-- First quarter 2009 sales increase 65.0% to $58.6 million, net income
increases 54.4% to $7.2 million with EPS of $0.21 vs. $0.15
-- Company reported $35.4 million in cash and equivalents on March 31,
2009 and generated $11.7 million in cash flow from operations for Q1
-- Reaffirms 2009 Guidance: Revenues and Net Income of at least
$240.7 million and $33.7 million, respectively
-- Management to Host Earnings Conference Call on May 14, 2009 at
4:15pm EDT
SUMMARY FINANCIALS
First Quarter 2009 Results
Q1 2009 Q1 2008 CHANGE
Net Sales $58.7 million $35.6 million +65.0%
Gross Profit $7.7 million $5.0 million +53.1%
Net Income $7.2 million $4.7 million +54.4%
EPS (Fully Diluted) $0.21 $0.15 +40.0%
First Quarter 2009 Financial Results
Net Sales -- Net Sales for the first quarter of 2009 were
First Quarter 2009 Revenue Breakdown (Unaudited)
Q1 2009 Q1 2008 CHANGE
Distribution of
Finished Oil $39.3 million $27.9 million +40.9%
% of Sales 67.0% 78.4%
Biodiesel Production $11.3 million $6.8 million +66.2%
% of Sales 19.3% 19.1%
Retail Gas Stations $8.1 million $0.88 million +820.5%
% of Sales 13.7% 2.5%
Total Sales $58.7 million $35.6 million +65.0%
'We are very pleased with our results for the first quarter which was the
culmination of strong growth across all three business segments,' stated Mr.
Gao Xincheng, Chief Executive Officer of China Bio Energy Holdings Group.
'Despite a current environment of lower oil prices in
Cost of Sales -- Cost of sales for the first quarter of 2009 was
Gross Profit and Gross Margin -- Gross profit was
Operating Expenses -- Selling, general and administrative expenses for the
first quarter of 2009 were approximately
Net Income -- Net income for the first quarter of 2009, was
Liquidity and Capital Resources
Cash and cash equivalents were
Financial Outlook for 2009
Management reaffirms 2009 guidance and expects to report calendar 2009
revenues of at least
Business Outlook for 2009
The Company plans to expand its current biodiesel production capacity of
100,000 tons to 150,000 tons, either through strategic acquisitions or through
a new build-out in 2009. The Company anticipates
China Bio Energy's management plans to grow its biodiesel production,
distribution business, while further expanding the footprint of its retail
service stations. On the 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
Conference Call Information
Management will hold a conference call to discuss its 2009 first quarter
at
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=00006468 . 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 .
About China Bio Energy Holdings Group
CBEH is a distributor of refined oil products including gasoline, diesel,
and heavy oil, and a manufacturer and distributor of biodiesel fuel. CBEH's
biodiesel fuel is made at its 100,000-ton capacity facility in
Safe Harbor Statement
This press release contains certain statements that may include 'forward-looking statements.' All statements other than statements of historical fact included herein are 'forward-looking statements.' These forward-looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
China Bio Energy Holdings Group
Alex Gong, VP of Capital Market
Tel: +86-136-0127-9912
Email: alexgong08@gmail.com
Web: http://www.cbeh.net.cn/
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
Web: http://www.hcinternational.net
CHINA BIO ENERGY HOLDING GROUP CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited) March 31, December 31,
2009 2008
ASSETS
CURRENT ASSETS
Cash and cash equivalents $35,386,602 $23,119,028
Restricted cash 396,857 919,351
Accounts receivable 5,565,717 8,164,320
Other receivables and deposits 194,460 3,986,984
