updated 5/17/2011 2:16:18 PM ET 2011-05-17T18:16:18

NEW YORK and BEIJING, May 17, 2011 (GLOBE NEWSWIRE) -- China Lithium Technologies Inc. (OTCBB: CLTT),a leading lithium-ion battery module, lithium-ion battery charger and lithium-ion battery management system manufacturer and distributor, today announced financial results for the third quarter ended March 31, 2011.

Mr. Kun Liu, chief executive officer of China Lithium Technologies, commented, "We are pleased to report another strong quarter with revenue increasing 27.8% to $3.4 million and gross margins increasing 77 basis points to 38.4%. The improvement in both revenue and gross margin reflects our shift in focus to higher margin product categories, including our battery chargers and battery modules. This increase in higher margin sales was partially offset by stock-based compensation expense to attract and retain key employees, as well as an increase in our administrative expenses as a newly public company. We have established a very solid foundation and anticipate benefitting from significant operating leverage as we continue to grow."

Mr. Kun Liu continued, "Looking ahead, we are well positioned to benefit from the trend toward electric vehicles. Our battery management technology is at the forefront of the industry and seamlessly allows the replacement of lead-acid battery with lithium-ion batteries, without further modification to the vehicle. This is just one of many important differentiators for our technology, and we continue to enhance our capabilities to address rapid changes in the technology arena."

About China Lithium Technologies Inc

China Lithium Technologies is a leading designer, manufacturer and distributor of polymer lithium-ion battery modules, lithium-ion battery chargers, lithium-ion battery management systems, as well as other lithium-ion battery management devices essential to proper power utilization. The company has also developed an efficient battery management system that balances the process of charging and discharging multiple lithium-ion battery cells, and which adjusts the charging frequency to temperature changes in the ambient environment. The company's products are widely distributed and used in electric automobiles, motorcycles and bicycles in China.

In addition to historical information, this press releases contains forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. These forward-looking statements represent Management's belief as to the future of Eastern Environment Solutions, Corp. Whether those beliefs become reality will depend on many factors that are not under Management's control. Many risks and uncertainties exist that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the section entitled "Risk Factors." Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.

CHINA LITHIUM TECHNOLOGIES, INC.
     
CONSOLIDATED BALANCE SHEETS
     
ASSETS March 31, 2011 June 30, 2010
  (Unaudited)  
Current Assets:    
Cash and Cash Equivalents  $ 2,864,970  $ 2,761,427
Accounts Receivable 4,596,655 4,054,189
Other Accounts Receivable 55,489 48,621
Advanced to Suppliers 30,011 12,297
Inventory 1,497,566 786,013
Prepaid Expenses 61,594 68,169
Total Current Assets 9,106,285 7,730,716
     
Plant & Equipment, net 621,626 261,811
Patent and Other Intangibles, net 69,393 72,907
     
Total Assets 9,797,304 8,065,434
     
LIABILITIES AND STOCKHOLDERS' EQUITY March 31, 2011 June 30, 2010
  (Unaudited)  
Current Liabilities:    
Accounts Payable 1,311,605 1,832,512
Advance from Customers 3,440 3,329
Payroll Payable 63,960 57,186
Tax Payable 144,016 310,989
Other Accounts Payables 9,645 4,495
Accrued Expenses 46,573 45,074
Loan from Shareholders 193,407 83,492
Warranty Accrual 321,462 237,374
     
Total Current Liabilities 2,094,108 2,574,452
     
Total Liabilities 2,094,108 2,574,452
     
Stockholders' Equity:    
Preferred Stock, par value $0.001, 20,000,000 shares authorized, 0 share issued and outstanding as of June 30, 2010 and March 31, 2011 -- --
Common Stock, par value $0.001, 783,000,000 shares authorized; 20,159,811 shares issued and outstanding as of June 30, 2010, 21,659,811 shares issued and outstanding, including 1,500,000 unvested restricted stock award, as of March 31, 2011 21,659 20,159
Additional Paid in Capital 1,387,117 252,771
Reserved Funds 467,186 467,186
Accumulated Other Comprehensive Income 326,203 98,594
Retained Earnings 5,501,030 4,652,272
     
Total Stockholders' Equity 7,703,195 5,490,982
     
Total Liabilities and Stockholders' Equity  $ 9,797,304  $ 8,065,434
 
 
CHINA LITHIUM TECHNOLOGIES, INC.
         
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
         
(UNAUDITED)
         
         
  Three Months Ended March 31 Nine Months Ended March 31
  2011 2010 2011 2010
         
Revenues   $ 3,361,885  $ 2,631,041  $ 11,334,652  $ 10,059,560
Cost of Goods Sold 2,070,107 1,640,307 7,237,284 6,854,846
         
Gross Profit 1,291,778 990,734 4,097,368 3,204,715
         
Operating Expenses:        
Manufacturing Expenses  64,525  51,667  181,359  144,925
R & D Expenses  28,326  48,930  68,321  80,260
Sales Expenses  278,342  154,639  663,079  289,182
General and Administrative Expenses 610,516 195,907  1,659,122  476,311
         
Total Operating Expenses 981,709 451,143 2,571,880 990,677
         
Income from Operations before Other Income and (Expenses) 310,069 539,592 1,525,488 2,214,037
         
Other Expenses and (Income):         
Financial Expenses (Income)  (7,722)  --   (19,352)  229
Other Expenses (Income)  (5,942)  15  (6,531)  (1,237)
Total Other Expenses and (Income)  (13,663)  15  (25,884)  (1,008)
         
Income Before Income Taxes  323,732  539,577  1,551,371  2,215,046
         
Provision For Income Taxes  153,538 134,894  702,613 554,400
         
Net Income 170,194 404,683 848,758 1,660,646
         
Other Comprehensvie Income:        
Unrealized Gain (loss) on Foreign Currency Translation 25,640 142 227,609 35,704
         
Comprehensive Income  $ 195,834  $ 404,825  $ 1,076,367  $ 1,696,350
         
Earnings Per Common Share - Basic and Diluted   $ 0.01  $ 0.02  $ 0.05  $ 0.08
         
Weighted Average Common Share - Basic and Diluted   20,159,811  20,159,811  20,159,811  20,159,811
CONTACT: Crescendo Communications, LLC
         David Waldman or Vivian Huo
         Tel: (212) 671-1020
         E-mail:  cltt@crescendo-ir.com

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