Xinde Tech (WTFS) research, news, and more from GeoInvesting

Company description

Thu, 14 Jan 2010 05:00:00 GMT

On December 28, 2009 closed a share exchange agreement, or the Exchange Agreement, with Jolly Promise Limited (Jolly’s wholly-owned subsidiary, Hong Kong Sindhi Fuel Injection Company Limited).

Hong Kong Sindhi Fuel Injection Company Limited operates in one business segment, the design, development, manufacture, and commercialization of fuel injection pumps, injectors, multi-cylinder diesel engines and small generator units mainly in the People’s Republic of China. However, our products compete in three primary product segments, namely (1) fuel injection system products, (2) diesel engine products and (3) generator products. We believe our broad range of products (including non-vehicle diesel engines, diesel generators, injection pumps, injectors and three-coupling components, and agricultural machinery and construction machinery) greatly reduces our comprehensive costs which in turn, increases our competitiveness.

Our Company is located in China’s Shandong Province in the city of Weifang, where many large and medium-sized diesel engine enterprises and relevant products and components manufacturers are located. Weifang is also an important traffic center on the east coast in northern China. We believe our location makes the purchase of raw materials and sales of our products very convenient and reduces the costs associated with sales while reducing freight costs.

We have developed fuel injection system products that we believe will meet the Euro III Emissions Standard, which will become most relevant in light of China’s initiative to implement the Euro III Emissions Standard in July 2010. Furthermore, we believe that we are China’s only company with exclusive intellectual property rights for fuel injection systems meeting such Euro III Emissions Standard which could lead to broad market appeal. Due to our strict technical standards and quality control in production process, our products have become well-known brands in their markets throughout China. Our Company has always placed quality control first and we received our ISO9001 certification in 2005. Moreover, our products have been deemed “inspection-free” goods. During China’s “Eleventh Five-Year Plan” (2006 through 2010), we intend to implement and pass ISO/TS16949 standards which are the most advanced in China’s automobile industry.

Comments & Business Outlook

Thu, 19 Apr 2012 04:00:00 GMT

WEIFANG, China, April 19, 2012 /PRNewswire-Asia/ -- With China constantly increasing its investment in agriculture and power supply becoming more of an issue with each passing day, Xinde Science and Technology Co., Ltd. (OTCBB: WTFS) independently developed the DG-T2 digital electronic speed regulator, which realizes closed-loop control of the engine speed according to the different service requirements of diesel engines. This system characterizes a flexible control method, higher precision and response ability, and a number of powerful functions. This product is characterized by: (1) product performance. Due to its low regulating ratio, the product can realize automatic transfer and be remotely controlled to the satisfaction of higher user's requirements; (2) advantage in price. The unit price of a electronic regulator with similar specifications sells for about RMB2,000/set. Our product is an assembly of electronic speed-regulating injection pump equipped with DG-T2 digital electronic speed regulators which sells for RMB1,500-2,000/set only; (3) easy to install and use; and (4) significant regional advantage. Weifang is an important diesel generator production base in China, where about 20 diesel engine manufacturers are situated. It is estimated that the production volume of diesel generators will reach 1,000,000 sets in 2012. 100,000 sets of DG-T2 digital electronic speed regulators that have been independently developed by us have been locally ordered and will realize sales revenue of USD31 million. Moreover, the market demand is far greater than our production capacity. In addition, our auxiliary products have also been used by some major engine enterprises listed in China, such as Weichai Power, Emei Engine and Jianghuai Engine.

Comments & Business Outlook

Mon, 16 Apr 2012 04:00:00 GMT

WEIFANG, China, April 16, 2012 /PRNewswire-Asia/ -- Weifang Hengyuan Oil Pump and Nozzle Co., Ltd., a subsidiary company wholly owned by Xinde Science and Technology Co., Ltd. (OTCBB: WTFS), was granted two utility model patents No. ZL2011.20083260.1 for the injection pump regulator and No. ZL2011.20083263.5 for clockwise regulator.

The patented speed regulator is an automatic regulator used in diesel engine, which can automatically increase or decrease the oil volume according to the change in the load on diesel engine and thus diesel engine can runs at a stable speed of rotation. This not only lengthens the service life of diesel engine but makes it same more energy.

Traditional speed regulator, due to simple structure, realizes the maximum speed regulator via the limit screw closely matched to tension board, so its maximum speed is fixed to one value, and automatic regulation cannot be realized according to actual working condition at the time of rectification or regulation, and it is also inconvenient for manual rectification or regulation.

Our utility model fully resolves such technical defect of original speed regulator and is more reasonably structured, it can automatically regulate the maximum speed limit and has convenient manual regulation with much stable speed of rotation. Moreover, this product applies to various diesel engines for speed regulation

This patented product has simple structure, reliable transmission, rapid regulation and low cost.

Tradition clockwise regulator has automatic feedback and stable speed and a universal application, however, its structure is complicated and transmission is complex, unhelpful to enhance the system stability and reduce the whole unit cost.

