Revenues Increased By 12%
Net Income Increased By 14.67%
HARBIN, China, March 31 /PRNewswire-Asia/ -- Xinyinhai Technology, Ltd. (OTC Bulletin Board: XNYH), a market leader in China’s fast-growing financial documents printing industry, today reported financial results for the year ended December 31, 2008.
Full Year 2008 Highlights
-- Revenues grew 12% year-over-year to a record $13.68 million
-- Gross profit increased to $5.02 million with gross margin of 36.70%
-- Net income grew 14.67% to a record $3.03 million, or $0.15 per
fully-diluted share
Revenue for the full year 2008 increased by 12% to $13.68 million, from $12.18 million in 2007. Gross profit increased in 2008 to $5.02 million from $4.99 million a year ago. Gross margin was 36.70% in 2008. Income from operations increased 10.70% to $3.35 million compared to $3.03 million in the same period a year ago. Net income for full year 2008 was $3.03 million or $0.15 per fully-diluted share, up 14.67% from net income of $2.65 million, or $0.10 per fully-diluted share in 2007.
Ms. Ling Tian, Chief Executive Officer of Xinyinhai Technology commented “2008 is out of common for all of us. We are very pleased to see the results growing for the year of 2008, and this gives us strong confidence to achieve further development.”
Ms. Tian continued “In view of the difficult business environment, we will continue our strategy to deepen our relations with existing clients, such as Bank of China, Agricultural Bank of China, Postal Savings Bank of China and China Rural Credit Union to maintain our stable growth. We believe the year ahead will be even more challenging. However, compared to the financial institutions in other countries, China’s banks maintained a very healthy condition and achieved record earnings last year. Further, we believe that the PRC government’s plan to stimulate domestic consumption especially to the urban and rural areas will benefit us, as our products will be used more often when the rural economy grows,” Ms. Tian concluded.
About Xinyinhai Technology Ltd.
Established in 1998, Xinyinhai specializes in printing high-end financial documents using ISO-certified state-of-art technology and systems employing the latest anti-falsification encryption methods. Its clients include many of China’s premier financial institutions, including the largest state-owned banks (Bank of China, China Construction Bank, and Agricultural Bank of China, Postal Savings Bank of China, the China Rural Credit Union, and China Domestic City Commercial Bank). Additional information about Xinyinhai is available at http://www.xnyhonline.com .
XINYINHAI TECHNOLOGY, LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Stated in US Dollars)
Year ended December 31,
2008 2007
Revenues $13,686,332 $12,180,448
Cost of sales (8,667,735) (7,187,756)
Gross profit 5,018,597 4,992,692
Operating expenses
Selling and distribution expenses 453,711 480,853
General and administrative expenses 1,206,821 1,478,303
Total expenses 1,660,532 1,959,156
Income from operation 3,358,065 3,033,536
Interest income 10 19,288
Other income 376,258 585
Finance costs (7,051) (1,660)
Income before income taxes and
minority interests 3,727,282 3,051,749
Income taxes (353,450) --
Minority interests (335,885) (402,402)
Net income $3,037,947 $2,649,347
Comprehensive income
Foreign currency translation adjustments 987,596 119,583
Comprehensive income $4,025,543 $2,768,930
Earnings per share - basic and diluted (Note 6) $0.150 $0.109
Weighted average number of common
stock outstanding 20,213,644 24,335,002
XINYINHAI TECHNOLOGY, LTD.
CONSOLIDATED BALANCE SHEETS
(Stated in US Dollars)
As of December 31,
2008 2007
ASSETS
Current assets
Cash and cash equivalents $495,060 $1,308,877
Restricted cash -- 363,492
Trade receivables (Net of allowance
for doubtful accounts of
$6,024 for 2008 and $6,682 for 2007) 2,901,909 1,329,732
Inventories 1,950,544 1,149,271
Other receivable, deposits
and prepayments 3,680,640 166,430
Prepaid expenses 87,693 412,737
Total current assets 9,115,846 4,730,539
Property, plant and equipment, net 5,103,480 5,349,795
Land-use-right 1,069,546 70,710
Deposits for acquisition of property,
plant and equipment -- 1,843,800
TOTAL ASSETS $15,288,872 $11,994,844
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Trade payable $899,141 $777,806
Bills payable -- 363,492
Customer deposits 117,221 286,935
Other payables and accrued
liabilities 652,170 920,448
Value added tax payable 111,718 137,334
Income tax payable 37,713 --
TOTAL LIABILITIES 1,817,963 2,486,015
COMMITMENTS AND CONTINGENCIES
MINORITY INTERESTS 1,366,177 919,640
STOCKHOLDERS’ EQUITY
Common stock 19,484 24,417
Additional paid-in capital 3,294,543 3,799,610
Retained earnings 6,184,913 3,504,343
Statutory reserves 1,276,013 918,636
Accumulated other comprehensive income 1,329,779 342,183
TOTAL STOCKHOLDERS’ EQUITY 12,104,732 8,589,189
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $15,288,872 $11,994,844
For more information, please contact:
Linda Li
Tel: +86-451-8681-1118
Mobile: +86-139-4605-4506
Email: ir@hrbjinhai.com.cn
