China Tracker - Details for China Electric Motors (CELM)


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 China Electric Motors
 Business Outlook

COVERAGE TERMINATED (Going Dark)
Recent Chain of Events:
2011-09-20 -- Last SEC Filing
2011-09-16 -- CEO Appointment
2011-09-15 -- CEO Resignation
2011-06-14 -- Delisting from NYSE Amex
2011-05-31 -- Auditor Resignation
2011-05-31 -- CFO Resignation
2011-03-31 -- Trading halted by NYSE Amex
2010-11-12 -- Last Quarterly/Annual Report: Q3/FY2010 ended September 30, 2010

(Source: Trading China, 2012-09-30)

China Electric Motor received a letter dated May 17, 2011 from the Nasdaq staff advising the Company that the staff had determined to delist the Company's common stock. On May 24, 2011, the Company submitted a request for a written hearing before a Nasdaq Hearings Panel. On June 10, 2011, after further consideration, the Company withdrew the request for a hearing. The Company's decision to withdraw its request for a hearing is not, and should not be construed as, an admission, concession or statement with respect to any of the assertions or matters set forth in the aforesaid letter dated May 17, 2011 from the Nasdaq staff. On June 13, 2011, the Company received a letter from the Nasdaq staff advising the Company that the Company's shares will be suspended effective at the open of business on Tuesday, June 14, 2011.

(Source: 8-K Filing, 2011-06-14)

On May 24, 2011, all of the members of the Special Committee informed the Board that each such member had resigned, effective immediately, from the Special Committee. The Special Committee was allowed to and did conduct a preliminary investigation, which included being allowed to obtain official bank statements directly from the bank where the Company keeps its account, to conduct, through counsel, preliminary interviews with certain key executives and employees, who made themselves available for the preliminary interviews, and to retain forensic consultants. However, Messrs. Lee, Shen and Tang disagreed with certain Company officers and directors as to the appropriate scope of the investigation going forward (those officers viewing the scope as too wide and the estimated fees as too high), and this disagreement was the reason for their resignations from the Special Committee. As of May 26, 2011, each of Messrs. Lee, Shen, and Tang remain on the Company’s Board of Directors.

(Source: 8-K Filing, 2011-05-27)

Pursuant to the Nasdaq Letter, the Company may request for a hearing and appeal Nasdaq Staff's determination. If such request by the Company is not received by Nasdaq Hearings Department by 4:00 p.m. Eastern Time on May 24, 2011, the trading of the Company's common stock will be suspended at the opening of business on May 26, 2011, and a Form 25-NSE will be filed by Nasdaq with the SEC, which will remove the Company's securities from listing and registration on The Nasdaq Stock Market. The Company intends to make a hearing request and attempt to resolve the listing deficiency.

(Source: 8-K Filing, 2011-05-20)

The Company was also notified recently by the staff of the SEC that it has initiated a formal, nonpublic investigation into whether the Company or any of its personnel violated the federal securities laws. On April 7, 2011, the SEC served the Company with a subpoena for documents in connection with its investigation. The Company is committed to cooperating with the SEC. It is not possible at this time to predict the outcome of the SEC investigation, including whether or when any proceedings might be initiated, when these matters may be resolved or what, if any, penalties or other remedies may be imposed.

(Source: PR Newswire, 2011-04-11)

China Electric Motor today announced that the Company's Annual Report on Form 10-K for the year ended December 31, 2010 will not be filed before its March 31, 2011 due date, nor will it be filed by April 15, 2011, the extended due date of the report. The delay in filing relates to possible discrepancies concerning the Company's banking statements that were very recently identified by the Company's auditors in the course of their audit of the consolidated financial statements for the fiscal year ended December 31, 2010.

The Company's Board of Directors has formed a Special Committee to investigate this matter. The Special Committee will be comprised of the Board's four independent directors, James M. Lee, Tony Shen, Liang Tang and Guoqiang Zhang. The Special Committee has been authorized to retain counsel and other professional firms to assist it with its internal investigation. The Special Committee has already notified the Staff of the Securities and Exchange Commission of the internal investigation. Given that the investigation only recently commenced, the Company cannot predict at this time whether that investigation will require any adjustments to its financial statements, and if so whether such adjustments will be material. The Company and its advisors are working expeditiously to resolve the issues discovered during its audit, but the Company, at this time, is unable to determine when it will file the report.

