China Information Technology will host a corresponding conference call and live webcast before the market opens on Tuesday, May 10, 2011 at 8:00 am Eastern Daylight Time (EDT) (which is also 8:00 pm in Beijing and Hong Kong).
The dial-in details for the live conference call are as follows:
- U.S. Toll Free Number: | +1 866 519 4004 | |
- International Dial-in Number: | +65 6723 9381 | |
- Mainland China Toll Free Number: | 800 819 0121 | |
- Hong Kong Toll Free Number: | 8 0093 0346 | |
Conference ID: 63975939 |
| |
A live and archived webcast of the call will be available on the Investor Relations section of China Information Technology's website at http://www.chinacnit.com.
A telephone replay of the call will be available beginning two hours after the conclusion of the conference call through 11:59pm Eastern Daylight Time, May 16, 2011.
The dial-in details for the replay are as follows:
- U.S. Toll Free Number | +1 866 214 5335 | |
- International Dial-in Number | +61 2 8235 5000 | |
Conference ID: 63975939 |
| |
About China Information Technology, Inc.
China Information Technology, Inc., through its subsidiaries and other consolidated entities, specializes in information technologies and display technologies. Headquartered in Shenzhen, China, the Company's integrated solutions include specialized software, hardware, systems integration, and related services. To learn more about the Company, please visit its corporate website at http://www.chinacnit.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the significance of the Company's new contract wins during the quarter; the ability of the Company to continue to strengthen its position in the industry by winning and successfully performing under national contracts; the significance of the Company's business segments, the ability of the Company to secure future opportunities in the market by leveraging its R&D capabilities and reputation; the general ability of the Company to achieve its commercial objectives, including the Company's plan to sustain the growth while creating shareholder value; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve 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. Investors 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 further information, please contact: | |
|
| |
China Information Technology, Inc. | |
Margie Ma | |
Tel: + 86 755 8370 4734 | |
Email: IR@chinacnit.com | |
Web: www.chinacnit.com | |
|
| |
Christensen | |
Kathy Li | |
Tel: +1 480 614 3036 | |
Email: kli@christensenir.com | |
|
| |
Teal Willingham | |
Tel: +86 10 5826 4939 | |
Email: twillingham@christensenir.com. | |
CHINA INFORMATION TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS MARCH 31, 2011 AND DECEMBER 31, 2010 Expressed in U.S. dollars (Except for share amounts) | |||||||||
|
|
|
|
| March 31 |
|
| December 31 |
| |
|
|
|
|
| 2011 |
|
| 2010 |
| |
| ASSETS |
|
|
| ( Unaudited) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| CURRENT ASSETS |
|
|
|
|
|
|
|
| |
| Cash and cash equivalents |
|
| $ | $ 15,680,839 |
|
| $ 18,166,857 |
| |
| Restricted cash |
|
|
| 8,092,182 |
|
| 8,344,147 |
| |
| Accounts receivable: |
|
|
|
|
|
|
|
| |
| Billed, net of allowance for doubtful accounts of $5,302,000 and $6,073,000, respectively |
|
|
| 33,701,376 |
|
| 31,172,599 |
| |
| Unbilled |
|
|
| 66,549,449 |
|
| 67,622,656 |
| |
| Bills receivable |
|
|
| 91,620 |
|
| 201,003 |
| |
| Advances to suppliers |
|
|
| 13,073,523 |
|
| 9,246,437 |
| |
| Amounts due from related parties |
