updated 5/16/2011 3:19:02 PM ET 2011-05-16T19:19:02

JIANGSU, China, May 16, 2011 (GLOBE NEWSWIRE) -- China Green Energy Industries, Inc., (OTCBB:CGRE), a leading manufacturer and distributor of high tech and environmentally friendly consumer products, today announced financial results for the first quarter ended March 31, 2011.

Mr. Jianliang Shi, Chairman and Chief Executive Officer commented, "Our revenue and net income for the first quarter of 2011 were impacted by several factors. Foremost among these, we reallocated workers from our cable and refrigerator businesses to our LEV factory in anticipation of increased production requirements associated with our acquisition of the NICONIA LEV brand and its retail sales network. The acquisition has progressed seamlessly and we have experienced a sharp increase in LEV sales beginning in the second quarter. Moreover, we have since resolved the worker shortage within our cable and refrigerator business lines and expect both of these businesses to resume normal sales levels in the second quarter. As a result, we remain confident in achieving our prior guidance of $14 million net income, or $.60 per diluted share, which would represent more than a 240% increase in net income from $4.1 million in 2010.

"We are encouraged by the progress of our recent acquisition of the NICONIA brand of LEVs and its sales network of 350 retail stores. We project that our combined LEV business unit will achieve sales in excess of $45 million in 2011 and we believe we can maintain organic growth in excess of 50% annually. Our ability to rapidly launch new products, coupled with our established sales and distribution network, should enable us to continue our strong organic growth. Moreover, we have built a solid infrastructure that should enable us to achieve significant operating efficiency and generate meaningful value for shareholders in 2011 and for years to come."

Revenue for the first quarter ended March 31, 2011 decreased to $3.27 million compared to $5.16 million for the same period the previous year. Gross profit for the three months ended March 31, 2011 was $0.57 million compared to $1.49 million for the same period in 2010. Operating loss for the three months ended March 31, 2011 was $0.33 million compared to operating income of $1.01 million for the same period the previous year. Net loss for the three months ended March 31, 2011 was $0.32 million, or $0.01 per diluted share, compared to net income of $0.76 million, or $0.04 per diluted share, for the same period the previous year.

About China Green Energy Industries

China Green Energy Industries is a leading manufacturer and distributor of high tech and environmentally-friendly consumer products. The company has three main product lines: light weight electric vehicles (LEV), cryogen-free refrigerators, and network/HDMI cables. It has well-established sales channels in China, with significant exports to Europe. China Green Energy Industries manufactures and distributes its own products under the brand name "Best," and also sells its product under private label to leading OEMs and Fortune 500 companies such as Wal-Mart, Carrefour, Home Depot, Ford, Pepsi, Coca-Cola, Carlsberg, Disney, etc. Additional information about the company is available at: www.chinagei.com .

This press release may contain statements that constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. The words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," and similar expressions are intended to identify forward-looking statements. These statements appear in a number of places in this document and include statements regarding the intent, belief or expectation of the company, its directors or its officers with respect to events, conditions, and financial trends that may affect future plans of operations, business strategy, operating results, and financial position. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and that actual results may differ materially from those included within the forward-looking statements as a result of various factors. These risks and uncertainties include, but are not limited to, the factors mentioned in the "Risk Factors" section of the company's Current Report on Form 8-K filed on June 11, 2010, and other risks mentioned in this press release or in our other reports filed with the Securities and Exchange Commission (the "SEC") since the filing date of the Registration Statement. Although these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the company's current judgment regarding the direction of the business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by law, the company undertakes no responsibility or obligation to update publicly these forward-looking statements, but may do so in the future in written or oral statements.

(Tables follow)

China Green Energy Industries, Inc.    
(Formerly TradeOn, Inc.)    
Consolidated Balance Sheets    
As of March 31, 2011 and December 31, 2010    
     
  As of  As of 
  March 31, December 31,
  2011 2010
  (Unaudited)  
ASSETS    
Current assets    
Cash and cash equivalents $378,745 $1,080,787
Restricted cash - Note 3 6,696,800 3,408,750
Trade accounts receivables, net - Note 4 10,274,613 11,537,053
Other receivables, prepayments and deposits - Note 5 1,470,527 638,553
Inventories, net - Note 6 4,678,446 2,733,369
Loans to third parties - Note 7 3,348,400 3,333,000
Loans to a related party - Note 8 3,173,986 3,159,388
Amounts due from related parties - Note 9 2,569,838 1,461,156
Deferred tax asset 113,524 113,002
     
Total current assets 32,704,879 27,465,058
Long-term equity investment - Note 10 166,405 165,640
Property, plant and equipment, net - Note 11 7,052,836 6,875,566
Intangible Assets – Note 12 3,044,000 --
Land use rights - Note 13 1,036,795 1,037,606
Deferred tax asset 124,032 123,462
     
