Chisen Electric (CIECD) research, news, and more from GeoInvesting

Company description

Wed, 18 Feb 2009 05:00:00 GMT

On November 13, 2008 World Trophy Outfitters, Inc announced that it has completed a Share Exchange transaction with Chingxing Chisen Electric Co., Limited ("Chisen"), located in Changxing Economic Development Zone, Changxing, Zhejiang Province, The People's Republic of China (The PRC)

Chisen, founded in 2002, has grown to become one of the largest lead-acid motive battery producers in China with more than 1500 employees -- including some of the leading scientists in the field -- and sales of more than 5.5 million batteries per year. Customers for these products primarily are the growing number of eco-conscious riders of electric bicycles in the PRC, who prefer this convenient mode of "green" personal transportation. Chisen's "green" batteries, a designation they received at this past summer's Olympic Games, currently permit driving ranges of from 45 to 70 kilometers, with a wide range of power, and can run for up to 145 minutes after charging for about 10 hours. Chisen has in place a strong R&D operation, and has developed long-term strategic cooperation agreements with many of China's leading electric bicycle manufacturers.

Reverse Merger Filing

Comments & Business Outlook

Tue, 03 Jul 2012 04:00:00 GMT

Chisen Electric Corporation

Consolidated Statements of Operations and

Other Comprehensive Income

For the years ended March 31, 2012 and 2011

		Years ended March 31
		2012			2011
	Note	US$’000			US$’000

Operating revenues:
Net sales to third parties			119,563			243,814

Cost of sales			(101,716	)		(214,456	)

Gross income			17,847			29,358

Operating expenses:
Sales, marketing and distribution			(11,629	)		(10,882	)
General and administrative			(9,295	)		(4,138	)

Operating (loss) income			(3,077	)		14,338

Other income, net			860			1,782
Impairment loss on property, plant and equipment	19		(2,857	)		-
Loss on disposal of scrap inventories	20		(13,896	)		(2,328	)
Interest income			1,766			483
Interest expense			(8,812	)		(3,359	)

(Loss) Income before income taxes			(26,016	)		10,916

Income taxes expense	4		(1,047	)		(2,447	)

(Loss) Income before extraordinary item			(27,063	)		8,469

Extraordinary gain (less applicable income taxes of US$0)	18		13,117			2,605
Extraordinary loss (less applicable income taxes of US$0)	18		(1,848	)		-

Net (loss) income including non-controlling interest			(15,794	)		11,074

Less: Net loss (income) attributable to non-controlling interest			52			(8	)

Net (loss) income attributable to CIEC common stockholders			(15,742	)		11,066

Amounts attributable to CIEC common stockholders

(Loss) Income before extraordinary item			(27,011	)		8,461

Extraordinary gain (less applicable income taxes of US$0)	18		13,117			2,605
Extraordinary loss (less applicable income taxes of US$0)	18		(1,848	)		-

Net (loss) income attributable to CIEC common stockholders			(15,742	)		11,066

Other comprehensive income
Foreign currency translation adjustment			1,465			1,437

Comprehensive (loss) income			(14,277	)		12,503

Comments & Business Outlook

Thu, 16 Feb 2012 05:00:00 GMT

			Three months ended December 31						Nine months ended December 31
			2011			2010			2011			2010
	Note		US$’000			US$’000			US$’000			US$’000
Operating revenues:
Net sales to third parties				35,160			67,670			102,900			194,712

Cost of sales				(28,073	)		(59,200	)		(87,315	)		(170,460	)

Gross income				7,087			8,470			15,585			24,252

Operating expenses:
Sales, marketing and distribution				(2,390	)		(2,560	)		(7,031	)		(8,111	)
General and administrative				(2,812	)		(987	)		(6,597	)		(2,628	)