(Source: PR Newswire, 2011-03-31)

China Electric Motor today announced that Luck Loyal International Investment Limited, an indirect wholly owned subsidiary of the Company, entered into an Equity Transfer Contract with New-Metal (H.K.) Technology Limited on January 21, 2011. Under the terms of the Agreement, Luck Loyal will purchase 100% of the equity interests of Shenzhen Guofa Optoelectronics Co., a wholly foreign owned enterprise incorporated in China, held by the Seller, for an aggregate purchase price of approximately US$6.5 million.

With this acquisition, the Company will acquire new production lines and expertise focused on high-end DC micro motors used in products like digital cameras, cell phones, electronic door locks, and other similar products. Guofa's products are sold to clients representing high-end OEM companies which include Ricoh, Toshiba, Philips, OMRON, Panasonic, OLYMPUS, and Taiwan Asia Optical. In 2010, Guofa Optoelectronics recognized approximately US$12.7 million in revenue and approximately US$1.3 million in net income.

In addition, Dr. Dehe Wang, the General Manager of Guofa Optoelectronics (no relation to the Company's CEO, Mr. Yue Wang, or Chairman, Mr. Fugui Wang), has been hired to replace Mr. Shengping Wang, who resigned due to medical reasons, to become the Company's new Chief Technology Officer, effective as of January 21, 2011. Mr. Dehe Wang has been the General Manager of Guofa Optoelectronics since November 2005 and has over 15 years of management and research experience in the micro motor industry.

(Source: PR Newswire, 2011-01-25)

China Electric Motor today announced that its indirect wholly owned subsidiary, Shenzhen YuePengCheng Motor entered into a Property Purchase Agreement with Shenzhen Jianhuilong Industry pursuant to which YuePengCheng agreed to purchase the remainder of the Shenzhen-based "Sunna Industrial Park" it did not previously own, for approximately US$25.8 million. The total amount is expected to be paid in a series of installments by January 31, 2011. The closing of the Transaction is expected to take place within 30 days following the date of the Agreement, subject to government approvals.

"Our recent purchase of the Sunna Industrial Park facility represents a cost-effective, long-term investment for China Electric that will increase the stability of our operations and allow us to better forecast expenses. We believe the purchase of this facility will also improve overall efficiency as we consolidate existing operations and future acquisitions into this centralized facility. After a review of our 2011 budget, and in light of a proposed rental increase of almost 50% for our Sunna Industrial Park leased facility, we determined that purchasing the entire facility for our current and future production plans was in the best interest of the Company and the most cost-effective alternative. This facility will serve as our core production hub and will provide China Electric with additional production capacity, paving the way for our future expansion plans. We expect to fund this transaction through a combination of existing cash on our balance sheet and cash flow generated from operations in 2011. After the purchase, we will be able to collateralize the purchased property if we were to apply for any bank loans to help fund our operations. We look forward to a more stable manufacturing environment for our business and believe this acquisition provides us with a great opportunity to expand our market position and improve the profitability of our business over time."

(Source: PR Newswire, 2011-01-06)

"As we approach the end of the year, we are tightening our revenue guidance range for 2010, and have updated our net income guidance to include stock-based compensation expenses related to our employee share grant. We continue to believe that market demand for our products is sustainable, and we are implementing our strategy to leverage this demand and build our leadership position in the market."

Management estimates that revenue for the fourth quarter of 2010 will be in the range of $38.0 million to $39.5 million. Management expects net income for the fourth quarter of 2010 to be in the range of $5.4 million to $5.6 million, including a non-cash stock-based compensation expense of $0.4 million for the fourth quarter of 2010. Management estimates that basic and diluted earnings per share for the fourth quarter of 2010 are expected to be between $0.24 and $0.25, based on 21,942,243 shares outstanding on a fully diluted basis.

Management expects revenue for fiscal year 2010 to be in the range of $117 million to $119 million and expects net income for fiscal 2010 to be in the range of $14.9 million and $15.3 million, including the non-cash stock-based compensation expense of $2.87 million for 2010 full year. Basic and diluted earnings per share for 2010 will be between $0.74 and $0.75, based on 20,467,329 shares outstanding on a fully diluted basis.

(Source: PR Newswire, 2010-11-11)

China Electric Motor today announced that Ningbo Heng Bang Long Electrical Equipment Co., an indirect wholly-owned entity of China Electric Motor, Inc., has agreed to purchase the assets and business of Ningbo Bang Shi Da Electrical Equipment Co. (BSD) for an aggregate purchase price of RMB 49,322,100 (or approximately US$ 7.4 million based on the exchange rate as of November 6, 2010). The purchase price will be paid by Ningbo Electrical in a series of installments, and will be subject to certain adjustments. BSD, founded in 1997 and based in Ningbo, Zhejiang Province, is a leading manufacturer of DC auto air compressors with an estimated 2010 annual revenue of approximately RMB 80 million and net profit of RMB 10 million. Its products are sold via local distributors to customers in the United States, Canada, Australia, Europe and the Middle East.

