SHENZHEN, China, May 13, 2011 /PRNewswire-Asia-FirstCall/ -- Sino Assurance Inc. (OTCBB: SNAS) today reported solid first quarter 2011 financial result highlighted by strong earnings growth, an increase of 85% in net revenue and 180% in net income attributable with 90% gross margin.

Net revenue

Net revenue for the three months ended March 31, 2011, was $3,496,915 as compared to $1,894,270 for the same period in 2010. The increase of $1,602,645 or approximately 85% was due to significant year-over-year growth of our customer base in the tender and surety guarantee business and market share in China. The gross margin increased to 90% from 82% for the three months ended March 31, 2011, due to tightening of control of our cost of sales. As a result, the cost of sales decrease for the period and the percentage of the guarantee fee income substantially increased.

Net income before tax

Net income before tax for the three months ended March 31, 2011 was $2,157,647 compared to $765,942 for the same period in 2010, an increase in pre-tax income of $1,391,705, or approximately 182%. The increase in pre-tax net income was a result of the fact that we tightened control of our selling, general and administrative expenses during the period, and also employed more agents to promote our guarantee business which resulted in an increase in guarantee fee income from bank referrals.

Net income

Net income for the three months ended March 31, 2011 was $1,636,888 compared to $584,903 for the same period in 2010, an increase in net income of $1,051,985, or approximately 180%. GAAP earnings per diluted share for the first quarter of 2011 were $0.03, as compared to $0.01 for the first quarter of 2010.

Operating expenses

Total operating expenses were $1,001,997 for the three months ended March 31, 2011, as compared to $782,427 for the same period in 2010. The increase of $219,570 or 28% was primarily due to the increase in staff costs, provision for guarantee losses, rent and rate, audit fee and other professional fee.

LIQUIDITY

For the three months ended March 31, 2011, cash provided by operating activities totaled $2,279,066. This was primarily due to the net income for the period plus increase in deferred revenue and income tax payable, partially offset by the increase in guarantee fee receivables, prepayments and other receivable and decrease in accounts payable.

For the three months ended March 31, 2011, cash provided by investing activities amounted to $2,658,268. The receipt of funds was mainly due to the receipts from loans receivable, partially offset by the payment on loan receivable, purchase of plant and equipment and the change in restricted cash, net of customer collateral.

Financial Outlook

Management believes that the opportunities for sustained growth in revenue and earnings will be largely associated with the customer demand for the financial services provided by the Company, which primarily take the form of credit guaranty. Other elements expected to drive the growth in revenue include the potential impact of the regulatory governance of the credit guaranty market and development of the company's new personal credit products and services.

Management believes that for the year 2011, the company will generate earning per share $0.16 to $0.17, with revenue projection of $23 to $24 million.

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as 'will,' 'believes,' 'expects' or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at [ http://www.sec.gov ] .

For more information, please contact:

Company Contact:
Wei Wei, Assistant to CFO
Sino Assurance,Inc.
Tel: +86-755-8252-3518
Email: [ wei_wei@snas.cc ]

Investor Contact:
Eric Tong, Chief Finance Officer
Tel: +86-755-8252-5568
Email:[ tongmengyou@gmail.com ]

SINO ASSURANCE INC. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2011 AND DECEMBER 31, 2010 (Currency expressed in United States Dollars ("US$"), except for number of shares)
	March 31, 2011		December 31, 2010
	(Unaudited)		(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	12,071,541	$	7,074,893
Restricted cash		14,374,397		13,050,117
Guarantee fee receivable		25,251		18,003
Loans receivable, unsecured		-		2,842,001
Prepayments and other receivable		299,459		262,127
Total current assets		26,770,648		23,247,141

Non-current assets:
Plant and equipment, net		514,703		410,807
TOTAL ASSETS	$	27,285,351	$	23,657,948

LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Accounts payable, trade	$	28,639	$	130,209
Customer collateral		10,069,025		8,830,517
Deferred revenue		1,025,031		915,847
Amount due to a related party		62,004		61,614
Income tax payable		554,898		529,447
Deferred tax liabilities		1,864,774		1,422,843
Accrued liabilities and other payable		1,661,463		1,455,009
Total current liabilities		15,265,834		13,345,486

Commitments and contingencies

Stockholders' equity:
Common stock, $0.001 par value; 200,000,000 shares authorized; 60,200,000 shares issued and outstanding as of March 31, 2011 and December 31, 2010		60,200		60,200
Additional paid-in capital		2,970,045		2,970,045
Accumulated other comprehensive income		539,004		468,837
Statutory reserve		332,153		332,153
Retained earnings		8,118,115		6,481,227
Total stockholders' equity		12.019,517		10,312,462
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	27,285,351	$	23,657,948

SINO ASSURANCE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (Currency expressed in United States Dollars ("US$")) (Unaudited)
	Three months ended March 31,
	2011		2010
REVENUES, NET
Guarantee fee income	$	3,466,370	$	1,871,679
Interest income		30,545		22,591

Total revenues, net		3,496,915		1,894,270

COST OF REVENUE		(337,271)		(345,901)

GROSS PROFIT		3,159,644		1,548,369

Operating expenses:
Depreciation		(26,577)		(29,524)
Selling, general and administrative		(785,186)		(645,249)
Reserve for guarantee losses		(190,234)		(107,654)
Total operating expenses		(1,001,997)		(782,427)

INCOME BEFORE INCOME TAXES		2,157,647		765,942

Income tax expense		(520,759)		(181,039)

NET INCOME	$	1,636,888	$	584,903

Other comprehensive income:
- Foreign currency translation gain		70,167		794

COMPREHENSIVE INCOME	$	1,707,055	$	585,697

Net income per share – Basic and diluted	$	0.03	$	0.01

Weighted average shares outstanding – Basic and diluted		60,200,000		60,000,000

SINO ASSURANCE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (Currency expressed in United States Dollars ("US$")) (Unaudited)
	Three months ended March 31,
	2011		2010
Cash flows from operating activities:
Net income	$	1,636,888	$	584,903
Adjustments to reconcile net income to net cash provided by(used in) operating activities:
Depreciation		33,377		29,524
Loss on disposal of plant and equipment		206		-
Reserve for guarantee losses		190,234		107,654
Unrealized interest income		-		(20,561)
Deferred tax expense		431,632		114,180
Changes in operating assets and liabilities:
Guarantee fee receivable		(7,113)		(103,666)
Prepayments and other receivable		(35,564)		(39,680)
Accounts payable, trade		(102,096)		2,074
Deferred revenue		103,069		113,308
Income tax payable		22,026		32,890
Accrued liabilities and other payable		6,407		(32,159)

Net cash provided by operating activities		2,279,066		788,467

Cash flows from investing activities:
Change in restricted cash, net of customer collateral		(58,819)		2,677
Receipts from loans receivable		7,946,208		-
Payment on loans receivable		(5,094,546)		(1,148,332)
Proceeds from disposal of plant and equipment		137		-
Purchase of plant and equipment		(134,712)		(115,730)

Net cashprovided by(used in)investing activities		2,658,268		(1,261,385)

Effect of exchange rate changes in cash and cash equivalents		59,314		97

NET CHANGE IN CASH AND CASH EQUIVALENTS		4,996,648		(472,821)

CASH AND CASH EQUIVALENT, BEGINNING OF PERIOD		7,074,893		559,105

CASH AND CASH EQUIVALENT, END OF PERIOD	$	12,071,541	$	86,284

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	$	35,241	$	29,118
Cash paid for interest	$	-	$	-

SOURCE Sino Assurance, Inc.

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Sino Assurance Inc. (OTC: SNAS). Reports First Quarter 2011 Revenue and Earnings Growth

Sino Assurance Inc. (OTC: SNAS). Reports First Quarter 2011 Revenue and Earnings Growth