Attached files
| file | filename |
|---|---|
| 8-K - China Integrated Energy, Inc. | v201008_8k.htm |
Exhibit
99.1
China
Integrated Energy Reports Third Quarter 2010
Financial
Results; Increases Full-Year 2010 Revenue and
Net
Income Guidance
|
§
|
Third
Quarter 2010 Sales Increase 47.5% to $106.8 million, Net Income Increases
39.2% to $13.7 million with EPS of
$0.32
|
|
§
|
Cash
flow from operations up 84.7% year-to-date to $35.6
million
|
|
§
|
On
track to double biodiesel production capacity to 200,000 tons/year by
December 2010
|
|
§
|
Management
to Host Earnings Conference Call on November 4, 2010 at 10:00am
ET
|
XI'AN,
China, November 4 /PRNewswire-Asia-FirstCall/ -- China Integrated Energy, Inc.
(Nasdaq:CBEH - News), a leading non-state-owned integrated energy company in the
People's Republic of China, today announced its financial
results for the third quarter of 2010.
SUMMARY
FINANCIALS
|
Third
Quarter 2010 Results
|
|||
|
Q3
2010
|
Q3
2009
|
CHANGE
|
|
|
Sales
|
$106.8
million
|
$72.4
million
|
+47.5%
|
|
Gross
Profit
|
$ 16.0
million
|
$10.9
million
|
+47.4%
|
|
Net
Income
|
$ 13.7
million
|
$9.9
million
|
+39.2%
|
|
EPS (Fully
Diluted)
|
$0.32
|
$0.28
|
+14.3%
|
|
Nine
month 2010 Results
|
|||
|
YTD
2010
|
YTD
2009
|
CHANGE
|
|
|
Sales
|
$
320.6 million
|
$196.3
million
|
+63.3%
|
|
Gross
Profit
|
$ 44.8
million
|
$ 28.0
million
|
+60.1%
|
|
Net
Income
|
$ 38.5
million
|
$ 25.9
million
|
+48.7%
|
|
EPS (Fully
Diluted)
|
$0.89
|
$0.74
|
+20.3%
|
1
Third
Quarter of 2010 Financial Results
Sales -
For the third quarter of 2010 sales was $106.8 million, increased by
47.5% from $72.4 million in the third quarter of 2009.. The increase was due to
strong market demand for finished oil and heavy oil products, an increase in
average selling prices, and increased sales by its existing and five new gas
stations added from September 30, 2009 to September 30, 2010.
China Integrated Energy,
Inc. also reports revenue in its three business segments - Wholesale
Distribution of Finished Oil and Heavy Oil Products, Production and Sale of
Biodiesel, and Operation of Retail Gas Stations:
|
Third
Quarter 2010 Revenue Breakdown
|
|||
|
Q3
2010
|
Q3
2009
|
CHANGE
|
|
|
Wholesale
Distribution of Finished Oil and Heavy Oil Products
%
of Sales
|
$64.0
million
59.9%
|
$47.3
million
65.2%
|
+35.5%
|
|
Production
and Sale of Biodiesel
%
of Sales
|
$20.3
million
19.0%
|
$14.9
million
20.6%
|
+35.8%
|
|
Operation
of Retail Gas Stations
%
of Sales
|
$22.5
million
21.1%
|
$10.2
million
14.2%
|
+120.0%
|
|
Total
Sales
|
$106.8
million
|
$
72.4 million
|
+47.5%
|
“We
experienced strong demand in each of our three business segments,” stated Mr. Gao Xincheng, Chief
Executive Officer of China Integrated Energy, Inc. “Sales growth was driven by a
combination of increase in sales volume and an increase in average selling
prices. Wholesale distribution sales increased 35.5% year-over-year due
to increased penetration within existing regions, growth in new distributors and
higher oil prices. The Company's
biodiesel sales increased 35.8% for the third quarter of 2010, compared to the
third quarter of 2009, driven by growth in both volume and pricing. Retail gas
station sales increased 120.0% due to strong consumer demand, the addition of
five stations and higher retail gasoline and diesel prices.”
