WEIFANG, China, May 14, 2011 /PRNewswire-Asia/ -- Xinde Technology Company (WTFS 4.87, 0.00, 0.00%), a widely respected China based designer and manufacturer of internal combustion engines and parts, primarily for the domestic market in China, announced today that net income in its Three quarter ended March 31, 2011 increased 11% year over year with a 3% increase in revenues in the same period.
Revenues in the quarter were $27,596,387 compared to $26,836,259 in the prior year Three quarter, which the Company said primarily reflected the increased sales of diesel engines as a result of product structure adjustment to introduce more products with higher gross margins and reduce the production and sales for products of older style diesel engines and generator sets with lower gross margins. Net income in the period of $3,631,034, compared with $3,277,715 in the prior year Three quarter, and was boosted by bad debt recoveries of $137,324 and a decrease of $60,388 in sales commission.
Revenue increased by Adjustment of Product Structure
Mr. Dianjun Liu, President and CEO of the Company, stated, "There were significant bright spots in the quarter. By adjusting our product structure, revenues in the quarter increased by 3%, especially the sales of diesel engines, which increased by 28% compared with the same period last year and accounted for 41% of our total revenue in this Three quarter." He continued, "Sales of our electricity pumps, which has met the Euro III standard, increased 43% compared to the same period last year and we are very confident about the growth potential of our environmentally friendly product lines. Furthermore, sales of one of our traditional products, multi-cylinder pumps also showed strength, increasing 13% compared with the same period in 2010. Going forward, I also believe adjustments we made in our product structure at Huaxin and Jinma to improve overall margins will contribute to improved results."
About Xinde Technology Company
Based in China's Shandong Province in the city of Weifang, Xinde Technology Company competes in three primary product segments, namely (1) fuel injection system products, (2) diesel engine products and (3) generator products. The Company has a broad range of products including non-vehicle diesel engines, diesel generators, injection pumps, injectors and three-coupling components, agricultural machinery and construction machinery which greatly reduces its comprehensive costs which, in turn, increases its competitiveness.
"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, 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 important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, financing and other factors as discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, In addition, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date hereof. No securities regulatory authority has either approved or disapproved the contents of this new release. This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The Company filings with the US Securities and Exchange Commission, including the quarterly report for the three months ended March 31, 2011 on Form 10-Q, can be viewed on EDGAR Online or www.sec.gov.
