China Green Energy (OTC BB:CGRE)

China Green Energy Industries, Inc.
Consolidated Statements of Operations and Comprehensive Income (Loss)
For the Years ended December 31, 2011 and 2010

		Years ended December 31,
		2011			2010
Revenues	$	24,905,073		$	28,589,395
Cost of revenues		(21,074,523	)		(20,398,286	)
Gross profit		3,830,550			8,191,109
Operating expenses:
General and administrative expenses		(4,115,014	)		(2,031,956	)
Selling expenses		(1,218,754	)		(649,198	)
		(5,333,768	)		(2,681,154	)
Income/(loss) from operations		(1,503,218	)		5,509,955
Interest income		33,446			345,745
Interest expenses		(765,452	)		(472,307	)
Other income (loss), net		(75,597	)		183,722
Income/(loss) before income taxes		(2,310,821	)		5,567,115
Income taxes-Note 16		-			(1,430,640	)
Net income/(loss)		(2,310,821	)		4,136,475
Other comprehensive income
Foreign currency translation adjustments		170,119			160,484
Total comprehensive income/(loss)	$	(2,140,702	)	$	4,296,959
Earnings (loss) per share
- Basic	$	(0.10	)	$	0.19
- Diluted	$	(0.10	)	$	0.19
Weighted average number of shares outstanding
- Basic		23,582,552			22,311,915
- Diluted		23,582,552			22,311,915

See the accompanying Notes to Consolidated Financial Statements

To date, the Company has financed its operations primarily through cash flows from operations, augmented by short-term bank loans and equity contributions by our stockholders. Management believes that cash on hand and cash flow from operations will meet a portion of the Company’s present cash needs and will require additional cash resources, including equity investment, to meet expected capital expenditures and working capital requirements for the next 12 months

China Green Energy Industries, Inc.
(Formerly TradeOn, Inc.)
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss)
For the three and nine months ended September 30, 2011 and 2010

		Three months ended September 30,						Nine months ended September 30,
		(Unaudited)						(Unaudited)
		2011			2010			2011			2010
Revenues	$	7,086,769		$	6,143,672		$	18,279,917		$	23,850,636
Cost of revenues		(6,197,067	)		(3,228,879	)		(15,303,810	)		(15,663,809	)
Gross profit		889,702			2,914,793			2,976,107			8,186,827
Operating expenses:
General and administrative expenses		(1,670,325	)		(628,654	)		(3,497,015	)		(1,261,790	)
Selling expenses		(211,190	)		(127,834	)		(812,659	)		(416,035	)
		(1,881,515	)		(756,488	)		(4,309,674	)		(1,677,825	)
Income/(loss) from operations		(991,813	)		2,158,305			(1,333,567	)		6,509,002
Interest income		120,091			118,782			359,188			235,020
Other income, net		12,850			14,149			66,198			73,382
Finance costs		(209,698	)		(129,734	)		(539,051	)		(339,730	)
Income/(loss) before income taxes		(1,068,570	)		2,161,502			(1,447,232	)		6,477,674
Income taxes - Note 16		194,140			(576,447	)		232,727			(1,630,542	)
Net income/(loss)		(874,430	)		1,585,055			(1,214,505	)		4,847,132
Other comprehensive income
Foreign currency translation adjustments		64,855			96,290			170,865			114,452
Total comprehensive income/(loss)	$	(809,575	)	$	1,681,345		$	(1,043,640	)	$	4,961,584
Earnings per share
- Basic	$	(0.04	)	$	0.07		$	(0.05	)	$	0.22
- Diluted	$	(0.04	)	$	0.07		$	(0.05	)	$	0.22
Weighted average number of shares outstanding
- Basic		23,625,911			23,529,411			23,567,940			21,895,639
- Diluted		23,625,911			23,529,411			23,567,940			21,895,639

China Green Energy Industries, Inc.
(Formerly TradeOn, Inc.)
Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss)
For the three and six months ended June 30, 2011 and 2010