|
|
| 265,469 |
|
| 330,876 |
| |
| Inventories, net of provision of $850,000 and $578,000, respectively |
|
|
| 28,210,651 |
|
| 19,931,866 |
| |
| Other receivables and prepaid expenses |
|
|
| 3,929,041 |
|
| 2,463,562 |
| |
| Deferred tax assets |
|
|
| 1,232,734 |
|
| 1,565,006 |
| |
| TOTAL CURRENT ASSETS |
|
|
| 170,826,884 |
|
| 159,045,009 |
| |
|
|
|
|
|
|
|
|
|
| |
| Deposit for software purchase |
|
|
| 2,244,690 |
|
| 3,034,000 |
| |
| Deposit for purchase of land use rights |
|
|
| 26,741,501 |
|
| 26,566,377 |
| |
| Long-term investments |
|
|
| 2,767,333 |
|
| 3,296,252 |
| |
| Property, plant and equipment, net |
|
|
| 80,988,390 |
|
| 79,348,883 |
| |
| Land use rights, net |
|
|
| 1,930,981 |
|
| 1,929,194 |
| |
| Intangible assets, net |
|
|
| 13,811,592 |
|
| 13,725,274 |
| |
| Goodwill |
|
|
| 52,280,628 |
|
| 51,918,275 |
| |
| Deferred tax assets |
|
|
| 650,562 |
|
| 538,460 |
| |
| TOTAL ASSETS |
|
| $ | $ 352,242,561 |
|
| $ 339,401,724 |
| |
|
|
|
|
|
|
|
|
|
| |
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
| CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |
| Short-term bank loans |
|
| $ | 39,672,832 |
| $ | 35,326,566 |
| |
| Accounts payable |
|
|
| 22,530,439 |
|
| 17,249,334 |
| |
| Bills payable |
|
|
| 20,370,710 |
|
| 20,536,475 |
| |
| Advances from customers |
|
|
| 7,628,880 |
|
| 7,480,686 |
| |
| Amount due to related parties |
|
|
| 2,675,850 |
|
| 1,293,866 |
| |
| Accrued payroll and benefits |
|
|
| 2,424,206 |
|
| 4,304,988 |
| |
| Other payables and accrued expenses |
|
|
| 6,020,734 |
|
| 6,953,561 |
| |
| Contingent consideration, current portion |
|
|
| 2,522,867 |
|
| 3,267,087 |
| |
| Income tax payable |
|
|
| 3,696,150 |
|
| 3,809,708 |
| |
| TOTAL CURRENT LIABILITIES |
|
|
| 107,542,668 |
|
| 100,222,271 |
| |
|
|
|
|
|
|
|
|
|
| |
| Long-term bank loans |
|
|
| 1,281,097 |
|
| 5,863,205 |
| |
| Amount s due to related parties, long-term portion |
|
|
| 5,013,647 |
|
| 5,014,949 |
| |
| Contingent consideration, net of current portion |
|
|
| 467,017 |
|
| 901,171 |
| |
| Deferred tax liabilities |
|
|
| 1,488,365 |
|
| 1,824,434 |
| |
| TOTAL LIABILITIES |
|
|
| 115,792,794 |
|
| 113,826,030 |
| |
|
|
|
|
|
|
|
|
|
| |
| COMMITMENTS AND CONTINGENCIES |
|
|
| - |
|
| - |
| |
|
| |||||||||
| CHINA INFORMATION TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS MARCH 31, 2011 AND DECEMBER 31, 2010 Expressed in U.S. dollars (Except for share amounts) | |||||||||
| EQUITY |
|
|
|
|
|
|
|
| |
| Common stock, par $0.01; authorized capital 200,000,000 shares; shares
|
|
| $ | 257,615 |
| $ | 255,115 |
| |
| Treasury stock, 6,000 shares, at cost |
|
|
| (11,468) |
|
| (11,468 ) |
| |
| Additional paid-in capital |
|
|
| 93,499,349 |
|
| 92,294,350 |
| |
| Reserve |
|
|
| 12,968,985 |
|
| 12,968,985 |
| |
| Retained earnings |
|
|
| 98,462,998 |
|
| 90,240,665 |
| |
| Accumulated other comprehensive income |
|
|
| 12,847,099 |
|
| 11,325,040 |
| |
| Total equity of the Company |
|
|
| 218,024,578 |
|
| 207,072,687 |
| |
| Non-controlling interest |
|
|
| 18,425,189 |
|
| 18,503,007 |
| |
| Total equity |
|
|
| 236, 449,767 |
|
| 225,575,694 |
| |
|
|
|
|
|
|
|
|
|
| |
| TOTAL LIABILITIES AND EQUITY |
|
|
| 352,242,561 |
|
| 339,401,724 |
| |
| CHINA INFORMATION TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31, 2011 AND 2010 Expressed in U.S. dollars (Except for share amounts) (Unaudited) | ||||||||||
|
|
|
|
|
| Three Months |
|
| Three Months | ||
