XI’AN, China, Jan. 29 /Xinhua-PRNewswire-FirstCall/ -- China Bionanometer Industries Corporation (Pink Sheets: CBIU), ("CBIU", "the Company"), a leading company in bionanometer industry in the People’s Republic of China ("PRC"), today reported record financial results for the second quarter ended June 30, 2007.
First and Second quarter 2006 and 2007 Highlights
-- Main business revenue reached $2,539,658, an increase of $1,235,371,
a 94.72% increase year-over-year in 2006;
-- Operating profit reached $1,606,501, an increase of $755,206, a 88.71%
increase year-over-year in 2006;
-- Profit after tax reached $1,262,141, an increase of $982,169, a 351%
increase year-over-year in 2006, or $0.014 per share.
"We saw strong growth in our sales as we benefited from the strong economic momentum and increasing awareness of self-care in recent years in China," said Mr. Chen Min, CEO of the Company, "In addition, we made an important progress in the execution of our strategy as we expanded our distribution channels."
1. Operating Conditions
(1) Main business revenue
Gross sales for the full year of 2006 reached $2,814,144, an increase of $2,064,289, a 275% increase year-over-year in 2005;
Main business revenue for the first quarter was $1,068,466 in 2007, an increase of $394,961, a 58.64% increase year-over-year in 2006;
Main business revenue for the second quarter was $2,539,658 in 2007, an increase of $840,410, a 133.23% increase year-over-year in 2006.
The main reason for the increase:
a. Strengthened product promotional efforts and key markets cultivated.
b. With increasing awareness of self-care in recent years, the market
demand increases.
c. By use of the company’s own proprietary technology and equipment,
entrusted with the powder processing plant business, business was
carried out smoothly.
(2) Gross profit
Gross profit for the full year in 2006 was $1,796,435, an increase of $1,368,577, a 320% increase year-over-year in 2005;
Gross profit for the first quarter was $675,302 in 2007, an increase of $237,604, a 54.28% increase year-over-year in 2006;
Gross profit for the second quarter was $931,199 in 2007, an increase of $517,602, a 125.15% increase year-over-year in 2006;
The main reason for the increase is driven by the growth of the main business revenue.
(3) Profit after tax
Profit after tax for the full year of 2006 reached $690,886, an increase of $771,710, a 955% increase year-over-year in 2005. After tax profit rate reached 24.55%, or $0.01 per share.
Profit after tax for the first quarter reached $442,170 in 2007, an increase of $383,804, a 658% increase year-over-year in 2006, or $0.01 per share.
Profit after tax for the second quarter reached $819,971 in 2007, an increase of $598,815 and a 271% increase year-over-year in 2006.
Meanwhile, we should also consider that the sale of profit return is not yet calculated to the operating expenses ended on June 30, 2007, plus the costs of the $200,000, after-tax profit for the first and second quarter of this year, there is still a significant level of improvement.
The main reason for the increase is:
a. Rapid rate of main business revenue growth.
b. We have to control the costs and reduce unnecessary administrative
costs, in addition to the financial costs that have increased over the
same period, operating expenses, management costs and the main business
revenue ratio has also been reduced.
c. Re-refined sales market, the company no longer belongs to the low end
of the input-output ratio of the market and has entrusted agents to
manage this portion to improve the ratio of return, so that we have
more energy to the high-end services market, and marketing costs has
reduced as a result.
(4) Overall Financial Situation of the first half 2007 Results
Main business revenue for the six months ended June 30, 2007 was $2,539,658, gross profit was $1,606,501 and after-tax net profit was $1,262,141, a 351% increase year-over-year in 2006,or $0.014 per share. The total net cash flow was $2,204,416; net of operating cash flow was $1,475,289.
These data came from the Discussed Draft. PLEASE refer to the final version.
Forward-looking statement
Certain information contained in these materials are "forward-looking" information, such as projections, estimates, pro formas, or statements of intentions, expectations or plans. All forward-looking information are subject to known and unknown risks and uncertainties, many of which are outside of the control of the company. Consequently, actual results may, and probably will, differ materially from the results contemplated in such forward-looking information.
