CHENGDU, China, Aug. 20 /PRNewswire-Asia-FirstCall/ -- The Board of Directors of Apollo Solar Energy, Inc., (OTC Bulletin Board: ASOE; "Apollo Solar Energy" or "the Company"), a leading vertically integrated miner and refiner of tellurium (Te) and high-purity tellurium based metals for specific segments of the global electronic materials market, today announced financial results for the second quarter ended June 30, 2009.
Second quarter of 2009:
Revenue for the second quarter of 2009 increased 48% to $1.7 million from $1.1 million in the second quarter of 2008.
Gross profit for the second quarter of 2009 increased 155% to $0.4 million compared to $0.2 million for the same period in the prior year. The increase in gross profit was primarily attributable to our improved tellurium processing techniques and stable demand that led to continual production and higher efficiency.
Operating expenses in the second quarter of 2009 increased to $0.8 million compared to $0.4 million in the same period of the prior year. This increase was a result of higher administrative expenses required to support a growing revenue base, as well as professional fees incurred as a publicly listed company, stock based compensation expenses for options granted and an increase in depreciation expense.
Operating loss for the second quarter of 2009 was $0.4 million compared to profit of $0.2 million in the prior year.
Net loss for the second quarter of 2009 was $0.5 million, or $0.02 per diluted share, compared to net loss of $0.2 million or $0.01 per diluted share in the prior year.
First six months of 2009:
Revenue for the first six months of 2009 increased 31% to $4.0 million from $3.1 million in the same period of 2008.
Gross profit for the first six months of 2009 decreased 5.9% to $0.9 million compared to $0.9 million for the same period in the prior year. The decrease in gross profit was primarily attributable to the increase in cost of raw materials, labor cost, and the change in product mix.
Operating expenses in the first six months of 2009 increased to $1.8 million compared to $0.6 million in the same period of the prior year. This increase was a result of higher administrative expenses, as well as professional fees incurred as a publicly listed company, stock based compensation expenses for options granted and an increase in depreciation expense.
Operating loss for the first six months of 2009 was $0.9 million compared to profit of $0.4 million in the prior year.
Net loss for the first six months of 2009 was $1.1 million, or $0.01 per diluted share, compared to net income of $0.2 million or $0.1 per diluted share in the prior year.
"We are satisfied with the results for the second quarter of 2009. The first part of 2009 has been a difficult period for Apollo Solar Energy, and we, like other firms have weathered a difficult US market. During this period, however, we are still able to maintain our sales of tellurium products. Our results further support our premise that owning the tellurium feedstock in CdTe production is essential for the long term viability of any refiner, particularly in the thin film solar industry. In addition, our recently completed technical review by Behre Dolbear & Company of the Dashuigou and Majiagou mines provides a solid base of support to continue with the exploration and mining of these properties", commented Mr. Hou Renyi, CEO and Chairman of Apollo Solar Energy, Inc. "We continue to pursue innovative technologies and processes to be a leading vertically integrated miner and refiner of tellurium (Te) and high-purity tellurium based metals for the global electronic materials market".
About Apollo Solar Energy, Inc.
Apollo Solar Energy, Inc., through its wholly owned subsidiary, Sichuan Apollo Solar Science & Technology Co., Ltd., is primarily engaged in the mining and refining of tellurium (Te) and high-purity tellurium based metals for specific segments of the global electronic materials market. The Company's products include CdTe thin-film compounds, CIGS thin-film compounds,
Ultra- high purity metals, and commercial-purity metals.