Operating income				1,885			4,923			1,957			13,513

Other income, net				418			276			619			889
Loss on disposal of scrap inventories				(6,092	)		(2,307	)		(6,092	)		(2,307	)
Provision for inventories				(5,431	)		-			(5,431	)		-
Interest income				479			117			1,184			315
Interest expense				(2,009	)		(940	)		(4,846	)		(2,231	)

(Loss) Income before income taxes				(10,750	)		2,069			(12,609	)		10,179

Income taxes benefit (expense)		4		434			(1,260	)		352			(2,421	)

(Loss) Income before extraordinary items				(10,316	)		809			(12,257	)		7,758

Extraordinary gain (less applicable income taxes of US$0)		19(a)		-			1,738			13,117			1,738
Extraordinary loss (less applicable income taxes of US$0)		19(b)		-			-			(1,848	)		-

Net (loss) income including non-controlling interests				(10,316	)		2,547			(988	)		9,496

Less: Net income attributable to non-controlling interests				(53	)		-			(64	)		-

Net (loss) income attributable to CIEC common stockholders				(10,369	)		2,547			(1,052	)		9,496

Amounts attributable to CIEC common stockholders

(Loss) Income before extraordinary item				(10,369	)		809			(12,321	)		7,758

Extraordinary gain				-			1,738			13,117			1,738
Extraordinary loss				-			-			(1,848	)		-

Net (loss) income attributable to CIEC common stockholders				(10,369	)		2,547			(1,052	)		9,496

Other comprehensive income
Foreign currency translation adjustment				256			561			1,297			1,115

Comprehensive (loss) income				(10,113	)		3,108			245			10,611


Weighted average number of common stock outstanding - basic and diluted	500,000,000		500,000,000	500,000,000		500,000,000

	US$		US$	US$		US$

Net (loss) income per share of common stock outstanding before extraordinary items - basic and diluted	(0.021	)	0.002	(0.025	)	0.016

Net (loss) income per share of common stock outstanding after extraordinary items - basic and diluted	(0.021	)	0.005	(0.002	)	0.019

This decrease was mainly attributable to the decrease of production activities resulting from an unexpected tightening of an environmental protection policy enforced on all lead-acid battery manufacturers implemented by the PRC Central Government during the period ended December 31, 2011. Pursuant to the tightened policy, a 500 meter isolated area must be maintained between production facilities and residential areas. All production facilities must have complied with this policy on or before July 15, 2011. Our production facilities at Plant B at Jing’er Road are not capable of being in full compliance with the tightened environmental policy and the residential area near Plant B shows no signs of slowing its expansion towards Plant B, which is out of the Company’s control. Our management decided to gradually scale down the operations of Plant B and to relocate such production facilities to Plant D, apart from recharging and packing activities, before December 31, 2011. During the three months ended December 31, 2011, we were advised by the government that our recharging and packing activities in Plant B may continue through October 31, 2012. Although our production capacities gradually recovered, our major competitors had temporarily eroded our market share during the reporting period. As such, our revenue decreased significantly.

Liquidity Requirements

Sun, 11 Dec 2011 05:00:00 GMT

Massive dilution in the cards

On September 6, 2010, Chisen Electric Jiangsu Company Limited (“CEJC”), a subsidiary of Changxing Chisen Electric Company., Ltd. (“CCEC”), the chief operating subsidiary of Chisen Electric Corporation, a Nevada corporation (the “Registrant”) entered into a Project Investment Agreement and a Supplemental Agreement to the Project Investment Agreement (together, the “Agreement”) with the Jiangsu Xuyi Economic Development Zone Administrative Committee (the “Committee”). Pursuant to the Agreement, CEJC shall invest, in the aggregate, approximately RMB1.2 billion (approximately $177 million) in three stages to establish the Chisen Circular Economy Industry Park for the manufacturing of lead acid and lithium-ion batteries and other related products in the Jiangsu Xuyi Economic Development Zone. In the first stage, CEJC shall invest approximately RMB422 million (approximately $62 million), including approximately RMB150 million (approximately $22 million) in fixed assets. CEJC shall commence construction after obtaining the approval certificate of construction plan and within 20 days from the date of the Agreement. All construction shall be completed on or before December 31, 2011.