|
|
|
|
|
| Ended |
|
| Ended | ||
|
|
|
|
|
| March 31, |
|
| March 31, | ||
|
|
|
|
|
| 2011 |
|
| 2010 | ||
| Revenue - Products |
|
|
| $ | 8,006,993 |
| $ | 6,347,970 | ||
| Revenue - Software |
|
|
|
| 13,891,525 |
|
| 15,178,632 | ||
| Revenue - System integration |
|
|
|
| 4,920,500 |
|
| 2,783,883 | ||
| Revenue - Others |
|
|
|
| 129,730 |
|
| 994,622 | ||
| TOTAL REVENUE |
|
|
|
| 26,948,748 |
|
| 25,305,107 | ||
|
|
|
|
|
|
|
|
|
| ||
| Cost - Products sold |
|
|
|
| 5,810,023 |
|
| 5,240,422 | ||
| Cost - Software sold |
|
|
|
| 4,249,606 |
|
| 6,401,411 | ||
| Cost - System integration |
|
|
|
| 3,143,157 |
|
| 2,475,810 | ||
| Cost - Others |
|
|
|
| 91,122 |
|
| 70,011 | ||
| TOTAL COST |
|
|
|
| 13,293,908 |
|
| 14,187,654 | ||
|
|
|
|
|
|
|
|
|
| ||
| GROSS PROFIT |
|
|
|
| 13,654,840 |
|
| 11,117,453 | ||
|
|
|
|
|
|
|
|
|
| ||
| Administrative expenses |
|
|
|
| (2,504,307) |
|
| (2,770,031) | ||
| Research and development expenses |
|
|
|
| (733,330) |
|
| (569,431 | ||
| Selling expenses |
|
|
|
| (1,502,150) |
|
| (1,214,562) | ||
| INCOME FROM OPERATIONS |
|
|
|
| 8,915,053 |
|
| 6,563,429 | ||
|
|
|
|
|
|
|
|
|
| ||
| Subsidy income |
|
|
|
| 30,440 |
|
| 162,782 | ||
| Other income, net |
|
|
|
| 833,780 |
|
| 966,799 | ||
| Interest income |
|
|
|
| 95,006 |
|
| 18,891 | ||
| Interest expense |
|
|
|
| (699,706) |
|
| (148,891) | ||
| INCOME BEFORE INCOME TAXES |
|
|
|
| 9,174,573 |
|
| 7,563,010 | ||
|
|
|
|
|
|
|
|
|
| ||
| Income tax expense |
|
|
|
| (1,080,518) |
|
| (1,171,083) | ||
| NET INCOME |
|
|
|
| 8,094,055 |
|
| 6,391,927 | ||
|
|
|
|
|
|
|
|
|
| ||
| Less: Net loss/( income) attributable to the non-controlling interest |
|
|
|
| 128,278 |
|
| (110,819) | ||
|
|
|
|
|
|
|
|
|
| ||
| NET INCOME ATTRIBUTABLE TO THE COMPANY |
|
|
| $ | 8,222,333 |
| $ | 6,281,108 | ||
|
|
|
|
|
|
|
|
|
| ||
| Weighted average number of shares |
|
|
|
|
|
|
|
| ||
| Basic |
|
|
|
| 52,530,809 |
|
| 51,213,463 | ||
| Diluted |
|
|
|
| 52,530,809 |
|
| 51,213,463 | ||
|
|
|
|
|
|
|
|
|
| ||
| Earnings per share - Basic and Diluted |
|
|
|
|
|
|
|
| ||
| Basic - Net income attributable to the Company ' s common stockholders |
|
|
| $ | 0.16 |
| $ | 0.12 | ||
| Diluted - Net income attributable to the Company ' s common stockholders |
|
|
| $ | 0.16 |
| $ | 0.12 | ||
|
| ||||||||||
| CHINA INFORMATION TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2011 AND 2010 Expressed in U.S. dollars (Except for share amounts) (Unaudited) | |||||||
|
|
| Three Months |
|
| Three Months |
| |
|
|
| Ended |
|
| Ended |
| |
|
|
| March 31, |
|
| March 31, |
| |
|
|
| 2011 |
|
| 2010 |
| |
| Net income | $ | 8,094,055 |
| $ | 6,391,927 |
| |
| Other comprehensive income: |
|
|
|
|
|
| |
| Foreign currency translation gain |
| 1,572,519 |
|
| 237,030 |
| |
| Comprehensive income |
| 9,666,574 |
|
| 6,628,957 |
| |
| Comprehensive income attributable to the non-controlling interest |
| 77,818 |
|
| (110,856) |
| |
| Comprehensive income attributable to the Company | $ | 9,744,392 |
| $ | 6,518,101 |
| |
|
| |||||||
| CHINA INFORMATION TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2011 AND 2010 Expressed in U.S. dollars (Unaudited) | |||||||
|
|
| Three Months |
|
| Three Months |
| |
|
|
| Ended |
|
| Ended |
| |
|
|
| March 31, 2011 |
|
| March 31, 2010 |
| |
| OPERATING ACTIVITIES |
|
|
|
|
|
| |
| Net income | $ | 8,094,055 |
| $ | 6,391,927 |
| |
| Adjustments to reconcile net income to net cash provided by operating activities: |
