China BAK expects that FY10 revenue will fall in the range of $270 million to $310 million, which, at the low point of the range, will represent a 28% growth from FY09, and that bottom line of FY10 will be break-even to slightly profitable.
Going forward, our primary focus will be on building our insurance services utilizing our well known site, www.soobao.cn, which continues to be an important part of the insurance landscape, at a time when internet usage in China continues to grow very substantially. ... However, the long term success of the Company will rest with the progress we make in developing our internet services and the extent to which we can support these services with the chain insurance supermarket entity we continue to envision.
Based on stronger demand from our existing and new clients, we are raising our previous forecast for full fiscal year 2010 revenue to a range of $15 million to $16 million, a 40% to 45% increase over FY 2009 revenue, and net income to a range of $2.8 million to $2.9 million, a 25% to 30% increase over FY 2009 net income. We previously forecasted our revenue to be between $12.7 million and $13.3 million, net income between $2.5 million and $2.7 million.
There has been some discussion among shareholders about our mention in the last quarterly conference call of a possible future $30 million funding. I wish to clarify that we have no specific plans at this time for any sort of additional funding. That number surfaced in response to a theoretical question about potential acquisitions that would grow the company's business. We believe there are some outstanding acquisition possibilities available to us. In the event that we have an opportunity to make a valuable acquisition that would immediately add value for our shareholders, it is conceivable that some sort of funding would be required. But there is nothing specifically planned at this point and, in any case, we have no intention of taking any action that would be inappropriately dilutive or harmful in any way to our shareholders.
Zhongchai Machinery announced that its Chinese subsidiary Zhejiang Zhongchai Machinery Co. (ZZM) has received the Business Operation License from local Chinese authority to setup a limited liability company, Xinchang Lisheng Casting Co., in Xinchang, China. This new company will produce casting products, such as engine block, gearbox case, and driving axle case for power, transmission, and driving axle for industrial, agricultural, and construction equipment. It will take about 12 to 15 months to establish the initial production and it is expected that the new company will produce the high-end casting products in the end of this 2010 or in the beginning of 2011. There are shortages in China for high-end casting facilities for the key components of the equipment in the fast growing economy in China. In order to receive the approval from various government agencies, ZZM has to meet many regulations and standards to protect the environment. ZZM will own 60% of newly formed company and responsible for its operation and management. The company believes that this operation will significantly increase its revenue and profitability.