Mr. Qiming Xu, Chairman and Chief Executive Officer, commented, "We are pleased to report solid results for the start of 2011. Our sales momentum is continuing as we dedicated more resources to marketing and advertising to support the Xiniya brand. The promotional efforts of our spokesperson, Jacky Cheung, and our partial sponsorship of his 'Half Century' concert tour, coupled with our first national television campaign as a public company on two of China's leading national channels, helped to propel impressive results during the quarter. Xiniya's ongoing sales momentum was evidenced by the 29% sales increase at our most recent bi-annual sales fair held in April. Our brand remains vibrant and we expect to continue to deliver solid results for the rest of the year."

First Quarter 2011 Results

Revenue for the first quarter of 2011 was RMB159.3 million, compared with revenue of RMB122.4 million for the first quarter of 2010, which represented a 30.1% increase. Revenue was driven by volume growth of 9.2%, with the number of units sold increasing from 1.0 million in the first quarter of 2010 to 1.1 million in the first quarter 2011. ASP increased by 19.2% from RMB118.1 in the first quarter of 2010 to RMB140.8 in the first quarter of 2011, of which approximately 11% was attributable to a change in our product mix, and an increase in materials and labor costs (which was passed on to consumers in the form of higher prices) accounted for approximately 8%.