American Jianye Greentech Holdings, a leading producer and distributor of alcohol-based automobile and civil use fuels, located in China, today announced a 138% increase in sequential sales, along with a record net income of $2.1 million, or $0.07 per share, for the second quarter ended June 30, 2010.
• Revenue – The company reported revenue of $22.9 million for the second quarter, versus $9.6 million for the first quarter 2010, and $0.0 for the second quarter of 2009.
• Gross Profit – The company reported gross profit of $2.9 million for the second quarter, versus $1.5 million for the first quarter of 2010, and $0.0 for the second quarter of 2009.
• Operating Income – The company reported operating income of $2.9 million for the second quarter, versus $1.4 million for the first quarter of 2010, and $0.0 for the second quarter of 2009.
• Net Income – The company reported net income of $2.1 million ($0.07 per share) for the second quarter, versus $1.1 million ($0.03 per share) for the first quarter of 2010, and $0.0 for the second quarter of 2009.
Company Chairman and CEO, Mr. Haipeng Wang, commented on the developments behind the numbers. “We are extremely pleased to announce record revenue and net income for the second quarter of 2010. Our revenue increased sequentially by 138% versus the first quarter of 2010. We attribute this improvement to our expanded sales and marketing initiatives and growing demand for methanol-based and ethanol-based fuels. Our alcohol-based fuels burn with higher efficiency and significantly lower toxic waste emissions than unleaded gasoline. Additionally, due to the lower costs of the raw materials used in the manufacturing process, the cost of these fuels is, on average, about 20-30% less than comparable unleaded gasoline in China.”
He also spoke of the future of alcohol fuels in China, and worldwide, and indicated plans for company growth. “Overall, we see demand for these fuels continuing to increase as China encourages the use of alcohol fuel as a substitute for gasoline. It is estimated that by 2010 the annual production capacity of domestic alcohol-based automobile fuel in China will reach 2 million tons. In China alone, there are approximately 35 million cars on the road today and experts predict that number will reach 120 million by 2020. At the same time, worldwide demand for alcohol fuel is increasing, due to the limited supply and the high costs of gasoline. We believe we are extremely well positioned to capitalize on these trends due to our strong industry relationships and established distribution channels. This fact is best illustrated by our growth from a startup in 2009 to now generating over $30 million of sales in the first 6 months of this year alone.”
“The next phase of our growth entails not only distributing, but also manufacturing alcohol-based fuels. Our plan is to construct fuel producing facilities in Tieling City, Liaoning Province and another in the Guangxi Zhuang Autonomous Region of Southern China. As a vertically integrated manufacturer and distributor, we believe we can further reduce the cost of these fuels and provide an even more compelling value proposition for the end customer. We look forward to providing regular updates to our shareholders regarding this strategy in the coming months.”
Additional information about the company is available at: www.AmericanJianyeGroup.com.