China Infrastructure Investment Corporation Announces Its Audited Financial Results for the Fiscal Year Ended June 30, 2008
BEIJING, Sep 30, 2008 -- China Infrastructure Investment Corporation (Nasdaq CM:CIIC) (the "Company"), an emerging infrastructure development company operating in the People's Republic of China, announces today its audited financial results for the fiscal year ended June 30, 2008. The Company's revenues increased approximately US$18.0 million, or 46.8%, from approximately US$38.4 million for the fiscal year ended June 30. The Net income increased approximately US$5.0 million, or 67.8%, from approximately US$7.5 million for the fiscal year ended June 30, 2007.
CIIC, incorporated in Nevada, USA and headquartered in Henan Province, China, focuses on investing, 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's revenues are derived from the operation of the Pinglin Expressway. The revenue increase of approximately US$18.0 million, or 46.8% from fiscal year 2007, was mainly attributable to the increase in traffic volumes.
The Gross profit increased approximately US$11.8 million, or 37.9%, from approximately US$31.3 million for the fiscal year ended June 30. This increase reflected higher net sales and operating efficiencies generally across the expressway business.
General and administrative expenses increased approximately US$1.1 million, or 49.3%, from US$2.2 million for the fiscal year ended June 30, 2007. The increase in administration expenses was mainly attributable to the increase in payroll and benefits, increase in local taxes, professional services and travel expenses in association with the public listing.
The Company's net income increased approximately US$5.0 million, or 67.8%, from approximately US$7.5 million for the fiscal year ended June 30, 2007. This increase is primarily attributable to the growth of the toll revenues and well managed expenses.
Net cash provided by operating activities is approximately US$14.5 million for the fiscal year ended June 30, 2008, as compared to US$11.5 million for the fiscal year ended June 30, 2007. The increase is mainly due to the combined result of increased toll receipts, offset in part by operational costs and expenses.
The decrease in current portion of long-term loans primarily represented the maturity of the long-term loans of approximately US$134 million which have been renewed and extended through May 2022.
As of June 30, 2008, the Company's total cash and time deposit balance was US$5.77 million, compared to US$5.83 million as of June 30, 2007.
The Company made capital expenditures approximately of US$6.7 million and US$24.7 million for the years ended June 30, 2008 and 2007, respectively. The capital expenditures principally consisted of toll road infrastructures, toll stations and ancillary facilities, communication and monitoring equipments and other equipments related to toll operations.
Mr. Li Xipeng, Chairman and Chief Executive Officer of the Company, stated, "CIIC has achieved tremendous growth in fiscal year 2008. The economic expansion in China and specifically in Henan Province provided solid foundation and support for Company's growth. The management team was able to manage the costs along with high revenue growth to achieve outstanding performance." Mr. Li continued, "We also have successfully managed the Company's debt structure and cash flow. The Company is fully self-sustained by the cash flow from our existing operations and is able to meet our current financing obligations despite the turmoil in the world financial markets. With the listing on NASDAQ, CIIC is well positioned to grow its business through new project development and through merger and acquisition."
"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 conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of construction, financing costs and other factors as those 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 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 AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, 2008 June 30, 2007
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CURRENT ASSETS
Cash and cash equivalents $ 5,769,344 $ 5,830,962
Restricted cash 29,104 2,631,475
Note receivable 776,936 656,556
Accounts receivable 2,006,848 2,721,057
Other receivables 419,642 1,389,579
Notes receivable from related parties, current 10,197,016 126,098,139
Advance to a related party 21,733,471 29,998,648
Other current assets 991,768 138,742
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Total current assets 41,924,129 169,465,158
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Toll road infrastructures, net 443,672,007 398,701,246
Plant and equipment, net 15,943,451 14,754,523
Land use rights, net 49,066,392 46,068,301
Long-term investment 1,455,223 1,313,111
Notes receivable from related parties,
long-term 139,872,158 -
Deferred taxes 6,059,721 6,170,156
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Total long-term assets 656,068,952 467,007,337
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TOTAL ASSETS $ 697,993,081 $ 636,472,495
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CHINA INFRASTRUCTURE INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
