BEIJING, Feb. 10 /PRNewswire-Asia-FirstCall/ -- Duoyuan Printing, Inc. (NYSE: DYP) ("Duoyuan Printing" or the "Company"), a leading offset printing equipment supplier in China, today announced its financial results for the three months ended December 31, 2009.



    Highlights for the Second Quarter Ended December 31, 2009

    -- Net revenues in the second quarter were $42.4 million, an increase of
       15.1% from $36.8 million for the same period last year

    -- Gross profit margin (non-GAAP) in the second quarter was 54.0%,
       compared to 54.9% for the same period last year

    -- Operating income and margins (non-GAAP) in the second quarter were
       $17.0 million or 40.1%, compared to $15.4 million or 41.9% for the same
       period last year

    -- Net income and margins (non-GAAP) in the second quarter were $13.8
       million or 32.4%, compared to $12.5 million or 34.0% for the same
       period last year

    -- Diluted earnings per Share (non-GAAP) in the second quarter was $0.47

    -- On November 6, 2009 Duoyuan Printing completed an initial public
       offering from which the Company received aggregate net proceeds of
       approximately $42 million

"I am pleased to report that Duoyuan Printing has again delivered strong results in the first reporting period since our successful IPO in November, further building on our history of revenue growth and profitability," said Mr. Wenhua Guo, founder and chairman of Duoyuan Printing. "We are looking forward to leveraging our established brand, loyal distributor network and strong financial position to take advantage of China's large and fast-growing demand for printed products."

"Duoyuan Printing delivered another solid quarter of revenue growth and high margins, due to increased sales of multicolor printing presses combined with continued efficiency gains from our vertically integrated production facilities," commented Mr. Christopher Holbert, Chief Executive Officer. "Looking ahead, the planned improvements to our Hunan facility and the introduction of our cold-set equipment line, due in the second half of calendar 2010, will help us to further capture growing demand in the market and drive our continued growth."

Three Months Ended December 31, 2009 Results

Duoyuan Printing's net revenues for the three months ended December 31, 2009 were $42.4 million, an increase of 15.1% year-over-year. The increase in net revenues was primarily due to the growth in sales of multicolor presses. Sales of multicolor large format presses for the three months ended December 31, 2009 were $22.1 million, an increase of 27.9%, from $17.3 million in the prior year period. The sales of multicolor small format presses for the three months ended December 31, 2009 were $14.9 million, an increase of 17.6%, from $12.6 million in the prior year period. Demand for multicolor presses increased due to a wider acceptance of various new products that were introduced in the last and current fiscal years and also due to increased advertising and promotion. The sales of single color small format presses for the three months ended December 31, 2009 were $1.8 million, an increase of 10.9%, from $1.6 million in the prior year period as the Company continues to serve those customers who are replacing or upgrading their small format press equipment. The sales of single color large format presses for the three months ended December 31, 2009 were $3.2 million, a decrease of 22.5%, from $4.2 million in the prior year period as the Company focused on the promotion of multicolor presses. For our computer-to-plate systems, or CTP systems, revenues were constant at $1.0 million for the quarters ended December 31, 2009 and 2008, respectively.

Gross profit (non-GAAP) for the three months ended December 31, 2009 was $22.9 million, an increase of 13.2% from $20.2 million for the same period last year. The year-over-year increase was primarily due to the growth in sales of multicolor presses. Gross profit margin (non-GAAP) was 54.0%, compared to 54.9% for the prior year period. The year over year minor decrease was primarily due to depreciation of capital expenditures from prior years.

Selling expenses (non-GAAP) were $3.8 million, an increase of 27.7% from $3.0 million for the same period last year. As a percentage of revenues, selling expenses were 8.9% for the three months ended December 31, 2009 compared to 8.0% for the prior year period. The increase was primarily due to increased advertising and promotion of multicolor presses.

General and administrative expenses (non-GAAP) were $1.6 million, an increase of 18.3% from $1.3 million for the same period last year. However, as a percentage of revenues, they were relatively steady at 3.8% for the three months ended December 31, 2009, compared to 3.7% for the same period last year.