"Our acquisition strategy is focused on companies that have an impressive customer base and technological proficiency that is complementary to our existing business. Further, the deal must be accretive for us to move forward with an acquisition. Our agreement to acquire BSD meets all of these criteria. BSD's products and technological expertise are poised to leverage the automobile industry's booming growth, and they have made great strides in their development of products for hand-held appliances. We believe that BSD's broad customer base will greatly enhance our existing business. As we move forward with our strategic growth plans, we will continue to consider acquisitions that would provide us with a broader range of product offerings and access to new markets, and which would result in a strategic extension of our product line."

(Source: PR Newswire, 2010-11-09)

Management estimates that revenue for the third quarter of 2010 will be in the range of $30.0 million to $31.5 million. Management expects net income for the third quarter of 2010 to be in the range of $4.3 million to $4.725 million. Management estimates that basic and diluted earnings per share for the third quarter of 2010 will be between $0.20 and $0.22, based on 21,409,960 shares outstanding on a fully diluted basis.

Management confirms that it expects revenue for fiscal year 2010 to be in the range of $110 million to $120 million and now expects net income for fiscal 2010 to be in the range of $17.2 million and $18.5 million, primarily due to a delay in the government approval of the Company's tax reduction application in 2010.

(Source: PR Newswire, 2010-08-06)

The Company estimates that revenue for the second quarter of 2010 will be in the range of $22.1 million to $24.0 million. Management expects net income for the second quarter of 2010 to be in the range of $3.4 million to $3.7 million. Management estimates that basic and diluted earnings per share for the second quarter of 2010 will be between $0.16 and $0.18, based on 20,832,957 shares outstanding (on a fully diluted basis).

"Our revised estimates for the second quarter reflect sustained strong demand for home appliance motors, as well as successful execution of our plan to grow our customer base. We also benefited from an increase in the average selling price during the quarter, particularly in motors used in home appliances. While we expect the strength in the market for home appliance motors to be sustainable, the second quarter is typically one of the strongest for our company and the industry from a demand perspective."

(Source: PR Newswire, 2010-07-28)

Management estimates that revenue for the second quarter of 2010 will be in the range of $20.0 million to $23.3 million. Management expects net income for the second quarter of 2010 to be in the range of $3.0 million to $3.5 million. Management estimates that basic and diluted earnings per share for the second quarter of 2010 will be between $0.141 and $0.165, based on 21,244,743 shares outstanding (on a fully diluted basis). Management confirms that it expects revenue for fiscal year 2010 to be in the range of $110 million to $120 million and net income for fiscal 2010 to be in the range of $17.1 million and $19.8 million.

The construction of new equipment, which will be capable of producing 24 million units annually at full capacity, is continuing on schedule and the testing process has begun. Management expects the new facility to be fully operational by the end of June. The Company estimates that the capital expenditure allocated to the project is in the approximate range of $8 million to $10 million.

(Source: PR Newswire, 2010-05-14)

Management estimates that revenue for the first quarter of 2010 will be in the range of $20.7 million to $21.2 million, and that revenue for fiscal year 2010 will be in the range of $110 million to $120 million. Management expects net income for the first quarter of 2010 to be in the range of $3.0 million to $3.25 million, and net income for fiscal 2010 to be between $17.05 million and $19.8 million. Management estimates that basic and diluted earnings per share for the first quarter of 2010 will be between $0.163 and $0.176, based on 18,436,389 shares outstanding (on a fully diluted basis).

(Source: PR Newswire, 2010-03-31)
CELM
Electronics

COVERAGE SUSPENDED OR TERMINATED
 
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Current Price:  n/a
F10k Day (2010-01-29): -100.00%$4.45
2010 Close: -100.00%$4.55
2011 Close: -100.00%$0.08
High (2011-07-29): -100.00%$0.30
Low (2011-12-30): -100.00%$0.06
Exchange:
Market Capitalization: n/a
Total Shares: 21.94 mill
Float: n/a
Avg Volume: 134.20 k
Short Interest: 99.20 k
Short Ratio: n/a0.7 d
Last Quarter: 2010-09-30
Revenue (MRQ): 32.88 mill
Net Income (MRQ): 5.14 mill
Op. Cash Flow (MRQ): 1.99 mill
all financial data provided without warranty