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As reported by the Company, revenues in the third quarter ended June 30, 2009 decreased sharply to $9,378,000 compared to $27,326,000 in the same period last year. Net income in the 2009 third quarter was $1,739,000 which compared with net income in last year's third quarter of $4,825,000.
For the nine months ended June 30, 2009, revenues decreased to $34,207,000 as compared with $64,467,000 in the first nine months last year. Nine-month net income in 2009 was $6,126,000, a decrease from the $10,738,000 reported in the same period in 2008.
In the third quarter the Company experienced a drop in export sales due to the ongoing recession as well as a decrease in government procurement orders after the Olympic Games. It benefited, however, from a direct subsidy from the PRC government of $6,064,000 compared with $73,000 in the same period last year. Through the first nine months of 2009, the subsidy was $8,005,000 compared with $369,000 in the same period in 2008.
During the quarter the Company strove to improve operating efficiencies and reduce costs, particularly in view of the reduced revenues due to the recession and price reductions implemented ranging from 5% to 10%. Nevertheless, it experienced an increase in sales, marketing and distributor expenses as a provision for a rebate to distributors of $1.86 million was made for domestic sales. Additionally, a provision for doubtful accounts of nearly $1 million was the key reason for an increase in G&A expenses. Increased borrowings in the period also led to an increase in interest expenses. Through the first nine months of the year the Company also saw an increase in interest income of about $2.3 million attributed to a recognition of interest income receivables from related parties.
Mr. Zhao Guosong, Chairman of the Board, President and CEO of the Company, stated, "The depth and duration of the recession has been felt most severely in our international operations, and we are doing our best to deal with the problems created. Our position in the domestic market permitted a substantial direct subsidy by the government and we were able enabled us to achieve a profit in the period despite the difficult conditions."
He added, "Going forward, we believe we are in a good position to benefit from an upturn in the market if we can maintain our technology leadership, especially in areas such as energy saving lighting which we think will remain a focus of government attention and green oriented business and individual consumers for many years to come."
About the Company
Based in Jinhua, China, CH Lighting International Corporation, founded in 1994, is a diversified designer, manufacturer and exporter of more than 1,000 types of fluorescent lighting and related products. It is the leader in China in environmentally friendly special lighting products such as Air Cleaning Lamps, Power Saving Lamps and Plant Growth, Vision Improvement and Performance Improvement Lighting Products. Additionally, its General Light Products, which account for approximately 8% of China's linear fluorescent lamp manufacturing, make it the third largest manufacturer of these products in the country. While exports of the Company's products around the world have grown rapidly, it is increasingly focused on domestic sales, encouraged and supported by government policies aimed at reducing power consumption and improving the environment. Additional product information is available at http://chlighting.com.
"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, but not limited to, 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 of important factors, including, but not limited to, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the U.S. Securities and Exchange Commission from. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
No securities regulatory authority has either approved or disapproved the contents of this news release.
CH Lighting International Corporation (formerly Sino-Biotics, Inc.)
Unaudited Condensed Consolidated Statements of Operations and
Other Comprehensive Income For the nine months ended June 30, 2009
Three months ended Nine months ended
June 30, June 30,
------------------------ ------------------------
2009 2008 2009 2008
US$'000 US$'000 US$'000 US$'000
Operating revenues:
Net sales to third
parties 9,378 27,326 34,207 64,467
Cost of sales (7,475) (18,984) (24,585) (44,332)
----------- ----------- ----------- -----------
Gross income 1,903 8,342 9,622 20,135
Operating expenses:
Selling, marketing
and distribution
expenses (2,530) (909) (5,003) (1,904)
General and
administrative
expenses (2,131) (1,339) (4,180) (4,024)
----------- ----------- ----------- -----------
Operating (loss) income (2,758) 6,094 439 14,207
Government subsidies
income 6,064 73 8,005 369
Other income 4 33 24 63
Interest income 936 169 2,789 412
Interest expense (1,243) (747) (3,335) (2,993)
----------- ----------- ----------- -----------
Income before income
taxes 3,003 5,622 7,922 12,058
Income taxes expenses (1,264) (797) (1,796) (1,320)
----------- ----------- ----------- -----------
Net income 1,739 4,825 6,126 10,738
Net income attributable
to non-controlling
interests - - - -
----------- ----------- ----------- -----------
Net income attributable
to CH Lighting
International
Corporation 1,739 4,825 6,126 10,738
Other comprehensive
income
Foreign currency
translation
adjustment 4 (4) 41 832
----------- ----------- ----------- -----------
Comprehensive income 1,743 4,821 6,167 11,570
=========== =========== =========== ===========
Earnings per share
Shares Shares Shares Shares
Weighted average
number of common
stocks outstanding,
basic and diluted 120,000,000 93,000,000 120,000,000 93,000,000
=========== =========== =========== ===========
US$ US$ US$ US$
Net income per share
of common stock
outstanding, basic
and diluted 0.014 0.052 0.051 0.115
=========== =========== =========== ===========
CONTACTS: Mr. Zhao Guosong President, CEO Tel: 86 575 8212 7538 CEO@chlighting.com Eric Chuang Chief Financial Officer erichuang22@hotmail.com Ken Donenfeld donfgroup@aol.com Tel: 212-425-5700 Fax: 646-381-9727
SOURCE: CH Lighting International Corp.
mailto:CEO@chlighting.com mailto:erichuang22@hotmail.com mailto:donfgroup@aol.com
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