China Power Equipment, Inc. Reports Record Revenue and Net IncomeChina Power Equipment, Inc. (OTC Bulletin Board: CPQQ) today reported its operating results for the second quarter of 2009. Net revenues for the six months were $8,590,671, an 88% increase over the first six months of 2008. Net income for the period
By: China Power Equipment Energy Efficient Transformer Manufacturer Earns $0.11 Per Share in the First Six Months of 2009 as Compared to $0.06 in the Prior Year New York, New York – August 18, 2009 – China Power Equipment, Inc. (“China Power”) today reported its operating results for the second quarter of 2009. Net revenues for the six months were $8,590,671, an 88% increase over the first six months of 2008. Net income for the period nearly doubled to $1,634,383, or $0.11 per share, as compared to $822,141, or $0.06 per share for the first six months of 2008. These improvements were largely due to the Company’s strong performance in the second quarter. Revenue for the period was $5,888,375, more than double the $2,236,584 earned in the second quarter of 2008. Net income for the second quarter of 2009 was $1.3 million, or $0.09 per share, as compared to $310,746, or $0.02 per share, for the same period in 2008. The increases to net income as a percent of sales reflect a decrease in the selling, general and administrative expenses, which were 4% of revenues in the second quarter of 2009 as compared to 8% of revenues for the same period in 2008. Yong Xing Song, Chairman of the Board of the Company, stated, "We are quite pleased with the Company’s performance during the second quarter. The improved results reflect the investment we have made in our product line and sales effort. We expect these trends will continue as China’s economy continues to expand, and with it, the demand for efficient, clean transfer of energy. We look forward to building on the strong foundation we have built with many of the regional utilities and government agencies as they continue to increase and improve China’s power grid.” ABOUT CHINA POWER EQUIPMENT, INC. China Power Equipment, Inc., through its wholly-owned subsidiary, Xi’an Amorphous Zhongxi Co., Ltd., has developed a proprietary, patented technology to produce a new generation of energy saving transformers and transformer cores. The Company currently manufactures 55 different models of transformers in four product series which are sold throughout China. The Company was formed in 2006 as a U.S. corporation, and in November 2006, formed a Chinese subsidiary which was granted a license as a privately held, Wholly-Owned Foreign Enterprise, or “WOFE”, by the Chinese government. Safe Harbor Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings, including our Prospectus dated November 7, 2008, and 10-K filed on March 31, 2009 and our other recent filings. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf. For More Information on China Power Equipment, Inc. visit the website at: www.chinapower- email requests to: xa-fj@xa-fj.com call: 866-374-1957 (US) End
|
|