Cost of
Sales - Cost of sales for the third quarter of 2010 was approximately $90.8
million compared to the cost of sales in the same period of 2009 of
approximately $61.5 million, an increase of $29.2 million, or
47.5%. The increase in cost of sales was attributable to an increase
in production and sales activities during the third quarter of 2010. Cost of
sales as a percentage of sales was approximately 85.0% for both
periods.
2
Gross
Profit and Gross Margin - Gross profit was approximately $16.0 million for the
third quarter of 2010, an increase of $5.1 million, or 47.4%, as compared to the
same period of 2009, and representing gross margins of approximately 15.0% in
both periods. During the third quarter of 2010, the gross profit margins for the
wholesale distribution of finished oil and heavy oil products increased
approximately 0.3% year-over-year to 11.2% due to a change of product sales mix
toward higher margin heavy oil products. The gross margins for the sale of
biodiesel were 29.8% and 29.5% in the third quarter of 2010 and 2009,
respectively. Retail gas stations generated gross profit margin of 12.5% in the
three months ended September 30, 2010 compared to 12.9% for the comparable
period last year.
Operating
Expenses - Selling, general and administrative expenses for the third quarter of
2010 were approximately $2.0 million compared to $1.0 million for the same
period in 2009, an increase of 99.5%, as a result of higher professional fees
related to ongoing Sarbanes Oxley compliance implementation and compensation
expense related to the employee stock option incentive plan. Total operating
expenses as a percentage of sales for the third quarter of 2010 and 2009 were
1.9% and 1.4%, respectively.
Net
Income – For the quarter ended September 30, 2010, net income was $13.7 million
as compared to $9.9 million in the same period of 2009, an increase of $3.9
million, or 39.2%. This increase was attributable to economies of
scale combined with rapid growth in revenue from wholesale distribution of
finished oil and heavy oil products and operation of retail gas stations
segments. Diluted earnings per share grew to $0.32 from $0.28 in the third
quarter of 2009.
Nine
month 2010 Financial Results
Sales -
Sales for the first nine months of 2010 were $320.6 million compared to $196.3
million in the same period in 2009, an increase of $124.3 million, or 63.3%. The
increase was mainly attributed to the growth in wholesale distribution and
retail gas station sectors and selling price increases. The company continues to
expand into new sales channels and territories, with its oil products being sold
in 14 provinces and municipalities at September 30, 2010, including Shaanxi
Province, Henan Province, Shangdong Province, Sichuan Province, Beijing and
Shanghai. The company continues to leverage its vertically integrated
business model to increase sales to existing customers, creating more demand for
oil products as their businesses grow and expand.
|
Nine
month 2010 Revenue Breakdown
|
|||
|
YTD
2010
|
YTD
2009
|
CHANGE
|
|
|
Wholesale
Distribution of Finished Oil and Heavy Oil Products
%
of Sales
|
$204.5
million
63.8%
|
$129.8
million
66.1%
|
+57.6%
|
|
Production
and Sale of Biodiesel
%
of Sales
|
$53.7
million
16.7%
|
$40.1
million
20.4%
|
+33.7%
|
|
Operation
of Retail Gas Stations
%
of Sales
|
$62.4
million
19.5%
|
$26.4
million
13.4%
|
+136.8%
|
|
Total
Sales
|
$320.6
million
|
$196.3
million
|
+63.3%
|
3
Cost of
Sales - Cost of sales for the nine months ended September 30, 2010 was
approximately $275.8 million compared to $168.3 million in the same period of
2009, an increase of $107.5 million, or 63.9%. The increase in cost
of sales was attributable to an increase in production and sales activities
during the first nine months of 2009.
Gross
Profit and Gross Margin - Gross profit was $44.8 million for the nine months
ended September 30, 2010 as compared to approximately $28.0 million for the same
period in 2009, representing gross margins of approximately 14.0% and 14.3%,
respectively. For the nine months ended September 30, 2010, the gross
profit margin for biodiesel oil was 30.4%, up from 27.3% in the same period last
year, due to higher pricing. The gross profit margin for wholesale distribution
of finished oil and heavy oil products and retail gas stations was approximately
10.2% and 12.2%, respectively, for the nine months ended September 30, 2010. We
expect our gross margin to maintain at least at the current level from upwards
pricing adjustments in the China domestic market.
