
        • Investments Opinions
        • Joint Ventures
        • Mutual Funds
        • Private Placement
        • Real Estate
        • Restructuring & Recapitalization
        • Sales Reports
        • Shareholder Activism
        • Shareholder Meetings
        • Stock Offering
        • Stock Split
        • Venture Capital
        • Financial Services & Investing Overview

        • View All Financial Services & Investing

        • General Business

        • Awards
        • Commercial Real Estate
        • Corporate Expansion
        • Earnings
        • Environmental, Social and Governance (ESG)
        • Human Resource & Workforce Management
        • Licensing
        • New Products & Services
        • Obituaries
        • Outsourcing Businesses
        • Overseas Real Estate (non-US)
        • Personnel Announcements
        • Real Estate Transactions
        • Residential Real Estate
        • Small Business Services
        • Socially Responsible Investing
        • Surveys, Polls and Research
        • Trade Show News
        • General Business Overview

        • View All General Business

    • Science & Tech
        • Consumer Technology

        • Artificial Intelligence
        • Blockchain
        • Cloud Computing/Internet of Things
        • Computer Electronics
        • Computer Hardware
        • Computer Software
        • Consumer Electronics
        • Cryptocurrency
        • Data Analytics
        • Electronic Commerce
        • Electronic Gaming
        • Financial Technology
        • Mobile Entertainment
        • Multimedia & Internet
        • Peripherals
        • Social Media
        • STEM (Science, Tech, Engineering, Math)
        • Supply Chain/Logistics
        • Wireless Communications
        • Consumer Technology Overview

        • View All Consumer Technology

        • Energy & Natural Resources

        • Alternative Energies
        • Chemical
        • Electrical Utilities
        • Gas
        • General Manufacturing
        • Mining
        • Mining & Metals
        • Oil & Energy
        • Oil and Gas Discoveries
        • Utilities
        • Water Utilities
        • Energy & Natural Resources Overview

        • View All Energy & Natural Resources

        • Environ­ment

        • Conservation & Recycling
        • Environmental Issues
        • Environmental Policy
        • Environmental Products & Services
        • Green Technology
        • Natural Disasters
        • Environment Overview

        • View All Environ­ment

        • Heavy Industry & Manufacturing

        • Aerospace & Defense
        • Agriculture
        • Chemical
        • Construction & Building
        • General Manufacturing
        • HVAC (Heating, Ventilation and Air-Conditioning)
        • Machinery
        • Machine Tools, Metalworking and Metallurgy
        • Mining
        • Mining & Metals
        • Paper, Forest Products & Containers
        • Precious Metals
        • Textiles
        • Tobacco
        • Heavy Industry & Manufacturing Overview

        • View All Heavy Industry & Manufacturing

        • Telecomm­unications

        • Carriers and Services
        • Mobile Entertainment
        • Networks
        • Peripherals
        • Telecommunications Equipment
        • Telecommunications Industry
        • VoIP (Voice over Internet Protocol)
        • Wireless Communications
        • Telecommunications Overview

        • View All Telecomm­unications

    • Lifestyle & Health
        • Consumer Products & Retail

        • Animals & Pets
        • Beers, Wines and Spirits
        • Beverages
        • Bridal Services
        • Cannabis
        • Cosmetics and Personal Care
        • Fashion
        • Food & Beverages
        • Furniture and Furnishings
        • Home Improvement
        • Household, Consumer & Cosmetics
        • Household Products
        • Jewelry
        • Non-Alcoholic Beverages
        • Office Products
        • Organic Food
        • Product Recalls
        • Restaurants
        • Retail
        • Supermarkets
        • Toys
        • Consumer Products & Retail Overview

        • View All Consumer Products & Retail

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Health

        • Biometrics
        • Biotechnology
        • Clinical Trials & Medical Discoveries
        • Dentistry
        • FDA Approval
        • Fitness/Wellness
        • Health Care & Hospitals
        • Health Insurance
        • Infection Control
        • International Medical Approval
        • Medical Equipment
        • Medical Pharmaceuticals
        • Mental Health
        • Pharmaceuticals
        • Supplementary Medicine
        • Health Overview

        • View All Health

        • Sports

        • General Sports
        • Outdoors, Camping & Hiking
        • Sporting Events
        • Sports Equipment & Accessories
        • Sports Overview

