SHENZHEN, China, March 31 /PRNewswire-Asia-FirstCall/ -- Sino Assurance Inc. (OTC Bulletin Board: SNAS) reported today that its full-year ended December 31, 2009 net income attributable to the Company was $2,167,141 ($0.04 per share) compared to net loss $402,346 ($-0.01 per share) for the full-year of 2008. Net income attributable to the Company for the fourth quarter of 2009 was $1,465,351 compared with net loss $614,870 for the fourth quarter of 2008.
Fourth-Quarter Financial Results
During the fourth quarter of 2009, the Company reported a 448% increase in total revenue, which reached $2,811,292 up from $512,931 in the same period in 2008. Higher balances of cash advance guarantee services contributed the largest share of the growth in total revenue during the fourth quarter. Gross profit margin for the quarter was 80% up from 59% in the fourth quarter of 2008. The increase reflected the growing demand for credit services, success of bank facility arrangement and effective cost control measures.
Income from operations reached $1,738,201 in the fourth quarter of 2009 compare with loss from operation $648,522 in the same period in 2008 as the growth in net revenue and lower levels of insurance claims. GAAP earnings per diluted share for the fourth quarter of 2009 was $0.02, as compared to $-0.01 for the fourth quarter of 2008.
Full-Year Financial Results
For the full year 2009, Sino's revenues totaled $6,201,287, up 136% versus $2,626,380 in 2008. The Company finished fiscal year 2009 with net income of $2,167,141 ($0.04 per share) compared to net loss $402,346 ($-0.01 per share) for the full fiscal year ended in 2008. Gross profit totaled $4,789,784, up 152% from $1,901,686 in 2008. Gross margin was 78%, up 500 basis points from 73% last year. Operating income increased to $2,599,455, while operating margin was 42%, as a result of higher gross margin.
Working capital increased to $4,730,900, versus $3,245,441 at the end of the previous quarter, and total debt was $5,112,415, up from $2,638,830 at the end of the third quarter of 2009.
Financial Outlook
Management believes that the opportunities for sustained growth in revenue and earnings will be largely associated with the customer demand for the financial services provided by the Company, which primarily take the form of credit guaranty. Other elements expected to drive the growth in revenue include the potential impact of the regulatory governance of the credit guaranty market and development of the company's new personal credit products and services.
Management believes that the fiscal year of 2010, company will produce between $0.08 to $0.09 earnings per share, with revenue projection of $14 to $15 million.
Safe Harbor Statement
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as 'will,' 'believes,' 'expects' or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov .
For more information, please contact:
Company Contact:
Kayla Zhang, Assistant to CFO
Sino Assurance, Inc.
Tel: +86-755-8252-2279
Mobile: +86-135-1099-2096
Email: virginiaa@126.com
Investor Contact:
Eric Tong, Chief Finance Officer
Tel: +86-755-8252-0501
Mobile: +86-139-2371-9945
Email: tongmengyu@gmail.com
SINO ASSURANCE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008
EXPRESSED IN USD
Three months
For the period ended
December 31,
2009 2008
(unaudited)
Sales revenue 2,999,342 543,630
Business tax (166,442) (33,737)
Interest income (21,608) 3,038
Cost of sales (540,802) (210,512)
Gross profit 2,270,490 302,419
Expenses
Selling, general and
administrative expenses (571,852) (716,037)
Depreciation and amortization (22,121) (19,232)
provision for guarantee loss 61,683 (193,295)
Guarantee loss -- (22,378)
General and administrative -- --
Income from operations 1,738,200 (648,523)
Other income/(expense): -- --
Other income 1,009 95
Other expenses 15,093 109
Income before income tax 1,754,302 (648,319)
Income tax expenses (289,788) 53,903
Net income 1,464,514 (594,416)
Other comprehensive income:
- Foreign currency translation
adjustment 837 (20,455)
COMPREHENSIVE PROFIT (LOSS) 1,465,351 (614,871)