Operating
Expenses - Selling, general and administrative expenses for the nine months
ended September 30, 2010 were $5.9 million compared to $2.2 million for the same
period in 2009, an increase of $3.7 million or 170.9%. Total
operating expenses as a percentage of sales was 1.8% and 1.1% for the nine
months ended September 30, 2010 and 2009, respectively.
Net
Income –Net income for the nine months ended September 30, 2010 was $38.5
million compared to $25.9 million in the same period in 2009, an increase of
$12.6 million or 48.7%. diluted earnings per share for the first nine
months of 2010 was $0.89 as compared to $0.74 in the same period last year. This
increase was attributable to economies of scale combined with rapid growth in
revenue in our wholesale distribution and retail business segments.
Liquidity
and Capital Resources
Cash and
cash equivalents were $79.7 million as of September 30, 2010 versus $62.4
million as of December 31, 2009. Working capital equaled $133.1 million at
September 30, 2010, compared to $121.1 million at December 31, 2009, an increase
of 9.8%. The increase in working capital was due to a $17.3 million
increase in the cash and cash equivalents balance. The current ratio was 8.2:1
at September 30, 2010, compared to 12.8:1 at December 31, 2009. Net cash from
operations was $35.6 million in the first nine months of 2010, compared to $19.3
million in the first nine months of 2009. The $16.3 million net cash flow
increase during 2010 was primarily due to approximately $12.6 million increase
in net income and a $10.0 million increase in advances from
customer.
4
Corporate
Income Tax
China
Integrated Energy, located in Xi’an City, Shaanxi Province, is exempt
from the corporate income tax through the end of calendar year 2011. However,
our newly acquired Chongqing Tianrun biodiesel plant, located in Chongqing City,
is subject to 15% corporate income tax rate.
Financial
Outlook for 2010
Based on
the strong results recorded in the first nine months of 2010, Management expects
to report sales of $435 million and net income of $53.5 million for the full
year ended December 31, 2010. Guidance includes two months of contribution from
the newly-acquired 50,000-ton biodiesel production capacity and Shenmu retail
gas station, offset by lower-than-expected contribution from the
newly-constructed 50,000-ton biodiesel plant due to the delay in the expected
completion date.
On October 26, 2010, NDRC increased the
retail selling price of gasoline and diesel by RMB 230 or $34.5 per ton or 3.2%
and RMB 220 or $33.0 per ton or 3.4%, respectively, when global crude oil price
stayed at $82 per barrel.
Business
Outlook for 2010
China
Integrated Energy, Inc.'s management plans to focus on growing each of its three
businesses - biodiesel production, wholesale distribution, and retail gas
stations with a focused expansion on biodiesel segment. On the wholesale
distribution and retail side, the Company benefits from its advantageous
location, well-established supplier relationships as well as an extensive
distribution network that has valuable railway access to reach remote parts of
China that other distribution companies cannot currently reach. China Integrated
Energy is the only non-state-owned integrated biodiesel producer with a
distribution license in China. Including the Shenmu retail gas station acquired
on October 19, 2010, the Company operates 13 gas stations surrounding Xi’an
city.
The
Company is also doubling its current biodiesel production capacity of 100,000
tons to 200,000 tons once the newly-constructed 50,000-ton biodiesel production
facility in Tongchuan City, Shaanxi Province commences testing and ramp-up of
production in December 2010. The Company anticipates spending approximately $15
million in capital expenditures to accomplish this goal. The Company has secured
enough raw materials to supply 150,000 tons of capacity in Tongchuan City, but
will also continue to work towards securing more long-term sources of raw
materials and new technology in the bio-energy field. On October 22, 2010, the
Company executed a definitive agreement to acquire Chongqing Tianrun Energy
Development Co., Ltd., a biodiesel production facility with 50,000 tons of
biodiesel production capacity. The Company
believes that profit margins of the acquired company are similar to its current
biodiesel production. The acquisition costs approximately $16.5 million. The
Company continues pursuing strategic acquisitions that will quickly provide
financial benefits to us. Furthermore, the Company continues to invest in
developing new biodiesel production technology to further increase the
flexibility in feedstock for its plants and to reduce raw materials
costs.
