CH Lighting International Corporation (OTCBB: CHHN), one of the world's leading designers and manufacturers of a wide variety of florescent lighting products and a leading company in China in the special light source market, reported today that the ongoing international recession had a negative impact on the Company's results in its second quarter and six months ended March 31, 2009.
The Company said revenues in the 2009 second quarter declined 46.7% to $8,165,000 compared to $15,282,000 in the same period last year. Net income decreased from $1,755,000 or $0.019 per share in the second quarter last year on 93,000,000 weighted average shares outstanding to $476,000, or $0.004 per share, in the second quarter of 2009 on 120,000,000 weighted average shares outstanding.
Through the first six months of 2009, the Company's revenues decreased by $12,312,000 or 33.15% to $24,829,000 from $37,141,000 in the first six months of 2008. Net income in the first six months of 2009 was $4,387,000, or $0.037 per share, down from $5,913,000 or $0.064 per share in the comparable period last year. The weighted average number of shares outstanding in the first six months of 2008 was 93,000,000 and 120,000,000 in the same period in 2009.
Mr. Zhao Guosong, Chairman of the Board, President and CEO of the Company commented, "The effects of the world recession were felt mainly in our international business. They were mitigated somewhat by the fact that this business consists mostly of "made to order" products for which we do not have to carry much of an inventory, although we do carry significant amounts for our domestic customers to ensure rapid delivery. Further, our customers generally may not return merchandise and we do not provide them extended payment terms."
"During the quarter," Mr. Zhao said, "our income was affected by price reductions we offered generally in the 5% to 10% range. At the same time, we initiated a cost control program which led to a reduction in general and administrative expenses. Going forward, cost reduction will remain a focus of our attention."
He concluded, "We believe that the many strengths of the Company, including our balance of domestic and international business, advanced technology and product lines focused on energy saving lighting, will permit us to emerge from this difficult period in a strong competitive position domestically and around the world."
About the Company
Based in Jinhua, China, CH Lighting International Corporation, founded in 1994, is a diversified designer, manufacturer and exporter of more than 1,000 types of fluorescent lighting and related products. It is the leader in China in environmentally friendly special lighting products such as Air Cleaning Lamps, Power Saving Lamps and Plant Growth, Vision Improvement and Performance Improvement Lighting Products. Additionally, its General Light Products, which account for approximately 8% of China's linear fluorescent lamp manufacturing, make it the third largest manufacturer of these products in the country. While exports of the Company's products around the world have grown rapidly, it is increasingly focused on domestic sales, encouraged and supported by government policies aimed at reducing power consumption and improving the environment. Additional product information is available at http://chlighting.com. |