ZHEJIANG, CHINA, Jun 28, 2010 (MARKETWIRE via COMTEX) — Chisen Electric Corporation /quotes/comstock/11k!ciec (CIEC 6.30, -0.03, -0.47%) (the “Company”), a leading lead-acid motive battery producer for the electric bicycle market in the People’s Republic of China, announced today that continuing rapid growth in China’s electric bicycle market fueled a 62.53% increase in the Company’s fiscal year revenues compared with results in the prior fiscal year, while year over year net income grew 6.98%.
Units Sold Increased 85.64%
In the fiscal year ended March 31, 2010, revenues generated primarily by product sales rose approximately to $177,192,000 from $109,020,000 in the prior year, while net income increased to $9,500,000 from $8,880,000 a year earlier. Earnings per share were $.19 compared with $.18 in the prior fiscal year. As of March 31, 2010, the Company’s cash position increased to $6,019,000 from $2,620,000 at the same time last year. Reflecting strong price competition, the Company’s unit sales growth during the year exceeded the growth in revenues, as units sold increased by approximately 85.64% to 14,480,000 units for the year ended March 31, 2010 compared with 7,800,000 units in the prior year. The unit increase reflected the continuing rapid growth of China’s electric bicycle market, where electric vehicle sales grew to approximately 100 million units in 2009 and are expected to grow to approximately 120 million vehicles in 2010.
Continuing Demand for Chisen’s Battery Products
Commenting on the fiscal year results, Mr. Xu Kecheng, President and CEO, stated, “We are pleased to report another year of strong growth in the sales of our products. The growing popularity in China of electric bicycles — a very clean, practical and energy efficient form of transportation — has continued to propel the growth of Chisen Electric. Intense competition has led the Company to lower the prices of some of its products in order to maintain or expand market share. Nevertheless, looking ahead we expect to remain very competitive with a continuing focus on new product development primarily aimed at providing products with increased power and reduced weight. We also will continue to emphasize development of long term relationships with important electric bicycle manufacturers, while also focusing on strengthening our position in the growing replacement market and with key suppliers and vendors.” He added, “With the steadily increasing interest in China in the development of alternative transportation vehicles with low emissions and reduced reliance on oil and gas, we also continue to explore the market for electric powered motorcycles and electric cars. Additionally, we are continuing to expand our product mix with items such as chargers, controllers and motors for personal transportation devices. Our goal remains to become the largest battery developer and producer in China with a first class national sales and services network.”
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Chisen Electric Corporation Full Year Revenues Grew 62.53% and Net Income Advanced 6.98% Compared With Prior Fiscal Year Results