5
"We are
executing well on all phases of the growth strategy we have communicated to
shareholders. Through the first nine months of 2010, we have witnessed
broad-based growth in each of our three business segments. Our strong balance
sheet and cash flows afford us the ability to augment organic growth with timely
acquisitions such as the Shenmu retail gas station and Tianrun biodiesel plant.
We will continue to gain market share by further penetrating our existing
footprint and methodically expanding into new territories with China. With clear
competitive advantages, a focused growth strategy, and an experienced management
team, China Integrated Energy is well positioned to capture additional growth in
the Chinese domestic energy market.” Concluded by Mr. Gao Xincheng, Chief Executive Officer of
China Integrated Energy, Inc.
Conference
Call Information
Interested
parties may access the call by dialing +1-877-941-1429 from within the United
States, or +1-480-629-9666 if calling internationally. The conference ID is
4381081. It is advisable to dial in approximately 5-10 minutes prior to the
start of the call. A replay will be available through November 11, 2010 and can
be accessed by dialing +1-877-870-5176 (U.S.), +1-858-384-5517 (Int'l), passcode
4381081.
This call
is being web cast by ViaVid Broadcasting and can be accessed at ViaVid's website
at http://www.viavid.net
or at the following link: http://viavid.net/dce.aspx?sid=00007D0A.
To access the web cast, you will need to have the Windows Media Player on your
desktop. For the free download of the Media Player please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp.
In addition, a
replay will be archived on the investor relations section of the company's
website at http://www.chinaintegratedenergy.com.
About
China Integrated Energy, Inc.
China
Integrated Energy, Inc. is a leading non-state-owned integrated energy company
in China engaged in three business segments: the production and sale of
biodiesel, the wholesale distribution of finished oil and heavy oil products,
and the operation of retail gas stations. The Company operates a 100,000-ton
biodiesel production plant located in Tongchuan City, Shaanxi Province and a
50,000-ton plant in Chongqing City, China. By the end of 2010, the Company
expects to increase the total biodiesel production capacity to 200,000 tons by
constructing a new 50,000-ton production facility adjacent to the 100,000-ton
plant in Tongchuan City. The Company utilizes an extensive distribution network
to distribute traditional petroleum products, and operates thirteen retail gas
stations in China. For additional information on the Company please visit
http://www.chinaintegratedenergy.com.
An online
investor kit including a company presentation, press releases, current price
quotes, stock charts and other valuable information for investors is available
at http://www.chinaintegratedenergy.com. To subscribe to future releases via
e-mail alert, visit http://www.chinaintegratedenergy.com/alerts.
6
Safe
Harbor Statement
This
press release includes statements that may constitute forward-looking statements
made pursuant to the safe harbor provision of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. For example, statements
about the future use of the proceeds are forward looking and subject to risks.
China Integrated Energy, Inc. may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders, in
press releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that are not
historical facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements. A number of important factors
could cause actual results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties include, but are
not limited to, risks outlined in the Company's filings with the U.S. Securities
and Exchange Commission. The Company does not undertake any obligation to update
any forward-looking statement, except as required under applicable
law.
For more
information, please contact:
China
Integrated Energy, Inc.
Susan
Zhou
Vice
President, Investor Relations
Tel: +1-305-393-5536
Email:
susan.zhou@cbeh.net.cn
Web: http://www.chinaintegratedenergy.com
HC
International, Inc.
