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Apollo Solar Energy, Inc. Reports Full Year 2008 Financial Results

Posted on: Wednesday, 15 April 2009, 07:30 CDT

CHENGDU, China, April 15 /PRNewswire-Asia-FirstCall/ -- The Board of Directors of Apollo Solar Energy, Inc., (OTC Bulletin Board: ASOE; "Apollo Solar Energy" or "the Company"), a leading vertically integrated miner, refiner and producer of tellurium (Te) and high-purity tellurium based metals for specific segments of the global electronic materials market, today announced financial results for the full year ended December 31, 2008.

For the twelve months ended December 31, 2008, net sales increased 248% to $6.9 million compared to $2.0 million for the previous year.

Gross profit for 2008 increased 164% to $1.8 million compared to $1.1 million in the prior year.

Total operating expenses for 2008 were $1.5 million, or 21.7% of net sales, compared to $0.2 million, or 9.7% of net sales, in the prior year.

Operating profit for 2008 was $0.29 million compared to $0.49 million in the prior year.

Net income for 2008 was $18,592, or $0.001 per diluted share, compared to $493,922, or $0.01 per diluted share in the prior year. "We are excited about our operating results for 2008, especially in light of the current economic conditions. It has been a challenging year as we had the earth quake in May that in addition to being devastating, stopped all our production. We were also in transition for a majority of the year, building a new production facility and moving from the old production facility to the new facility. We are now well positioned to take advantage of this modern facility and make use of the capacity to produce more products to sell to our customers," commented Mr. Hou Renyi, CEO and Chairman of Apollo Solar Energy, Inc.

On April 10, the Company signed a variable interest entity agreement ("VIE") with Sichuan Xinju Mineral Resources Development Corporation and certain of its shareholders holding a majority of its voting stock. Under the terms of the VIE, the Company was granted the exclusive exploration rights to the Dashuigou area and mining rights to the tellurium mine in Majiagou owned by Xinju in accordance with a license granted by the Chinese government, which extends through January, 2013, subject to potential renewal thereafter.

Commenting on the VIE, Mr. Hou said: "We are extremely pleased with the VIE agreements. They give us access to another tellurium mine. We intend to source 60 to 70% of tellurium from these mines by 2010 and this will put us in a very competitive cost position. The exploration rights in the Dashuigou area assigned to us through the VIE will allow us to explore potential deposits of tellurium in the area as well."

About Apollo Solar Energy, Inc.

Apollo Solar Energy, Inc., through its wholly owned subsidiary, Sichuan Apollo Solar S&T Co., Ltd., is primarily engaged in mining, refining and producing tellurium (Te) and high-purity tellurium based metals for specific segments of the global electronic materials market. The Company's products include CdTe thin-film compounds, CIGS thin-film compounds, Ultra-high purity metals, and commercial-purity metals.

Safe Harbor Statement

The statements contained herein that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates," "expect" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, our statements regarding the potential growth of the markets or forecasting financial results are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including but not limited to, general economic conditions and regulatory developments, not within our control. The factors discussed herein and expressed from time to time in our filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed or implied by such statements. The forward-looking statements are made only as of the date of this filing, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

SOURCE Apollo Solar Energy, Inc.

Source: PR Newswire

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