Comments & Business Outlook

Sun, 11 Dec 2011 05:00:00 GMT

		Three months ended September 30						Six months ended September 30
		2011			2010			2011			2010
	Note	US$’000			US$’000			US$’000			US$’000
Operating revenues:
Net sales to third parties			36,422			76,613			71,821			127,042

Cost of sales			(29,859	)		(65,869	)		(63,323	)		(111,260	)

Gross income			6,563			10,744			8,498			15,782

Operating expenses:
Sales, marketing and distribution			(2,121	)		(3,040	)		(4,641	)		(5,551	)
General and administrative			(2,080	)		(956	)		(3,785	)		(1,641	)

Operating income			2,362			6,748			72			8,590

Other income, net			213			110			201			613
Interest income			402			102			705			198
Interest expense			(1,555	)		(606	)		(2,837	)		(1,291	)

Income (Loss) before income taxes			1,422			6,354			(1,859	)		8,110

Income taxes expense	4		(531	)		(912	)		(82	)		(1,161	)

Income (Loss) before extraordinary items			891			5,442			(1,941	)		6,949

Extraordinary gain (less applicable income taxes of US$0)	19(a)		-			-			13,053			-

Extraordinary loss (less applicable income taxes of US$0)	19(b)		-			-			(1,840	)		-

Net income including non-controlling interests			891			5,442			9,272			6,949

Less: Net income attributable to non-controlling interests			(11	)		-			(11	)		-

Net income attributable to CIEC common stockholders			880			5,442			9,261			6,949

AMOUNTS ATTRIBUTABLE TO CIEC COMMON STOCKHOLDERS

Income (Loss) before extraordinary items			880			5,442			(1,952	)		6,949

Extraordinary gain (less applicable income taxes of US$0)			-			-			13,053			-

Extraordinary loss (less applicable income taxes of US$0)			-			-			(1,840	)		-

Net income attributable to CIEC common stockholders			880			5,442			9,261			6,949

Other comprehensive income
Foreign currency translation adjustment			625			433			1,041			554

Comprehensive income			1,505			5,875			10,302			7,503

Earnings per share	3
Weight average number of common stock outstanding
- basic and diluted			50,000,000		50,000,000		50,000,000			50,000,000

		US$		US$		US$			US$

Net income (loss) per share of common stock outstanding before extraordinary items
- basic and diluted			0.02		0.11		(0.04	)		0.14

Net income per share of common stock outstanding after extraordinary items
- basic and diluted			0.02		0.11		0.19			0.14

Revenues decreased by US$55,221,000, or 43.47%, to US$71,821,000 for the six months ended September 30, 2011 compared with US$127,042,000 for the six months ended September 30, 2010. This decrease was mainly attributable to the decrease of production activities resulting from an unexpected tightening of an environmental protection policy enforced on all lead-acid battery manufacturers implemented by the PRC Central Government during the period ended June 30, 2011. Pursuant to the tightened policy, a 500 meter isolated area must be maintained between production facilities and residential areas. All production facilities must comply with this policy on or before July 15, 2011. Our production facilities at Plant B at Jing’er Road are not in compliance with the tightened environmental policy and the residential area nearby Plant B shows no signs of slowing its expansion towards Plant B, which is out of the Company’s control. Our management decided to gradually scale down the operations of Plant B and to relocate such production facilities to Plant D before December 31, 2011. However, we are permitted by the government to continue to conduct our battery charging activities and packing activities until December 31, 2011.