        • View All Sports

        • Travel

        • Amusement Parks and Tourist Attractions
        • Gambling & Casinos
        • Hotels and Resorts
        • Leisure & Tourism
        • Outdoors, Camping & Hiking
        • Passenger Aviation
        • Travel Industry
        • Travel Overview

        • View All Travel

    • Policy & Public Interest
        • Policy & Public Interest

        • Advocacy Group Opinion
        • Animal Welfare
        • Congressional & Presidential Campaigns
        • Corporate Social Responsibility
        • Domestic Policy
        • Economic News, Trends, Analysis
        • Education
        • Environmental
        • European Government
        • FDA Approval
        • Federal and State Legislation
        • Federal Executive Branch & Agency
        • Foreign Policy & International Affairs
        • Homeland Security
        • Labor & Union
        • Legal Issues
        • Natural Disasters
        • Not For Profit
        • Patent Law
        • Public Safety
        • Trade Policy
        • U.S. State Policy
        • Policy & Public Interest Overview

        • View All Policy & Public Interest

    • People & Culture
        • People & Culture

        • Aboriginal, First Nations & Native American
        • African American
        • Asian American
        • Children
        • Diversity, Equity & Inclusion
        • Hispanic
        • Lesbian, Gay & Bisexual
        • Men's Interest
        • People with Disabilities
        • Religion
        • Senior Citizens
        • Veterans
        • Women
        • People & Culture Overview

        • View All People & Culture

    • Explore Our Platform
    • Plan Campaigns
    • Create with AI
    • Distribute Press Releases
    • Report Results
    • Amplify Content
    • All Products
    • General Inquiries
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices
    • Hamburger menu
    • PR Newswire: news distribution, targeting and monitoring
    • Send a Release
      • ALL CONTACT INFO
      • Contact Us

        888-776-0942
        from 8 AM - 10 PM ET

    • Searching for your content...

      No results found. Please change your search terms and try again.

      News Releases

      view all
      Close menu
    • News
    • Products
    • Contact
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • 3 News in Focus
      • 5 Business & Money
      • 5 Science & Tech
      • 5 Lifestyle & Health
      • 1 Policy & Public Interest
      • 1 People & Culture
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content
      • All Products
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • General Inquiries
      • Editorial Bureaus
      • Partnerships
      • Media Inquiries
      • Worldwide Offices
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      Close submenu (News in Focus) News in Focus
      • Browse News Releases
      • Multimedia Gallery
      • Trending Topics
      Close submenu (Business & Money) Business & Money
      • Auto & Transportation
      • Business Technology
      • Entertain­ment & Media
      • Financial Services & Investing
      • General Business
      Close submenu (Science & Tech) Science & Tech
      • Consumer Technology
      • Energy & Natural Resources
      • Environ­ment
      • Heavy Industry & Manufacturing
      • Telecomm­unications
      Close submenu (Lifestyle & Health) Lifestyle & Health
      • Consumer Products & Retail
      • Entertain­ment & Media
      • Health
      • Sports
      • Travel
      Close submenu (Policy & Public Interest) Policy & Public Interest
      • Policy & Public Interest
      Close submenu (People & Culture) People & Culture
      • People & Culture

      New Energy Systems Group Reports Second Quarter 2011 Financial Results

      - Anytone® sales recovering after Company takes corrective measures against counterfeiting -


      News provided by

      New Energy Systems Group

      Aug 16, 2011, 06:00 ET

      Share this article

      Share this article


      SHENZHEN, China, Aug. 16, 2011 /PRNewswire-Asia-FirstCall/ -- New Energy Systems Group (NYSE Amex: NEWN) ("New Energy" or the "Company"), a vertically integrated original design manufacturer and distributor of lithium ion batteries, backup power consumer products and solar panels, today announced financial results for the second quarter ended June 30, 2011.

