SOURCE: World Trophy Outfitters, Inc.

November 13, 2008 08:00 ET

World Trophy Outfitters, Inc. Acquires Fast-Growing PRC Battery Maker "Chisen" Through a Reverse Acquisition

Chisen Lead-Acid Motive Batteries Are the Choice of Millions of Chinese Electric Powered Bicycle Riders

CHANGXING, CHINA--(Marketwire - November 13, 2008) - World Trophy Outfitters, Inc. ("World Trophy" or the "Company") (OTCBB: WTRY), previously a blank-check development stage company, today announced that it has completed a Share Exchange transaction with a Hong Kong investment holding company, Fast Move Limited ("Fast Move") and Samoan companies Cheer Gold Development Limited and Floster investment Limited. Pursuant to this transaction, Fast Move has become a wholly-owned subsidiary of World Trophy and the principal ongoing operations of the Company are now those of Fast Move's operating subsidiary, Chingxing Chisen Electric Co., Limited ("Chisen"), located in Changxing Economic Development Zone, Changxing, Zhejiang Province, The People's Republic of China (The PRC).

Following the closing of the Share Exchange, Mr. Xu Kecheng, 46, the founder of Chisen, was named Chairman of the Board, Chief Executive Officer and President of the Company.

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.

Chisen Results For The Fiscal Year Ended March 31, 2008 and Three Months Ended June 30, 2008

Revenues for the years ended March 31, 2008 and 2007 were US$65,387,000 and US$28,573,000, respectively. The increase in revenues of approximately 128.84% was mainly attributable to an increase in selling prices and continued strong sales of battery products as a result of rapid growth in the electric power bike market in the PRC. Sales volume increased by 60.1% mainly due to increased demand from existing customers. The average unit selling price increased by approximately 34.6% during the year.

Net income grew dramatically in Fiscal 2008 to $6,694,000 from $1,071,000 in the prior fiscal year, while comprehensive income in Fiscal 2008 grew to $7,303,000 compared with $1,130,000 in the 2007 Fiscal Year. These increases were generated by the large increases in sales volume and, in comprehensive income, also by gains from foreign currency translation.

Revenues for the three month periods ended June 30, 2008 and 2007 were US$22,225,000 and US$9,573,000, respectively. The increase in revenues of approximately 132.16% was mainly attributable to the increase in selling prices and continued strong sales of battery products as a result of rapid growth in the electric power bike market in the PRC. Sales volume increased by 41% and the average unit selling price increased by 38%.

Net income in the Fiscal Year 2008 three month period was $1,731,000, a roughly six fold gain over the $322,000 reported in the same period in the prior Fiscal Year, while comprehensive income grew from $356,000 in the three months ended June 30, 2007 to $2,157,000 in the same period in Fiscal Year 2008.

Mr. Xu Kecheng, Chairman, CEO and president of the Company, commented, "This transaction represents another important step forward for us that we believe further enhances our opportunity for future growth. While our principal focus will continue to be on providing industry leading, efficient 'green' batteries for electric bicycles, we will continue to leverage our expertise in this area with related products such as chargers, controllers and motors. Further, we intend to explore the motive battery market for other electric powered vehicles such as motorcycles and electric-powered cars. Our overall goal is to become the largest battery producer in China with a first class sales and service network."

Additional information on the Share Exchange and Chisen is available in the Form 8-K Current Report filed by World Trophy yesterday with the U.S. Securities and Exchange Commission.

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.

Contact Information

  • Contact:

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

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