President of China Linen pleased with financial results for 2009

20 Aug '10

5 min read

"We are pleased with our financial results for 2009, which included record revenues and net income as well as improved gross and net margins," stated Mr. Gao Ren, chairman and president of China Linen.

"We saw an increase in demand from both domestic and international customers during the year, and continued to operate at full capacity, while driving our production costs down. With the goal of capturing a larger share of the growing market for linen fabric and yarn products, we recently expanded our linen fabric production by 26% to 2.1 million meters annually and our linen yarn production capacity by 39% to 620 tons annually.

“We also added the capability to bleach linen fabric, which is an important part of the value chain and will allow us to better service our customers to generate incremental revenues at higher margins or consistent margins. We plan to further expand our production capacity and will leverage our R&D capabilities to produce new and competitive products.

“In addition we plan to expand sales nationally and internationally to markets in Europe, the U.S., and the Middle East. As a leading producer and exporter of linen in China, we believe we are well positioned to capitalize on the industry demand and dynamics to generate strong revenue and net income growth with superior margin profiles."

Balance Sheet and Cash Flow
As of December 31, 2009, the Company had cash and cash equivalents of $2.3 million, compared to $10,674 at December 31, 2008. Working capital at year-end 2009 totaled $12.0 million. The Company had total stockholders' equity of $21.5 million at December 31, 2009, with total assets of $36.1 million versus total liabilities of $14.6 million. For the year 2009, the Company generated $3.5 million in cash from operations versus $4.3 million for the same period in 2008.

Fiscal year 2010 Guidance
For fiscal year 2010, management is confirming revenue guidance of $38.1 million, representing growth of 29.6% over 2009, and net income guidance of approximately $9.3 million, representing year-over-year growth of approximately 63.2%. The company expects to report earnings per share of $0.39, representing a 39.3% year-over-year increase.

China Linen Textile Industry, Ltd. is principally engaged in the production and sale of linen yarn and various types of linen fabric. The Company is also involved in consultation and R&D related to linen technology and linen products.

China Linen Textile Industry Ltd

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