About China Bionanometer Industries Corporation
China Bionanometer Industries Corporation is a high-tech enterprise specialized in the research, development, production and sale of nanometer level health food, cosmetics, biological disinfection products, and traditional Chinese medicine, etc. The company has obtained state authentication for high and new technology enterprises and is also an academician enterprise in the high-tech field. As a high and new technology enterprise that takes scientific research as its base, profiting from the huge benefits brought by technological innovation, the company establishes an efficient scientific research development system that allows the continuation of the pursuit for newer technologies and industrial development by creating a people-orientated and innovative environment that follows the modern management model.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s ability to raise additional capital to finance the Company’s activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company’s ability to protect its proprietary information; general economic and business conditions; the volatility of the Company’s operating results and financial condition; the Company’s ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
-- FINANCIAL TABLES FOLLOW --
Landway Bionanometer Technology Joint-stock Co., Ltd
Condensed Statements of Operations and Comprehensive Income
(US$-Unaudited)
Three months ended
March 31, (Unaudited)
2007 2006
Revenues $1,068,466 $673,505
Cost of revenues 393,164 235,807
Gross profit 675,302 437,698
Operating expenses 0 994
Selling and distribution 30,663 17,418
General and administrative 98,350 90,612
Total expenses 129,013 109,024
Operating income 546,289 328,674
Interest income 6,941 0
Other income 73,468 37
Finance costs -14,209 -16,246
Income before income taxes 612,489 312,465
Income taxes 299,112 213,889
Net income $313,377 $98,576
Earnings per share
- Basic and diluted $0.005 $0.002
Weighted average number
of common stock outstanding 65,000,000 65,000,000
Landway Bionanometer Technology Joint-stock Co., Ltd
Condensed Balance Sheets
March 31 December 31,
2007 2006
(Unaudited) (Audited)
ASSETS
Current Assets
Cash and cash equivalents $2,876,121 $2,589,086
Accounts receivable (net of
allowance for doubtful accounts
of $66,230 in 2007, $59,098 in 2006) 1,006,324 706,858
Inventories 113,365 174,502
Deposits paid 425,397 548,238
Deferred tax assets 310,188 387,801
Other receivables 701,004 114,214
Total Current Assets $5,432,399 $4,520,699
Property and equipment, net 1,949,742 1,949,426
Intangible assets, net 8,894,060 8,807,952
Deferred taxes 113,374 329,001
TOTAL ASSETS $16,389,575 $15,607,078
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable $99,212.00 $78,070.00
Receipt in advance 36,690.00 21,176.00
amounts due to related parties 353,751.00 172,404.00
Other payables and accrued
liabilities 1,563,750.00 1,449,576.00
Secured short-term bank loan 647,500.00 641,231.00
TOTAL CURRENT LIABILITIES 2,700,903.00 2,362,457.00
Long-term other loans 194,250.00 192,369.00
TOTAL LIABILITIES 2,895,153.00 2,554,826.00
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Registered and paid up common stock 7,852,802 7,852,802
Additional paid-in capital 5,941,551 5,941,551
Accumulated deficits -1,163,004 -1,476,381
Accumulated other comprehensive income 863,073 734,280
TOTAL STOCKHOLDERS’ EQUITY 13,494,422 13,052,252
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 16,389,575 15,607,078
Landway Bionanometer Technology Joint-stock Co., Ltd
Condensed Statements of Cash Flows
Three months ended
March 31,
(Unaudited)
2007 2006
Cash flows from operating activities
Net cash flows provide by operating activities $261,955 $360,086
Cash flows from investing activities
payments to acquire property, plant
and equipment -1,222 -1,852
Net cash flows used in investing activities -1,222 -1,852
Effect of foreign currency translation
on cash and cash equivalents 26,302 15,119
Net (decrease) increase in cash and cash
equivalents 287,035 373,353
Cash and cash equivalents, beginning of
