Sun Motor International Announces Second-Quarter Results
HONG KONG--Nov. 1, 20054, 2005--Sun Motor International, Inc. ("Sun Motor") (OTCBB:SNMO) today announced operating results for the second quarter of fiscal 2006, ended September 30, 2005. The Company's current fiscal year ends on March 31, 2006.For the three months ended September 30, Sun Motor generated net income of $391,000 on revenue of $15.5 million. This compares with net income of $326,000 on revenue of $14.1 million for the comparable period a year ago and reflects a growth in net income of 19%. For the six months ended September 30, Sun Motor generated net income of $852,000 on sales of $29.2 million, up by 18% and 13% respectively over the comparable period a year ago.
In announcing these results, Simon Shi, CEO of Sun Motor, commented: "We are very pleased with our results for the period, against the background of the continuation of our strategic shift into higher-end applications for our micro motors. Our penetration into the automotive sector is beginning to produce outstanding results with a number of significant supply contracts having recently been agreed to.
"Our net profit margins are beginning to benefit from our focus on higher-end applications and we expect this trend to continue for the immediate future. Although we experienced higher costs for a number of our production components, including copper, sheet metal and plastics, in the first quarter, largely as a result of increasing oil prices and high levels of demand in China, we were able to largely offset this impact in the second quarter with higher product prices and increasing efficiencies in our production process. Input prices have stabilized over the past quarter and we believe that our net margin will continue to improve over the remainder of the year."
Mr. Shi concluded: "Given our customer relationships and quality reputation, we are on track to benefit from the significant increase in auto parts assembly now taking place in China. As both the automotive and technology industries make increasing use of micro motors, we anticipate a sustained growth period for Sun Motor and significant enhancement in financial performance over the coming years."
About Sun Motor International, Inc.
Sun Motor International, Inc. designs, manufactures and markets micro motors for a wide range of applications including automobile components, home appliances, power tools, multimedia, personal care, and business equipment. Its clients include several European and US-based multinational corporations.
SUN MOTOR INTERNATIONAL, INC.
(FORMERLY KNOWN AS WYOMING OIL AND MINERALS, INC.)
CONSOLIDATED BALANCE SHEETS
At Sept. 30, At March 31,
2005 2005
(Unaudited) (Audited)
USD USD
ASSETS
Current assets
Cash and cash equivalents 226,848 364,600
Restricted short-term bank deposits 3,265,154 1,623,731
Accounts receivable, net 14,662,560 11,242,647
Inventories, net 7,732,667 7,155,980
Prepayments, deposits and other receivables 1,881,048 1,156,771
Income tax recoverable 5,219 5,219
Amounts due from related companies 59,362 52,023
Amount due from a director 630,706 613,010
Amount due from ultimate holding company 125,410 123,559
----------- -----------
Total current assets 28,588,974 22,337,540
Property, plant and equipment, net 13,725,047 13,783,941
Deposits for acquisition of property, plant
and equipment - 550,548
Other investment 29,069 29,069
Deferred tax assets 304,377 302,582
----------- -----------
Total assets 42,647,467 37,003,680
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable 7,934,066 7,909,110
Accrued expenses and other payables 2,904,014 3,188,936
Amounts due to related companies 29,668 165,100
Dividend payable 184,615 184,615
Bank overdrafts 3,913,231 2,795,015
Current maturities of bank borrowings 12,274,584 8,622,520
Current maturities of capital lease
obligations 720,457 760,865
Income tax payable 149,435 71,487
----------- -----------
Total current liabilities 28,110,070 23,697,648
Capital lease obligations, less current
maturities 599,684 327,561
Deferred tax liabilities 2,114,272 2,008,933
----------- -----------
Total liabilities 30,824,026 26,034,142
----------- -----------
Minority interests 196,029 193,627
----------- -----------
Stockholders' equity
Common stock 294,301 100
Additional paid-in-capital 888,927 1,183,128
Other comprehensive income 19,774 19,774
Retained profits 10,424,410 9,572,909
----------- -----------
Total stockholders' equity 11,627,412 10,775,911
----------- -----------
Total liabilities and stockholders' equity 42,647,467 37,003,680
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SUN MOTOR INTERNATIONAL, INC.
(FORMERLY KNOWN AS WYOMING OIL AND MINERALS, INC.)
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Six months ended
September 30, September 30,
------------------------- -------------------------
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
USD USD USD USD
Total net sales 15,464,005 14,079,476 29,155,686 25,815,064
Cost of sales (12,272,376) (10,979,815) (22,803,128) (20,172,585)
------------ ------------ ------------ ------------
Gross profit 3,191,629 3,099,661 6,352,558 5,642,479
Depreciation and
amortization (88,710) (80,192) (171,994) (158,944)
Selling, general
and administrative
expenses (2,425,122) (2,521,931) (4,800,530) (4,429,481)
------------ ------------ ------------ ------------
Operating income 677,797 497,538 1,380,034 1,054,054
Other income 50,733 34,904 74,925 119,701
Interest expense (252,417) (147,973) (419,925) (291,988)
------------ ------------ ------------ ------------
Income before
income tax 476,113 384,469 1,035,034 881,767
Income tax expenses (83,320) (54,111) (181,131) (154,309)
Minority interests (1,843) (4,067) (2,402) (6,303)
------------ ------------ ------------ ------------
Net income 390,950 326,291 851,501 721,155
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Basic and diluted
income per share 0.014 0.012 0.030 0.026
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