Asia Automotive Acquisition Corporation (AAAC) has reported the unaudited financials for its merger partner Hunan Tongxin Enterprise Co., Ltd., for the three and nine month periods ended September 30, 2007.
AAAC is a blank check company incorporated in June 20, 2005, for the purpose of effecting a merger, capital stock exchange, or other business combination with one or more operating business within the global automotive component industry that have their primary operating facilities located in China, India, or the Association of South Eastern Nations. On July 25, 2007, AAAC announced that it signed an Equity Acquisition Agreement with Tongxin Enterprise Co., Ltd. Pursuant to this agreement, AAC and Tongxin will merge into a new British Virgin Islands-domiciled company, Tongxin International, Ltd.
Tongxin Enterprise was established under in 1984 under Chinese corporate law. On November 2, 2000, Tongxin was converted into a stock holding company, and currently it is the largest private Chinese independent supplier of Engineered Vehicle Body Structures.
For the third quarter ended September 30, 2007, the reported revenue of Tongxin was approximately $21.8 million, - a 43% increase from $15.2 million for the same period in the previous year. Operating income made approximately $4.1 million, an increase of 41% from $2.9 million for the same period last year. Net income totaled approximately $2.5 million, that is 39% increase from $1.8 million for the same period in the prior year.
For the nine month period ended September 30, 2007, Tongxin had net income of $7.75 million, - a 102% increase from $3.83 million for the same period of the year 2006. Company's net income for the current period excludes one time costs of $230,000 for legal, accounting and audit fees associated with the proposed transaction with AAAC. Earnings before Interest and Tax payment made $14.6 million, or 23.2% of net revenues.