period 2,589,086 2,012,874
Cash and cash equivalents, end
of period $2,876,121 $2,386,227
Supplemental cash flow information
Interest paid $14,151 $16,190
Income taxes paid $-- $--
Landway Bionanometer Technology Joint-stock Co., Ltd
Condensed Statements of Operations and Comprehensive Income
US$-Unaudited
Three months ended Six months ended
June 30, (Unaudited) June 30, (Unaudited)
2007 2006 2007 2006
Revenues $1,471,192 $630,782 $2,539,658 1,304,287
Cost of revenues 539,993 217,185 933,157 452,992
Gross profit 931,199 413,597 1,606,501 851,295
Operating expenses 29,277 0 29,277 994
Selling and
distribution 47,461 17,155 78,124 34,573
General and
administrative 43,248 132,286 141,598 222,898
Total expenses 119,986 149,441 248,999 258,465
Operating income 811,213 264,156 1,357,502 592,830
Interest income 142 0 7,083 0
Other income 0 104 73,468 141
Finance costs -23,736 -6,549 -37,945 -22,795
Income before
income taxes 787,619 257,711 1,400,108 570,176
Income taxes 184,394 23,327 483,506 237,216
Net income $603,225 $234,384 $916,602 $332,960
Earnings per share
- Basic and
diluted $0.009 $0.004 $0.014 $0.005
Weighted
average
number of
common
stock
outstanding 65,000,000 65,000,000 65,000,000 65,000,000
Landway Bionanometer Technology Joint-stock Co., Ltd
Condensed Balance Sheets
June 30, December 31,
2007 2006
(Unaudited) (Audited)
ASSETS
Current Assets
Cash and cash equivalents $4,793,502 $2,589,086
Accounts receivable (net
of allowance for doubtful
accounts of $39,427 in
2007, $59,098 in 2006) 749,103 706,858
Inventories 103,176 174,502
Deposits paid 331,257 548,238
Deferred tax assets 132,296 387,801
Other receivables 1,077,967 114,214
Total Current Assets $7,187,301 $4,520,699
Property and equipment, net 1,964,787 1,949,426
Intangible assets, net 9,031,420 8,807,952
Deferred taxes 115,109 329,001
TOTAL ASSETS $18,298,617 $15,607,078
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable $82,367.00 $78,070.00
Receipt in advance 65,978.00 21,176.00
Amounts due to related parties 385,838.00 172,404.00
Other payables and accrued
liabilities 1,937,791.00 1,449,576.00
Secured short-term bank loan 1,315,000.00 641,231.00
TOTAL CURRENT LIABILITIES 3,786,974.00 2,362,457.00
Long-term other loans 197,250.00 192,369.00
TOTAL LIABILITIES COMMITMENTS AND
CONTINGENCIES 3,984,224.00 2,554,826.00
STOCKHOLDERS’ EQUITY
Registered and paid up common stock 7,852,802 7,852,802
Additional paid-in capital 5,941,551 5,941,551
Accumulated deficits -559,779 -1,476,381
Accumulated other comprehensive income 1,079,819 734,280
TOTAL STOCKHOLDERS’ EQUITY 14,314,393 13,052,252
TOTAL LIABILITIES AND STOCKHOLDERS’ 18,298,617 15,607,078
EQUITY
Landway Bionanometer Technology Joint-stock Co.,Ltd
Condensed Statements of Cash Flows
Six months ended June 30,
(Unaudited)
2007 2006
Cash flows from operating activities
Net cash flows provide by
operating activities $1,475,289 $780,959
Cash flows from investing activities
payments to acquire property, plant
and equipment -6,451 -2,682
Net cash flows used in investing activities
cash flows from financing activities -6,451 -2,682
Proceeds form bank loan 652,000 0
Repayment of bank loan 0 -499,840
Net cash flows provide by financing
activities 652,000 -499,840
Effect of foreign currency translation
on cash and cash equivalents 83,578 20,650
Net (decrease) increase in cash and cash 2,204,416 299,087
equivalents
Cash and cash equivalents, beginning
of period 2,589,086 2,012,874
Cash and cash equivalents,
end of period $4,793,502 $2,311,961
Supplemental cash flow information
Interest paid $37,800 $22,669
Income taxes paid $-- $--
Landway Bionanometer Technology Joint-stock Co., Ltd
Statements of Operations
(Stated in US Dollars)
Year ended December 31,
2006 2005
Revenue
Sales $2,814,144 $749,855
Cost of sales (1,017,709) (321,997)
Gross profit 1,796,435 427,858
Expenses
Administrative expenses 567,561 400,724
Other operating expenses 1,414 6,556
Selling expenses 141,287 68,839
710,262 476,119
Income before the following items and taxes 1,086,173 (48,261)
Interest income 870 5,803
Other income 637 2,225
