Jinhao Motor Co Common (PINK:GIMC)

Third Quarter Financial Performance Highlights

• Revenue was $69.96 million for the three months ended September 30, 2010, an increase of $13.38 million, or 23.6%, from $56.58 for the same period last year.

• Gross profit was $18.04 million for the three months ended September 30, 2010, an increase of $4.30 million, or 31.3%, from $13.74 million for the same period last year.

•  Gross margin was 25.8% for the three months ended September 30, 2010 as compared to 24.3% for the same period last year, a 1.5% increase mainly due to increase in sales from the electric vehicle division, which has an average gross margin of 30%, compared to the motorcycle’s average gross margin of 25%.

• Net income was $11.88 million for the three months ended September 30, 2010, an increase of $4.87 million, or approximately 69.4%, from $7.01 million for the same period of last year.

• Basic and fully diluted net income per share was approximately $0.09 for the three months ended September 30, 2010, based on basic and diluted 54,857,640 common shares outstanding, as compared to approximately $0.37 for the same period last year

We intend to expand into the electric vehicle segment and we have launched our electric vehicle production line and delivered our first order in October 2009. We invested approximately $26 million in the research and development of electric vehicles, and have entered into exclusive patent license agreements for 2 patents to be used in our planned large scale production such vehicles. In addition, we have signed a sales agency agreement with six distributors across China, and overseas and have signed sales contracts with buyers from Spain, Finland, Italy, Chile and Thailand. We are also focused on developing distribution channels in the European Union and the United States