TYM Asia Time Corp

Asia Time Corporation (Amex:TYM)�(�Asia Time�) today announced financial results for the second quarter ended June 30, 2008. Second Quarter Financial Highlights Revenue growth of 82.7% year-over-year to $38.1 million, compared with $20.9 million for the second quarter of 2007 71.1% increase in watch movements segment sales; and complete watch segment sales more than doubled year-over-year Net income of $3.2 million, or $0.11 per diluted share, compared with second quarter 2007 net income of $1.2 million, or $0.05 per diluted share �We are pleased to report another quarter of notable growth driven by increased sales of both our watch movements and completed watches,� said Kwong Kai Shun, Chairman and CEO of Asia Time. �We are expanding our capabilities in both our core quartz movements and complete watch and emerging mechanical watch business segments where we see significant growth opportunities. �In addition to diversifying and expanding our own quartz movement and complete watch product portfolio, as we go forward we plan to produce and assemble mechanical watch movements and complete watches for direct sales to international brand names. The high growth mechanical watch market is vastly under-supplied and requires highly sophisticated production and skilled labor. We believe we will be at an immediate competitive advantage by being one of the highly skilled volume producers of mechanical watches in China,� Mr. Kwong added. �During the second quarter we identified two potential acquisition targets. One of the targets is a full-range manufacturer of plastic and metal watch parts and the other is a supplier of analog watches. If we are to acquire the former, we believe it will contribute to our strategy of producing low-end quartz movements in-house. If we are to acquire the latter, we believe it will result in an increased production of mechanical watches.� 2008 Second Quarter Financial Results Net sales for the second quarter ended June 30, 2008 increased 82.7% to $38.1 million, compared with $20.9 million for the second quarter ended June 30, 2007. Second quarter gross profit more than doubled to $5.3 million, compared with $2.3 million for the second quarter of 2007. Gross margin was 13.8% for the second quarter of 2008, compared with 11.3% for the second quarter of 2007. The increase in gross margin was primarily attributable to an increase in sales of high-end products and improved economies of scale. Sales of watch movements increased 71.1% to $32.5 million for the second quarter of 2008 from $19.0 million for the second quarter of 2007. Sales of completed watches increased to $5.6 million for the second quarter of 2008 from $1.9 million for the second quarter of 2007. Administrative and other operating expenses totaled $727,000 for the second quarter of 2008, compared with $559,000 for the second quarter of 2007. The increase in the 2008 period was primarily due to an increase in professional fees related to reporting requirements as a public company and additional employees and upgraded staff benefits. Income taxes for the second quarter of 2008 were $669,000, or 1.8% of net sales, compared with $314,000, or 1.5% of net sales, for the second quarter of 2007. The increase in income taxes was primarily due to an increase in operating profit. The taxation rate decreased from 17.5% for the second quarter 2007 to 16.5% for the second quarter of 2008. Net income for the second quarter of 2008 was $3.2 million, or $0.11 per diluted share, based on 28.8 million weighted average shares outstanding. This compares with second quarter 2007 net income of $1.2 million, or $0.05 per diluted share, based on 25.4 million weighted average shares outstanding. Year-to-Date Financial Results Net sales for the six months ended June 30, 2008 increased 78.5% to $75.0 million, compared with $42.0 million for the period ended June 30, 2007. Gross profit for the first half of 2008 increased 96.6% to $11.0 million, compared with $5.6 million for the first half of 2007. Administrative and other operating expenses for the first half of 2008 totaled $2.3 million and included a stock-based business consulting fee of $700,000. This compares with administrative and other operating expenses of $2.6 million for the first half of 2007. The 2007 period includes a one-time recognition of $1.7 million of stock-based compensation pursuant escrow shares provided to Mr. Kwong related to a January 2007 private placement. Year-to-date net income was $5.7 million, or $0.21 per diluted share, based on 27.1 million weighted average shares outstanding. This compares with net income of $1.0 million, or $0.04 per diluted share, based on 24.6 million weighted average shares outstanding for the first half of 2007. Balance Sheet and Financing At June 30, 2008, Asia Time�s cash and cash equivalents totaled $1.8 million and total assets were $64.0 million. Working capital totaled $30.9 million. Financial Targets Asia Time reiterated its financial targets and expansion strategies: Target 