Ted
Haberfield, Executive VP
Tel: +1-760-755-2716
Email:
thaberfield@hcinternational.net
Web: http://www.hcinternational.net
7
|
CHINA
INTEGRATED ENERGY, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
September
30,
|
December
31,
|
|||||||
|
2010
|
2009
|
|||||||
|
(Unaudited)
|
(Audited)
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT
ASSETS
|
||||||||
|
Cash
and cash equivalents
|
$ | 79,653,492 | $ | 62,415,443 | ||||
|
Accounts
receivable
|
7,853,650 | 3,099,587 | ||||||
|
Other
receivables and deposits
|
4,729,002 | 7,231,586 | ||||||
|
Prepaid
expenses
|
3,115,795 | 3,145,502 | ||||||
|
Advance
to suppliers
|
33,065,887 | 34,544,100 | ||||||
|
Inventories,
net
|
23,132,881 | 20,954,851 | ||||||
|
Total
current assets
|
151,550,707 | 131,391,069 | ||||||
|
Prepaid
rents
|
30,355,870 | 24,620,685 | ||||||
|
Property,
plant and equipment, at cost
|
10,328,600 | 10,017,987 | ||||||
|
Construction
in progress
|
12,800,346 | - | ||||||
|
Less
accumulated depreciation
|
(2,826,408 | ) | (2,456,080 | ) | ||||
|
Property,
plant and equipment , net
|
20,302,538 | 7,561,907 | ||||||
|
Intangible
asset, net
|
14,289,470 | - | ||||||
|
Total
noncurrent assets
|
64,947,878 | 32,182,592 | ||||||
|
TOTAL
ASSETS
|
$ | 216,498,585 | $ | 163,573,661 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
CURRENT
LIABILITIES
|
||||||||
|
Advance
from customers
|
$ | 12,104,710 | $ | 1,903,124 | ||||
|
Taxes
payable
|
856,851 | 1,242,931 | ||||||
|
Other
payables and accruals
|
1,046,248 | 2,700,988 | ||||||
|
Loans
payable
|
4,483,970 | 4,395,025 | ||||||
|
Total
current liabilities
|
18,491,779 | 10,242,068 | ||||||
|
STOCKHOLDERS'
EQUITY
|
||||||||
|
Series
A Convertible Preferred stock, $.001 par
value; authorized shares
|
||||||||
|
3,000,000;
issued and outstanding 989,000 and 1,000,000 shares
|
||||||||
|
at
September 30, 2010 and December 31, 2009, respectively
|
989 | 1,000 | ||||||
|
Series
B Convertible Preferred stock, $.001 par
value; authorized shares
|
||||||||
|
7,000,000;
issued and outstanding 1,605,753 and 2,115,753 shares
|
||||||||
|
at
September 30, 2010 and December 31, 2009, respectively
|
1,605 | 2,115 | ||||||
|
Common
stock, $.0001 par value; authorized
shares
|
||||||||
|
79,000,000; issued
and outstanding 33,830,091 and 33,269,091
|
||||||||
|
shares
at September 30, 2010 and December 31, 2009, respectively
|
3,382 | 3,326 | ||||||
|
Additional
paid in capital
|
79,240,858 | 75,858,994 | ||||||
|
Statutory
reserve
|
4,920,114 | 4,920,114 | ||||||
|
Accumulated
other comprehensive income
|
8,264,637 | 5,473,420 | ||||||
|
Retained
earnings
|
105,575,221 | 67,072,624 | ||||||
|
Total
stockholders' equity
|
198,006,806 | 153,331,593 | ||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 216,498,585 | $ | 163,573,661 | ||||
8
|
CHINA
INTEGRATED ENERGY HOLDING INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE
INCOME
|
|
(Unaudited)
|
For
The Three Months Ended September 30,
|
For
The Nine Months Ended September 30,
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Sales
|
$ | 106,794,714 | $ | 72,401,010 | $ | 320,634,654 | $ | 196,303,917 | ||||||||
|
Cost
of goods sold
|
90,790,112 | 61,544,988 | 275,795,810 | 168,295,024 | ||||||||||||
|
Gross
profit
|
16,004,602 | 10,856,022 | 44,838,844 | 28,008,893 | ||||||||||||
