CHINA INDUSTRIAL WASTE MANAGEMENT, INC. 
By
Full Year 2009 Highlights
-- Revenues were $10.6 million compared to $13.4 million last year
-- Gross profit was $6.4 million compared to $9.2 million last year
-- Gross margin was 60.4% compared to 69.0% last year
-- Operating income was $1.2 million compared to $5.6 million last year
-- Net income was $2.0 million or $0.12 per diluted share, compared to
$4.8 million, or $0.35 per diluted share, last year
-- Completed the acquisition of a 65% equity stake in Hunan Hanyang
Environmental Protection Science & Technology Co., Ltd. ("Hunan
Hanyang")
-- Increased its ownership stake in Dongtai Organic Waste Treatment Co.,
Ltd. ("Dongtai Organic") to 52% from 49%.
"Our full year 2009 sales were down from 2008 because most of our
customers are in
Full Year 2009 Results
For the twelve months ended
Revenues from service fees were
Sales of recycled commodities were
Cost of revenue was
Total operating expenses were
Net income was
Financial Condition
As of
Recent Developments
In
In
On
On
In
On
In
Business Outlook for 2010
The Company has seen signals of a strong recovery from the recession since the third quarter of 2009, as the demand from existing customers and new customers increased significantly, and the Company expects this trend to continue in 2010 and thereafter.
In terms of specific projects that will contribute to the Company's growth,
Dalian Dongtai commenced the construction of its expansion project in
In accordance with Dongtai Organic's franchise agreement with the local
government, Dongtai Organic is entitled to process all of the sludge generated
from sewage treatment plants in the urban area of
For full year 2010, the Company expects revenues of between
Mr. Dong added, "The growth drivers of our business in 2010 will be a
continued increase in industrial waste processing volumes from our existing
customer base as
Conference Call
The Company will host a conference call at
CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
COMBINED AND CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
2009 2008
Revenues
Service fees $6,928,840 $8,182,379
Sales of cupric sulfate 1,244,441 1,806,721
Sales of recycled commodities 2,388,189 3,410,784
Total revenues 10,561,470 13,399,884
Cost of revenues
Cost of service fees 1,880,763 1,547,677
Cost of cupric sulfate 765,011 740,881
Cost of recycled commodities 1,539,925 1,866,086
Total cost of revenues 4,185,699 4,154,644
Gross profit 6,375,771 9,245,240
Operating expenses
Selling expenses 501,080 806,438
General and administrative
expenses 4,630,665 2,793,120
Total operating expenses 5,131,745 3,599,558
Income from operations 1,244,026 5,645,682
Other income (expense)
Other income 272,121 774,786
Other expense (198,938) (448,468)
Investment income (expense) -- --
Gain on acquisition 614,397 --
Total other income (expense) 687,580 326,318
Net income before tax provision 1,931,606 5,972,000
Tax provision 49,976 (659,853)
Net income 1,981,582 5,312,147
Net income attributable to the
noncontrolling interest (22,072) (560,029)
Net income attributable to
the Company $1,959,510 $4,752,118
Foreign currency translation
adjustment 63,216 1,109,348
Comprehensive income attributable
to the Company 2,022,726 5,861,466
Comprehensive income attributable
to the noncontrolling interest 22,072 560,029
Comprehensive income $2,044,798 $6,421,495
Basic and diluted weighted average
shares outstanding
Basic 15,269,062 13,755,274
Diluted 16,255,330 13,755,274
Basic and diluted net earnings per share
Basic $0.13 $0.35
Diluted $0.12 $0.35
CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
COMBINED AND CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2009 2008
ASSETS
Current assets
Cash and cash equivalents $11,419,129 $5,710,784
Notes receivable 335,780 --
Accounts receivable, net 2,021,421 2,414,257
Construction reimbursement
receivable 846,270 --
Other receivables 91,872 108,304
Inventories 2,085,029 2,375,938
Advances to suppliers 800,694 550,931
Deferred expense 14,650 17,589
Total current assets 17,614,845 11,177,803
Long-term equity investment 87,900 --
Property, plant and equipment,
net 32,319,145 15,500,461
Construction in progress 9,123,927 12,892,048
Land usage right, net of
accumulated amortization 1,994,394 1,817,427
BOT franchise right 4,102,023 --
Escrow account -- 750,000
Deposit -- 14,798
Certificate of deposit 293,002 73,287
Restricted cash 96,707 25,204
Other asset 1,074,531 348,545
Deferred tax asset 377,381 --
Related party receivable 234,401 --
TOTAL ASSETS $67,318,256 $42,599,573
LIABILITIES
Current liabilities
Accounts payable $418,435 $780,458
Short-term loan 6,739,038 3,371,198
Tax payable 200,957 215,240
Advance from customers 544,125 539,013
Deferred sales 958,930 972,143
Accrued expenses 301,531 361,111
Construction projects payable 3,932,297 4,823,973
Other payable 235,211 213,248
Long-term loan-current portion 2,245,125 --
Related party payable 380,902 278,490
Total current liabilities 15,956,551 11,554,874
Long-term loan 13,755,512 --
Asset retirement obligation 610,445 502,278
Government subsidy 2,464,079 1,174,831
TOTAL LIABILITIES 32,786,587 13,231,983
EQUITY
Stockholders' equity of the Company
Preferred stock: par value $.001;
5,000,000 shares authorized; none
issued and outstanding -- --
Common stock: par value $.001;
95,000,000 shares authorized;
15,274,035 and 15,262,035 shares
issued and outstanding as of
December 31, 2009 and 2008
respectively 15,274 15,262
Additional paid-in capital 7,162,867 5,644,750
Deferred stock-based compensation (884,139) --
Accumulated other
comprehensive income 2,326,292 2,263,076
Retained earnings 17,490,919 15,531,409
Total stockholders' equity
of the Company 26,111,213 23,454,497
Noncontrolling interest 8,420,456 5,913,093
TOTAL EQUITY 34,531,669 29,367,590
TOTAL LIABILITIES AND EQUITY $67,318,256 $42,599,573
CHINA INDUSTRIAL WASTE MANAGEMENT, INC.
