A leading producer of lead-acid motive batteries, Chisen Electric Corp. reported yesterday that revenues in the first quarter increased by approximately 33% as strong sales of its battery products continued to grow. The company reported that revenues in its first quarter increased to $29,475,000 compared with revenues of $22,225,000 in the same period a year earlier. Net income increased slightly from $1,912,000 to $2,005,000.
Chisen Electric Corporation, headquartered in Zhejiang Province, the People’s Republic of China, sells its products under its own brand names for predominant use in electric bicycles. Among all types of batteries for electric bicycles, the lead-acid motive battery is the preferred choice for electric bicycle manufacturers in China due to its cost efficiency. In the fiscal year ending March 31, 2009, the company manufactured more than 7,740,000 batteries and had more than 2,000 employees.
As the third largest producer of lead-acid motive battery products in China, Chisen believes that it continues to benefit from rapid growth in the PRC electric bicycle market. The company also reported a 28% decrease in average unit selling prices in response to decreases in major raw material costs. However, the decrease was offset by the significant increase in sales volume and overall sales grew 33%. While the company reported that cost of sales grew in the quarter, the cost rates were about even at approximately 81.8%.
Mr. Xu Kecheng, President, CEO and a Director of the Company, commented, “The year is off to a reasonably strong start, with our strengthened financial position, new capital equipment in place to support increased production and a vigorous electric bicycle market. While we anticipate a continuation in fluctuating raw material and sales prices, we will continue to focus on improving our product mix to include higher power products with better selling prices and broadening our customer base.” He added, “Our goal continues to be to become the top manufacturer in the industry in China through both internal growth and acquisition. This will permit us to reap the full benefits of the very exciting growth possibilities we see ahead providing a non-polluting, less expensive alternative power source to meet growing transportation needs and consumer preferences for ‘green’ products.”