Research and development expenses (non-GAAP) for the three months ended December 31, 2009 were 1.3% of revenues, which percentage was unchanged from the prior year period. The Company plans to introduce a new single color large format press to the market before the year ended June 30, 2010. The Company also plans to introduce a new multicolor large format press, CTP system and cold-set corrugated paper machine during the quarters ended September 30, 2010 and December 31, 2010.

Operating income (non-GAAP) was $17.0 million for the three months ended December 31, 2009 compared to $15.4 million in the prior year period. Operating margin was 40.1%, compared to 41.9% for the prior year period.

Net income (non-GAAP) was $13.8 million for the three months ended December 31, 2009 compared to $12.5 million in the prior year period. Net margin was 32.4% compared to 34.0% for the prior year period. Diluted earnings per share (non-GAAP) was $0.47 based on of 29.2 million weighted-average diluted shares outstanding for the three months ended December 31, 2009, compared to $0.50 based on 25.0 million weighted-average diluted shares outstanding for the same period last year.

Income tax provision was $2.8 million compared to $1.6 million for the same period last year, an increase of 77.6% primarily due to the increase in revenue of 15.1% and the increase in the income tax rate for the Company's operating subsidiary, Duoyuan China, which increased from 12.5% to 25% on January 1, 2009.

As of December 31, 2009, the Company had a cash balance of $96.7 million. For the six months ending December 31, 2009, the Company generated an operating cash flow of approximately $24.2 million compared to $20.6 million in the prior year period.

Six Months Ended December 31, 2009 Results

For the six months ended December 31, 2009, revenues were $75.7 million, representing a 20.1% increase from $63.0 million for the same period last year. Gross profit (non-GAAP) was $40.4 million, an increase of 18.6% from $34.1 million for the prior year period. Gross profit margin (non-GAAP) for the six months ended December 31, 2009, was 53.4% compared to 54.1% for the prior year period. Operating income (non-GAAP) for the six months ending December 31, 2009, was $29.5 million, an increase of 17.4% from $25.1 million for the same period last year. Net income (non-GAAP) increased 11.9% to $23.5 million, for the six months ended December 31, 2009, as compared to $21.0 million for the six months ended December 31, 2008.

Business Outlook

Our business is affected by seasonality in that typically the quarter ending March 31 is the weakest because most businesses are closed during the Chinese New Year holiday. However, Duoyuan Printing expects steady year-over-year growth for the third quarter ended March 31, 2010 due to the ongoing growth in sales of the Company's multicolor printing products as well as the continuing growth of the Chinese economy.

Based on information available as of February 10, 2010, Duoyuan Printing currently expects to generate revenues in an amount ranging from $20 million to $21 million for the third quarter ended March 31, 2010, representing a year-over-year increase in the range of 15% to 20%. This forecast reflects the Company's current and preliminary view, which is subject to change.

Non-GAAP Financial Measures:

In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP"), we have included in this press release certain non-GAAP financial measure, including "gross profit," "gross profit margin," "operating income," "operating margin," "net income," "net margin," "diluted earnings per share," "selling expense," "general and administrative expense" and "research and development expense." These financial measures are not consistent with GAAP because they do not reflect certain share-based compensation expenses and changes in fair value of derivative instruments. We provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures as calculated and presented in accordance with GAAP at the end of this press release.

We believe that these non-GAAP measures provide useful information to management and investors regarding financial and business trends relating to our financial condition and results of operations. We believe that these non-GAAP measures, in combination with our financial results calculated in accordance with GAAP, provide investors with additional perspective regarding the impact of certain share-based compensation expenses and changes in fair value of derivative instruments. We further believe that these excluded items do not accurately reflect the underlying performance of our continuing operations for the periods in which they are incurred, even though some of these excluded items may be incurred and reflected in the Company's GAAP financial results in the foreseeable future.

