China Green Energy Industries (CGRE) reports incredible increases for full year 2010

Posted on: Wednesday, March 30th, 2011
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China Green Energy Industries, Inc. (OTCBB: CGRE) announced Wednesday extraordinary gains in revenue and net income for the full year 2010. Among the financial highlights for 2010, the Company reported revenue increased 136.4% to $28.6 million, gross profit increased 131.3% to $8.2 million, and net income increased 155.5% to $4.1 million, or $0.19 per share. The Company also reported cash on hand of $1.1 million and no long term debt as of December 31, 2010.

Chairman and Chief Executive Officer of China Green Energy, Mr. Jianliang Shi, commented, “We are pleased to report that sales were strong across all of our product lines in 2010. Cable products showed strong growth at 148.1% reaching a revenue level of $18.4 million for the year. Cryogen-free refrigerator sales increased by 106.3% to $9.5 million with orders stemming from both existing customers and new ones.”

China Green Energy Industries maintains its net income guidance of $14 million, or $0.60 per diluted share for 2011. The company, which is a leading manufacturer and distributor of high tech and environmentally-friendly consumer products, has three main product lines: light weight electric vehicles (LEV), cryogen-free refrigerators, and network/HDMI cables.

Mr. Shi continued, “The highest percentage gain in revenue came from our light electric vehicles (LEVs); however, the sales growth of 783.8% in 2010 came off a low base of $80,000. LEVs will play a much greater role in our business this year. In January 2011 we acquired the NICONIA brand of LEVs along with a sales network of 350 retail stores. NICONIA typically sells over 200,000 LEVs annually. Given the brand recognition, reputation and distribution for NICONIA LEVs, we believe this acquisition places us in a whole different league within the industry. We expect our LEV division to achieve sales of approximately $45 million in 2011 with gross margins of 25%. LEVs will comprise approximately 54% of our revenue in 2011, up from 2.5% in 2010.

Revenue for the year ended December 31, 2010 increased 136.4% to $28.6 million from $12.1 million for the same period the previous year. Gross profit for the twelve months ended December 31, 2010 increased 131.3% to $8.2 million compared to $3.5 million for the same period in 2009. Operating income for the twelve months ended December 31, 2010 increased 135.9% to $5.5 million compared to $2.3 million for the same period the previous year. Net income for the twelve months ended December 31, 2010 increased 155.5%, to $4.1 million, or $0.19 per diluted share, compared to $1.6 million, or $0.08 per diluted share, for the same period the previous year.

Shi concluded, “We expect favorable trends to continue based on heightened environmental awareness in China and government policies promoting the use of clean technology.”

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Category: Alternative Energy Stocks, OTCBB
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