|
Selling,
general and administrative expenses
|
1,988,110 | 996,604 | 5,859,828 | 2,163,179 | ||||||||||||
|
Income
from operations
|
14,016,492 | 9,859,418 | 38,979,016 | 25,845,714 | ||||||||||||
|
Non-operating
income (expenses)
|
||||||||||||||||
|
Interest
expense
|
(40,931 | ) | (22,048 | ) | (138,649 | ) | (91,228 | ) | ||||||||
|
Subsidy
income
|
21,870 | 38,210 | 21,870 | 155,174 | ||||||||||||
|
Other
expense
|
(253,778 | ) | (2,132 | ) | (359,640 | ) | (8,226 | ) | ||||||||
|
Total
non-operating expenses
|
(272,839 | ) | 14,030 | (476,419 | ) | 55,720 | ||||||||||
|
Net
income
|
13,743,653 | 9,873,448 | 38,502,597 | 25,901,434 | ||||||||||||
|
Other
comprehensive item
|
||||||||||||||||
|
Foreign
currency translation gain (Loss)
|
1,758,939 | 69,861 | 2,791,217 | 55,787 | ||||||||||||
|
Comprehensive
Income
|
$ | 15,502,592 | $ | 9,943,309 | $ | 41,293,814 | $ | 25,957,221 | ||||||||
|
Basic
and diluted weighted average shares outstanding
|
||||||||||||||||
|
Basic
|
33,829,656 | 27,287,040 | 33,621,516 | 27,287,040 | ||||||||||||
|
Diluted
|
43,328,716 | 35,757,432 | 43,117,860 | 35,017,932 | ||||||||||||
|
Basic
and diluted net earnings per share available to common
stockholders
|
||||||||||||||||
|
Basic
|
$ | 0.41 | $ | 0.36 | $ | 1.15 | $ | 0.95 | ||||||||
|
Diluted
|
$ | 0.32 | $ | 0.28 | $ | 0.89 | $ | 0.74 | ||||||||
9
CHINA
INTEGRATED ENERGY, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF EQUITY
|
(Unaudited)
|
Preferred
stock
|
Common
stock
|
||||||||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
Additional
paid
in
capital
|
Statutory
reserves
|
Other
comprehensive
income
|
Retained
earnings
|
Total
stockholders'
equity
|
||||||||||||||||||||||||||||
|
Balance
at December 31, 2008
|
3,465,753 | $ | 3,465 | 27,169,091 | $ | 2,716 | 44,434,250 | $ | 4,920,114 | $ | 5,337,003 | $ | 29,201,661 | $ | 83,899,209 | |||||||||||||||||||||
|
Preferred
B conversion
|
(350,000 | ) | (350 | ) | 350,000 | 35 | 315 | - | - | - | - | |||||||||||||||||||||||||
|
Shares
issued to employees
|
- | - | - | - | 30,056 | - | - | - | 30,056 | |||||||||||||||||||||||||||
|
Stock
purchase option - directors
|
- | - | - | - | 155,104 | - | - | - | 155,104 | |||||||||||||||||||||||||||
|
Stock-based
compensation
|
- | - | - | - | 555,710 | - | - | - | 555,710 | |||||||||||||||||||||||||||
|
Net
income for the year
|
- | - | - | - | - | - | - | 37,870,963 | 37,870,963 | |||||||||||||||||||||||||||
|
Issuance
of common stock
|
- | - | 5,750,000 | 575 | 30,683,559 | - | - | - | 30,684,134 | |||||||||||||||||||||||||||
|
Foreign
currency translation gain
|
- | - | - | - | - | - | 136,417 | - | 136,417 | |||||||||||||||||||||||||||
|
Balance
at December 31, 2009
|
3,115,753 | 3,115 | 33,269,091 | 3,326 | 75,858,994 | 4,920,114 | 5,473,420 | 67,072,624 | 153,331,593 | |||||||||||||||||||||||||||
|
Preferred
A conversion
|
(11,000 | ) | (11 | ) | 50,000 | 5 | 6 | - | - | - | - | |||||||||||||||||||||||||
|
Preferred
B conversion
|
(510,000 | ) | (510 | ) | 510,000 | 51 | 459 | - | - | - | - | |||||||||||||||||||||||||
|
Stock
purchase option - directors
|
- | - | - | - | 182,106 | - | - | - | 182,106 | |||||||||||||||||||||||||||
|
Stock-based
compensation - consultants
|
- | - | - | - | 1,065,097 | - | - | - | 1,065,097 | |||||||||||||||||||||||||||
