Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its financial results for the fiscal year ended March 31, 2015.

Net sales for fiscal 2015 were $78.0 million, up 24.4%, when compared to net sales of $62.7 million in fiscal 2014. Net loss for fiscal 2015 was $6.4 million, or $2.11 per share, when compared to a net loss of $10.6 million, or $3.47 per share, in fiscal 2014. Included in net loss for fiscal 2014 was $5.5 million from discontinued operations.

Net sales for the fourth quarter of fiscal 2015 were $16.2 million, compared to $17.7 million in the corresponding period in fiscal 2014. Net loss for the fourth quarter of fiscal 2015 was $1.7 million, or $0.68 per share, compared to a net loss of $3.2 million, or $1.06 per share, for the corresponding quarter in fiscal 2014.

John C.K. Sham, the Company's President and Chief Executive Officer, said: “We continue to focus our efforts on improving our productivity and efficiency in our electronic components business. Despite increased volume and better product mix when compared to fiscal 2014, improvements were insufficient to generate positive cash flow during fiscal 2015.”

Mr. Sham continued, “Our leasing program for those portions of our facility that previously housed our now discontinued home appliance and EMS operations is currently generating sufficient income to cover the costs of maintaining our factory complex in Dongguan, China.”

Mr. Sham concluded, “Advancements in our medical product business continued in fiscal year 2015, as we continue to penetrate target markets.”

Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market electronic components and other related products, such as complementary metal oxide semiconductor (CMOS) camera modules (CCMs). The primary focus of its subsidiaries is to develop and market high-quality products for the communications industry in China and export such products to markets in other countries throughout the world.

Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," “should,” "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company’s customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China’s trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances.

 
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts expressed in United States dollars, except per share data)

 
   

Year Ended
March 31,

 

  2015         2014         2013  
(audited) (audited) (audited)
 
Net sales $ 78,020,855 $ 62,692,901 $ 66,827,069  

Cost of goods sold

  (74,867,109 )   (57,999,265 )   (56,854,673 )
Gross profit 3,153,746 4,693,636 9,972,396
Selling, general and administrative expenses (12,423,741 ) (13,148,067 ) (12,383,973 )
Other operating income , net   -     -     -  
Operating loss (9,269,995 ) (8,454,431 ) (2,411,577 )
Interest income, net 438,951 685,138 1,504,166
Other income, net   2,146,108     2,396,789     583,315  
Loss from continuing operations before income taxes (6,684,936 ) (5,372,504 ) (324,096 )
Income tax benefit   209,046     255,927     841,900  
Income (Loss) from continuing operations (6,475,890 ) (5,116,577 ) 517,804
Loss from discontinuing operations, net of tax   -     (5,547,024 )   (2,589,063 )
Net loss (6,475,890 ) (10,663,601 ) (2,071,259 )
Net income attributable to non-controlling interests   55,012     108,044     107,958  

Net loss attributable to shareholders of Global-Tech
 Advanced Innovations Inc

 

$

(6,420,878

)

$

(10,555,557

)

$

(1,963,301

)

 

Basic and diluted earnings (loss) from continuing operations per share
 of common stock

$ (2.11 ) $ (1.65 ) $ 0.21  
 

Basic and diluted earnings (loss) per share of common stock

$ (2.11 ) $ (3.47 ) $ (0.65 )
 

Basic and diluted weighted average number of shares
 of common stock

 

  3,044,227     3,041,625     3,040,310  
 
 
 
 
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(Amounts expressed of United States dollars)

 
   

March 31,
2015

    

March 31,
2014

(audited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 14,501,954 $ 22,820,300
Time deposits 12,649,524 11,339,515
Restricted cash 9,850,930 4,013,565
Available-for-sale investments - 1,050,500
Accounts and bills receivable, net 20,493,672 21,216,884
Inventories 6,418,778 7,162,867
Prepaid expenses 95,398 123,462
Deposits and other assets 3,753,765 2,475,765
Amount due from a related party   15,475     12,569  
Total current assets 67,779,496 70,215,427
Interests in jointly-controlled entities - -
Property, plant and equipment, net 24,175,245 26,316,958
Land use rights, net 2,826,511 2,923,424
Deposits paid for purchase of property, plant and equipment 199,693 212,134
Deferred tax assets   2,815     -  
Total assets $ 94,983,760   $ 99,667,943  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank loans 6,780,394 7,279,629
Accounts and bills payable 14,248,741 12,520,080
Customer deposits 1,251,521 1,138,500
Accrued salaries, allowances and other employee benefits 3,077,943 2,980,622
Other accrued liabilities 6,284,082 5,720,757
Income tax payable   4,028,708     4,233,169  
Total current liabilities 35,671,389 33,872,757
Deferred tax liabilities   -     5,183  
Total liabilities   35,671,389     33,877,940  

Shareholders' equity:

 

 

 

 

Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,233,814
  shares issued as of March 31, 2015 and 2014

129,353

129,353

Additional paid-in capital 85,108,427 85,103,910
Statutory reserves 1,328,283 1,340,229
Accumulated deficit (32,999,298 ) (26,590,366 )
Accumulated other comprehensive income 10,848,613 10,854,689
Less: Treasury stock, at cost, 189,587 shares as of March 31, 2015 and 2014   (4,663,321 )   (4,663,321 )
Total Global-Tech Advanced Innovations Inc. shareholders’ equity 59,752,057 66,174,494
Non-controlling interests   (439,686 )   (384,491 )
Total shareholders’ equity   59,312,371     65,790,003  
Total liabilities and shareholders' equity $ 94,983,760   $ 99,667,943