Prepaid expenses 2,000,531 1,884,102
Advance to suppliers 15,467,225 17,945,487
Inventories, net 20,642,907 22,268,903
Due from related party -- --
Total current assets 79,654,299 78,288,175
Prepaid rents 5,970,499 6,408,568
Property and equipment, net 9,709,457 9,997,674
Total noncurrent assets 15,679,956 16,406,242
TOTAL ASSETS $95,334,255 $94,694,417
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $1,463 $--
Advance from customers 874,178 4,580,462
Taxes payable 820,369 735,461
Other payables 203,259 3,232,088
Loans payable 2,233,040 2,247,197
Total current liabilities 4,132,309 10,795,208
Loans payable - Non-current -- --
TOTAL LIABILITIES 4,132,309 10,795,208
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value;
authorized shares 10,000,000;
issued and outstanding 3,465,753
and 3,465,753 shares at March
31, 2009 and December 31 2008,
respectively 3,465 3,465
Common stock, $.0001 par value;
authorized shares 79,000,000;
issued and outstanding
27,169,091 and 27,169,091 shares
at March 31, 2009 and December
31, 2008, respectively 2,716 2,716
Additional paid in capital 44,516,840 44,434,250
Statutory reserve 4,920,114 4,920,114
Accumulated other comprehensive
income 5,355,898 5,337,003
Retained earnings 36,402,913 29,201,661
Total stockholders' equity 91,201,946 83,899,209
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $95,334,255 $94,694,417
CHINA BIO ENERGY HOLDING GROUP CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
(Unaudited) For The Three Months Ended March 31,
2009 2008
Sales $58,658,668 $35,560,840
Cost of goods sold 50,981,714 30,547,663
Gross profit 7,676,954 5,013,177
Selling, general and administrative
expenses 555,849 319,806
Income from operations 7,121,105 4,693,371
Non-operating income (expenses)
Interest expenses (33,518) (28,271)
Subsidy income 116,964 --
Other expense (3,299) (195)
Stock based compensation - make
good provision -- --
Total non-operating expenses 80,147 (28,466)
Net income 7,201,252 4,664,905
Other comprehensive item
Foreign currency translation gain (50,784) 1,243,160
Comprehensive Income $7,150,468 $5,908,065
Basic and diluted weighted average
shares outstanding
Basic 27,169,091 25,454,545
Diluted 34,622,712 31,459,006
Basic and diluted net earnings per
share available to common
stockholders
Basic $0.27 $0.18
Diluted $0.21 $0.15
CHINA BIO ENERGY HOLDING GROUP CO., LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited) Preferred stock Common stock
Shares Amount Shares Amount
Balance at
December 31, 2006 -- -- 23,954,545 2,395
Capital
contribution -- -- -- --
Recapitalization
on reverse
acquisition -- -- 1,500,000 150
Shares issued for
cash 1,000,000 1,000 -- --
Net income for the
year -- -- -- --
Transfer to
statutory
reserves -- -- -- --
Foreign currency
translation gain -- -- -- --
Balance at
December 31, 2007 1,000,000 1,000 25,454,545 2,545
Preferred shares
issued for cash 2,465,753 2,465 -- --
Warrant exercised -- -- 1,704,546 170
Employee stock
issued -- -- 10,000 1
Net income for the
year -- -- -- --
Beneficial
Conversion -
Deemed dividend -- -- -- --
Stock-based
compensation -
Make good
provision -- -- -- --
Transfer to
statutory
reserves -- -- -- --
Foreign currency
translation gain -- -- -- --
Balance at
December 31, 2008 3,465,753 $3,465 27,169,091 $2,716
Shares issued to
employees -- -- -- --
Stock purchase
option -
directors -- -- -- --
Net income for the
period -- -- -- --
Foreign currency
translation gain
(loss) -- -- -- --
Balance at March
31, 2009 3,465,753 3,465 27,169,091 2,716
Additional Other
paid in Statutory comprehensive
capital reserves income
Balance at
December 31, 2006 2,533,837 1,110,374 624,806
Capital