30% growth in both revenue and net earnings for 2008 and 2009; Increase focus on the complete watch market in China; Expand sales force in China to reach the Eastern and Northern regions; and Pursue strategic acquisitions of China-based facilities for low-cost, in-house manufacturing capabilities. About Asia Time Corporation Asia Time is a watch movement and watch distributor headquartered in Hong Kong. The Company distributes watch movement components used in the manufacture and assembly of watches to a wide variety of timepiece manufacturers. Asia Time markets more than 350 products from over 30 vendors, including such market leaders as Citizen, Seiko and Ronda. For more information, please visit www.asiatimecorp.com. To be added to the Company�s email distribution for future news releases, please send your request to asiatime@finprofiles.com. Forward Looking Statements This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to, our dependence on a limited number of suppliers, cyclicality of our business, decline in the value of our inventory, significant order cancellations or delays, competitive nature of our industry, vulnerability of our business to general economic downturn, our ability to obtain all necessary government certifications and/or licenses to conduct our business, changes in the laws of the People's Republic of China that affect the Company's operations, costs and expenses related to our bond and warrant financing; development of a public trading market for the Company's securities, cost of complying with current and future governmental regulations and the impact of any changes in the regulations on the Company's operations and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The risks included here are not exhaustive. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. ASIA TIME CORPORATION (Formerly SRKP 9, Inc.) CONSOLIDATED BALANCE SHEETS (Stated in US Dollars) � � As of � June 30,2008 � December 31,2007 � (Unaudited) � (Audited) � $ � $ ASSETS Current Assets : Cash and cash equivalents 1,838,723 6,258,119 Restricted cash 7,955,331 8,248,879 Accounts receivable 20,922,873 14,341,989 Prepaid expenses and other receivables 14,547,132 7,704,999 Inventories, net 13,160,240 � 12,370,970 � � Total Current Assets 58,424,299 48,924,956 Deferred tax assets 29,895 29,929 Property and equipment, net 4,967,897 1,891,709 Leasehold lands - - Held-to-maturity investments 299,885 300,231 Intangible assets 27,975 48,012 Restricted cash 256,180 � 256,476 � � TOTAL ASSETS 64,006,131 � 51,451,313 � � LIABILITIES AND STOCKHOLDERS� EQUITY � LIABILITIES Current Liabilities : Accounts payable 695,098 1,310,809 Other payables and accrued liabilities 743,457 132,507 Income taxes payable 3,755,674 2,293,887 Bank borrowings 22,310,355 � 20,438,479 � � Total Current Liabilities 27,504,584 24,175,682 � Convertible bond payables 4,779,824 345,461 Deferred tax liabilities 56,888 � 56,953 � � TOTAL LIABILITIES 32,341,296 � 24,578,096 � � COMMITMENTS AND CONTINGENCIES STOCKHOLDERS� EQUITY Preferred stock Par value: 2008 � US$0.0001 (2007 - US$0.0001) Authorized: 2008 � 10,000,000 shares (2007 � 10,000,000 shares) Issued and outstanding: 2008 � 43,056 issued (2007 � 2,250,348 issued) 4 225 Common stock Par value: 2008 US$0.0001 (2007 � US$0.0001) Authorized: 100,000,000 shares Issued and outstanding: 2008 � 26,527,621 shares (2007 � 23,156,629 shares) 2,653 2,316 Additional paid-in capital 12,636,309 13,481,036 Accumulated other comprehensive income (71,190 ) (28,404 ) Retained earnings 19,097,059 � 13,418,044 � � TOTAL STOCKHOLDERS� EQUITY 31,664,835 � 26,873,217 � � TOTAL LIABILITIES AND STOCKHOLDERS� EQUITY 64,006,131 � 51,451,313 � ASIA TIME CORPORATION (Formerly SRKP 9, Inc.) CONSOLIDATED STATEMENTS OF OPERATIONS (Stated in US Dollars) � � Three months endedJune 30, Six months endedJune 30, 2008 � 2007 2008 � 2007 (Unaudited) (Unaudited) (Unaudited) (Unaudited) $ $ $ $ � Net sales � 38,122,896 � 20,869,437 � 74,948,144 � 41,987,579 Cost of sales (32,854,691 ) � (18,519,891 ) � (64,000,989 ) � (36,418,869 ) � Gross profit 5,268,205 2,349,546 10,947,155 5,568,710 Other operating income 25,894 48,281 51,557 96,778 Depreciation (307,338 ) (63,433 ) (614,911 ) (128,864 ) Administrative and other operating expenses, including stock-based compensation (727,196 ) � (558,857 ) � (2,310,387 ) � (2,605,263 ) � Income from operations 4,259,565 1,775,537 8,073,414 2,931,361 Fees and costs related to reverse merger - - - (736,197 ) Non-operating income 63,896 48,452 110,748 78,381 Interest expenses (423,204 ) � (274,990 ) � (1,024,838 ) � (514,419 ) � Income before taxes 3,900,257 1,548,999 7,159,324 1,759,126 Income taxes (668,663 ) � (314,204 ) � (1,480,309 ) � (716,871 ) � Net income 3,231,594 � � 1,234,795 � � 5,679,015 � � 1,042,255 � � Earnings per common share - Basic 0.13 0.05 0.23 0.05 - Diluted 0.11 � � 0.05 � � 0.21 � � 0.04 � � Weighted average common shares - Basic 25,698,807 23,156,629 24,879,527 22,686,183 - Diluted 28,809,386 � � 25,406,977 � � 27,053,765 � � 24,606,260 