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

See the accompanying Notes to Consolidated Financial Statements

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

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

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

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.

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.”

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."