NANCHONG, China, May 24, 2011 (GLOBE NEWSWIRE) -- American Nano Silicon Technologies, Inc. (OTCBB:ANNO) ("ANNO" or "the Company"), a leading manufacturer and distributor of consumer chemical products in China, today announced its financial results for the second quarter ended March 31, 2011.
Second Quarter 2011 Financial Highlights:
- Revenue increased 29%, from $4.9 million in Q2 2010 to $6.3 million in Q2 2011
- Gross profit improved 27%, from $1.1 million in Q2 2010 to $1.5 million in Q2 2011
- Operating income rose 43%, from $0.95 million in Q2 2010 to $1.36 million in Q2 2011
- Net income increased from ($4.4 million) in Q2 2010 to $0.5 million in Q2 2011
Summarized Second Quarter 2011 Results:
"I am very pleased that ANNO had a strong second quarter," said Fachun Pu, ANNO's Chief Executive Officer. "Solid growth in our core business, our phosphate-free detergent additive, along with excellent progress in our emerging business, our accelerator and enforcement additive for concrete, drove 29 percent revenue growth from the first quarter of 2010 to the first quarter of 2011. We are especially delighted that our accelerator and enforcement additive for concrete has been embraced by China's rapidly developing construction industry. We are very confident about our future and we intend to continue to invest aggressively in our core areas of business."
Second Quarter 2011 Financial Results
ANNO had sales of $6.3 million in the second quarter of 2011 compared to sales of $4.9 million in the second quarter of 2010, an increase of $1.4 million or 29%. The growth in revenue is attributable to ANNO's increased production capacity. The Company is currently operating its Micro Nano Silicon production line at full capacity, producing product for both the detergent and the cement industries, whereas it only produced its detergent additive in the second quarter of 2010. In the second quarter of 2011, ANNO's production of its accelerator and enforcement agent for concrete was approximately 3,028 tons.
ANNO's gross profit was $1.5 million in the second quarter of 2011 compared to a gross profit of $1.1 million in the second quarter of 2010, an increase of $0.4 million or 27%. Since the Company generated revenue in the second quarter of 2011 from its accelerator and enforcement additive for concrete, the gross margin of which is higher than that of ANNO's detergent additive, the Company's gross margin increased from 23% in the second quarter of 2010 to 25% this past quarter. ANNO's production capacity expansion and the scale of economy positively affected its gross profit margin.
ANNO's net income was $0.5 million in the first quarter of 2011 compared to a net loss of $4.4 million in the first quarter of 2010, an increase of $4.9 million.
ANNO began manufacturing its Micro Nano Silicon based accelerator and enforcement additive for concrete near the end of fiscal year 2010. The Company considers its additive for concrete a useful way for cement manufacturers to lower production costs and comply with China's energy saving regulations. ANNO's research indicates that its accelerator and enforcement additive for concrete provides an 18% increase in the compressive strength and a 47% increase in the flexural strength of cement while being less harmful to the environment than competitive products. Additionally, as an accelerator and enforcement additive, Micro Nano Silicon can be utilized in a chemical rotary kiln instead of a lime rotary kiln; unlike a lime rotary kiln, a chemical rotary kiln can be operated at extremely high temperatures, resulting in larger production and lower costs. ANNO is in the midst of patenting its enforcement and accelerator additive for cement product through the State Intellectual Property Bureau of China.
In the future, ANNO looks to produce approximately 30,000 tons per year of its Micro Nano Silicon based flame retardant additive for rubber and plastic materials. The Company considers its flame retardant a technologically and economically viable alternative to halogenated flame retardant products. Compared to its halogenated-based competitors, ANNO's research indicates that its flame retardant additive is more cost effective due to its superior flame retardancy, lower specific gravity, low loading level, and non-blooming characteristic. The Company's studies also show that when its flame retardant is exposed to flame, it is less toxic with lower smoke density and less invasive odor than competitive products.
"Since our sales already exceed our production capacity, we plan to further expand our current capacity for our finished Micro Nano Silicon products from 30,000 tons to 120,000 tons per year. Additionally, we intend to strengthen our sales force so that we are better able to market our products beyond our regional base of customers. Our goal is to establish Micro Nano Silicon in a broad range of industries as our current products based on this unique technology have shown to be more cost effective and environmentally friendly than competitors. We will strive to develop additional uses for Micro Nano Silicon as we look to provide other industries with more effective, cleaner additives," stated Mr. Fachun Pu.
About American Nano Silicon Technologies, Inc.
American Nano Silicon Technologies, Inc., through its 95%-owned subsidiary, Nanchong Chunfei Nano Silicon Technologies Co., Ltd., is engaged in the business of manufacturing and distributing Micro Nano Silicon™ based products. While the Company's Micro Nano Silicon based products are currently focused on the concrete and non-phosphate detergent industries, Micro Nano Silicon is adaptable to and widely used in many consumer and industrial products, including paint, petrochemical, plastics, rubber, paper, ceramics and water treatment materials.
The American Nano Silicon Technologies, Inc. logo is available at
Safe Harbor Statement
This release may contain certain "forward-looking statements" relating to the business of American Nano Silicon and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions. These forward-looking statements are based on assumptions about the Company's future, including, but are not limited to, continued demand for American Nano Silicon Technology, Inc.'s products, American Nano Silicon Technology Inc.'s ability to sustain growth for the balance of the year, and its ability to generally meet all of its objectives. Such forward-looking statements and the underlying assumptions involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, and concentration in a small number of customers, raw material costs, market acceptance, future capital requirements, and competition in general as well as other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in the Company's filings with the SEC, in particular in Item 1A: "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended September 30, 2010. American Nano Silicon Technology, Inc. will not update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
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