CINS Holding Corp. Reports Fiscal 2012 Financial Results

/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES/

HONG KONG, April 30, 2013 /CNW/ - CINS Holding Corp. ("CHD" or the "Company") is pleased to announce its financial results for the last quarter and year ended December 31, 2012.

On August 31, 2012, CHD completed a reverse acquisition transaction with CINS Holding Limited ("CINS"). Pursuant to the transaction, CHD purchased all of the issued and outstanding CINS shares in exchange for issuing an aggregate of 19,387,083 common shares, 63,131,687 special warrants, and 3,996,770 share purchase warrants to the shareholders of CINS.  The Company's stock is currently listed on the Canadian National Stock Exchange ("CNSX").

After the reverse acquisition, CINS became a wholly owned subsidiary of CHD. CINS wholly owns Dongguan CINS Technology Limited ("DCT"), a wholly foreign owned enterprise in China with a registered capital of USD $600,000. DCT is an online game software development company with strong research and development capability.  DCT owns a game engine called "Yufeng" which is a proprietary software package serving as the underlying foundation for various online games that are either under development or still in the initial phases of conception.  DCT also holds the rights to a proprietary database and server deployment technology intended to enhance online gaming security and data integrity.

As at December 31, 2012, the Company carried all business activities through DCT to develop online game software and to provide technical supports to a customer.

Due to the relatively short history of operation, the Company has not generated revenue for the year ended December 31, 2012.  The Company incurred $1,564,473 in operating expenses for the year ended December 31, 2012 (2011: $165,475).

The net loss and comprehensive loss for the year ended December 31, 2012 were $1,564,392 and $1,579,898, respectively (2011: net loss of $165,447 and comprehensive loss of $170,064).

The operating expenses for the period consisted of the following:

			From incorporation
	Year ended		on April 6, 2011 to
	December 31, 2012		December 31, 2011
	$		$
Selling expenses	73,212		26,632
Salary, director fee and benefits	632,260		26,728
Amortization	139		45
Share-based payments	33,488		-
Professional fee	203,937		-
Research & development expenses	164,064		88,008
Rent and utilities	106,898		12,624
Office expense	65,784		5,120
Travel and entertainment	92,476		-
Vehicle and transportation	14,505		131
Listing expense	86,657		-
Filing, transfer agent and business license	26,957		-
Other expense	59,707		2,399
Bank charges	1,716		436
Foreign exchange loss (gain)	2,673		3,352
	1,564,473		165,475

The operating expenses of $1,564,473 incurred in the year ended December 31, 2012 were significantly higher than those incurred in the period from incorporation on April 6, 2011 to December 31, 2011. The increase in operating expenses was mainly attributed to salaries, office rent, non-recurring expenses such as professional fees and listing fees paid in connection with the reverse acquisition of CINS and the listing of the Company's common shares on CNSX.

The Company incurred selling expenses of $73,212 in the year ended December 31, 2012 to market its technical support and online game development services.

Compared with 2011, salaries, director fees and benefits increased substantially as the Company recruited new employees in 2012 and incurred additional salaries and fees for senior officers and directors.

The share-based payment of $33,488 was a non-cash item that represented fair value of options granted in 2012.

The Company incurred $203,937 in professional fees in connection with the reverse take-over transaction and the listing on CNSX.

The Company continued to invest in research and development. The $164,064 (2011: $88,008) research and development expenses were salaries and benefits paid to game developers.

The Company incurred $106,898 in rent for its operations in Guangzhou and Dongguan, PRC in 2012 to accommodate increased number of staff.  The Company also incurred office expenses of $65,784, travel and entertainment expenses $92,476, and vehicle and transportation expenses of $14,505 as it expanded its operation.

Of the listing expenses of $86,657 incurred in 2012, $62,690 was a non-cash item related to the valuation of the premium paid by CINS in connection with the reverse take-over transaction. The filing, transfer agent and business license expenses of $26,957 were the expenses incurred as a public company.

The following table provides selected financial information of the Company for the past quarters:

	For the quarters ended
	December 31, 2012	September 30, 2012	June 30, 2012		March 31, 2012
Total interest revenues	$35	$41	-		$5
Net loss	$(475,651)	$(463,478)	$(466,247)		$(159,016)
Basic and diluted loss per share	$(0.03)	$(0.02)	$(0.03)		$(0.01)
	For the quarters ended		From incorporation
	December 31, 2011	September 30, 2011	on April 6, 2011 to June 30, 2012
Total interest revenues	$28	-	-
Net loss	$(99,529)	$(65,918)	$(3,000)
Basic and diluted loss per share	$(0.01)	$(0.00)	$(0.00)

The net loss incurred in the quarter ended December 31, 2012 was comparable with the two preceding quarters. The quarterly losses were mainly attributed to salaries, office rent, non-recurring listing expenses in connection with the reverse acquisition of CINS and the listing of the Company's common shares on CNSX.

As of December 31, 2012, the Company had current assets in the amount of $50,194 with $17,702 in cash (December 31, 2011: current assets of $91,414 with $88,861 in cash).  The Company had current liabilities of $576,066 as of December 31, 2012 (December 31, 2011: $130,624).  As of December 31, 2012, the Company had a working capital deficiency of $525,872 (December 31, 2011: $39,210).

The Company had an accumulated deficit of $1,729,839 as at December 31, 2012 (December 31, 2011: $165,447). The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary debt and equity financing to achieve its operating and developing objectives, and the Company's future profitable operations.

CINS Holding Corp. currently has 21,387,083 common shares issued and outstanding.

On behalf of the Board of Directors

CINS Holding Corp.
"Sam Wang"
Chief Financial Officer and Director

Forward Looking Information

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. The forward-looking information is based on certain assumptions, which could change materially in the future. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. The forward-looking information represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date.

The Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: CINS Holding Corp.

please visit the website at www.sedar.com to view the CINS' profile. To contact CINS by telephone: [phone]; FAX: [phone]; and email [email protected].