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2010 marks number of milestones for China Linen
05 Apr '11
5 min read
"2010 marked a number of milestones for China Linen. We completed the purchase of Lanxi Tianxianfang Linen Co., Ltd. which increased our linen yarn and linen fabric production capabilities and also included a bleaching factory, a critical addition to our production process as we aim to become vertically integrated throughout the entire value chain. In December, we commenced operations at our newly upgraded linen yarn dyeing facility to produce higher margin higher demand new products," Mr. Gao continued.
"We remain optimistic into 2011 as macro trends seem to continue to favor the linen industry. While pure linen products are usually considered higher-priced and higher-end products than traditional textile products, record high cotton and chemical fiber prices have closed the price gap between the two. With increased interest and demand for linen products globally, combined with our expanded production capacity and our new capabilities, we are well positioned to take advantage of opportunities to gain market share in the linen industry," concluded Mr. Gao.
Balance Sheet and Cash Flow
As of December 31, 2010, the Company had cash and cash equivalents of $4.2 million, compared to $2.3 million at December 31, 2009. Accounts receivable balance was approximately $13.3 million on December 31, 2010, versus approximately $8.8 million on December 31, 2009. Days sales outstanding (DSO) for the twelve months of 2010 were approximately 81 days, compared to 111 days for the same period in 2009 mainly due to increased collection effort. Working capital at year-end 2010 totaled $22.0 million. The Company had total stockholders' equity of $32.2 million at December 31, 2010, with total assets of $51.6 million versus total liabilities of $19.5 million.
For the year 2010, the Company generated $5.4 million in cash from operations, an increase of 55.0% from $3.5 million in the same period last year, and spent $2.9 million on capital expenditures in 2010, as compared to $0.87 million in the same period last year.
Fiscal Year 2011 Guidance
For the fiscal year 2011, the Company expects revenue to be in the range of $58-63 million, and net income to be in the range of $11.5-12.6 million.
"We remain optimistic into 2011 as macro trends seem to continue to favor the linen industry. While pure linen products are usually considered higher-priced and higher-end products than traditional textile products, record high cotton and chemical fiber prices have closed the price gap between the two. With increased interest and demand for linen products globally, combined with our expanded production capacity and our new capabilities, we are well positioned to take advantage of opportunities to gain market share in the linen industry," concluded Mr. Gao.
Balance Sheet and Cash Flow
As of December 31, 2010, the Company had cash and cash equivalents of $4.2 million, compared to $2.3 million at December 31, 2009. Accounts receivable balance was approximately $13.3 million on December 31, 2010, versus approximately $8.8 million on December 31, 2009. Days sales outstanding (DSO) for the twelve months of 2010 were approximately 81 days, compared to 111 days for the same period in 2009 mainly due to increased collection effort. Working capital at year-end 2010 totaled $22.0 million. The Company had total stockholders' equity of $32.2 million at December 31, 2010, with total assets of $51.6 million versus total liabilities of $19.5 million.
For the year 2010, the Company generated $5.4 million in cash from operations, an increase of 55.0% from $3.5 million in the same period last year, and spent $2.9 million on capital expenditures in 2010, as compared to $0.87 million in the same period last year.
Fiscal Year 2011 Guidance
For the fiscal year 2011, the Company expects revenue to be in the range of $58-63 million, and net income to be in the range of $11.5-12.6 million.
China Linen Textile Industry Ltd
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