		Three months ended June 30,						Six months ended June 30,
		(Unaudited)						(Unaudited)
		2011			2010			2011			2010
Revenues	$	7,918,897		$	12,545,466		$	11,193,148		$	17,706,964
Cost of revenues		(6,399,693	)		(8,764,716	)		(9,106,743	)		(12,434,930	)
Gross profit		1,519,204			3,780,750			2,086,405			5,272,034
Operating expenses:
General and administrative expenses		1,152,785			326,944			1,826,690			633,136
Selling expenses		381,401			114,560			601,469			288,201
		1,534,186			441,504			2,428,159			921,337
Income/(loss) from operations		(14,982	)		3,339,246			(341,754	)		4,350,697
Interest income		127,822			66,983			239,097			116,238
Other income		5,035			26,138			53,348			59,233
Finance costs		(174,909	)		(115,448	)		(329,353	)		(209,996	)
Income/(loss) before income taxes		(57,034	)		3,316,919			(378,662	)		4,316,172
Income taxes - Note 16		38,587			(813,516	)		38,587			(1,054,095	)
Net income/(loss)		(18,447	)		2,503,403			(340,075	)		3,262,077
Other comprehensive income
Foreign currency translation adjustments		92,804			18,091			118,429			18,163
Total comprehensive income/(loss)	$	74,357		$	2,521,494		$	(221,646	)	$	3,280,240
Earnings per share
- Basic	$	(0.001	)	$	0.12		$	(0.01	)	$	0.15
- Diluted	$	(0.001	)	$	0.12		$	(0.01	)	$	0.15
Weighted average number of shares outstanding
- Basic		23,547,438			21,386,670			23,538,475			21,060,600
- Diluted		23,547,438			21,386,670			23,538,475			21,060,600

China Green Energy Industries, Inc.
(Formerly TradeOn, Inc.)
Condensed Consolidated Statements of Operations 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	)
Income/(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	)
Income/(loss) before income taxes		(321,628	)		999,253
Income taxes - Note 16		-			(240,579	)
Net income/(loss)	$	(321,628	)	$	758,674
Other comprehensive income
Foreign currency translation adjustments		25,625			72
Total comprehensive income/(loss)	$	(296,003	)	$	758,746
Earnings/(loss) 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

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.”

2010 Year End Results:

• Revenue for the year ended December 31, 2010 increased 136.4% to $28.6 million from $12.1 million for the same period the previous year.
• Gross profit for the twelve months ended December 31, 2010 increased 131.3% to $8.2 million compared to $3.5 million for the same period in 2009.
• Operating income for the twelve months ended December 31, 2010 increased 135.9% to $5.5 million compared to $2.3 million for the same period the previous year.
• Net income for the twelve months ended December 31, 2010 increased 155.5%, to $4.1 million, or $0.19 per diluted share, compared to $1.6 million, or $0.08 per diluted share, for the same period the previous year.

GeoTeam Note: Fourth quarter 2010 vs. 2009 EPS was $(0.03) vs $0.01

The company reiterates its net income guidance of $14 million, or $0.60 per diluted share for 2011.

Mr. Jianliang Shi, Chairman and Chief Executive Officer commented, "We are pleased to report that sales were strong across all of our product lines in 2010. Cable products showed strong growth at 148.1% reaching a revenue level of $18.4 million for the year. Cryogen-free refrigerator sales increased by 106.3% to $9.5 million with orders stemming from both existing customers and new ones.

We believe that we maintain good relationships with the various banks we deal with and our current available working capital, and bank loans referenced above, should be adequate to sustain our operations at our current level through at least the next twelve months.

We believe that our current cash, cash flow from operations will be sufficient to meet our present and reasonably anticipated cash needs.

New York and Jiangsu, China – February 8, 2011 – China Green Energy Industries, Inc.,

• Net income guidance of $14 million, or $0.60 per diluted share, resulting in a price-to-earnings ratio of 5X 2011 EPS .

This would represent a 144% increase over the Company’s current guidance of $5.7 million of net income, or $0.24 per diluted share, for 2010.

