SOURCE: World Trophy Outfitters, Inc./Chisen Electric Corporation

February 18, 2009 11:15 ET

China's Growing Electric Bicycle Market Propels Battery Sales of Chisen Electric Corporation (f/k/a World Trophy Outfitters, Inc.)

Third Quarter Sales Grew 35%; Nine Month Increase was 82%; Nine Month Net Grew 68%; Quarterly Net Was Down Slightly After Costs of Going Public, Initial Tax Payments and Other Growth-Related Expenses

CHANGXING, CHINA--(Marketwire - February 18, 2009) - Chisen Electric Corporation, previously named World Trophy Outfitters, Inc. (OTCBB: WTRY), one of China's leading lead-acid motive battery makers principally for the electric bicycle market, today reported strong sales in its third quarter and nine months ended December 31, 2008.

Mr. Xu Kecheng, Chairman and CEO of the Company, stated, "With green, low cost electric bicycles increasingly becoming the personal transportation choice of millions of Chinese commuters, our Company -- with its low-cost, high performance batteries -- clearly is benefitting."

According to the Company, revenues in its third fiscal quarter reached approximately $23.4 million, up 35% over sales of approximately $17.3 million in its third quarter last year. The Company said a sales volume increase of 30% in the quarter combined with higher sales prices contributed to this result.

In the current year's third quarter, the Company said that while gross income grew more than $1 million, to approximately $4.42 million, the gain was largely offset by an increase in G&A expenses and the Company's first income tax payment. G&A expenses included costs relating to becoming a public company, salaries and R&D among other items. Net income in the third quarter this year consequently fell slightly from $1,781,000 in last year's third quarter to $1,625,000.

Revenues in the first nine months of the current year reached a record $81,234,000, compared with year ago nine month revenues of $44,535,000. This substantial growth of approximately 82% reflected strong sales of the Company's popular battery products in a strong market for electric bicycle sales. Sales volume in the period was up approximately 57%, primarily from existing customers, but also from new customers in Tianjin, Jiangsu and other regions of the country. In this period, the average selling price for the Company's products increased approximately 8%.

The Company reported further that strong sales of battery products over the first nine months this year led to a more than $2.96 million increase in net income to $7,317,000, compared with $4,353,000 in the same period last year.

Mr. Kecheng commented further, "We continue to have an overall goal of becoming the largest battery producer in China, coupled with a first rate sales team and a nationwide service network."

About Chisen Electric Corporation

Chisen, founded in 2002, has grown to become one of the largest lead-acid motive battery producers in China with more than 1500 employees -- including some of the leading scientists in the field -- and sales of more than 5.5 million batteries per year. Customers for these products primarily are the growing number of eco-conscious riders of electric bicycles in the PRC, who prefer this convenient mode of "green" personal transportation. Chisen's "green" batteries, a designation they received at this past summer's Olympic Games, currently permit driving ranges of from 45 to 70 kilometers, with a wide range of power, and can run for up to 145 minutes after charging for about 10 hours. Chisen has in place a strong R&D operation, and has developed long-term strategic cooperation agreements with many of China's leading electric bicycle manufacturers.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission. No securities regulatory authority has either approved or disapproved the contents of this news release.

                            Chisen Electric Corporation
                               Results of Operations

  Results of Operations for the Three (3) Months Ended December 31, 2008
         Compared To the Three (3) Months Ended December 31, 2007

The following table sets forth a summary of certain key components of our
results of operations for the periods indicated, in dollars and as a
percentage of revenues.

                                         For The Three (3) Months
                                             Ended December 31
                                       2008        2007      2008    2007
                                    ----------- ----------- ------  ------
Revenues                            $23,421,000 $17,338,000 100.00% 100.00%
Cost of sales                       $18,998,000 $14,050,000  81.12%  81.04%
Gross income                        $ 4,423,000 $ 3,288,000  18.88%  18.96%
Sales, marketing and distribution   $ 1,328,000 $ 1,163,000   5.67%   6.71%
General and administrative expenses $ 1,006,000 $   479,000   4.30%   2.76%
Operating income                    $ 2,089,000 $ 1,646,000   8.92%   9.49%
Other income (expenses), net        $    70,000 $   248,000   0.30%   1.43%
Interest expenses, net              $   219,000 $   113,000   0.94%   0.65%
Income before income taxes          $ 1,940,000 $ 1,781,000   8.28%  10.27%
Income taxes expenses               $   315,000           -   1.34%      -
Net income                          $ 1,625,000 $ 1,781,000   6.94%  10.27%
Other comprehensive (loss) income   $    -6,000 $   163,000   0.03%   0.94%
Comprehensive income                $ 1,619,000 $ 1,944,000   6.91%  11.21%




                           Chisen Electric Corporation

  Results of Operations for the Nine (9) Months Ended December 31, 2008
         Compared To the Nine (9) Months Ended December 31, 2007

The following table sets forth a summary of certain key components of our
results of operations for the periods indicated, in dollars and as a
percentage of revenues.

                                          For The Nine (9) Months
                                             Ended December 31
                                       2008        2007      2008    2007
                                    ----------- ----------- ------  ------
Revenues                            $81,234,000 $44,535,000 100.00% 100.00%
Cost of sales                       $65,713,000 $36,403,000  80.89%  81.74%
Gross income                        $15,521,000 $ 8,132,000  19.11%  18.26%
Sales, marketing and distribution   $ 3,770,000 $ 2,772,000   4.64%   6.22%
General and administrative expenses $ 2,600,000 $ 1,090,000   3.20%   2.45%
Operating income                    $ 9,151,000 $ 4,270,000  11.26%   9.59%
Other income (expenses), net        $   363,000 $   498,000   0.45%   1.12%
Interest expenses, net              $   603,000 $   415,000   0.74%   0.94%
Income before income taxes          $ 8,911,000 $ 4,353,000  10.97%   9.77%
Income taxes expenses               $ 1,594,000           -   1.96%      -
Net income                          $ 7,317,000 $ 4,353,000   9.00%   9.77%
Other comprehensive income          $   258,000 $   258,000   0.32%   0.58%
Comprehensive income                $ 7,575,000 $ 4,611,000   9.32%  10.35%

Contact Information

  • Contact:
    Mr. Xu Kecheng
    Chairman, CEO and President
    Chisen
    86-57582187869

    Ms. Liya Wu
    Chisen
    Tel: 646-573-7654