SOURCE: China Infrastructure Investment Corporation

May 17, 2010 07:30 ET

China Infrastructure Investment Reports Further Gains in Fiscal Third Quarter as Expressway Traffic Volume Continued to Increase; Revenues Rose 4.2% Compared With the Same Period Last Year

BEIJING--(Marketwire - May 17, 2010) -  China Infrastructure Investment Corporation (NASDAQ: CIIC), which operates the Pinglin Expressway in Henan Province in central China, today reported growth in revenues and net income for its third quarter ended March 31, 2010, compared with the same period last year.

The Company reported that as a result of an improving Chinese economy, third quarter average daily traffic volume on its Expressway in the current fiscal year increased 4.4% to 11,762 units from 11,269 units during the same period in the prior fiscal year. As a consequence, the Company's revenues increased 4.2% to $10,659,674, compared with $10,234,820 over the same prior year period. Net income in the third quarter ended March 31, 2010 grew to $1,287,459, from $1,248,235, in the same period in the prior year, an increase of 3%. EPS in both periods was $0.02 per share.

For the nine months ended March 31, 2010, revenues decreased 5.1% to $35,845,854 from $37,779,524 in the same period in the prior year. However, net income in the same periods increased 23.7% to $5,994,189, or $0.07 per share, from $4,847,387, or $0.06 per share. 

The Company's Chairman and CEO, Mr. Li Xipeng, commented, "We are pleased with our third quarter growth which reflects recovery and continuing improvement in the Chinese economy which has translated to increasing auto traffic in the Henan province. Over time, we anticipate further growth on this key north to south route in line with anticipated growing commercial and passenger car traffic. The Company also continues to seek additional development opportunities."

About China Infrastructure Investment Corporation:

China Infrastructure Investment Corporation, incorporated in Nevada, USA and headquartered in Henan Province, China, focuses on investing in, constructing, operating and managing infrastructure development projects in China. The Company currently operates the Pinglin Expressway, a 106-kilometer (66 miles) dual carriageway four-lane toll road in the central province of Henan. The Expressway is an important passage from the northwest region to the southeast coastal region of China. The Company is actively pursuing additional development opportunities in infrastructure projects, including expressways, electricity, water supply and bio fuel facilities. For more information, please visit www.ciicusa.com.

SEE ATTACHED TABLE

"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 alternative new routes and modes of transportation, pricing and new technology; changes in consumer preferences, and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of maintenance and construction, and other factors such as those discussed in the Company's reports filed with the Securities and Exchange Commission. 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.

CHINA INFRASTRUCTURE INVESTMENT CORPORATION
(FORMERLY LEARNING QUEST TECHNOLOGIES, INC.) AND SUBSIDIARIES
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
    Three Months Ended March 31,     Nine Months Ended March 31,  
    2010     2009     2010     2009  
                         
REVENUES   $ 10,659,674     $ 10,234,820     $ 35,845,854     $ 37,779,524  
                                 
OPERATING COSTS     1,074,027       584,314       3,161,795       4,259,217  
                                 
DEPRECIATION AND AMORTIZATION     2,013,835       1,588,909       6,503,106       5,489,104  
                                 
GROSS PROFIT     7,571,812       8,061,597       26,180,953       28,031,203  
                                 
General and administrative expenses     1,293,996       1,442,137       3,774,174       4,288,648  
                                 
INCOME FROM OPERATIONS     6,277,816       6,619,460       22,406,779       23,742,555  
                                 
OTHER INCOME (EXPENSES)                                
                                 
Interest expense     (6,867,988 )     (7,933,520 )     (21,410,205 )     (26,141,851 )
                                 
Interest income     2,068,828       2,766,151       6,338,445       8,312,156  
                                 
Other income, net     252,896       225,553       752,786       667,024  
                                 
INCOME FROM OPERATIONS BEFORE INCOME TAXES     1,731,552       1,677,644       8,087,805       6,579,884  
                                 
INCOME TAX EXPENSE     (444,093 )     (429,409 )     (2,093,616 )     (1,732,497 )
                                 
NET INCOME     1,287,459       1,248,235       5,994,189       4,847,387  
                                 
OTHER COMPREHENSIVE INCOME                                
                                 
Foreign currency translation gain     29,477       221,361       230,379       679,607  
                                 
OTHER COMPREHENSIVE INCOME     29,477       221,361       230,379       679,607  
                                 
COMPREHENSIVE INCOME   $ 1,316,936     $ 1,469,596     $ 6,224,568     $ 5,526,994  
                                 
WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED     80,000,000       80,000,000       80,000,000       80,000,000  
                                 
NET INCOME PER COMMON SHARE, BASIC AND DILUTED   $ 0.02     $ 0.02     $ 0.07     $ 0.06  

Contact Information