Cautions on Use of Non-GAAP Measures

As noted above, these non-GAAP financial measures are not consistent with GAAP because they do not reflect certain share-based compensation expenses and changes in fair value of derivative instruments. Management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company's operating results, as well as when forecasting and analyzing future periods. However, management recognizes that:



    -- these non-GAAP financial measures are limited in their usefulness and
       should be considered only as a supplement to the Company's GAAP
       financial measures;
    -- these non-GAAP financial measures should not be considered in isolation
       from, or as a substitute for, the Company's GAAP financial measures;
    -- these non-GAAP financial measures should not be considered to be
       superior to the Company's GAAP financial measures; and
    -- these non-GAAP financial measures were not prepared in accordance with
       GAAP and investors should not assume that the non-GAAP financial
       measures presented in this earnings release were prepared under a
       comprehensive set of rules or principles.

Further, these non-GAAP financial measures may be unique to the Company, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company's results to the results of other companies.

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure or measures appears at the end of this press release.

Conference Call

A conference call to discuss second quarter results is scheduled for Thursday, February 11, 2010, at 7:00 a.m. Eastern Time. Dial-in details for the earnings conference call are as follows:



    International:  +656-735-7955
    US:             +1-718-354-1231
    UK:             +0808-234-6646
    Hong Kong:      +852-2475-0994

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is: 52376354

A replay of the conference call may be accessed by phone at the following number until February 18, 2010.

International: +61-2-8235-5000

Passcode: 52376354

Additionally, a live and archived webcast of the conference call will be available at http://ir.duoyuan.com .

About Duoyuan Printing

Duoyuan Printing (NYSE: DYP) is a leading manufacturer of commercial offset printing presses in China. The Company combines technical innovation and precision engineering to offer a broad range of printing equipment and solutions. Duoyuan Printing has manufacturing and research and development facilities in Langfang, Hebei Province and Shaoyang, Hunan Province in addition to a distribution and service network with over 85 distributors that operate in over 65 cities and 28 provinces in China. Headquartered in Beijing, the Company is one of the largest non-government owned major offset printing equipment and solutions providers in China. For further information, please visit Duoyuan Printing's website http://www.duoyuan.com .

Safe Harbor Statement

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions. All statements other than statements of historical fact in this press release are forward-looking statements, including but not limited to, our future financial condition or results of operation, the completion of planned improvements to our Hunan facility, our introduction of a multicolor large format press, CTP system and cold-set corrugated paper machine during the second half of 2010, or at all, the ongoing growth in the sales of our multicolor printing products, and the continuing growth of the Chinese economy. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties, including, without limitation, our ability to sustain our recent profitability and growth rates, the possibility that we may not meet production demands and standards at a reasonable cost, increased competition in the offset printing equipment market, our ability to develop and sell new products or penetrate new markets, and other risk factors detailed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2009 and in our subsequent reports on Form 10-Q filed with the Securities and Exchange Commission and available at http://www.sec.gov . The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements



    For investor and media enquiries please contact:

    Duoyuan Printing, Inc.
     William Suh, CFO
     Phone: +86-10-6021-2222 (Beijing)
     Email: ir@duoyuan.com

    Brunswick Group
     Philip Lisio
     Phone: +86-10-6566-2256

     Michael Fuchs
     Phone: +86-10-6566-2256
     Email: duoyuanprinting@brunswickgroup.com



                     DUOYUAN PRINTING, INC. AND SUBSIDIARIES
                    (FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
        CONSOLIDATION STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
      FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2009 AND 2008
                                   (UNAUDITED)

                             Three months ended         Six months ended
                                 December 31,              December 31,
                              2009         2008         2009         2008
    REVENUES, net         $42,408,047  $36,837,283  $75,702,970  $63,016,714

    COST OF REVENUES       19,564,713   16,609,073   35,353,104   28,939,825

    GROSS PROFIT           22,843,334   20,228,210   40,349,866   34,076,889

    RESEARCH AND
     DEVELOPMENT
     EXPENSES                 628,674      490,084      992,833    1,184,601

    SELLING EXPENSES        3,908,445    2,952,037    7,064,821    5,498,952

    GENERAL AND
     ADMINISTRATIVE
     EXPENSES               3,628,448    1,344,637    5,118,646    2,276,335

    INCOME FROM
     OPERATIONS            14,677,767   15,441,452   27,173,566   25,117,001

    CHANGE IN FAIR VALUE
     OF DERIVATIVE
     INSTRUMENTS           (3,344,611)     108,669   (3,233,996)     164,076

    OTHER INCOME
     (EXPENSE), net
      Non-operating expenses       --     (956,936)          --     (956,936)
      Interest expense       (211,737)    (213,664)    (446,126)    (426,739)
      Interest income
       and other income        40,280       35,708       71,927       69,187
        Other expense, net   (171,457)  (1,134,892)    (374,199)  (1,314,488)

