China Power Equipment, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2012
November 14, 2012 at 04:00 pm
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China Power Equipment, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2012. For the quarter, the company reported revenue, net of $10,675,377 against $10,288,401 a year ago. Net income from operations was $2,499,179 against $2,064,771 a year ago. Net income before income taxes was $2,504,026 against $2,068,483 a year ago. Net income was $2,091,401 or $0.09 per diluted share against $1,697,695 or $0.07 per diluted share a year ago. Total net revenues increased $386,976 or 3.8%, primarily attributable to higher tonnage of amorphous alloy cores sold and more units of amorphous alloy transformers sold as the company started to ramp up the production at new amorphous alloy transformer production line. This increase in net revenue was partly offset by the lower average selling prices of amorphous alloy cores and transformers due in part to pricing strategy designed to capture more orders.
For the nine months, revenue, net of $27,421,060 against $27,716,131 a year ago. Net income from operations was $5,809,466 against $5,427,441 a year ago. Net income before income taxes was $5,849,180 against $5,459,799 a year ago. Net income was $4,830,445 or $0.20 per diluted share against $4,495,660 or $0.19 per diluted share a year ago. Net cash provided by operating activities was $1,271,725 against net cash provided by operating activities of $3,369,559 a year ago. Addition in plant and equipment were $3,557 against $2,052,747 a year ago. Net revenues decreased primarily as a result of the lower average selling prices of amorphous alloy cores and transformers, partly offset by higher tonnage of amorphous alloy cores and more units of amorphous alloy transformers sold.
China Power Equipment, Inc. (China Power) is a China-based company engaged in designing, manufacturing, and distributing amorphous alloy transformer cores and amorphous alloy transformers. The Companyâs devices are used to step down voltage at the final phase of the distribution of electricity to consumers, businesses, and industry. The Company conducts its business through its operating company, Xiâan Amorphous Alloy Zhongxi Transformer Co., Ltd. (Zhongxi), a Peopleâs Republic of China (PRC) Company that is controlled through its wholly owned PRC-based subsidiary An Sen (Xi'an) Power Science & Technology Co., Ltd. (An Sen), a wholly foreign-owned enterprise (WOFE). The Companyâs transformers consume 70% less electricity to operate than traditional transformers. Its products generate fewer pollutants, while retaining more electricity.