China Power Equipment, Inc. Reports Consolidated Unaudited Earnings Results for the Second Quarter and Six Months Ended June 30, 2013
August 12, 2013 at 09:01 am EDT
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China Power Equipment, Inc. reported consolidated unaudited earnings results for the second quarter and six months ended June 30, 2013. For the quarter, the company reported revenue, net were $8,882,474 against $9,490,341 a year ago. Net income from operations was $1,685,397 against $2,007,506 a year ago. Net income before income taxes was $1,690,221 against $2,042,790 a year ago. Net income was $1,390,004 against $1,696,684 a year ago. Earnings per share - diluted were $0.06 against $0.07 a year ago. The decrease in the quarter was primarily due to the lower average selling prices of amorphous alloy cores and fewer units of amorphous alloy transformers sold, partly offset by higher average unit prices of amorphous alloy transformers. Net income, a decrease of 18.1%, primarily attributable to the lower gross profit, higher SG&A expenses and lower other income, offset by lower income taxes.
For the six months, the company reported revenue, net were $15,737,371 against $16,745,683 a year ago. Net income from operations was $2,989,431 against $3,310,287 a year ago. Net income before income taxes was $2,994,322 against $3,345,154 a year ago. Net income was $2,449,918 against $2,739,044 a year ago. Earnings per share - diluted were $0.10 against $0.12 a year ago. Net cash provided by operating activities was $6,765,176 against $1,949,244 a year ago. Addition in plant and equipment was $7,183 against $852 a year ago. Total net revenues decrease in the first half of 2013 was mainly due to the lower average selling prices of amorphous alloy cores and transformers and the lower tonnage of amorphous alloy cores sold, partly offset by more units of amorphous alloy transformers sold.
China Power Equipment, Inc. (China Power) is a China-based company engaged in designing, manufacturing, and distributing amorphous alloy transformer cores and amorphous alloy transformers. The Companyâs devices are used to step down voltage at the final phase of the distribution of electricity to consumers, businesses, and industry. The Company conducts its business through its operating company, Xiâan Amorphous Alloy Zhongxi Transformer Co., Ltd. (Zhongxi), a Peopleâs Republic of China (PRC) Company that is controlled through its wholly owned PRC-based subsidiary An Sen (Xi'an) Power Science & Technology Co., Ltd. (An Sen), a wholly foreign-owned enterprise (WOFE). The Companyâs transformers consume 70% less electricity to operate than traditional transformers. Its products generate fewer pollutants, while retaining more electricity.