    INCOME BEFORE PROVISION
     FOR INCOME TAXES AND
     NONCONTROLLING
     INTEREST              11,161,699   14,415,229   23,565,371   23,966,589

    PROVISION FOR
     INCOME TAXES           2,849,832    1,604,339    5,258,478    2,531,130

    NET INCOME              8,311,867   12,810,890   18,306,893   21,435,459

    Less: Net income
     attributable to
     noncontrolling
     interest                 223,951      168,986      381,904      278,723

    NET INCOME
     ATTRIBUTABLE TO
     DUOYUAN PRINTING,
     INC.                   8,087,916   12,641,904   17,924,989   21,156,736

    OTHER COMPREHENSIVE
     INCOME
      Foreign currency
       translation gain         1,810      308,470      185,027      564,737

    COMPREHENSIVE
     INCOME ATTRIBUTABLE
     TO DUOYUAN PRINTING,
     INC.                  $8,089,726  $12,950,374  $18,110,016  $21,721,473

    BASIC WEIGHTED
     AVERAGE NUMBER
     OF SHARES             28,367,934   25,000,050   26,683,992   25,000,050

    DILUTED WEIGHTED
     AVERAGE NUMBER
     OF SHARES             29,202,495   25,000,050   27,101,273   25,000,050

    BASIC EARNING
     PER SHARE                  $0.29        $0.51        $0.67        $0.85

    DILUTED EARNING PER
     SHARE                      $0.28        $0.51        $0.66        $0.85



                     DUOYUAN PRINTING, INC. AND SUBSIDIARIES
                    (FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
                           CONSOLIDATED BALANCE SHEETS
                    AS OF DECEMBER 31, 2009 AND JUNE 30, 2009
                                            December 31,          June 30,
                                                2009                2009
                                            (Unaudited)
               ASSETS

    CURRENT ASSETS:
      Cash                                  $96,743,881          $31,044,070
      Accounts receivable, net of
       allowance for doubtful accounts
       of $1,612,406 and $1,401,689 as
       of December 31, 2009 and June
       30, 2009, respectively                43,668,616           37,259,616
      Inventories                            25,150,892           25,883,242
      Other current assets                      570,703               26,912
        Total current assets                166,134,092           94,213,840

    PLANT AND EQUIPMENT, net                 41,826,421           43,123,153

    OTHER ASSETS:
      Intangible assets, net                  3,904,742            3,939,476
      Advances on equipment purchases         7,284,609            7,274,677
        Total other assets                   11,189,351           11,214,153
          Total assets                     $219,149,864         $148,551,146

           LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:
    Lines of credit                         $14,376,600          $14,357,000
    Accounts payable                          1,292,853              756,116
    Accrued liabilities                       3,017,033            2,251,419
    Taxes payable                             4,821,371            1,512,727
      Total current liabilities              23,507,857           18,877,262

    Derivative instrument
     liabilities                              5,136,268            1,180,477
      Total Liabilities                      28,644,125           20,057,739

    COMMITMENTS AND CONTINGENCIES

    SHAREHOLDERS' EQUITY:
      Preferred stock; $0.001 par value;
       1,000,000 shares authorized; no
       shares issued and outstanding
       as of December 31, 2009 and
       June 30, 2009                                 --                   --
      Common stock; $0.001 par value;
       100,000,000 shares authorized;
       30,563,217 shares issued and
       outstanding as of December 31,
       2009 and 25,000,050 shares issued
       and outstanding as of June 30, 2009       30,563               25,000
      Additional paid-in capital             70,272,694           27,263,040
      Statutory reserves                     11,179,137            9,428,573
      Retained earnings                      95,903,555           79,226,497
      Accumulated other comprehensive
       income                                10,973,612           10,788,585
        Total Duoyuan Printing, Inc.
         shareholders' equity               188,359,561          126,731,695