Mr. Jianliang Shi, Chairman and Chief Executive Officer, commented, “We are extremely encouraged by the near and long-term outlook for the business. Our network cable and Cryogen-free refrigerator businesses continue to grow rapidly and generate strong cash flow. These businesses provide us with a solid foundation upon which to expand our light-weight electric vehicle (LEV) business. We are particularly excited about 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. Specifically, worldwide demand for LEVs continues to accelerate as a result of advances in battery technology, coupled with low-cost manufacturing. We believe we are ideally positioned to benefit from this trend, as evidenced by our strong sales pipeline. As a result, we anticipate net income of $14 million for 2011 due to growing brand awareness for our products, combined with innovation and our reputation for quality.”

On January 7, 2011, China Green Energy Industries, Inc. engaged PKF California as its new independent registered public accounting firm, and dismissed PKF HK from that role. The change in accountants was approved by the Company’s Audit Committee and did not result from any dissatisfaction with the quality of professional services rendered by PKF HK. Neither the Company, nor anyone on its behalf, consulted PKF California during the Company’s two most recent fiscal years and any subsequent interim period prior to the Company’s engagement of PKF California regarding any of the matters set forth in Items 304(a)(2)(i) and (ii) of Regulation S-K.

New York, New York and Jiangsu, China--(January 25, 2011) - China Green Energy Industries, Inc.,  today announced it has acquired the NICONIA LEV brand and retail sales network. The NICONIA brand is owned by Changzhou Benshen Bicycle Co., Ltd. ("Benshen", http://www.benshen.cn). Benshen is a leading manufacturer of light-weight electric vehicles with a sales network of approximately 350 retail stores in China. The total purchase price for the NICONIA brand and retail sales network was approximately $3.0 million.

Mr. Jianliang Shi, Chairman and Chief Executive Officer commented, "We are very excited about the purchase of NICONIA, a quality brand in China with over 200,000 LEV sold annually, and projected sales of more than $45 million in 2011. We entered the LEV market in 2008 and have experienced strong demand in this product category. LEV sales in China have grown at a 29% compound annual growth rate from 2005 - 2009 and our acquisition of NICONIA is a key milestone in enabling us to accelerate growth in this segment. We expect to generate attractive gross margins from the NICONIA branded LEVs of approximately 25%, while at the same time leveraging our current production capacity to achieve economies of scale."

Mr. Shi concluded, "This acquisition significantly alters our product mix, with revenue from LEV sales expected to comprise 54% of our overall revenue in 2011 versus 1% of our revenue in 2009. China is one of the largest consumers of LEVs in the world and we look forward to becoming a recognized leader in this highly fragmented industry."

Q3 2010 financial highlights (year-over-year):

• Revenue increased 58.0% to $6.1 million
   
• Gross profit increased 126.5% to $2.9 million
   
• Operating income increased 116.4% to $2.2 million
   
• Net income increased 93.8% to $1.6 million, or $0.07 per share vs. $0.04
   
• $2.1 million of cash and no long-term debt as of September 30, 2010

Jianliang Shi, Chairman and Chief Executive Officer, commented, "We are pleased to announce very strong year-over-year growth in revenue and net income. China Green Energy Industries is extremely well-positioned both within the high tech and environmentally friendly product markets, as evidenced by our strong historic revenue growth, our premier customer base, and long-term relationships with major OEMs and global Fortune 500 companies."

"Our three main business lines consist of light-weight electric vehicles (LEV), cryogen-free refrigerators, and also network and HDMI cables.  Our legacy network and HDMI cable business continues to grow rapidly and generate solid cash flow to fuel our growth. At the same time, we have increased our focus on environmentally friendly products, which are in great demand both in China and abroad. Specifically, we now private label our cryogen-free refrigerators for such global brands as Ford, Pepsi, Coca-Cola, Disney, etc. Our cryogen-free refrigerators use less electricity and cost less than conventional refrigerators. Moreover, our products do not contain Freon or cause pollution during the manufacturing process. As a result, we have seen strong consumer demand for this product line."