      Second quarter 2011 Financial Highlights

      • Total revenues essentially flat year-over-year at $23.1 million
      • Kim Fai solar panels generated $6.2 million in sales
      • Gross profit increased 5% to $6.5 million
      • Adjusted net income $4.1 million with $0.28 EPS

      Mr. Jack Yu, Chairman of New Energy stated, "Like many other electronic brands, counterfeiting of our products has been an unwanted distraction to our operations and negatively affected sales volumes and margins during the quarter. We have promptly and aggressively addressed the issue with the authorities, while pinpointing culprits who have subsequently been notified by our attorneys and local authorities. Ultimately, new product development is what stymies counterfeit products and we are confident our continued emphasis on R&D and our ability to launch new Anytone® products with enhanced functionality and designs will reinvigorate consumer and distributor purchases. By acting quickly to address the commercial needs of our distribution base, we have built trust and ensured the integrity of our brand. We were also pleased with Kim Fai's results, which are on track for to exceed our original forecast for 2011."


      For the 3 Months Ended June 30


      Q2 2011

      Q2 2010

      CHANGE

      Net Sales

      $23.1 million

      $23.4 million

      -1%

      Gross Profit

      $6.5 million

      $6.1 million

      +5%

      Net Income

      $3.1 million

      $3.6 million

      -12%

      Adjusted Net Income*

      $4.1 million

      $4.4 million

      -9%

      GAAP EPS (Diluted)

      $0.22

      $0.28

      -24%

      Adjusted EPS (Diluted)*

      $0.28

      $0.35

      -21%

      *Adjusted net income and adjusted EPS exclude $0.2 million of non-cash stock-based compensation expenses during Q2 2011 and $0.7 million of amortization expenses. 2011 fully diluted shares on June 30, 2011 were 14.5 million versus 12.6 million in 2010.




      Revenues declined 1% year-over-year to $23.1 million for the quarter. Revenue growth was primarily affected by the Company's battery sales divisions which include Anytone® battery recharging and remote power consumer products, NewPower battery packs and E'Jenie battery components. As reported on the Company's first quarter 2011 conference call, counterfeiting of certain Anytone® products caused a temporary slowdown in sales. The Company is pleased to report that a combination of legal action and sales efforts with distributor partners to identify counterfeits have gradually restored distributor confidence. Sales of Anytone® products were down 15% to 670,000 units from 730,000 in the first quarter of 2011. In July, the Company witnessed an increase in sales as distributors began placing restocking orders. As of July 31, the Company reported 200,000 units were purchased and anticipates higher figures for August and September. Anytone® R&D departments are aggressively repacking certain SKU's with different designs and introducing new models to distributors to further differentiate original, Anytone®-branded products to their distributors and consumers.

      Also contributing to the downturn in sales growth in the segment were product line rationalizations in both NewPower and E'Jenie product lines, where legacy products were voluntarily delisted due to margin profiles below the Company's targets. While the Company will continue to service its long-standing customers with these two product categories, management anticipates lower sales in future quarters as it focuses resources on higher margin Anytone®, MeePower® and Kim Fai solar products.

      The acquisition of Kim Fai, completed in the fourth quarter of  2010, added approximately $6.2 million of sales in the three months ended June 30, 2011, up 13% from the first quarter of 2011, and 54% compared to the year ago quarter. Kim Fai sales were most pronounced to municipalities that purchase panels to power street lighting, traffic signals and emergency mobile communication towers.

      Gross profit was $6.5 million compared to $6.1 million, a 5% increase compared to the same period last year. Consolidated gross margin expanded 170 basis points to 28% due to product line rationalizations in NewPower and E'Jenie product segments, Anytone®-branded consumer goods and high-margin Kim Fai solar panels sold as part of government tenders to municipalities.

      Operating expenses for the three months ended June 30, 2011 were $2.2 million compared to $1.6 million. The increase was primarily a result of higher sales and marketing expenses and some legal costs to combat counterfeiters.

      The Company incurred $0.2 million of non-cash stock-based compensation during the second quarter of 2011 and also recorded $0.7 million of amortization charges in the quarter. GAAP net income for the quarter was $3.1 million, down 12% from $3.6 million for the three months ended June 30, 2010. Non-GAAP adjusted earnings exclude non-cash stock based compensation and amortization. Adjusted net income was $4.1 million and $0.28 in earnings per share based on 14.5 million shares outstanding on June 30, 2011.