Investor Alert

Sun, 11 Dec 2011 05:00:00 GMT

Company finally confirms our findings:

Third quarter 2011 revenues decreased by US$55,221,000, or 43.47%, to US$71,821,000 for the six months ended September 30, 2011 compared with US$127,042,000 for the six months ended September 30, 2010. This decrease was mainly attributable to the decrease of production activities resulting from an unexpected tightening of an environmental protection policy enforced on all lead-acid battery manufacturers implemented by the PRC Central Government during the period ended June 30, 2011. Pursuant to the tightened policy, a 500 meter isolated area must be maintained between production facilities and residential areas. All production facilities must comply with this policy on or before July 15, 2011. Our production facilities at Plant B at Jing’er Road are not in compliance with the tightened environmental policy and the residential area nearby Plant B shows no signs of slowing its expansion towards Plant B, which is out of the Company’s control. Our management decided to gradually scale down the operations of Plant B and to relocate such production facilities to Plant D before December 31, 2011. However, we are permitted by the government to continue to conduct our battery charging activities and packing activities until December 31, 2011.

Investor Alert

Fri, 17 Jun 2011 04:00:00 GMT

Company has not disclosed the name of its customers:

Sales						Trade Receivables
Major Customers	Fiscal year ended March 31, 2011			Fiscal year ended March 31, 2010			Fiscal year ended March 31, 2011		Fiscal year ended March 31, 2010
							$’000		$’000
COMPANY X		18.83	%		21.08	%	$	29,603	$	26,283

COMPANY Y		18.82	%		19.08	%	$	17,627	$	14,005

COMPANY Z		12.40	%		6.77	%	$	3,757	$	2,747

Company has not disclosed that its facilities have been temporarily shut down by the government. On the contrary, the company has claimed that it is in compliance with regulations:

We believe that our current manufacturing operations comply in all material respects with applicable environmental laws and regulations. Although we believe that our current manufacturing operations comply in all material respects with applicable environmental laws and regulations, it is possible that future environmental legislation may be enacted or current environmental legislation may be interpreted to create environmental liability with respect to our other facilities, operations, or products.

Investor Alert

Fri, 27 May 2011 04:00:00 GMT

Investor Alert - Chisen Electric (CIEC) Among Chinese Lead-Acid Battery Companies whose Operations have been Temporarily Suspended by PRC Government

Excerpt from alert:

It is no secret that the Chinese government has been keeping a watchful eye on the lead-acid battery industry in China.　 Lead pollution has been on the rise and there have been several cases of serious health problems in assembly workers at lead-acid battery factories in different areas of China.
　　　　
Since the beginning of May 2011, 213 lead-acid battery companies have been closed for temporary environmental correction and inspection in Zhejiang province and especially in Changxing County, Zhejiang province.

To see how this may affect Chisen Electric, please see the following:

http://geoinvesting.com/companies/CIEC_Alert05272011.aspx

Liquidity Requirements

Tue, 15 Feb 2011 05:00:00 GMT

As of the date of this report, we have not experienced any difficulty in raising funds by bank loans, including the renewal of existing short term loans, and we have not experienced any liquidity problems in settling our payables in the normal course of business and repaying our bank loans when they fall due. However, we will need new sources of financing and additional capital in order to implement our current business strategy of expansion of our production facilities in Changxing County (Zhejiang Province) and in Jiangsu Province. Although we currently have the aforementioned short term loans and notes payable at our disposal, many of such short term loans and notes payable expire in the next three months, and there is no assurance that we will obtain any new loans or notes payable, or that such short term loans and notes payable set forth above will be renewed or that the terms of any renewals of such short term loans or notes payable will be on terms that are as favorable as our current instruments.

Liquidity Requirements

Mon, 15 Nov 2010 05:00:00 GMT

We generally finance our operations through operating profit and borrowings from banks. During the reporting period, we arranged a number of bank loans to satisfy our financing needs. As of the date of this report, we have not experienced any difficulty in raising funds by bank loans, and we have not experienced any liquidity problems in settling our payables in the normal course of business and repaying our bank loans when they fall due.