    NONCONTROLLING INTEREST                   2,146,178            1,761,712
      Total equity                          190,505,739          128,493,407
        Total liabilities and
         equity                            $219,149,864         $148,551,146



                     DUOYUAN PRINTING, INC. AND SUBSIDIARIES
                    (FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
                  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                             Common Stock                Retained earnings
                                           Additional
                         Number of           paid-in   Statutory
                          shares    Amount   capital   reserves   Unrestricted
     BALANCE,
      June 30, 2008     25,000,050 $25,000 $27,263,040  $6,000,090 $50,058,176

       Net income                                                   21,156,736
       Adjustment to
        statutory
        reserves                                         3,558,242  (3,558,242)
       Foreign currency
        translation
        adjustments

     BALANCE,
      December
      31, 2008
      (Unaudited)       25,000,050 $25,000 $27,263,040  $9,558,332 $67,656,670

       Net income                                                   11,440,068
       Adjustment to
        statutory
        reserves                                          (129,759)    129,759
       Foreign currency
        translation
        adjustments

     BALANCE,
      June 30, 2009     25,000,050 $25,000 $27,263,040  $9,428,573 $79,226,497

       Cumulative
        effect of
        reclassifi-
        cation of
        warrants                            (2,234,538)                502,633

     BALANCE, July 1,
      2009, as
      adjusted          25,000,050 $25,000 $25,028,502  $9,428,573 $79,729,130

       Issuance of
        ordinary
        shares in
        connection with
        Initial Public
        Offering, net of
        offering costs   5,500,000   5,500  41,910,036
       Stock-based
        compensation                         2,324,109
       Issuance of
        ordinary shares
        in connection
        with cashless
        exercise of
        warrants            63,167      63   1,010,047
       Net income                                                   17,924,989
       Adjustment to
        statutory
        reserves                                         1,750,564  (1,750,564)
      Foreign currency
       translation
       adjustments

     BALANCE,
      December
      31, 2009
      (Unaudited)       30,563,217 $30,563 $70,272,694 $11,179,137 $95,903,555


                                       Accumulated
                                  other comprehensive  Noncontrolling
                                         income          Interest      Total

       BALANCE, June 30, 2008          $10,460,031     $1,292,843  $95,099,180

         Net income                                       278,723   21,435,459
         Adjustment to statutory
          reserves                                                          --
         Foreign currency
          translation adjustments          564,737          7,603      572,340
       BALANCE, December 31, 2008
        (Unaudited)                    $11,024,768     $1,579,169 $117,106,979

         Net income                                       184,830   11,624,898
         Adjustment to statutory
          reserves                                                          --
         Foreign currency
          translation adjustments         (236,183)        (2,287)    (238,470)



     BALANCE, June 30, 2009            $10,788,585     $1,761,712 $128,493,407

         Cumulative effect of
          reclassification of
          warrants                                                  (1,731,905)

     BALANCE, July 1, 2009, as
      adjusted                         $10,788,585     $1,761,712 $126,761,502

       Issuance of ordinary
        shares in connection with
        Initial Public Offering,
        net of offering costs                                       41,915,536
       Stock-based
        compensation                                                 2,324,109
       Issuance of
        ordinary shares
        in connection
        with cashless
        exercise of
        warrants                                                     1,010,110

      Net income                                         381,904    18,306,893
      Adjustment to
        statutory
        reserves                                                            --
      Foreign currency
       translation
       adjustments                        185,027          2,562       187,589

    BALANCE, December 31, 2009
     (Unaudited)                      $10,973,612     $2,146,178  $190,505,739



                     DUOYUAN PRINTING, INC. AND SUBSIDIARIES
                    (FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE SIX MONTHS ENDED DECEMBER 31, 2009 AND 2008
                                   (UNAUDITED)

