SOURCE: CH Lighting International Corp.

August 17, 2009 09:26 ET

CH Lighting International Reports Third Quarter and Nine Month Results

JINHUA, CHINA--(Marketwire - August 17, 2009) - CH Lighting International Corporation (OTCBB: CHHN) today reported results for its third quarter and nine months ended June 30, 2009. The Company, 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, said its results in these periods continued to be heavily impacted by the international recession. The Company also saw the Chinese government shift from indirect subsidies on unit purchase prices of energy saving lighting products to direct subsidy funds granted to the Company which contributed more than 60% of revenues in the third quarter.

As reported by the Company, revenues in the third quarter ended June 30, 2009 decreased sharply to $9,378,000 compared to $27,326,000 in the same period last year. Net income in the 2009 third quarter was $1,739,000 which compared with net income in last year's third quarter of $4,825,000.

For the nine months ended June 30, 2009, revenues decreased to $34,207,000 as compared with $64,467,000 in the first nine months last year. Nine-month net income in 2009 was $6,126,000, a decrease from the $10,738,000 reported in the same period in 2008.

In the third quarter the Company experienced a drop in export sales due to the ongoing recession as well as a decrease in government procurement orders after the Olympic Games. It benefited, however, from a direct subsidy from the PRC government of $6,064,000 compared with $73,000 in the same period last year. Through the first nine months of 2009, the subsidy was $8,005,000 compared with $369,000 in the same period in 2008.

During the quarter the Company strove to improve operating efficiencies and reduce costs, particularly in view of the reduced revenues due to the recession and price reductions implemented ranging from 5% to 10%. Nevertheless, it experienced an increase in sales, marketing and distributor expenses as a provision for a rebate to distributors of $1.86 million was made for domestic sales. Additionally, a provision for doubtful accounts of nearly $1 million was the key reason for an increase in G&A expenses. Increased borrowings in the period also led to an increase in interest expenses. Through the first nine months of the year the Company also saw an increase in interest income of about $2.3 million attributed to a recognition of interest income receivables from related parties.

Mr. Zhao Guosong, Chairman of the Board, President and CEO of the Company, stated, "The depth and duration of the recession has been felt most severely in our international operations, and we are doing our best to deal with the problems created. Our position in the domestic market permitted a substantial direct subsidy by the government and we were able enabled us to achieve a profit in the period despite the difficult conditions."

He added, "Going forward, we believe we are in a good position to benefit from an upturn in the market if we can maintain our technology leadership, especially in areas such as energy saving lighting which we think will remain a focus of government attention and green oriented business and individual consumers for many years to come."

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.

No securities regulatory authority has either approved or disapproved the contents of this news release.


CH Lighting International Corporation (formerly Sino-Biotics, Inc.)
Unaudited Condensed Consolidated Statements of Operations and
Other Comprehensive Income For the nine months ended June 30, 2009


                           Three months ended         Nine months ended
                                June 30,                   June 30,
                        ------------------------  ------------------------
                            2009         2008         2009         2008
                          US$’000      US$’000      US$’000      US$’000
Operating revenues:
  Net sales to third
   parties                    9,378       27,326       34,207       64,467

Cost of sales                (7,475)     (18,984)     (24,585)     (44,332)
                        -----------  -----------  -----------  -----------

Gross income                  1,903        8,342        9,622       20,135

Operating expenses:
Selling, marketing
 and distribution
 expenses                    (2,530)        (909)      (5,003)      (1,904)
General and
 administrative
 expenses                    (2,131)      (1,339)      (4,180)      (4,024)
                        -----------  -----------  -----------  -----------

Operating (loss) income      (2,758)       6,094          439       14,207

Government subsidies
 income                       6,064           73        8,005          369
Other income                      4           33           24           63
Interest income                 936          169        2,789          412
Interest expense             (1,243)        (747)      (3,335)      (2,993)
                        -----------  -----------  -----------  -----------

Income before income
 taxes                        3,003        5,622        7,922       12,058

Income taxes expenses        (1,264)        (797)      (1,796)      (1,320)
                        -----------  -----------  -----------  -----------

 Net income                   1,739        4,825        6,126       10,738

 Net income attributable
  to non-controlling
  interests                       -            -            -            -
                        -----------  -----------  -----------  -----------

Net income attributable
 to CH Lighting
 International
 Corporation                  1,739        4,825        6,126       10,738

  Other comprehensive
   income
  Foreign currency
   translation
   adjustment                     4           (4)          41          832
                        -----------  -----------  -----------  -----------

Comprehensive income          1,743        4,821        6,167       11,570
                        ===========  ===========  ===========  ===========

Earnings per share
                             Shares       Shares       Shares       Shares
Weighted average
 number of common
 stocks outstanding,
 basic and diluted      120,000,000   93,000,000  120,000,000   93,000,000
                        ===========  ===========  ===========  ===========

                                US$          US$          US$          US$
Net income per share
 of common stock
 outstanding, basic
 and diluted                  0.014        0.052        0.051        0.115
                        ===========  ===========  ===========  ===========

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