Wednesday, September 28, 2005
China Expert Technology (CXTI) Q2
Cash is up to $3.7 million from $3.3 million in March.
AR is up to $6 million
Costs and est earnings in excess of billing: $5.7 million (down from $9.1 million in March)
Amount due from former officer is at $1.9 million
Prepayments down a bit to $5.1 million (from $6.6 million in March)
Receipts in advance back down to $123K (from $1.9 million)
Amount due a former officer $2.5 million
Taxes payable $2 million (from $1.5 million)
Current ratio is even higher (well above 3), for what it's worth
Equity up to $18 million (from $15.5 million)
Total assets up to $24.6 million from $21.6 million
Revenue is down slightly from Q1 to $8.3 million from $8.7 million.
Gross margin down to 43%, this is due to having different margins during different parts of a project.
SG&A still steady
tax: $658K (down from $753K)
Net income $2.55 million (down from $2.9 million)
Cash flow is still ugly for H1.
Operations cash flow was zero in Q2.
Picked up $479K from former officer
Picked up $3 million payment from director
In related party stuff, you've got the rental agreement of about $11K per month, Lai sold a car to the company for $23K, loan to Chau with 5.22% interest, unsecured, due Jan 2005, paid. Other balances are interest-free, unsecured, no terms.
$12 million in billings in Q2, based on notes.
Lots more projects listed this time:
04/03 to 01/05, Jinjiang phase 1, $26 million
05/05 to 08/06, Jinjiang phase 2, $10 million
05/05 to 08/06, Jinjiang phase 3, $13 million
04/04 to 08/06, Dehua phase 1, $18 million
01/05 to 11/05, Dehua phase 2, $12 million
08/05 to 03/07, Nan'an, $14.5 million
01/06 to 07/08, Huian, $17 million
Still need an extra $10 million cash (advance and/or equity) to do these.
So they picked up $50 million in new projects so far in 2005. They predict 15% growth in revenue and profits for this year.
New FASB SFAS No. 154 "Accounting Changes and Error Corrections - a replacement of APB Opinion No. 20 and FASB Statement No. 3". Company is assessing the impact. It kicks in next fiscal year.