Net loss per common share 0.02 (0.01)
SINO ASSURANCE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
EXPRESSED IN USD
2009 2008
(unaudited)
Sales revenue 6,475,776 2,764,498
Business tax (343,051) (169,074)
Interest income 68,562 30,956
Cost of sales (1,411,503) (724,694)
Gross profit 4,789,784 1,901,686
Expenses
Selling, general and
administrative expenses (2,002,550) (2,088,583)
Depreciation and amortization (83,507) (63,380)
provision for guarantee loss (104,273) (215,448)
Guarantee loss -- (22,378)
General and administrative -- --
Income from operations 2,599,454 (488,103)
Other income/(expense):
Other income 3,297 95
Other expenses -- (5,171)
Income before income tax 2,602,751 (493,179)
Income tax expenses (443,835) (11,883)
Net income 2,158,916 (505,062)
Other comprehensive income:
- Foreign currency translation
adjustment 8,225 102,715
COMPREHENSIVE PROFIT (LOSS) 2,167,141 (402,347)
Net loss per common share 0.04 (0.01)
SINO ASSURANCE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2009 AND 2008
EXPRESSED IN USD
2009 2008
(unaudited)
Asset
Current assets
Cash and cash equivalents 559,106 90,158
Restricted cash 5,817,191 3,367,033
Account receivable 790 17,553
Note receivable 3,268,244 1,896,650
Income tax receivable -- 55,105
Prepayments and other receivable 197,984 126,177
Total current assets 9,843,315 5,552,676
Non-current assets
Property, plant and equipment, cost 434,798 442,252
Property, plant and equipment, accumulated
depreciation (159,566) (80,959)
TOTAL ASSETS 10,118,547 5,913,969
Liabilities and shareholder equity
Current liabilities
Account payable 7,004 70,752
Customer deposits 3,729,734 2,102,665
Deferred revenue 364,636 401,259
Advances from customers -- --
Accrued liabilities and other payable 576,769 440,868
Income tax payable 29,113 --
Amount due from related parties 59,582 59,434
Deferred tax liabilities 345,577 --
Total current liabilities 5,112,415 3,074,978
TOTAL LIABILITIES 5,112,415 3,074,978
Minority interest -- --
Stockholders' equity
Common stock, $0.001 par value;
200,000,000 shares authorized;
60,000,000 shares issued and
outstanding as of Mar 31, 2009
and Dec 31, 2008 -- 60,000
Additional paid-in capital -- (60,000)
Equity of VIE 2,975,121 2,975,121
Statutory reserve 158,314 104,230
Accumulated other comprehensive income 172,064 163,839
Retained earnings 1,700,633 (404,199)
Total stockholders' equity 5,006,132 2,838,991
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY 10,118,547 5,913,969
SINO ASSURANCE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
EXPRESSED IN USD
2009 2008
(unaudited)
Cash flows from operating
activities:
Net income 2,158,916 (505,062)
Adjustments to reconcile
net earnings to net cash
provided by operating activities:
Depreciation 83,507 63,380
Loss on disposal 7,492 2,971
Provision for guarantee loss 104,273 215,448
Unrealized interest income -- --
Deferred tax expense 345,390 --
Changes in assets and liabilities:
Accounts receivable, trade 16,797 (11,628)
Prepayment and other receivables (71,455) (61,597)
Accounts payable (63,890) 69,654
Deferred revenue (37,599) 325,411
Income tax receivable 55,212 (54,249)
Income tax payable 29,097 (120,698)
Accrued payment and other payable 30,460 117,001
Advances from customers -- --
Net cash provided by / (used in)
operating activities 2,658,200 40,631
Cash flows from investing activities:
Change in restricted cash (819,503) (32,459)
Change in note receivables (1,366,141) (1,867,212)
Proceeds from disposal of ppe 835 403
Purchase of plant and equipment (4,922) (223,019)
Net cash provided by / (used in)
investing activities (2,189,731) (2,122,287)
Cash flows from financing activities:
Capital contributions to a VIE -- 2,010,845
Advances from stockholders -- 16,566
Amount due to related parties --
Amount due to shareholders -- --
Net cash provided by financing
activities -- 2,027,411
Foreign currency translation
adjustment 480 7,907
NET CHANGE IN CASH AND CASH
EQUIVALENTS 468,949 (46,338)
CASH AND CASH EQUIVALENTS BEGINNING
OF YEAR/PERIOD 90,157 136,496
CASH AND CASH EQUIVALENTS END OF
YEAR/PERIOD 559,106 90,158
