Advanced Battery Technologies, Inc. (ABAT) announced that it has achieved significant improvements in its operational performance for the first quarter 2007, and remains optimistic about its performance for the fiscal year 2007.
Revenues for the first quarter 2007 were $5,363,923 compared to $1,908,997 for the same period 2006, an increase of $3,454,926, or approximately 181%. General and administrative expense for the first quarter 2007 totaled $1,266,652, or approximately 24% of revenue, compared to $345,169, or approximately 18% of revenue for 2006. Gross margins on sales for the quarter improved to about 49% compared to 37% during the same period in 2006. The company reported first quarter 2007 net profit of $1,338,038, or $0.027 per fully diluted share, up from 296,120, or $0.007 per fully diluted share for the same period 2006. Representing about a 498% gain in net profit. Capital funds, all equity, stood at $22,958,640.
Zhiguo Fu, CEO and Chairman of ABAT, said, "This was a rewarding quarter in the development of our company. These strong results were achieved despite the Chinese custom of closing plant operations for a two-week holiday period in recognition of the Chinese New Year. This occurred between February 17, and March 4, 2007 and affects all industry in PRC. Despite this holiday closing our company experienced record first quarter results. The strong increase in revenue was attributable to the successful expansion of our manufacturing capabilities; our effort to aggressively expand our sales activities; and our ability to develop and integrate products."
Further, Fu cautioned investors that because of this customary Chinese New Year plant closing, first quarter results for all PRC industrial companies, his included, should not be viewed as a proxy for full year results. Fu also said, "This growth reflects the continued demand for our advanced PLI battery technologies and related products. In addition, we continue to solicit new orders from both existing and new customers, which will place us strongly into the global battery market and as such, we are optimistic for the balance of 2007 and beyond. Management wishes to express its appreciation for the continuing strong support from shareholders and employees over the past quarter."
