SOURCE: Chisen Electric Corporation

November 15, 2010 07:30 ET

Chisen Electric Corporation Second Quarter Revenues Grew 52% and Net Income Advanced 11% Compared With the Same Period in the Prior Fiscal Year

ZHEJIANG, CHINA--(Marketwire - November 15, 2010) - Chisen Electric Corporation (OTCBB: CIEC) (the "Company"), a leading lead-acid motive battery producer for the electric bicycle market in the People's Republic of China, announced today that strong demand from new and existing customers produced a 52% year over year increase in the Company's second quarter revenues in the current fiscal year. A smaller 11% year over year gain in net income was achieved as the Company experienced an approximately 13% increase in raw material costs in the same period.

In the three month period ended September 30, 2010, the Company reported revenues of $76,613,000, compared with $50,392,000 in the same period last year. Net income in the 2010 second quarter rose to $5,442,000, or $0.11 per share, compared with $4,917,000 in the second quarter of fiscal year 2009, or $0.10 per share.

In the first six months of fiscal 2010, revenues grew 59% to $127,042,000, compared with $79,867,000 in the same period the prior year. Net income increased slightly from $6,923,000 in the first six months last year to $6,949,000 in this year's first half. EPS for the six month period ended September 30, 2010 of $0.14, compared with $0.14 per share in the same period last year.

Strong Demand and Increasing Capacity

"We are pleased to report another growth quarter for Chisen Electric," stated Mr. Xu Kecheng, President and CEO. He added, "The Company continued to benefit from strong demand for electric bicycles in China -- a clean, practical and energy efficient form of transportation -- as we were able to increase sales to existing customers and also sign up new customers. As a leader in the battery industry, during the second quarter Chisen also succeeded in raising its average battery selling price per unit by approximately 13% year over year which helped our bottom line in a highly competitive environment."

He stated further, "Going forward, we continue to be quite excited about our announced plans to build 'Chisen Circular Economy Industry Park', and plans to replace our oldest plant with a new one in Changxing County. This increased modernized capacity should allow the Company to utilize its battery expertise to successfully develop and produce lithium ion batteries and broaden the industries we serve, while maintaining leadership in battery production for electric bicycles."

SEE TABLE BELOW

Company Description

Chisen Electric Corporation, incorporated in Nevada, USA, and headquartered in Zhejiang Province, the People's Republic of China, is a leading lead-acid motive battery producer for China's personal transportation device market. The Company's battery products are sold under its own brand names and are predominantly used in electric bicycles. Among all types of batteries for electric bicycles, the lead-acid motive battery is the preferred choice for electric bicycle manufacturers in China because of its cost efficiency. In the fiscal year ended March 31, 2010, the Company manufactured more than 14.48 million batteries and achieved a market share of approximately 11.84% for its lead acid motive batteries for electric bicycles in China. Recently, the Company announced plans to produce lithium ion batteries in a dedicated, new manufacturing facility. Visit our website at www.chisenelectric.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, 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 important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, financing and other factors as discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, In addition, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date hereof. No securities regulatory authority has either approved or disapproved the contents of this new release. The Company filings with the US Securities and Exchange Commission, including the annual report for the fiscal year ended March 31, 2010 on Form 10-K, can be viewed on EDGAR Online or at www.sec.gov.


Chisen Electric Corporation

Unaudited Condensed Consolidated Statements of Operations and
Other Comprehensive Income
For the six months ended September 30, 2010 and 2009


                              Three months ended       Six months ended
                                 September 30            September 30
                            ----------------------  ----------------------
                               2010        2009        2010        2009
                     Note     US$'000     US$'000     US$'000     US$'000
Operating revenues:
Net sales to third
 parties                        76,613      50,392     127,042      79,867

Cost of sales                  (65,869)    (41,708)   (111,260)    (65,813)

Gross income                    10,744       8,684      15,782      14,054

Operating expenses:
Sales, marketing and
 distribution                   (3,040)     (2,167)     (5,551)     (3,953)
General and
 administrative                   (956)     (1,030)     (1,641)     (2,086)

Operating income                 6,748       5,487       8,590       8,015

Other income, net                  110         578         613         725
Interest income                    102           -         198          55
Interest expense                  (606)       (378)     (1,291)       (747)

Income before income
 taxes                           6,354       5,687       8,110       8,048

Income taxes expense      4       (912)       (770)     (1,161)     (1,125)

Net income
 attributable to
 CIEC common
 stockholders                    5,442       4,917       6,949       6,923

Other comprehensive
 income
Foreign currency
 translation
 adjustment                        433          24         554          24

Comprehensive income             5,875       4,941       7,503       6,947

                              Shares      Shares      Shares      Shares

Earnings per share        3
Weight average
 number of common
 stock outstanding
 - basic and diluted        50,000,000  50,000,000  50,000,000  50,000,000
                            ==========  ==========  ==========  ==========

                                   US$         US$         US$         US$

Net income per share
 of common stock
 outstanding
 - basic and diluted              0.11        0.10        0.14        0.14
                            ==========  ==========  ==========  ==========

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