| ||||||
| ( Reverse ) provide provision for losses on accounts receivable |
| (866,161) |
|
| 438,272 |
| |
| Depreciation |
| 2,471,967 |
|
| 1,524,276 |
| |
| Amortization of intangible assets and land use rights |
| 456,221 |
|
| 499,657 |
| |
| Loss(gain) on disposal of property, plant and equipment, net |
| 11,074 |
|
| (5,037) |
| |
| Provision for obsolete inventories |
| 266,658 |
|
| 23,835 |
| |
| Change in fair value of contingent consideration |
| (1,178,375) |
|
| (795,097) |
| |
| Change in deferred income tax |
| (113,687) |
|
| 83,458 |
| |
| Impairment of long-term investments |
| 548,845 |
|
| - |
| |
| Imputed interests in relation to shareholder ' s loan |
| 62,500 |
|
| - |
| |
| Changes in operating assets and liabilities, net of effects of business acquisitions |
| ||||||
| Decrease(increase) in restricted cash |
| 1,133,647 |
|
| (456,894) |
| |
| Decrease(increase)in accounts receivable |
| 139,635 |
|
| (10,152,521) |
| |
| (Increase) decrease in advances to suppliers |
| (3,801,954) |
|
| 3,484,877 |
| |
| Increase in other receivables and prepaid expenses |
| (1,444,804) |
|
| (1,452,006) |
| |
| Increase in inventories |
| (8,377,510) |
|
| (5,890,035) |
| |
| Increase(decrease) in accounts payable |
| 4,853,698 |
|
| (3,236,934) |
| |
| Increase (decrease) in advances from customers |
| 107,117 |
|
| (41,873) |
| |
| Increase in amounts due to related parties |
| 1,426,360 |
|
| 844,549 |
| |
| Decrease in accrued expenses and other liabilities |
| (1,751,438) |
|
| (1,648,862) |
| |
| Decrease in income tax payable |
| (137,684) |
|
| (952,931) |
| |
| Net cash provided by/( used in) operating activities |
| 1,900,164 |
|
| (11,341,339) |
| |
|
|
|
|
|
|
|
| |
| INVESTING ACTIVITIES |
|
|
|
|
|
| |
| Purchase of land use rights |
| - |
|
| (384,187) |
| |
| Proceeds from sale of short-term investments |
| - |
|
| 30,797 |
| |
| Purchases of property, plant and equipment |
| (334,364) |
|
| (532,107) |
| |
| Capitalized and purchased software development costs |
| (441,182) |
|
| (135,962) |
| |
| Deposit for software purchase |
| (2,237,340) |
|
| (3,207,441) |
| |
| Net cash (used in) investing activities |
| (3,012,886) |
|
| (4,228,900) |
| |
|
|
|
|
|
|
|
| |
| FINANCING ACTIVITIES |
|
|
|
|
|
| |
| Borrowings under short-term loans |
| 27,350,005 |
|
| 8,250,529 |
| |
| Borrowings from shareholder ' s loan |
| - |
|
| 6,026,550 |
| |
| Borrowings under long-term loans |
| - |
|
| 4,018,210 |
| |
| Repayment of short-term loans |
| (27,411,314) |
|
| (10,872,150) |
| |
| Repayment of long-term loans |
| (570,750) |
|
| (4,018,210) |
| |
| Issued common stock |
| - |
|
| 9,611,811 |
| |
| Increase in restricted cash in relation to bank borrowings |
| (827,683) |
|
| - |
| |
| Net cash (used in)/ provided by financing activities |
| (1,459,742) |
|
| 13,016,740 |
| |
|
|
|
|
|
|
|
| |
| Effect of exchange rate changes on cash and cash equivalents |
| 86,446 |
|
| 79,846 |
| |
|
|
|
|
|
|
|
| |
| NET DECREASE IN CASH AND CASH EQUIVALENTS |
| (2,486,018) |
|
| (2,473,653) |
| |
| CASH AND CASH EQUIVALENTS, BEGINNING |
| 18,166,857 |
|
| 13,478,633 |
| |
| CASH AND CASH EQUIVALENTS, ENDING | $ | 15,680,839 |
| $ | 11,004,980 |
| |
|
|
|
|
|
|
|
| |
| Supplemental disclosure of cash flow information: |
|
|
|
|
|
| |
| Cash paid during the period |
|
|
|
|
|
| |
| Income taxes | $ | 1,342,979 |
| $ | 2,041,708 |
| |
| Interest paid | $ | 658,460 |
| $ | 168,478 |
| |
|
|
|
|
|
|
|
| |
|
| |||||||