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
2009 2008
Cash flows from operating activities:
Net income attributable to the Company $1,959,510 $4,752,118
Adjustments to reconcile net income
to net cash provided by operating
activities:
Noncontrolling interest 22,072 560,029
Depreciation 1,041,869 650,720
Amortization 59,133 25,578
Bad debt allowance 18,929 1,635
Stock and options issued for services 68,939 133,100
Share-based payment 565,050 --
Accretion expenses 108,341 64,659
Government subsidy recognized
as income (175,051) (43,052)
Changes in operating assets and liabilities:
Notes receivable (335,544) --
Accounts receivable 372,429 (1,821,570)
Other receivables (16,722) (69,519)
Inventories 94,215 (1,043,522)
Advance to suppliers (249,483) (160,772)
Deferred expense 2,928 25,195
Deposit -- 66,127
Other asset (717,684) (348,545)
Deferred tax assets (377,116) --
Accounts payable (361,380) 378,396
Tax payable (14,280) 121,286
Advance from customers 5,377 539,013
Accrued expense and deferred income (72,077) 658,629
Other payable 22,057 --
Net cash provided by operating activities 2,021,512 4,489,505
Cash flows from investing activities
Consideration for acquisition (2,371,646) --
Investment in Xiangtan Dongtai (87,839) --
Investment in subsidiary -- (185,627)
Purchase of property and equipment (11,340,864) (5,288,486)
Construction in progress (3,406,899) (4,402,154)
Purchase of intangible assets (244,895) --
Repayment from related party -- 404,450
Due from related party (234,237) --
Certificate of deposit (219,597) (73,286)
Net cash used in investing activities (17,905,977) (9,545,103)
Cash flows from financing activities
Repayment of construction project
payable (806,937) --
Proceeds from short-term loans 6,734,302 3,371,198
Repayment of short-term loans (3,367,151) (1,369,000)
Proceeds from long-term loan 16,103,767 --
Repayment of long-term loans (114,373) --
Proceeds from related party loan 102,479 --
Cash released from escrow account 750,000 --
Subsidy received from government 1,392,514 407,278
Proceeds from issuance of common
stock, net of offering costs -- 3,545,057
Escrow account -- (750,000)
Net cash provided by financing
activities 20,794,601 5,204,533
Effect of exchange rate on cash 798,209 1,333,186
Net increase in cash and cash
equivalents 5,708,345 1,482,121
Cash and cash equivalents, beginning
of period 5,710,784 4,228,663
Cash and cash equivalents, end of
period $11,419,129 $5,710,784
Supplemental cash flow information:
Cash paid during the year for:
Interest $916,491 $304,684
Income taxes $403,871 $441,170
Non-cash investing and financing
activities:
Common stock issuance cost - warrant $-- $398,466
Common stock issuance cost - stock $-- $113,000
Share-based payment awarded by major
shareholder to investor related to
private placement $565,050 $--
Contributed anaerobic
fermentation equipment $292,796 $--
Transfer out of construction
in progress $7,361,262 $--
Transfer of construction in progress
to property, plant and equipment $7,361,262 $--
About China Industrial Waste Management, Inc.
China Industrial Waste Management, Inc. is engaged in the collection,
treatment, disposal and recycling of industrial wastes principally in
Cautionary Statement Regarding Forward-Looking Information
This release may include "forward-looking statements." You can identify
these statements by the fact that they do not relate strictly to historical or
current facts. These statements contain such words as "may," "project,"
"might," "expect," "believe," "anticipate," "intend," "could," "would,"
"estimate," or the negative or other variations thereof or comparable
terminology. These forward-looking statements are based on current
expectations and projections about future events. Investors are cautioned that
forward-looking statements are not guarantees of future performance or results
and involve risks and uncertainties that cannot be predicted or quantified and,
consequently, our actual performance may differ materially from those
expressed or implied by such forward-looking statements. Such risks and
uncertainties include, but are not limited to, the following factors, as well
as other factors described from time to time in our reports filed with the
Securities and Exchange Commission: the timing and magnitude of technological
advances; the prospects for future acquisitions; the effects of political,
economic and social uncertainties regarding the governmental, economic and
political circumstances in
For more information, please contact:
Company Contact:
Ms. Guo Xin, CFO
Phone: +86-411-8581-1229
Email: hellenguo@chinaciwt.com
Mr. Zhang Dazhi, Company Secretary
Phone: +86-411-8259-5339
Email: darcy.zhang@chinaciwt.com
Web: http://www.chinaciwt.com
CCG Investor Relations:
Mr. Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.comSOURCE China Industrial Waste Management, Inc.
