American Nano Silicon Technologies Inc. Reports FY 2011 Financial Results
(firmenpresse) - NANCHONG, CHINA -- (Marketwire) -- 01/17/12 -- American Nano Silicon Technologies, Inc. (OTCBB: ANNO) ("ANNO" or "the Company"), a leading manufacturer and distributor of consumer chemical products in China, today announced its financial results for fiscal year 2011 (FY 2011), which ended September 30, 2011.
FY 2011 Financial Highlights:
Net income grew 179%, from a net loss of $4.3 million in FY 2010 to $3.4 million in FY 2011
*Earnings per diluted share of $0.11 on 31 million shares. For FY 2010, the Company reported fully diluted losses per share of ($0.16) on 28 million shares.
"2011 marked a key chapter in our development," said Mr. Pu Fachun, Chief Executive Officer of ANNO. "We recently relocated to a new, larger manufacturing facility that will enable us to further diversify our product line. This past year, we focused on launching the product line for our flame retardant additive, the samples of which generated considerable interest at the 10th China International Exhibition on Housing Industry in September. Officially, we commenced limited production of our flame retardant additive on January 2, 2012. We are confident that we will be able to fully launch our flame retardant additive product line in 2012, and with the sales of this product, we believe that we will see improved financial results in the future."
In FY 2011, ANNO had sales of $16.1 million compared to sales of $23.4 million in FY 2010, a decrease of $7.3 million. The decrease in sales is primarily attributable to the Company relocating to its new manufacturing facility. ANNO suspended production during the move, resulting in decreased sales in the third and fourth quarters of 2011.
In FY 2011, ANNO had a gross profit of $3.8 million compared to a gross profit of $5.6 million in FY 2010, which is a decrease of $1.8 million. Cost of goods sold, which consists primarily of labor, overhead and product cost, was $12.3 million in FY 2011, representing a decrease of $5.4 million or approximately 31 percent when compared to FY 2010. ANNO's decrease in cost of goods sold in FY 2011 was approximately proportionate to the decrease in its revenues. ANNO's gross margin in FY 2011 remained relatively unchanged at 23 percent, compared to 24 percent in FY 2010.
In FY 2011, ANNO's net income was $3.4 million as compared to a net loss of $4.3 million in FY 2010, an increase of $7.7 million or 179 percent. In FY 2010, the Company realized a net loss of $4.3 million primarily due to the $7.6 million in expenses ANNO recorded as a result of its private placement of derivative securities. The Company net income for FY 2011 increased as a result of the reduction in value of those derivative securities. This helped balance the impairment loss of $2.1 million that ANNO incurred as result of its relocation to its new manufacturing facility.
On September 6, 2011, the Company acquired all minority interests in its subsidiaries by agreeing to issue 1,650,636 shares of common stock to the minority interest holders. Consequently, Nanchong Chunfei, Chunfei Chemicals, and Hedi Medicines became wholly owned subsidiaries of ANNO.
In December 2011, ANNO successfully relocated to its new facility, which contains equipment that enables the Company to further develop its product line. In particular, ANNO looks to build out the product line for its flame retardant additive, which is a proprietary aluminum hydroxide based powder that can be used as filler in polymer applications such as rubber, epoxies, polyester resin and polyvinyl chloride resin. The Company developed its flame retardant additive alongside Dr. Wang Yuzhong, Professor of Polymer Science and Engineering at Sichuan University and the Honorary President of China's Flame Retardant Society. In response to the Beijing Television Cultural Center fire of February 2009, China's government has called for flame retardant additives to be required in all commercial and residential construction projects, and ANNO is confident that it will be able to capitalize on this development with the launch of it flame retardant additive line.
"We are very excited about our prospects in 2012," remarked Mr. Pu. "Our new flame retardant additive will be a welcome addition to our product line, and our new facilities and increased product diversification capacities will help us better meet the demands of our customers. Our goal is to establish our patented technology, Micro Nano Silicon, in a broad range of industries as many of our products based on this unique technology have shown to be more cost effective and environmentally friendly than competitors. While we look to provide additional industries with more effective, cleaner additives, we will also strive to build upon our understanding of nano technology and develop other practical, cost effective and eco friendly products."
American Nano Silicon Technologies, Inc., through its 100%-owned subsidiary, Nanchong Chunfei Nano Silicon Technologies Co., Ltd., is engaged in the business of manufacturing and distributing Micro Nano Silicon™ based products. While the Company's Micro Nano Silicon based products are currently focused on the concrete and non-phosphate detergent industries, Micro Nano Silicon is adaptable to and widely used in many consumer and industrial products, including paint, petrochemical, plastics, rubber, paper, ceramics and water treatment materials.
This release may contain certain "forward-looking statements" relating to the business of American Nano Silicon and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions. These forward-looking statements are based on assumptions about the Company's future, including, but are not limited to, continued demand for the Company's products, the Company's ability to sustain growth for the balance of the year, and its ability to generally meet all of its objectives. Such forward-looking statements and the underlying assumptions involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, and concentration in a small number of customers, raw material costs, market acceptance, future capital requirements, and competition in general as well as other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in the Company's filings with the SEC, in particular in Item 1A: "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended September 30, 2011. Except as required by law, the Company will not update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact:
American Nano Silicon Technologies, Inc.
Peter D. Zhou
Tel: + 213-537-5163
Email:
Investor Contact:
Mr. Kevin Fickle
NUWA Group, LLC
Tel: +1-925-330-8315
Email:
Mr. Kevin Ma
NUWA Group, LLC
Tel: +1-415-571-3640
Email:
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Datum: 17.01.2012 - 13:00 Uhr
Sprache: Deutsch
News-ID 104622
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