Clockwise regulator is equipped with regulating knob and oil pump rod on the shell of diesel engine and fly ball assembly inside the shell, and so realizing simple and reliable transmission and rapid speed regulation.

Comments & Business Outlook

Wed, 15 Feb 2012 05:00:00 GMT

On February 14, 2012, Xinde (OTC BB: WTFS) released its financial report for the 3rd quarter of 2011-2012 fiscal year, in which it realized net profit of USD2,830,000, 19% up from the same period of last fiscal year.

Since the second half of 2011, as a result of the European debt crisis and China's internal structural adjustment, both international and domestic markets maintained continuous depression, our sales volume also declined greatly. In order to cope with the violently-changing market demand and in light of the actual situation, Xinde's board intensified efforts and exactly seized the opportunities and changes that the market variation brought to the Company, transformed the crisis to a turning point and ensured a stable growth of the Company's net profit. The measures taken included: (1) adjusting product structure on a large scale and improving product structure and quality; (2) adjusting production plan and production capacity according to customers' requests, and reducing and decreasing the stock balance; (3) intensifying efforts and profundity in the development of new product, and optimizing the serviceable range of product; (4) seeking domestic market demand, developing new customers with current customers maintained unchanged and maintaining a high market share; and (5) strengthening internal management, reducing and decreasing unnecessary expenditure and cutting down the fees and expenses in all respects.

Comments & Business Outlook

Thu, 25 Aug 2011 04:00:00 GMT

WEIFANG, China, August 25, 2011 /PRNewswire-Asia/ -- Xinde Technology Company (OTCBB: WTFS.OB), a widely respected China based designer and manufacturer of internal combustion engines and parts, primarily for the $100 billion diesel engine and parts market in China, announced today that two types of speed regulators developed by a Xinde Technology subsidiary for different types of generator pumps have each been awarded national patents.

According to the Company, the speed regulators were developed by Xinde subsidiary Hengyuan Pump and Nozzle Tip Co. The first patented regulator (patent number 201120083260.1), suitable for No.1 generators and engineering machinery pumps, offers a simple structure and ease of operation. The second product, a clockwise regulator (patent number 201120083263.5) is specially designed for BXD generator pumps and, with its clockwise-structured plunger valve, is different from anti-clockwise regulators while offering perfect function and stable performance.

"The granting of patents such as these," stated Mr. Dianjun Liu, President and Chief Executive Officer of Xinde Technology, "reflects very well on the innovativeness of our employees, builds customer trust in our technology and products, and contributes to a firm foundation for the Company's continuing expansion. We believe that successful innovation has been and will continue to be at the core of our success."

Comments & Business Outlook

Tue, 19 Jul 2011 04:00:00 GMT

WEIFANG, China, July 18, 2011 /PRNewswire-Asia/ -- Anticipating continuing rapid growth in China's economy, and following an extensive study of the diesel engine market, the Xinde Technology (OTCBB: WTFS) Board of Directors has approved plans for the development of a new line of Xinde Technology high-powered diesel engines. The Company, a widely respected China-based designer and manufacturer of internal combustion engines and parts, particularly for China's $100 billion diesel engine and parts market, now plans to produce non-road combustion engines with power ranging from 200KW to 1500 KW. These will be used primarily as marine engines, engineering machines, non-road generators, and machines for road construction, and will include 6-cylinder, 8-cylinder, 12-cylinder and 16-cylinder engine series.

Current Short Supply

According to Mr. Dianjun Liu, President and Chief Executive Officer of the Company, "The typical current customer wait for these higher powered engines is about is about six months, reflecting a very favorable supply/demand opportunity for us. Our goal is to produce 5,000 to 10,000 of the higher-powered engines annually, potentially generating revenues of RMB one billion ($154,294,793) with profit margins exceeding 20%. We already have begun initial preparation for this project and are aiming to see our first new high-powered products coming off the line in 2012."

Comments & Business Outlook

Mon, 27 Jun 2011 04:00:00 GMT

WEIFANG, China, June 27, 2011 /PRNewswire-Asia/ -- Xinde Technology Company (OTCBB: WTFS), a widely respected China based designer and manufacturer of internal combustion engines and parts, primarily for the $100 billion diesel engine and parts market in China, said today that currently it is initially planning to manufacture 1 million sets annually of its new diesel engine FIRCRI common rail electrically-controlled fuel injection system, which compares with domestic market demand of 3 million sets in 2010 and an estimated 4.5 million sets in 2011.

"By the time we anticipate our production will be in place, around the start of 2013 or a few months sooner, it is likely that domestic demand will be even higher," stated Mr. Dianjun Liu, President and Chief Executive Officer of the Company. "Given this outlook," he continued, "and the dramatic cost advantages of our product - - which we believe will be the only domestically manufactured product in the field - - we see very strong demand for it right from the start, as well as a significant contribution to our bottom line in year one of production, on revenues we believe could reach $250 million on sales of 1 million units."