TOTAL ASSETS $44,128,947 $35,667,332
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
LIABILITIES    
Current liabilities    
Trade accounts payable $10,678,048 $9,152,372
Bills payable - Note 3 13,393,600 6,817,500
Other payables and accrued charges - Note 14 1,985,345 2,857,780
Income tax payable 2,206,135 2,241,102
Short-term bank loans - Note 15 10,489,624 8,926,380
     
Total current liabilities 38,752,752 29,955,134
     
TOTAL LIABILITIES 38,752,752 29,955,134
     
COMMITMENTS AND CONTINGENCIES - Note 17    
     
STOCKHOLDERS' EQUITY    
Preferred stock : par value $0.01 per share    
Authorized 50,000,000 shares; none issued and outstanding -- --
Common stock : par value $0.0001 per share    
Authorized 100,000,000 shares; issued and    
outstanding 23,529,411 shares 2,352 2,352
Additional paid-in capital 1,309,175 1,309,175
Accumulated other comprehensive income 246,579 220,954
Retained earnings 3,818,089 4,139,717
     
TOTAL STOCKHOLDERS' EQUITY 5,376,195 5,672,198
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $44,128,947 $35,667,332
     
China Green Energy Industries, Inc.    
(Formerly TradeOn, Inc.)    
Consolidated Statements of Income and Comprehensive Income    
For the three months ended March 31, 2011 and 2010    
     
  Three months ended March 31,
  (Unaudited)
  2011 2010
     
Revenues $3,274,251 $5,161,498
Cost of revenues (2,707,050) (3,670,214)
     
Gross profit 567,201 1,491,284
     
Operating expenses:    
General and administrative expenses (673,905) (306,192)
Selling expenses (220,068) (173,641)
     
  (893,973) (479,833)
     
Profit/(loss) from operations (326,772) 1,011,451
Interest income 111,275 49,255
Other income  48,313 33,095
Finance costs (154,444) (94,548)
     
Profit/(loss) before income taxes (321,628) 999,253
     
Income taxes - Note 16 -- (240,579)
     
Net profit/(loss) $(321,628) $758,674
     
Other comprehensive income (loss)    
Foreign currency translation adjustments 25,625 72
     
Total comprehensive income $(296,003) $758,746
     
Earnings per share     
- Basic $(0.01) $0.04
     
- Diluted $(0.01) $0.04
     
Weighted average number of shares outstanding    
- Basic 23,529,411 20,734,531
     
- Diluted 23,529,411 20,734,531
     
China Green Energy Industries, Inc.    
(Formerly TradeOn, Inc.)    
Condensed Consolidated Statements of Cash Flows    
For the three months ended March 31, 2011 and 2010    
     
  Three months ended
   March 31,
  (Unaudited)
  2011 2010
     
Cash flows from operating activities    
Net income/(loss) $(321,628) $758,674
Adjustments to reconcile net income to net    
cash from operating activities:     
Depreciation and amortization 181,057 85,688
Recovery of doubtful accounts (25,731) --
Changes in operating assets and liabilities:     
Trade accounts receivables 1,338,020 (869,871)
Other receivables, prepayments and deposits (826,844) (528,973)
Inventories (1,927,370) (47,357)
Amounts due from related parties (1,099,035) (143,610)
Trade accounts payables (38,511) (331,700)
Other payables and accrued charges (883,041) (62,728)
Income tax payable (45,202) 234,727
Amount due to a related party -- 80,456
     
Net cash flows from operating activities (3,648,285) (824,694)
     
Cash flows from investing activities    
Payments to acquire property, plant and equipment (1,838,535) (281,995)
Loans to third parties -- (1,588,381)
Decrease (increase) in restricted cash (3,263,700) 146,284
     
Net cash flows used in investing activities (5,102,285) (1,724,092)
     
Cash flows from financing activities    
 Net proceeds from short-term bank loans 1,518,000 2,311,283
 Increase in bills payable 6,527,400 468,108
     
Net cash flows from financing activities 8,045,400 2,779,391
     
Effect of foreign currency translation on cash and cash equivalents 3,128 122
     
Net increase in cash and cash equivalents (702,042) 230,727
     
Cash and cash equivalents - beginning of period 1,080,787 757,742
     
Cash and cash equivalents - end of period $378,745 $988,469
     
Supplemental disclosures for cash flow information    
 Interest paid $154,444 $94,548
 Income taxes paid -- $5,851
CONTACT: Crescendo Communications, LLC
         David Waldman, Vivian Huo or Klea Theoharis
         Tel: (212) 671-1020
         E-mail: cgre@crescendo-ir.com

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