"Most importantly, we are extremely excited about the outlook for the LEV business. Although still a relatively small percentage of our overall revenue, we expect the LEV business to grow dramatically in the coming months and years. We initially launched this business in 2008 with a single large OEM customer in the Netherlands. We believe our success with this European customer is a direct result of our superior product and low-cost manufacturing. We are preparing to launch LEVs domestically in China and anticipate this business will grow rapidly based on our current sales pipeline. "

Mr. Shi concluded, "Overall, we believe we have built a highly scalable operation and expect to gain significant operating leverage as we continue to grow revenue and increase utilization of our existing capacity, which in turn, will drive meaningful value for shareholders."

On June 9, 2010 Best Green Energy became a public entity via a reverse merger transaction.

Company Snapshot:

Manufactures and distributes clean technology-based consumer products.

Industry Snapshot:

• Compared to motorbikes, LEVs enjoy the following advantages: less fossil fuel consumption, cheaper in price, more convenient to park inside cities, and less air and noise pollution. We believe many consumers are increasingly willing to consider purchasing LEVs due to environmental, economic, and convenience reasons. As a result, we believe the market for LEVs is poised for significant growth as consumers continue to shift their preferences strongly toward more energy efficient and lower emission vehicles.
  
•  The Chinese market for LEVs is huge and has been growing rapidly. According to the China Electronic Components Association, 21.5 million LEVs were sold in China in 2008, representing growth of 26.5% over 2007. And in 2009, 24.5 million LEVs were sold in China. The following chart shows the historical and expected growth of LEV sales in China:

• We currently produce and sell cryogen-free refrigerators, which are classified as small home appliances. According to CCDI Consulting, compound aggregate growth rate, or CAGR of small home appliance sales in China was 15% during 2003 to 2008. The following chart shows the growth of small home appliance sales in China:

• China’s cable and wire industry has surpassed the United States to become the largest cable and wire producer in the world. According to the Shanghai Cable & Wire Research Institute, the sale of cable and wire in China was $59 billion in 2006. (Source: Zhongli Sci-Tech Group IPO Prospectus, August 13, 2009.) In China, the cable & wire industry is expected to grow at a level comparable to that of the national economy, which is projected to be 7% to 8%. (Source: http://www.chinawirecable.com)

Post Merger Share Calculation:

•   6,794,880: Pre reverse merger outstanding shares  
•   4,000,000: Shares cancelled as part of the Share Exchange
• 20,734,531: Newly issued shares of Common Stock

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions:  23,529,411

Financial Snapshot:

• For the 2010 first quarter sales increased 116.7% to $5.2 million. Note, that for all of 2009 sales were $12.1 million.
  
• For the 2010 first quarter net income  increased 261.4% to $759 thousand. Note, that for all of 2009 net income was $1.6 million.

		Year ended December 31
		2009			2008
Net sales - Note 20	$	12,092,837		$	12,547,357
Cost of sales		(8,550,998	)		(10,445,356	)
Gross profit		3,541,839			2,102,001
Operating expenses
General and administrative expenses		902,136			911,912
Selling expenses		303,965			551,989
		1,206,101			1,463,901
Income from operations		2,335,738			638,100
Interest income		65,506			57,912
Other income - Note 14		88,980			87,527
Finance costs - Note 15		(331,785	)		(337,775	)
Income before income taxes		2,158,439			445,764
Income taxes - Note 16		(539,610	)		(111,441	)
Net income	$	1,618,829		$	334,323
Other comprehensive loss
Foreign currency translation adjustments		(2,784	)		(28,735	)
Total comprehensive income	$	1,616,045		$	305,588

___________________________________________________________________________

		Three Months ended March 31,
		2010			2009
Net sales - Note 18	$	5,161,498		$	2,400,196
Cost of sales		(3,670,214	)		(1,843,709	)
Gross profit		1,491,284			556,487
Operating expenses
General and administrative expenses		306,192			202,528
Selling expenses		173,641			66,987
		479,833			269,515
Income from operations		1,011,451			286,972
Interest income		49,255			13,410
Other income - Note 13		33,095			82,964
Finance costs - Note 14		(94,548	)		(103,478	)
Income before income taxes		999,253			279,868
Income taxes - Note 15		(240,579	)		(69,967	)
Net income	$	758,674		$	209,901
Other comprehensive income (loss)
Foreign currency translation adjustments		72			(289	)
Total comprehensive income	$	758,746		$	209,612