Mr. Kun Liu, chief executive officer of China Lithium Technologies, commented, "We are extremely pleased with the dramatic increase in sales of our battery modules, which illustrates the broad demand and rapid market acceptance for our technology. Our revenue was relatively flat as we deliberately culled sales of lower margin lithium-ion batteries and battery packs. As a result of the shift in our product mix, our gross profit increased by 30%, while our gross margin increased over 900 basis points."
"Demand for lithium-ion batteries continues to grow due to their inherent advantages, including high energy-to-weight ratios, lack of memory effect, and slow self-discharge when not in use; and yet, the industry requires new technologies to address the traditional challenges presented by lithium-ion batteries that prevent more widespread adoption. Specifically, when lithium-ion batteries are combined into battery packs, they encounter energy loss as a result of the imbalanced charge and discharge of multiple lithium-ion battery cells. Additionally, temperature changes will shorten the life of lithium-ion battery. Through research and development, we have developed an efficient battery management system that balances the process of charging and discharging multiple lithium-ion battery cells and adjusts the charging frequency to accommodate temperature changes."
"We believe we now offer the most advanced battery modules, battery management systems, and charging systems for lithium-ion batteries in the market today, including our new Lithium Magic Cube product series, which received high accolades at the recent Import and Export Exhibition in Guangzhou, the largest consumer products exhibition in China. These products can be used with varying voltage and capacity and easily integrated into electric automobiles through parallel connections. Our technology also makes it possible to seamlessly upgrade an automobile from lead-acid batteries to lithium-ion batteries, and represents a major advancement in electronic vehicle technology."
Mr. Kun Liu concluded, "Looking ahead, we believe our technology will enable broader adoption of lithium-ion batteries and battery systems. We believe we are at the forefront of this industry and our expanded R&D efforts will enable us to strengthen our lead. We now have four patent applications pending and we expect to begin obtaining approval on these patents in mid 2011. We are extremely excited about the outlook for the business and look forward to providing our shareholders with regular business updates."
China Lithium Technologies is a leading designer, manufacturer and distributor of polymer lithium-ion battery modules, lithium-ion battery chargers, lithium-ion battery management systems, as well as other lithium-ion battery management devices essential to proper power utilization. The company has also developed an efficient battery management system that balances the process of charging and discharging multiple lithium-ion battery cells, and which adjusts the charging frequency to temperature changes in the ambient environment. The company’s products are widely distributed and used in electric vehicles, motorcycles and bicycles in China.