SOURCE: CH Lighting International Corp.

February 12, 2010 08:00 ET

CH Lighting International Reports First Quarter Results

Slightly Higher International Sales Offset by Domestic Weakness

JINHUA, CHINA--(Marketwire - February 12, 2010) - CH Lighting International Corporation (OTCBB: CHHN) today reported results for its first quarter ended December 31, 2009. The Company, one of the world's leading designers and manufacturers of a wide variety of florescent lighting products and a leader in China in the special light source market, said results in the period continued to be impacted, in particular, by sluggish domestic sales stemming from the international financial crisis and higher raw material costs for its power saving lamps.

As reported by the Company, revenues in the first quarter ended December 31, 2010 decreased to $13,760,000 compared to $15,097,000 in the same period last year. Net income in the 2009 first quarter declined to $236,000, compared with net income in last year's first quarter of $3,911,000, or $ 0.03 per share.

First quarter domestic sales declined to $6,036,000 from $7,820,000 in the first quarter last year. One key factor in this result was that the Company received only one government purchasing project compared to two in the same period in the previous year. Of note, international sales increased slightly to $7,724,000 in this year's first quarter from $7,277,000 in the same period last year.

Mr. Zhao Guosong, Chairman of the Board, President and CEO of the Company, stated, "We continue to anticipate improved results when the recent upturn in the economy translates to improvements in our markets. While we have managed costs to help offset lower revenues, during the quarter we increased R&D expenditures to maintain our technology leadership and to improve our position going forward, particularly in the area of energy saving lighting. We believe the growth outlook for our power lamps, in particular, remains strong, with anticipated continuing consumer interest and government support for energy saving lighting."

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.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the U.S. Securities and Exchange Commission from. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

-SEE ATTACHED TABLES-

                   CH LIGHTING INTERNATIONAL CORPORATION
               (FORMERLY SINO-BIOTICS, INC.) AND SUBSIDIARIES
   CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
     FOR THE THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008 (UNAUDITED)

                                                        Three Months
                                                      Ended December 31,
                                                  ------------------------
                                                      2009         2008
                                                  -----------  -----------
(In thousands except net income per share and
 number of shares)

REVENUES                                          $    13,760  $    15,097
REVENUES FROM GOVERNMENT SUBSIDIES                      1,609        3,092
                                                  -----------  -----------
TOTAL REVENUES                                         15,369       18,189
                                                  -----------  -----------

COST OF SALES                                         (12,116)     (10,987)
                                                  -----------  -----------

GROSS PROFIT                                            3,253        7,202
                                                  -----------  -----------

Selling, marketing and distribution expenses             (618)      (1,854)
General and administrative expenses                    (1,673)      (1,227)
                                                  -----------  -----------
TOTAL OPERATION EXPENSES                               (2,291)      (3,081)
                                                  -----------  -----------

INCOME FROM OPERATIONS                                    962        4,121
                                                  -----------  -----------

Amortization of discount on notes receivable              516            -
Interest income                                           265        1,243
Interest expense                                       (1,461)      (1,088)
Other government subsidies                                 34          193
Other (expenses) income                                    (4)          10
                                                  -----------  -----------

INCOME BEFORE INCOME TAXES                                312        4,479

Income tax expense                                        (76)        (568)
                                                  -----------  -----------

NET INCOME                                                236        3,911
                                                  -----------  -----------

OTHER COMPREHENSIVE INCOME

Foreign currency translation gain, net of tax               -            3
                                                  -----------  -----------

COMPREHENSIVE INCOME                              $       236  $     3,914
                                                  ===========  ===========

NET INCOME PER SHARE ATTRIBUTABLE TO
 CONTROLLING INTEREST, BASIC AND DILUTED          $      0.00  $      0.03
                                                  ===========  ===========

WEIGHTED-AVERAGE SHARES OUTSTANDING,
 BASIC AND DILUTED                                120,000,000  120,000,000
                                                  ===========  ===========

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