|
Employee
stock option compensation
|
- | - | - | - | 2,127,156 | - | - | - | 2,127,156 | |||||||||||||||||||||||||||
|
Exercise
Employee stock option
|
- | - | 1,000 | - | 7,040 | - | 7,040 | |||||||||||||||||||||||||||||
|
Net
income for the period
|
- | - | - | - | - | - | - | 38,502,597 | 38,502,597 | |||||||||||||||||||||||||||
|
Foreign
currency translation gain
|
- | - | - | - | - | - | 2,791,217 | - | 2,791,217 | |||||||||||||||||||||||||||
|
Balance
at September 30, 2010
|
2,594,753 | $ | 2,594 | 33,830,091 | $ | 3,382 | $ | 79,240,858 | $ | 4,920,114 | $ | 8,264,637 | $ | 105,575,221 | $ | 198,006,806 | ||||||||||||||||||||
10
CHINA
INTEGRATED ENERGY HOLDING INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(Unaudited)
|
For
The Nine Months Ended September 30,
|
|||||||
|
2010
|
2009
|
|||||||
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
|
Net
income
|
38,502,597 | $ | 25,901,434 | |||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
|
Loss
on disposal of property and equipment
|
238,975 | - | ||||||
|
Depreciation
and amortization
|
1,015,039 | 883,778 | ||||||
|
Stock
based compensation
|
3,374,359 | 256,679 | ||||||
|
(Increase)
decrease in current assets:
|
||||||||
|
Accounts
receivable
|
(4,597,028 | ) | 2,733,209 | |||||
|
Other
receivables, deposits and prepaid expenses
|
(2,710,890 | ) | 3,638,603 | |||||
|
Advance
to suppliers
|
2,147,630 | (7,495,285 | ) | |||||
|
Inventories
|
(1,702,813 | ) | 1,322,620 | |||||
|
Prepaid
expenses - Rents, non-current
|
(8,162,645 | ) | (10,043,265 | ) | ||||
|
Increase
(decrease) in current liabilities:
|
||||||||
|
Accounts
payable
|
- | 889,211 | ||||||
|
Advance
from customers
|
10,058,995 | 2,024,552 | ||||||
|
Taxes
payable
|
(405,670 | ) | 91,211 | |||||
|
Other
payables and accrued expenses
|
(2,172,560 | ) | (939,882 | ) | ||||
|
Net
cash provided by operating activities
|
35,585,989 | 19,262,865 | ||||||
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
|
Acquisition
of property and equipment
|
(91,990 | ) | (204,646 | ) | ||||
|
Acquisition
of gas stations
|
(6,845,104 | ) | - | |||||
|
Construction
in progress
|
(12,744,538 | ) | - | |||||
|
Net
cash used in investing activities
|
(19,681,632 | ) | (204,646 | ) | ||||
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
|
Restricted
cash released
|
- | 919,367 | ||||||
|
Repayment
of auto loans and notes payable
|
- | (2,243,366 | ) | |||||
|
Net
cash used in financing activities
|
- | (1,323,999 | ) | |||||
|
EFFECT
OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS
|
1,333,692 | 46,805 | ||||||
|
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
17,238,049 | 17,781,025 | ||||||
|
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
62,415,443 | 23,119,028 | ||||||
|
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 79,653,492 | $ | 40,900,053 | ||||
|
Supplemental
Cash flow data:
|
||||||||
|
Income
tax paid
|
$ | - | $ | - | ||||
|
Interest
paid
|
$ | 178,726 | $ | 105,966 | ||||
|
Non-cash
activities:
|
||||||||
|
Financing
activities
|
||||||||
|
Conversion
of preferred stock to common stock
|
$ | 61 | $ | - | ||||
|
Transferring
|
||||||||
|
Transferring
from other receivables and prepaid rents to intangible
assets
|
$ | 7,994,143 | $ | - | ||||
11