      For the 6 Months Ended June 30


      1H 2011

      1H 2010

      CHANGE

      Net Sales

      $50.2 million

      $45.9 million

      +9%

      Gross Profit

      $15.9 million

      $12.6 million

      +27%

      Net Income

      $8.6 million

      $7.4 million

      +17%

      Adjusted Net Income*

      $10.4 million

      $9.1 million

      +15%

      GAAP EPS (Diluted)

      $0.59

      $0.58

      +2%

      Adjusted EPS (Diluted)*

      $0.72

      $0.72

      -




      Total net revenue increased 9% in the first six months of 2011 to $50.2 million. Sales were primarily driven by higher unit sales of Anytone® products and Kim Fai solar panels. Combined, Anytone® and Kim Fai solar sales accounted for 56% of sales in the first half of 2011.

      Gross profit increased 27% to $15.9 million, with gross margin of 31.7% compared to 27.4% in the comparable period.

      Selling, general and administrative expenses were $4.4 million compared to $3.1 million a year ago. Operating income increased 22% to $11.5 million. Excluding $0.2 million of non-cash stock compensation expenses and $0.7 million of non-cash amortization expenses, adjusted operating income was $12.4 million.

      GAAP net income and earnings per diluted share were $8.6 million and $0.59, respectively. Adjusted net income, excluding non-cash expenses, was $10.4 million and adjusted EPS were $0.72 in the first six months of 2011.

      Balance Sheet and Cash Flow Summary

      As of June 30, 2011, cash and equivalents of the Company stood at $13.2 million, up slightly from $13.1 million as of December 31, 2010. Working capital was approximately $21.7 million at June 30, 2011; accounts receivable was $10.3 million, compared to $11.2 million as of December 31, 2010. The Company had $0.6 million of debt. New Energy generated $6.6 million of cash flow from operations during the six months ended June 30, 2011 versus $6.5 million in the same period a year ago. The Company has approximately $9.2 million of unused credit lines.

      Conference Call

      Management will host a conference call on Tuesday, August 16th, 2011 at 8:00 am ET to discuss the results for the three and six months ended June 30, 2011. To attend the call, please use the information below for either dial-in access or webcast access. When prompted on dial-in, ask for "New Energy Systems Group Second Quarter 2011 Conference Call".

      Date:

      Tuesday, August 16, 2011

      Time:

      8:00 am Eastern Time, US

      Conference Line Dial-In (U.S.):

      +1-877-317-6776

      International Dial-In:

      +1-412-317-6776

      Asia Dial-In:

      Northern China: 10-800-712-2304

      Southern China:

      10-800-120-2304

      Hong Kong:

      800-962475

      Conference ID:

      New Energy Second Quarter 2011 Conference Call

      Webcast link:

      http://webcast.mz-ir.com/publico.aspx?codplataforma=3094



      Please dial in at least 10 minutes before the call to ensure timely participation. A playback will be available through August 24, 2011. To listen, please call +1-877-344-7529 within the United States or +1-412-317-0088 if calling internationally. Utilize the pass code 10003229 for the replay.

      This call is being webcast by MZ Technologies and can be accessed by clicking on the following link: http://webcast.mz-ir.com/publico.aspx?codplataforma=3094

      About New Energy Systems Group

      New Energy Systems Group is a vertically integrated original design manufacturer and distributor of lithium ion batteries and backup power systems for mobile phones, laptops, digital cameras, MP3s and a variety of other portable electronics. The company's end-user consumer products are sold under the Anytone® brand in China, and the company has begun expanding its international sales efforts. The fast pace of new mobile device introductions in China combined with a growing middle class make it fertile ground for New Energy's end-user consumer products, as well as its high powered, light weight lithium ion batteries. In addition to historically strong organic growth, New Energy is expected to benefit from economies of scale, broader distribution, and higher production capacity and higher profit margins. Additional information about the company is available at: www.newenergysystemsgroup.com.

      Forward Looking Statements

      This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary and affiliated companies. 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.

      NEW ENERGY SYSTEMS GROUP AND SUBSIDIARIES

      CONSOLIDATED BALANCE SHEETS










      June 30, 2011 (Unaudited)



      December 31, 2010 (Restated)