"Beyond that," Mr. Liu said, "in succeeding years we see no reason why we couldn't achieve the 30% annualized growth in production we have achieved across the board with all of our products over time, particularly given the very strong government push we expect will continue to reduce severe pollution in Chinaand to optimize energy consumption. Further, we anticipate China will continue to be a significant utilizer of diesel engines for a wide variety of products."

Comments & Business Outlook

Thu, 30 Sep 2010 04:00:00 GMT

Xinde Tech announced today

Sharp increase in sales in its fiscal year ended June 30, 2010, which were up 56% year over year to approximately $123.3 million from approximately $78.8 million in fiscal 2009.

The Company attributed the gain primarily to the growth in the domestic economy which led to a dramatic increase in market demand which was coupled with successful marketing and the Company's optimization of its manufacturing capacity. The Company also noted that its technical ability permitted it to compete with environmentally friendly products for which demand has increased, in large part due to China's adoption of higher environmental standards.

A 39% increase in gross profits in the 2009 fiscal year which reached approximately $14.9 million compared with approximately $10.7 million in the fiscal year ended June 30, 2010.
Income from operations grew 20% from approximately $8.1 million to $9.7 million.
Net income for the year ended June 30, 2010, benefitted from a government refundable Value Added Tax (approximately $12.1 million) related to the Company's performance which contributed to a 241% year over year gain in net income to approximately $19.9 million. This compared with net income of $5.8 million in the fiscal year ended June 30, 2009.

The Company noted that higher raw material costs impacted year over year gross profit, while significantly higher general and administrative costs -- largely attributable to the Company's preparation for going public during the year -- impacted operating income. The Company added, however, that

Continuing Strong Growth Outlook

Mr. Dianjun Liu, President and Chief Executive Officer of the Company, stated, "In the current year, our focus is on continuing to expand our market penetration in China, particularly with sales of our higher margin products. We believe the Company is very well positioned for success with existing products, as well as products it has under development. For example, we believe our electronically controlled fuel injection systems can currently meet Euro III as well as Euro IV emissions standards -- and even higher standards through technological upgrading -- and will not come up against other Chinese manufactured products. With respect to generator products, the supply and demand situation in China clearly points to the potential for significant growth over the next ten years for our diesel generator sets. This includes an 'intelligent' generator set currently under development with a number of highly attractive 'green' feature." He added, "In the diesel engine product area we intend to strengthen our sales and marketing efforts in the international market and are devoting significant development effort to electronically controlled non-vehicle diesel engines. Our newest Xuaxin 'Zhongkang' product line has been meeting with great success, and we believe these smaller, lighter engines eventually may find a place in the automotive industry, in addition to their current uses."

Share Structure

Thu, 14 Jan 2010 05:00:00 GMT

Post Merger Share Calculation:

31,038,692: Pre reverse merger outstanding shares:
13,038,692: Shares cancelled as part of the Share Exchange:
42,000,000: Newly issued shares of Common Stock:

GeoTeam® best effort calculation of total post reverse merger outstanding shares assuming full conversions: 59,997,000

Reverse Merger Activity

Thu, 14 Jan 2010 05:00:00 GMT

On December 28, 2009 closed a share exchange agreement, or the Exchange Agreement, with Jolly Promise Limited (Jolly’s wholly-owned subsidiary).

Financials

Thu, 14 Jan 2010 05:00:00 GMT

For The Three Months Ended September 30 (Unaudited)
	2009			2008
Revenues	$	37,634,510		$	18,515,433
Cost of sales	$	31,642,335			16,140,415
Gross income	$	5,992,175		$	2,375,018
Sales, marketing and distribution	$	433,004		$	504,790
General and administrative expenses	$	293,212		$	296,431
Operating income	$	5,265,959		$	1,573,797
Other (expense) income, net		($5,263	)	$	2,972
Interest expenses, net		($106,323	)		($102,140	)
Income before income taxes	$	5,154,373		$	1,474,629
Income taxes expenses		($727,637	)		($457,545	)
Net income	$	4,426,736		$	1,017,084
Other comprehensive income	$	28,886		$	81,161
Comprehensive income	$	4,455,622		$	1,098,245

____________________________________________________________________________

For The Years Ended June 30 (Audited)
	2009			2008
Revenues	$	78,834,535		$	74,543,141
Cost of sales	$	68,142,558		$	66,650,955
Gross income	$	10,691,977		$	7,892,186
Sales, marketing and distribution	$	1,823,196		$	2,228,926
General and administrative expenses	$	769,673		$	961,150
Operating income	$	8,099,108			4,702,110
Other income, net	$	38,735		$	247,066
Interest expenses, net		($352,063	)		($237,029	)
Income before income taxes	$	7,785,780		$	4,712,147
Income taxes expenses		($1,946,938	)		($1,307,758	)
Net income	$	5,838,842		$	3,404,389
Other comprehensive income	$	130,167		$	831,961
Comprehensive income	$	5,969,009		$	4,236,350