Safe Harbor Statement
The statements contained herein that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates," "expect" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, our statements regarding the potential growth of the markets or forecasting financial results are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including but not limited to, general economic conditions and regulatory developments, not within our control. The factors discussed herein and expressed from time to time in our filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed or implied by such statements. The forward-looking statements are made only as of the date of this filing, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances
APOLLO SOLAR ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2009 2008
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $243,318 $4,874,044
Account receivable, net 1,248,370 961,600
Inventories 7,303,613 7,496,477
Value added taxes receivable 5,574 494,387
Purchase deposit 425,521 321,300
Due from related parties 1,503,818 2,313,198
Deferred tax assets 16,427 25,880
Other sundry current assets 101,491 83,001
Total current assets 10,848,132 16,569,887
Property, machinery and mining assets, net 22,600,358 19,549,909
Non-marketable investment 43,919 --
Total Assets $33,492,409 $36,119,796
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term loan $1,947,095 $--
Account payable - trade 573,965 876,221
- construction vendors 2,493,349 2,546,890
Accrued expenses 873,131 959,186
Due to shareholders -- 9,032,382
Total current liabilities 5,887,540 13,414,679
Long-term debt 4,391,943 4,397,215
Due to shareholders 5,831,258 --
Shareholders' equity:
Preferred stock, $.001 par value,
25,000,000 shares authorized,
0 shares issued and outstanding at
June 30, 2009 and December 31, 2008 -- --
Common stock, $.001 par value, 100,000,000
shares authorized, 44,555,131 issued
and outstanding at June 30, 2009
and December 31, 2008 44,555 44,555
Additional paid-in capital 17,575,261 17,347,905
Accumulated deficit (1,501,612) (383,221)
Accumulated other comprehensive income 1,263,464 1,298,663
Total shareholders' equity 17,381,668 18,307,902
Total Liabilities And Shareholders' Equity $33,492,409 $36,119,796
APOLLO SOLAR ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2009 2008 2009 2008
Sales $1,681,755 $1,135,466 $3,990,374 $ 3,045,173
Cost of sales (1,287,590) (981,218) (3,099,278) (2,098,713)
Gross profit 394,165 154,248 891,096 946,460
Operating expenses
General and
administrative
expenses 483,539 254,838 1,251,954 361,506
Stock based
compensation 173,082 -- 373,262 --
Selling expenses 51,220 99,704 121,717 158,624
Research and
development 38,944 43,193 49,962 45,289
Total Operating
Expenses 746,785 397,735 1,796,895 565,419
Operating income
(loss) (352,620) (243,487) (905,799) 381,041
Interest income
(expenses) (98,771) 3,628 (189,103) 10,703
Income (loss) before
income taxes (451,391) (239,859) (1,094,902) 391,744
Provision for income
taxes 11,667 2,482 23,488 158,717
Net income (loss) $(463,058) $(242,341) $(1,118,390) $233,027
Other Comprehensive
Income
Foreign currency
translation
adjustment $(35,199) $464,322 $(6,270) $(106,278)
Comprehensive Income
(loss) $(1,153,589) $697,349 $(469,328) $(348,619)
Basic and diluted
income per common
share
Basic $(0.02) $0.01 $(0.01) $(0.01)
Diluted $(0.02) $0.01 $(0.01) $(0.01)
Weighted-average
common shares
outstanding
Basic 44,555,131 44,555,131 44,555,131 44,555,131
Diluted 45,385,131 44,555,131 45,385,131 44,555,131
APOLLO SOLAR ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
2009 2008
Cash flows from operating activities:
Net income (loss) $(1,118,390) $233,027
Adjustments to reconcile net income
to net cash used in operating
activities:
Issuance of options for service 373,262 --
Depreciation 598,367 223,503
Deferred tax assets 9,418 --
Changes in assets and liabilities:
Account receivable-trade (287,821) (540,239)
Inventory 213,263 (4,929,909)
Other sundry current assets (18,581) (207,399)
Tax receivable 488,047 --
Advance for purchases (174,461) (334,021)
Account payable-trade (301,101) 102,239
Accounts payable - construction (50,469) --
Accrued expenses and other sundry
current liabilities (223,704) 429,509
Accrued interests 184,785 --
Net cash used in operating activities (307,385) (5,023,290)
Cash flows from investing activities:
Non-marketable investment (43,904) --
Purchase of property & equipments (1,011,214) (5,542,889)
Government subsidy to purchase of fixed
assets 2,019,579 --
Acquisition of land use rights (3,673,545) --
Net cash used in investing activities (2,709,084) (5,542,889)
Cash flows from financing activities:
Proceeds from short-term borrowings 1,956,358 --
Capital contribution -- 7,146,383
Advance from (payment to) shareholders (3,202,661) 144,775
Advance from (payment to) related party (361,671) 531,613
Net cash provided by (used in) financing
activities (1,607,974) 7,822,771
Effect of exchange rate changes on cash
and cash equivalents (6,284) 223,996
Net decrease in cash and cash equivalents (4,630,727) (2,519,412)
Cash and cash equivalents, beginning of
period 4,874,044 2,621,139
Cash and cash equivalents, end of period $243,318 $101,727
Supplemental disclosures of cash flow
information:
Interest paid $5,163 $--
Income taxes paid $9,862 $--
