China Architectural Engineering Announces Second Quarter
2010 Financial Results
ZHUHAI, China & NEW YORK, August 16, 2010 – China Architectural Engineering, Inc. (“CAE” or the
“Company”) (NASDAQ: CAEI), a provider of design, engineering, fabrication and installation of high-end
building envelope systems, today announced its financial results for the second quarter ended June 30, 2010.
Second Quarter 2010 Results
Revenues from contracts for the second quarter of 2010 were $5.7 million, a decrease of $24.9 million, or 81%,
from $30.6 million for the comparable period in 2009, mainly as a result of fewer projects, due to the declining
global construction activities and the Company’s suspension of international projects .
Gross loss was $0.4 million, compared to a gross profit $10.0 million for the second quarter of 2009. The
decrease in gross profit was primarily a result of increases in raw material, labor and administrative costs in
China, as well as adjustments made in accordance to the percentage-of-completion method of accounting
because of increases in estimated costs of current projects.
Selling, general and administrative expenses were $1.8 million for the second quarter of 2010, versus $6.1 million
a year ago. Payroll expenses accounted for approximately 44% of the total expenses, followed by depreciation
expenses of 8%, and rental expenses of 6%.
Interest expenses were $1.9 million for the second quarter ended June 30, 2010, an increase of $0.4 million from
$1.5 million a year ago. The increase was mainly due to the additional interest expense related to short-term bank
loans, as well as the increase in accretion of bonds interest discount.
Net loss was $3.3 million, or a loss of $0.06 per fully diluted share, compared to a net profit of $2.5 million, or
$0.05 per fully diluted share, for the comparable period in 2009.
Liquidity and Capital Resources
The Company had an unrestricted cash balance of approximately $0.6 million as of June 30, 2010, as