Finance costs (46,089) (42,898)
Income before income taxes 1,041,591 (83,131)
Income taxes (350,705) 2,307
Net income/(loss) $690,886 $(80,824)
Earnings/(loss) per share: basic and diluted $0.0106 $(0.0012)
Weighted average number of shares
outstanding : basic and diluted 65,000,000 65,000,000
Landway Bionanometer Technology Joint-stock Co., Ltd
Balance Sheets
(Stated in US Dollars)
As of December 31,
2006 2005
ASSETS
Current assets
Cash and cash equivalents $2,589,086 $2,012,874
Trade receivables (net of allowance
of doubtful accounts of $59,098
in 2006 and $14,064 in 2005) 706,858 25,956
Amounts due from related parties 548,238 200,552
Other receivables, prepayments 114,214 122,707
Deferred tax assets 387,801 517,039
Inventories 174,502 393,218
Total current assets 4,520,699 3,272,346
Deposits for acquisition of building 923,373 --
Know-how 2,500,802 2,417,244
Property, plant and equipment, net 1,026,053 1,066,138
Deferred taxes 329,001 522,024
TOTAL ASSETS $9,299,928 $7,277,752
Landway Bionanometer Technology Joint-stock Co., Ltd
Balance Sheets (Cont’d)
(Stated in US Dollars)
As of December 31,
2006 2005
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Current liabilities
Trade payables $78,070 $64,947
Other payables and accrued expenses 1,641,945 738,084
Receipt in advance 21,176 26,022
Amounts due to related parties 172,404 115,157
Secured short-term bank loan 641,231 495,845
Total current liabilities 2,554,826 1,440,055
TOTAL LIABILITIES 2,554,826 1,440,055
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Registered and paid up common stock 7,852,802 7,852,802
Accumulated other comprehensive income 368,681 152,162
Accumulated deficits (1,476,381) (2,167,267)
TOTAL STOCKHOLDERS’ EQUITY 6,745,102 5,837,697
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $9,299,928 $7,277,752
Landway Bionanometer Technology Joint-stock Co., Ltd Co., Ltd
Statements of Cash Flows
(Stated in US Dollars)
Year ended December 31,
2006 2005
Cash flows from operating activities
Net income $690,886 $(80,824)
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 79,366 76,359
Provision for doubtful debts 89,030 76,341
Changes in operating assets and liabilities:
Trade receivables (709,433) (19,366)
Other receivables, prepayments and
deposits (32,942) 25,086
Amount due from related parties (333,643) (197,735)
Inventories 227,460 45,767
Deferred tax assets 350,705 (2,307)
Trade payables 10,651 31,507
Other payables and accrued expenses 860,018 619,704
Amount due to related parties 52,155 74,632
Receipt in advance (5,626) (73,339)
Net cash flows provided by operating
activities 1,278,627 575,825
Cash flows from investing activities
Payments to acquire property, plant and
equipment (4,033) (15,462)
Deposit for acquisition of building (904,104) --
Net cash flows used in investing activities (908,137) (15,462)
Cash flows from financing activities
Proceeds from bank loan 627,850 488,880
Repayment of bank loan (502,280) (488,880)
Net cash flows provided by financing activities 125,570 --
Effect of foreign currency translation on
cash and cash equivalents 80,152 42,836
Net increase in cash and cash equivalents 576,212 603,199
Cash and cash equivalents - beginning of year 2,012,874 1,409,675
Cash and cash equivalents - end of year $2,589,086 $2,012,874
Supplemental disclosures for cash flow
information
Cash paid for:
Interest $45,876 $42,813
Income taxes $-- $--
Landway Bionanometer Technology Joint-stock Co., Ltd
Statements of Stockholders’ Equity
(Stated in US Dollars)
Accumulated
Common other
stock comprehensive (Accumulated
income deficits) Total
Balance, January 1, 2005 $7,852,802 $10,480 $(2,086,443) $5,776,839
Comprehensive income
Net income -- (80,824) (80,824)
Foreign currency translation
adjustments -- 141,682 -- 141,682
Total comprehensive income 60,858
Balance, December 31, 2005 7,852,802 152,162 (2,167,267) 5,837,697
Comprehensive income
Net income -- -- 690,886 690,886
Foreign currency translation
adjustments -- 216,519 -- 216,519
Total comprehensive income 907,405
Balance, December 31, 2006 $7,852,802 $368,681 $(1,476,381) $6,745,102
