CH Lighting International Reports Third Quarter and Nine Month Results

Mon Aug 17, 2009 9:27am EDT

* Reuters is not responsible for the content in this press release.

  JINHUA, CHINA, Aug 17 (MARKET WIRE) -- 
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
                        ===========  ===========  ===========  ===========


    


CONTACTS:

Mr. Zhao Guosong
President, CEO
Tel: 86 575 8212 7538
CEO@chlighting.com

Eric Chuang
Chief Financial Officer
erichuang22@hotmail.com

Ken Donenfeld
donfgroup@aol.com
Tel:   212-425-5700
Fax:  646-381-9727

Copyright 2009, Market Wire, All rights reserved.

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