updated 5/24/2011 7:46:31 AM ET 2011-05-24T11:46:31

NEW YORK and HARBIN, China, May 24, 2011 (GLOBE NEWSWIRE) -- American Jianye Greentech Holdings, Ltd. (OTCQB:AJGH), a leading China-based developer, manufacturer and distributor of alcohol-based automobile fuels and civil-use fuels, including methanol, ethanol, and blended fuels, today announced financial results for the first quarter ended March 31, 2011.

Q1 2011 financial highlights:

  • Revenue of $18.7 million versus $9.7 million for Q1 2010
  • Gross profit of $2.9 million versus $1.5 million for Q1 2010
  • Net income of $2.1 million, or $0.07 per share, versus $1.1 million, or $0.03 per share, for Q1 2010

Mr. Haipeng Wang, Chairman and Chief Executive Officer, stated, "We are pleased to report another strong quarter with revenue increasing 94% and net income increasing 96% compared to the same period last year. China's growing demand for alcohol-based fuel and strong support for our technology from the government continue to drive both revenue and profits. As a result, we expect another record year in 2011."

"China has recently adopted fuel-efficiency standards for vehicles that are stricter than the U.S. Our unique ability to blend up to 85% alcohol with conventional fuel sets us apart from the competition. Our blended alcohol-based fuels burn with higher efficiency as well as significantly lower toxic waste emissions than traditional fuels. These fuels are also lower cost than traditional petroleum fuels and conventional alcohol blends."

Revenue for the first quarter ended March 31, 2011 was $18.7 million, compared to $9.7 for the quarter ended March 31, 2010. Gross profit was $2.9 million for the three months ended March 31, 2011 compared to $1.5 million for the quarter ended March 31, 2010. Net income for the three months ended March 31, 2011 was $2.1 million, or $0.07 per diluted share compared to $1.1 million, or $0.03 per diluted share, for the same period last year.

About American Jianye Greentech Holdings

American Jianye Greentech Holdings, headquartered in Harbin, China, is a leading developer, manufacturer and distributor of alcohol-based fuel. The company's alcohol-based fuels burn with higher efficiency and significantly lower toxic waste emissions than unleaded gasoline. The unique combination of catalysts in the fuel enhance fuel octane rating and engine power, inhibit the premature oxidation of the fuel, help remove sediment in the carburetor, and prevent the erosion of the engine cylinder surface. Additional information about the company is available at: www.americanjianyegroup.com .

Forward Looking Statements

This release contains certain "forward-looking statements" relating to the business of the Company. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( www.sec.gov ). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

(tables follow)

   March 31,

December 31,

Current Assets    
 Cash and cash equivalents 79,019 655,640
 Accounts receivable, net 4,278,312 198,239
 Prepaid construction costs 18,837,841 18,718,399
 Notes receivable for stock subscription -- 510,000
 Due from a shareholder 577,772 --
 Other current assets 147,234 38,165
  23,920,178 20,120,443
Restricted Cash 60,000 --
Property, plant and equipment 4,887,832 4,857,036
Deposits for acquisition of a land use right 1,679,364 1,668,740
Other deposits --  -- 
Total Assets 30,547,374 26,646,219
Liabilities and Stockholders' Equity     
Current Liabilities    
 Accounts payable 15,806,701 10,458,783
 Accounts payable- related parties --  792,457
 Accrued expenses 392,767 382,751
 Income tax payable 1,048,818 3,757,791
 Due to related parties 169,440 178,055
 Due to a shareholder  -- 107,922 
 Total liabilities 17,417,726 15,677,759
Stockholders' Equity     
 Common stock, $0.001 par value, 394,500,000 shares authorized,    
33,110,148 and 32,010,148 fully-paid shares issued and     
 outstanding as of March 31, 2011 and December 31, 2010     
 respectively 33,110 32,010
0 and 1,100,000 unpaid shares issued and outstanding as of     
March 31, 2011 and December 31, 2010 respectively -- 1,100
 Preferred stock, $0.001 par value, 5,500,000 shares     
 authorized, 0 shares issued and outstanding   --   -- 
 Additional paid-in capital 926,890 926,890
 Accumulated other comprehensive income 332,838 261,489
 Retained earnings 11,836,810 9,746,971
 Total stockholders' equity  13,129,648 10,968,460
Total Liabilities and Stockholders' Equity  30,547,374 26,646,219
  For the three months ended
  March 31, 2011 March 31, 2010
Sales $18,742,380 $9,654,458
Cost of sales 15,818,070 8,132,783
Gross profit 2,924,310 1,521,675
Operating expenses:    
 Selling, general and administrative 134,233 99,090
Income from operations 2,790,077 1,422,585
Provision for income taxes 700,238 355,665
Net Income  2,089,839 1,066,920
Other comprehensive income    
 Foreign currency translation adjustment 71,349 363
Comprehensive income  $2,161,188 $1,067,283
Net Income Per Share--     
 Basic and Diluted $0.07 $0.03
Weighted Average Shares Outstanding:    
 Basic and Diluted 31,465,277 31,100,770
  For the three months ended
  March 31, 2011 March 31, 2010
Cash flows from operating activities    
 Net income $2,089,839 $1,066,920
 Adjustments to reconcile net income to net cash    
 used in operating activities:    
 Depreciation expense 126 70
 Changes in assets and liabilities:    
 Accounts receivable (4,065,653) (9,613,010)
Increase in prepayment (274)  
 Other current assets (108,475) (58,993)
 Other deposits   -- --
 Accounts payable 4,469,367 8,132,783
 Accrued expenses  7,745 36,538
Decrease in other current liabilities   (16)
 Income tax payable (2,724,080) 355,698
 Net cash provided by operating activities (331,405) (80,010)
Cash flows from investing activities    
 Restricted Cash (60,000)  
 Construction in process -- (293,400)
 Prepaid construction costs -- --
 Deposit payment for land use right -- --
 Purchases of property, plant and equipment --  
 Net cash used in investing activities (60,000) (293,400)
Cash flows from financing activities    
 Advances from related parties (9,718) 298,972
 Amount due from a shareholder (686,503)  
 Subscription receivable 510,000 --
 Issuance of common stock --  --
 Net cash used in financing activities (186,221) 298,972
Net increase in cash and cash equivalents (577,626) (74,438)
Effect of exchange rate changes on cash and cash equivalent 1,005 75
Cash and cash equivalents    
 Beginning 655,640 80,366
 Ending $79,019 $6,003
Supplemental disclosure of cash flows    
 Cash paid during the period for:    
 Interest paid  $ --   $ -- 
 Income tax $1,136,080  $ -- 
CONTACT: InvestorRoadshow.com
         Tel: (516) 450-3119

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