      Current assets







      Cash and equivalents


      $

      13,245,937



      $

      13,065,008


      Accounts receivable



      10,251,646




      11,192,150


      Inventory



      4,060,895




      2,420,009


      Other receivables



      603,825




      47,249


      Due from shareholders



      276,838




      270,522


      Deferred compensation



      675,000




      675,000











              Total current assets



      29,114,141




      27,669,938











      Noncurrent assets









      Plant, property & equipment, net



      1,090,134




      1,134,029


      Deferred compensation - noncurrent



      760,993




      1,098,493


      Goodwill



      60,858,842




      60,555,607


      Intangible assets, net



      18,519,039




      19,969,021











              Total noncurrent assets



      81,229,008




      82,757,150











      Total assets


      $

      110,343,149



      $

      110,427,088











      Current liabilities









      Accounts payable


      $

      4,289,874



      $

      6,655,592


      Accrued expenses and other payables



      903,032




      1,127,133


      Payable for Kimfai acquisition



      -




      6,325,985


      Taxes payable



      1,633,462




      1,553,206


      Loan payable to related party



      556,277




      543,585











      Total current liabilities



      7,382,645




      16,205,501











      Deferred tax liability



      4,461,382




      4,798,822











      Total Liabilities



      11,844,027




      21,004,323











      Stockholders' equity









      Preferred stock, $.001 par value, 2,553,030

          shares authorized and issued; 0 and 2,553,030

          outstanding as of June 30, 2011 and

          December 31, 2010, respectively



      -




      2,553


      Common stock, $.001 par value, 140,000,000

          shares authorized, 14,551,731 and 14,278,928

          shares issued and outstanding as of June 30,

          2011 and December 31, 2010, respectively



      14,552




      14,279


      Additional paid in capital



      74,150,126




      74,040,307


      Statutory reserves



      2,323,603




      2,323,603


      Other comprehensive income



      2,195,732




      1,834,341


      Retained earnings



      19,815,109




      11,207,682











      Total stockholders' equity



      98,499,122




      89,422,765











      Total liabilities and stockholders' equity


      $

      110,343,149



      $

      110,427,088
































      NEW ENERGY SYSTEMS GROUP AND SUBSIDIARIES

      CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

      (UNAUDITED)





























      Six Months Ended June 30,



      Three Months Ended June 30,




      2011



      2010



      2011



      2010















      Revenue, net













      Battery


      $

      35,721,112



      $

      40,330,653



      $

      15,668,721



      $

      20,931,503


      Battery shell and cover



      2,777,263




      5,527,349




      1,258,441




      2,473,836


      Solar panel



      11,675,972




      -




      6,161,054




      -


      Total revenue



      50,174,347




      45,858,002




      23,088,216




      23,405,339



















      Cost of sales

















      Battery



      23,666,046




      29,582,795




      10,955,318




      15,508,810


      Battery shell and cover



      2,046,038




      3,700,517




      992,183




      1,747,124


      Solar panel



      8,553,509




      -




      4,676,631




      -


      Total cost of sales



      34,265,593




      33,283,312




      16,624,132




      17,255,934



















      Gross profit



      15,908,754




      12,574,690




      6,464,084




      6,149,405



















      Operating expenses

















      Selling



      751,226




      245,816




      387,046




      119,842


      General and administrative



      3,607,760




      2,834,987




      1,852,141




      1,460,832


      Total operating expenses



      4,358,986




      3,080,803




      2,239,187




      1,580,674



















      Income from operations



      11,549,768




      9,493,887




      4,224,897




      4,568,731



















      Other income (expenses)

















      Other income (expense)



      7,874




      7,541




      2,495




      (746)


      Interest income



      20,453




      45,164




      12,420




      23,875


      Total other income, net



      28,327




      52,705




      14,915




      23,129



















      Income before income taxes



      11,578,095




      9,546,592




      4,239,812




      4,591,860



















      Provision for income taxes



      (2,970,668)




      (2,195,752)




      (1,092,940)




      (1,022,886)



















      Net income



      8,607,427




      7,350,840




      3,146,872




      3,568,974



















      Other comprehensive income

















           Foreign currency translation



      361,391




      94,578




      246,540




      88,139



















      Comprehensive income


      $

      8,968,818



      $

      7,445,418



      $

      3,393,412



      $

      3,657,113



















      Net income per share

















      Basic


      $

      0.60



      $

      0.62



      $

      0.22



      $

      0.30


      Diluted


      $

      0.59



      $

      0.58



      $

      0.22



      $

      0.28



















      Weighted average number of shares outstanding:















      Basic



      14,294,318




      11,863,390




      14,302,039




      11,863,390


      Diluted



      14,564,800




      12,623,880




      14,551,731




      12,623,866






















      NEW ENERGY SYSTEMS GROUP AND SUBSIDIARIES

      CONSOLIDATED STATEMENTS OF CASH FLOWS

      (UNAUDITED)



      Six Months Ended June 30,


      2011


      2010





      CASH FLOWS FROM OPERATING ACTIVITIES




      Net Income

      $

      8,607,427


      $

      7,350,840

      Adjustments to reconcile net income to net cash






      provided by operating activities:






         Depreciation and amortization


      1,544,712



      1,520,631

         Deferred taxes


      (337,440)



      (269,495)

         Deferred stock compensation


      337,500



      337,500

         Loss on disposal of fixed asset


      -



      672

         Warrants expense


      20,038



      -

      (Increase) / decrease in current assets:






         Accounts receivable


      1,189,052



      (4,139,758)

         Inventory


      (1,567,548)



      (1,182,208)

         Prepaid expenses, deposits and other receivables


      (549,571)



      433,995

      Increase/(Decrease) in current liabilities:






         Accounts payable


      (2,494,328)



      1,765,729

         Accrued expenses and other payables


      (233,546)



      52,663

         Taxes payable


      45,187



      613,118







      Net cash provided by operating activities


      6,561,483



      6,483,687







      CASH FLOWS FROM INVESTING ACTIVITIES






         Cash acquired in acquisition


      -



      24,550

         Proceeds from sale of property and equipment


      -



      623

         Acquisition of property and equipment


      (12,964)



      (34,609)







      Net cash used in investing activities


      (12,964)



      (9,436)







      CASH FLOWS FROM FINANCING ACTIVITIES






         Repayment of acquisition liability for Subsidiaries


      (6,757,273)



      (5,000,000)

         Cash proceeds from warrant exercise


      87,500



      -

         Repayment to related party


      -



      (1,362,597)







      Net cash used in financing activities


      (6,669,773)



      (6,362,597)







      Effect of exchange rate changes on cash and equivalents


      302,183



      17,521







      Net increase in cash and equivalents


      180,929



      129,175







      Cash and equivalents, beginning of the period


      13,065,008



      3,651,990







      Cash and equivalents, ending of the period

      $

      13,245,937


      $

      3,781,165







      SUPPLEMENTAL DISCLOSURES:












      Cash paid during the period for:












           Income taxes

      $

      3,464,408


      $

      1,864,696







           Interest

      $

      -


      $

      -
















      For more information, please contact:


      COMPANY


      New Energy Systems Group

      Ken Lin, VP of Investor Relations

      Tel:   +1-917-573-0302

      Email: [email protected]


      INVESTOR RELATIONS


      John Mattio, SVP

      HC International, Inc.

      Tel: US +1-212-301-7130

      Email: [email protected]

      Web: http://www.hcinternational.net



      SOURCE New Energy Systems Group

      Modal title

      Contact PR Newswire

      • Call PR Newswire at 888-776-0942
        from 8 AM - 9 PM ET
      • Chat with an Expert
      • General Inquiries
      • Editorial Bureaus
      • Partnerships
      • Media Inquiries
      • Worldwide Offices

      Products

      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content

      About

      • About PR Newswire
      • About Cision
      • Careers
      • Accessibility Statement
      • APAC
      • APAC - Simplified Chinese
      • APAC - Traditional Chinese
      • Brazil
      • Canada
      • Czech
      • Denmark
      • Finland
      • France
      • Germany
      • India
      • Indonesia
      • Israel
      • Italy
      • Japan
      • Korea
      • Mexico
      • Middle East
      • Middle East - Arabic
      • Netherlands
      • Norway
      • Poland
      • Portugal
      • Russia
      • Slovakia
      • Spain
      • Sweden
      • United Kingdom
      • Vietnam

      My Services

      • All New Releases
      • Platform Login
      • Data Privacy

      Do not sell or share my personal information:

      • Submit via [email protected] 
      • Call Privacy toll-free: 877-297-8921

      Contact PR Newswire

      Products

      About

      My Services
      • All News Releases
      • Platform Login
      • ProfNet
      Call PR Newswire at
      888-776-0942
      • Terms of Use
      • Privacy Policy
      • Information Security Policy
      • Site Map
      • RSS
      • Cookies
      Copyright © 2026 Cision US Inc.