                                                    2009              2008
    CASH FLOWS FROM OPERATING
     ACTIVITIES:
      Net income                                $17,924,989       $21,156,736
      Adjustments to reconcile net income
       to net cash provided by (used in)
       operating activities:
        Noncontrolling interest                     381,904           278,723
        Depreciation                              1,819,403         1,345,191
        Amortization                                 40,096            40,038
        Bad debt expense
                                                    208,718                --
        Change in fair value of
         derivative instruments                   3,233,997          (164,076)
        Stock-based compensation                  2,324,109                --
      Changes in operating assets and
       liabilities:
        Accounts receivable                      (6,564,255)       (3,241,285)
        Inventories                                 768,133        (1,391,945)
        Other current assets                       (543,538)          657,362
        Accounts payable                            535,485          (103,601)
        Accrued liabilities                         763,620           431,899
        Taxes payable                             3,305,225         1,596,550
          Net cash provided by operating
           activities                            24,197,886        20,605,592

    CASH FLOWS FROM INVESTING ACTIVITIES:
      Purchase of equipment                        (464,353)       (1,408,404)
      Advances on equipment purchases                    --        (9,865,535)
      Payments for construction-in-progress              --          (172,302)
        Net cash used in investing
         Activities                                (464,353)      (11,446,241)

    CASH FLOWS FROM FINANCING ACTIVITIES:
      Proceeds from lines of credit              12,900,800        12,885,840
      Payments for lines of credit              (12,900,800)       (9,957,240)
      Proceeds from Initial Public
       Offering, net of offering costs           41,915,536                --
        Net cash provided by financing
         activities                              41,915,536         2,928,600

    EFFECT OF EXCHANGE RATE CHANGES ON CASH          50,742           113,511

    INCREASE IN CASH                             65,699,811        12,201,462

    CASH, beginning of period                    31,044,070        14,199,700

    CASH, end of period                         $96,743,881       $26,401,162



                     DUOYUAN PRINTING, INC. AND SUBSIDIARIES
                    (FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
             RECONCILIATION OF GAAP TO NON-GAAP RESULTS OF OPERATIONS
      FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2009, AND 2008
                                   (UNAUDITED)

                          Three months ended              Six months ended
                            December 31,                    December 31,
                          2009            2008           2009         2008
    GAAP COST OF
     REVENUE          $19,564,713     $16,609,073    $35,353,104  $28,939,825
    Adjustments:
    Stock-based
     compensation         (51,019)             --        (51,019)          --
    NON-GAAP COST
     OF REVENUE        19,513,694      16,609,073     35,302,085   28,939,825

    GAAP GROSS
     PROFIT            22,843,334      20,228,210     40,349,866   34,076,889
    GAAP GROSS
     MARGIN                 53.9%           54.9%          53.3%        54.1%
    Adjustments:
    Stock-based
     compensation          51,019              --         51,019           --
    NON-GAAP
     GROSS
    PROFIT             22,894,353      20,228,210     40,400,885   34,076,889
    NON-GAAP
     GROSS MARGIN           54.0%           54.9%          53.4%        54.1%

    GAAP RESEARCH
     AND DEVELOPMENT
     EXPENSES             628,674         490,084        992,833    1,184,601
    Adjustments:
    Stock-based
     compensation         (95,989)             --        (95,989)          --
    NON-GAAP RESEARCH
     AND DEVELOPMENT
     EXPENSES             532,685         490,084        896,844    1,184,601

    GAAP SELLING
     EXPENSES           3,908,445       2,952,037      7,064,821    5,498,952
    Adjustments:
    Stock-based
     compensation        (139,831)             --       (139,831)          --
    NON-GAAP SELLING
     EXPENSES           3,768,614       2,952,037      6,924,990    5,498,952

    GAAP GENERAL AND
     ADMINISTRATIVE
     EXPENSES           3,628,448       1,344,637      5,118,646    2,276,335
    Adjustments:
    Stock-based
     compensation      (2,037,270)             --     (2,037,270)          --
    NON-GAAP GENERAL
     AND ADMINISTRATIVE
     EXPENSES           1,591,178       1,344,637      3,081,376    2,276,335

