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Tengtu International Reports First Quarter Financial ResultsTORONTO & BEIJING --(Business Wire)-- Dec. 7, 2004 -- Tengtu International Corp. (OTCBB: TNTU) has filed its form 10-Q for the first quarter of fiscal 2005 ending September 30, 2004 with the Securities and Exchange Commission. Revenue for the first quarter of fiscal 2005 was $200,000, compared to $426,000 for the first quarter of fiscal 2004. Net loss for the first quarter of fiscal 2005 was $1.0 million, or $0.01 per share, versus a loss of $666,000, or $0.01 per share, for the same period last year. Dr. Liu, interim chairman of Tengtu United, stated, "Since starting a new fiscal year, we have made further progress toward putting the company on solid footing to lead the development of the market for distance learning in the People's Republic of China. Not only are we near completion of the reorganization of the finance and accounting departments but also we signed contracts for RMB $27.5 million, or U.S. $3.3 million, under the Western Rural School Project, Phase II of the Jiangxi Central Rural Schools Distance Learning Project, and others projects. We remain encouraged by our prospects for growth in the western rural school market as well as the Education Resource for Microsoft(R) Office." Established in 1996, Tengtu International Corp. is the leading provider of integrated education software and distance learning solutions in the People's Republic of China. Its wholly owned subsidiary has been chosen by China's Ministry of Education to be the operating partner in the deployment of China's national education portal and distance learning network (CBERC) to make computerized education available to 250 million students in China's primary and secondary schools. For more information please visit WWW.TENGTU.COM. To be added to Tengtu's email list for company news, please send your email address to [email protected]. Portions of this document include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the company's ability to achieve projected results are described in the company's annual report on form 10-K and other reports filed with the Securities and Exchange Commission. -0- *T Tengtu International Corp. and Subsidiaries Consolidated Statements of Operations (unaudited) Three Months Three Months Ended Ended September 30, September 30, 2004 2003 --------------- ------------- SALES $ 200,351 $ 425,843 COST OF SALES $ 47,159 $ 193,224 -------------- ------------- 153,192 232,619 -------------- ------------- OPERATING EXPENSES Research and development 164,004 - General and administrative 549,974 475,275 Related party consultants 164,030 84,321 Collection provision 3,823 17,022 Advertising - - Selling 248,932 322,899 Depreciation 16,584 7,296 -------------- ------------- 1,147,347 906,812 -------------- ------------- Operating Income (994,155) (674,193) OTHER INCOME (EXPENSE) Equity earnings (loss) in investee (35,549) (22,991) Interest income 19,130 370 Interest expense (94,718) (35,731) Other income 27,151 59,576 Other expense - 6,619 -------------- ------------- (83,986) 7,843 -------------- ------------- Income (Loss) before minority interests (1,078,141) (666,350) Income Tax 15% Minority interest in subsidiaries'- Income (Loss) (65,116) -------------- ------------- Net Income (Loss) $ (1,013,025)$ (666,350) ============== ============= WEIGHTED AVERAGE NUMBER OF SHARES: Basic 102,792,110 70,230,120 Common stock equivalents --------------- ------------- Diluted 102,792,110 70,230,120 ============== ============= EARNINGS (LOSS) PER COMMON SHARE: Basic (0.01) (0.01) Diluted (0.01) (0.01) Tengtu International Corp. and Subsidiaries Consolidated Balance Sheets (unaudited) As of As of ASSETS September 30 June 30 ------------ ----------- CURRENT ASSETS 2004 2004 ------------ ----------- Cash and cash equivalents 1,507,503 2,358,536 Accounts receivables, net 1,009,440 1,033,658 Prepaid expenses 214,345 74,778 Inventories 343,870 511,119 Other receivables 511,239 173,150 ------------ ----------- Total Current Assets 3,586,397 4,151,240 ------------ ----------- ------------ ----------- PROPERTY AND EQUIPMENT, net 180,669 197,253 ------------ ----------- OTHER ASSETS Long-term Investment 1,194,111 1,229,660 1,194,111 1,229,660 ------------ ----------- TOTAL ASSETS 4,961,177 5,578,153 ============ =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable 783,518 619,937 Accrued expenses 3,581,963 3,292,601 Prepaid revenue from customers 510,976 482,404 Due to related party consultants 1,207,714 1,207,714 Short-term loan 2,051,279 1,973,159 Other liabilities 299,561 398,033 ------------ ----------- Total Current Liabilities 8,435,011 7,973,847 ------------ ----------- Minority interest 12,627 77,742 COMMITMENTS (Note 9) STOCKHOLDERS' EQUITY Preferred stock, par value $.01 per share; authorized 10,000,000 shares; issued -0- shares 0 0 Common stock par value $.01 per share; authorized 150,000,000 shares; issued 109,057,213 shares (2004-110,706,914); outstanding 108,978,793 shares (2004-110,628,494) 1,089,788 1,106,285 Additional paid in capital 85,194,983 85,178,486 Accumulated deficit (89,790,588)(88,777,563) Accumulated other comprehensive income (loss): Cumulative translation adjustment 20,140 20,140 ------------ ----------- (3,485,677) (2,472,652) Less: Treasury stock, at cost, 78,420 common shares (784) (784) ------------ ----------- Total Stockholders' Equity (3,486,461) (2,473,436) ------------ ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 4,961,177 5,578,153 ============ =========== *T |
