Delaware
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001-34591
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74-2235008
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||
(State or other jurisdiction of
incorporation or organization)
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(Commission File No.)
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(IRS Employee Identification No.)
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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99.1
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Press release issued by China Wind Systems, Inc., dated May 16, 2011.
|
Date: May 19, 2011 | China Wind Systems, Inc. | ||
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By:
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/s/ Fernando Liu | |
Fernando Liu | |||
Chief Financial Officer
|
|||
For more information, please contact:
|
||
Company Contact:
|
Investor Relations Contact:
|
|
Mr. Fernando Liu
|
Mr. Athan Dounis
|
|
Chief Financial Officer
|
CCG Investor Relations
|
|
China Wind Systems, Inc.
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Tel: +1-646-213-1916
|
|
Tel: + 86-13761347367
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Email: athan.dounis@ccgir.com
|
|
Email: fol@chinawindsystems.com
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Web: www.ccgirasia.com
|
|
Web: www.chinawindsystems.com
|
|
·
|
Net income increased 37% year-over-year to $2.7 million, or $0.10 per diluted share
|
|
·
|
Revenue increased 4.3% year-over-year to $17.6 million
|
|
·
|
Revenue from the sale of forged products to the wind power and other industries increased 13.2% year-over-year to $13.4 million, or 76.4% of revenue
|
|
·
|
Revenue from the sale of forged products exclusively to the wind power industry increased 46.5% year-over-year to $10.2 million, or 58.0% of revenue
|
|
·
|
Operating income increased 24.1% year-over-year to $3.6 million
|
|
·
|
Net income increased 36.9% to $2.7 million, or $0.10 per diluted share
|
CHINA WIND SYSTEMS, INC. AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
March 31,
2011
|
December 31,
2010
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
1,252,597
|
$
|
947,177
|
||||
Notes receivable
|
213,087
|
50,593
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
6,175,107
|
8,207,797
|
||||||
Inventories, net of reserve for obsolete inventory
|
4,577,077
|
3,371,128
|
||||||
Advances to suppliers
|
625,902
|
333,923
|
||||||
Prepaid VAT on purchases
|
2,521,987
|
2,759,763
|
||||||
Prepaid expenses and other
|
140,325
|
36,338
|
||||||
Total Current Assets
|
15,506,082
|
15,706,719
|
||||||
PROPERTY AND EQUIPMENT - net
|
56,764,932
|
54,742,993
|
||||||
OTHER ASSETS:
|
||||||||
Land use rights, net
|
3,768,575
|
3,767,159
|
||||||
Total Assets
|
$
|
76,039,589
|
$
|
74,216,871
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Loans payable
|
$
|
1,217,637
|
$
|
1,814,937
|
||||
Accounts payable
|
6,640,657
|
7,660,768
|
||||||
Accrued expenses
|
662,519
|
526,006
|
||||||
VAT and service taxes payable
|
-
|
81,614
|
||||||
Advances from customers
|
314,468
|
236,004
|
||||||
Income taxes payable
|
1,157,599
|
1,331,713
|
||||||
Total Current Liabilities
|
9,992,880
|
11,651,042
|
||||||
STOCKHOLDERS' EQUITY:
|
||||||||
Preferred stock $0.001 par value (60,000,000 shares authorized, all of which were designated
|
||||||||
as series A convertible preferred, 15,622,625 and 16,205,268 shares issued and outstanding
|
||||||||
at March 31, 2011 and December 31, 2010, respectively)
|
15,622
|
16,205
|
||||||
Common stock ($0.001 par value; 150,000,000 shares authorized;
|
||||||||
19,123,392 and 18,751,128 shares issued and outstanding
|
||||||||
at March 31, 2011 and December 31, 2010, respectively)
|
19,123
|
18,751
|
||||||
Additional paid-in capital
|
26,989,156
|
26,579,053
|
||||||
Retained earnings
|
31,736,903
|
29,264,152
|
||||||
Statutory reserve
|
1,850,606
|
1,658,197
|
||||||
Accumulated other comprehensive gain - foreign currency translation adjustment
|
5,435,299
|
5,029,471
|
||||||
Total Stockholders' Equity
|
66,046,709
|
62,565,829