contribution 3,905,724 -- --
Recapitalization
on reverse
acquisition (150) -- --
Shares issued for
cash 13,172,527 -- --
Net income for the
year -- -- --
Transfer to
statutory
reserves -- 940,656 --
Foreign currency
translation gain -- -- 1,694,926
Balance at
December 31, 2007 19,611,938 2,051,030 2,319,732
Preferred shares
issued for cash 8,997,535 -- --
Warrant exercised 5,113,465 -- --
Employee stock
issued 9,944 -- --
Net income for the
year -- -- --
Beneficial
Conversion -
Deemed dividend 863,014 -- --
Stock-based
compensation -
Make good
provision 9,838,354 -- --
Transfer to
statutory
reserves -- 2,869,084 --
Foreign currency
translation gain -- -- 3,017,271
Balance at
December 31, 2008 $44,434,250 $4,920,114 $5,337,003
Shares issued to
employees 19,890 -- --
Stock purchase
option -
directors 62,700 -- --
Net income for the
period -- -- --
Foreign currency
translation gain
(loss) -- -- 18,895
Balance at March
31, 2009 44,516,840 4,920,114 5,355,898
Total
Retained stockholders'
earnings equity
Balance at
December 31, 2006 9,969,017 14,240,429
Capital
contribution -- 3,905,724
Recapitalization
on reverse
acquisition -- --
Shares issued for
cash (3,398,534) 9,774,993
Net income for the
year 8,579,565 8,579,565
Transfer to
statutory
reserves (940,656) --
Foreign currency
translation gain -- 1,694,926
Balance at
December 31, 2007 14,209,392 38,195,637
Preferred shares
issued for cash -- 9,000,000
Warrant exercised -- 5,113,635
Employee stock
issued -- 9,945
Net income for the
year 18,724,367 18,724,367
Beneficial
Conversion -
Deemed dividend (863,014) --
Stock-based
compensation -
Make good
provision -- 9,838,354
Transfer to
statutory
reserves (2,869,084) --
Foreign currency
translation gain -- 3,017,271
Balance at
December 31, 2008 $29,201,661 $83,899,209
Shares issued to
employees -- 19,890
Stock purchase
option -
directors -- 62,700
Net income for the
period 7,201,252 7,201,252
Foreign currency
translation gain
(loss) -- 18,895
Balance at March
31, 2009 36,402,913 91,201,946
CHINA BIO ENERGY HOLDING GROUP CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited) For The Three Months Ended March 31,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $7,201,252 $4,664,905
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Depreciation 292,744 225,045
Stock based compensation 82,590 --
(Increase) decrease in current
assets:
Accounts receivable 2,597,481 (5,481,284)
Other receivables, deposits and
prepaid expenses 4,112,288 251,082
Advance to suppliers 2,478,674 2,279,926
Inventories 1,627,802 162,999
Due from related party -- (38,069)
Increase (decrease) in current
liabilities:
Accounts payable -- (182,927)
Advance from customers (3,703,649) 1,421,163
Taxes payable 84,725 156,005
Other payables and accrued
expenses (3,025,122) (2,384,782)
Net cash provided by (used in)
operating activities 11,748,785 1,074,063
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of investment -- --
Acquisition of property and
equipment (3,324) (82,235)
Construction in progress -- (865,607)
Net cash used in investing
activities (3,324) (947,842)
CASH FLOWS FROM FINANCING ACTIVITIES:
Restricted cash released 522,500 --
Repayment of auto loans long term
notes payable (14,473) (12,783)
Net cash provided by financing
activities 508,027 (12,783)
EFFECT OF EXCHANGE RATE CHANGE ON
CASH AND CASH EQUIVALENTS 14,086 56,410
NET INCREASE IN CASH AND CASH
EQUIVALENTS 12,267,574 169,848
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR 23,119,028 1,382,371
CASH AND CASH EQUIVALENTS, END OF
YEAR $35,386,602 $1,552,219
Supplemental Cash flow data:
Income tax paid $-- $--
Interest paid $38,372 $27,658
SOURCE China Bio Energy Holdings Group