    OPERATING
     INCOME            14,677,767      15,441,452     27,173,566   25,117,001
    Adjustments:
    Stock-based
     compensation       2,324,109              --      2,324,109           --
    NON-GAAP OPERATING
     INCOME            17,001,876      15,441,452     29,497,675   25,117,001

    NET INCOME          8,087,916      12,641,904     17,924,989   21,156,736
    Adjustments:
    Change in fair
     value of
     derivative
     instruments        3,344,611        (108,669)     3,233,996     (164,076)
    Stock-based
     compensation       2,324,109              --      2,324,109           --
    NON-GAAP NET
     INCOME           $13,756,636     $12,533,235    $23,483,094  $20,992,660

    NON-GAAP Earnings
     per share:
    Basic                   $0.48           $0.50          $0.88        $0.84
    Diluted                 $0.47           $0.50          $0.87        $0.84

    Weighted average
     number of shares
     outstanding:
    Basic              28,367,934      25,000,050     26,683,992   25,000,050
    Diluted            29,202,495      25,000,050     27,101,273   25,000,050



                     DUOYUAN PRINTING, INC. AND SUBSIDIARIES
                    (FORMERLY KNOWN AS ASIAN FINANCIAL, INC.)
    NON-GAAP CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
      FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2009, AND 2008
                                   (UNAUDITED)

                       Three months ended               Six months ended
                          December 31,                    December 31,
                       2009           2008              2009          2008
    REVENUES, net  $42,408,047    $36,837,283       $75,702,970   $63,016,714
    COST OF
     REVENUES       19,513,694     16,609,073        35,302,085    28,939,825
    GROSS PROFIT    22,894,353     20,228,210        40,400,885    34,076,889
    RESEARCH AND
     DEVELOPMENT
     EXPENSES          532,685        490,084           896,844     1,184,601
    SELLING
     EXPENSES        3,768,614      2,952,037         6,924,990     5,498,952
    GENERAL AND
     ADMINISTRATIVE
     EXPENSES        1,591,178      1,344,637         3,081,376     2,276,335
    INCOME FROM
     OPERATIONS     17,001,876     15,441,452        29,497,675    25,117,001
    CHANGE IN
     FAIR VALUE OF
     DERIVATIVE
     INSTRUMENTS
    OTHER INCOME
     (EXPENSE), net
    Non-operating
     expenses                        (956,936)                       (956,936)
    Interest
     expense          (211,737)      (213,664)         (446,126)     (426,739)
    Interest
     income and
     other income       40,280         35,708            71,927        69,187
    Other expense,
     net              (171,457)    (1,134,892)         (374,199)   (1,314,488)
    INCOME BEFORE
     PROVISION FOR
     INCOME TAXES AND
     NONCONTROLLING
     INTEREST       16,830,419     14,306,560        29,123,476    23,802,513
    PROVISION FOR
     INCOME TAXES    2,849,832      1,604,339         5,258,478     2,531,130
    NET INCOME      13,980,587     12,702,221        23,864,998    21,271,383
    Less: Net
     income
     attributable
     to non-
     controlling
     interest          223,951        168,986           381,904       278,723
    NET INCOME
     ATTRIBUTABLE
     TO DUOYUAN
     PRINTING, INC. 13,756,636     12,533,235        23,483,094    20,992,660
    OTHER
     COMPREHENSIVE
     INCOME
    Foreign currency
     translation
     gain                1,810        308,470           185,027       564,737
    COMPREHENSIVE
     INCOME
     ATTRIBUTABLE
     TO DUOYUAN
     PRINTING,
     INC.          $13,758,446    $12,841,705       $23,668,121   $21,557,397
    BASIC
     WEIGHTED
     AVERAGE
     NUMBER
     OF SHARES      28,367,934     25,000,050        26,683,992    25,000,050
    DILUTED
     WEIGHTED
     AVERAGE
     NUMBER
     OF SHARES      29,202,495     25,000,050        27,101,273    25,000,050
    BASIC
     EARNING
     PER SHARE           $0.48          $0.50             $0.88         $0.84
    DILUTED EARNING
     PER SHARE           $0.47          $0.50             $0.87         $0.84

SOURCE Duoyuan Printing, Inc.