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
76,039,589
|
$
|
74,216,871
|
CHINA WIND SYSTEMS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
`
|
For the Three Months Ended
|
|||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
REVENUES
|
$
|
17,566,380
|
$
|
16,840,682
|
||||
COST OF REVENUES
|
13,013,774
|
12,423,987
|
||||||
GROSS PROFIT
|
4,552,606
|
4,416,695
|
||||||
OPERATING EXPENSES:
|
||||||||
Depreciation
|
80,587
|
82,955
|
||||||
Selling, general and administrative
|
831,801
|
1,401,376
|
||||||
Total Operating Expenses
|
912,388
|
1,484,331
|
||||||
INCOME FROM OPERATIONS
|
3,640,218
|
2,932,364
|
||||||
OTHER INCOME (EXPENSE):
|
||||||||
Interest income
|
712
|
1,244
|
||||||
Interest expense
|
(29,702
|
)
|
(74,919
|
)
|
||||
Foreign currency loss
|
(1,457
|
)
|
(1,859
|
)
|
||||
Other income
|
8,650
|
-
|
||||||
Total Other Income (Expense)
|
(21,797
|
)
|
(75,534
|
)
|
||||
INCOME BEFORE INCOME TAXES
|
3,618,421
|
2,856,830
|
||||||
INCOME TAXES
|
953,261
|
910,293
|
||||||
NET INCOME
|
$
|
2,665,160
|
$
|
1,946,537
|
||||
COMPREHENSIVE INCOME:
|
||||||||
NET INCOME
|
$
|
2,665,160
|
$
|
1,946,537
|
||||
OTHER COMPREHENSIVE INCOME:
|
||||||||
Unrealized foreign currency translation gain
|
405,828
|
7,270
|
||||||
COMPREHENSIVE INCOME
|
$
|
3,070,988
|
$
|
1,953,807
|
||||
NET INCOME PER COMMON SHARE:
|
||||||||
Basic
|
$
|
0.14
|
$
|
0.11
|
||||
Diluted
|
$
|
0.10
|
$
|
0.08
|
||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
||||||||
Basic
|
18,925,959
|
17,252,799
|
||||||
Diluted
|
25,655,436
|
25,395,026
|
CHINA WIND SYSTEMS, INC. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For the Three Months Ended
March 31,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
2,665,160
|
$
|
1,946,537
|
||||
Adjustments to reconcile net income from operations to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation
|
1,177,002
|
584,646
|
||||||
Amortization of debt discount to interest expense
|
-
|
44,993
|
||||||
Amortization of land use rights
|
22,428
|
21,618
|
||||||
(Decrease) Increase in allowance for doubtful accounts
|
(7,145
|
)
|
251,496
|
|||||
Stock-based compensation expense
|
84,892
|
286,320
|
||||||
Changes in assets and liabilities:
|
||||||||
Notes receivable
|
(161,698
|
)
|
102,808
|
|||||
Accounts receivable
|
2,085,825
|
(1,075,263
|
)
|
|||||
Inventories
|
(1,181,083
|
)
|
(1,095,615
|
)
|
||||
Prepaid value-added taxes on purchases
|
254,544
|
(489,189
|
)
|
|||||
Prepaid and other current assets
|
(103,842
|
)
|
137,756
|
|||||
Advances to suppliers
|
(289,011
|
)
|
(110,779
|
)
|
||||
Accounts payable
|
(1,065,108
|
)
|
1,141,572
|
|||||
Accrued expenses
|
133,298
|
(212,230
|
)
|
|||||
VAT and service taxes payable
|
(81,892
|
)
|
78,994
|
|||||
Income taxes payable
|
(182,032
|
)
|
(67,074
|
)
|
||||
Advances from customers
|
76,741
|
185,517
|
||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
3,428,079
|
1,732,107
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of property and equipment
|
(2,846,586
|
)
|
(2,810,860
|
)
|
||||
NET CASH USED IN INVESTING ACTIVITIES
|
(2,846,586
|
)
|
(2,810,860
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from loans payable
|
758,794
|
-
|
||||||
Repayment of loans payable
|
(1,365,830
|
)
|
(330,000
|
)
|
||||
Proceeds from sale of common stock
|
125,000
|
-
|
||||||
Proceeds from exercise of warrants
|
200,000
|
1,600,000
|
||||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
|
(282,036
|
)
|
1,270,000
|
|||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
|
5,963
|
360
|
||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
305,420
|
191,607
|
||||||
CASH AND CASH EQUIVALENTS - beginning of year
|
947,177
|
2,278,638
|
||||||
CASH AND CASH EQUIVALENTS - end of period
|
$
|
1,252,597
|
$
|
2,470,245
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid for:
|
||||||||
Interest
|
$
|
29,702
|
$
|
32,069
|
||||
Income taxes
|
$
|
1,135,294
|
$
|
977,367
|
||||
NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Series A preferred converted to common shares
|
$
|
936
|
$
|
-
|
||||
Common stock issued for prior and future service
|
$
|
-
|
$
|
7,470
|