June 30, 2008 June 30, 2007
-------------- -------------
CURRENT LIABILITIES
Other payables and accrued liabilities $ 4,840,299 $ 2,932,841
Short-term bank loans - 10,504,891
Current portion of long-term loans 10,678,425 134,047,666
Note payable - 5,262,951
Payable to contractors 24,224,039 26,411,885
Deferred taxes 8,556,534 4,604,522
Other current liabilities 225,915 157,426
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Total current liabilities 48,525,212 183,922,182
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LONG-TERM LIABILITIES
Long-term bank loans 466,512,413 299,279,102
Deferred revenue 6,627,828 6,041,304
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Total long-term liabilities 473,140,241 305,320,406
-------------- -------------
TOTAL LIABILITIES 521,665,453 489,242,588
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CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $.001 par value, 150,000,000
shares authorized, 80,000,000 shares and
54,400,000 shares issued and outstanding
as of June 30, 2008 and 2007, respectively 80,000 54,400
Additional paid-in capital 140,573,673 140,662,392
Accumulated other comprehensive income 26,818,531 10,192,480
Retained earnings (deficit) 8,855,424 (3,679,365)
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Total Shareholders' Equity 176,327,628 147,229,907
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 697,993,081 $ 636,472,495
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CHINA INFRASTRUCTURE INVESTMENT CORPORATION AND SUBSIDIARIES
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
YEARS ENDED JUNE 30,
--------------------------
2008 2007
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REVENUES $ 56,424,236 $ 38,449,103
OPERATING COSTS 6,814,079 1,353,310
DEPRECIATION AND AMORTIZATION 6,483,911 5,811,456
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GROSS PROFIT 43,126,246 31,284,337
General and administrative expenses 3,268,346 2,189,499
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INCOME FROM OPERATIONS 39,857,900 29,094,838
OTHER INCOME (EXPENSES)
Interest expense, net (23,941,036) (19,326,104)
Other income, net 905,832 188,577
------------ ------------
Income FROM OPERATIONS Before Income Taxes 16,822,696 9,957,311
Income Tax EXPENSE (4,287,907) (2,489,328)
------------ ------------
NET INCOME 12,534,789 7,467,983
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Other comprehensive income
Foreign currency translation gain 16,626,051 6,730,246
------------ ------------
Other comprehensive income, NET 16,626,051 6,730,246
------------ ------------
COMPREHENSIVE INCOME $ 29,160,840 $ 14,198,229
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND
DILUTED 64,472,131 54,400,000
============ ============
NET INCOME PER COMMON SHARE, BASIC AND DILUTED $ 0.19 $ 0.14
============ ============
CHINA INFRASTRUCTURE INVESTMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30,
--------------------------
2008 2007
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 12,534,789 $ 7,467,983
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 7,039,349 6,112,186
Deferred taxes 4,062,447 2,355,730
Deferred revenue (571,640) (530,782)
Interest income (9,700,215) -
Imputed interest 507,834 475,925
Gain from disposal of plant and equipment 103,343 -
Changes in operating assets and liabilities:
(Increase) Decrease In:
Accounts receivable 714,209 (1,972,723)
Other receivables 969,937 187,926
Other current assets (853,027) 602,295
Increase (Decrease) In:
Payable to contractors (2,187,846) -
Other payables and accrued liabilities 1,844,339 (3,317,031)
Other current liabilities 68,489 127,576
------------ ------------
Net cash provided by operating activities 14,532,008 11,509,085
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of construction in progress (6,114,070) (23,241,194)
Purchases of plant and equipment (545,399) (336,999)
Purchases of land use rights - (1,129,893)
Refund of deposit for long-term investment - 1,281,140
Note receivable - (656,556)
Proceeds from disposition of plant and
equipment 61,177 -
Advance to a related party 10,914,798 -
Notes receivable from related parties (120,470) 3,427,154
------------ ------------
Net cash provided by (used in) investing
activities 4,196,036 (20,656,348)
============ ============
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term bank loans 170,899,229 25,874,237
Repayments of long-term bank loans (173,774,644) (25,353,751)
Proceeds from short-term bank loans - 10,249,118
Repayments of short-term bank loans (11,038,061) (5,002,752)
Proceeds from notes payable - 7,607,437
Repayments of notes payable (5,530,068) (2,344,486)
Restricted cash 2,602,371 (2,631,475)
Capital contributions - 3,843,419
------------ ------------
Net cash (used in) provided by financing
activities (16,841,173) 12,241,747
============ ============
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,886,871 3,094,484
Effect of exchange rate changes on cash (1,948,489) (2,788,362)
Cash and cash equivalents at beginning of year 5,830,962 5,524,840
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Investor’s
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