China GengSheng Minerals Achieves Record Revenue of $16.7 million for 3rd Quarter 2010
19 November 2010
China GengSheng Minerals, Inc, a leading China-based high-tech industrial materials manufacturer reported its revenue increased 12.2% year-over-year and 11.6% quarter-over-quarter to approximately $16.7 million in the 3rd Quarter 2010.
The company announced that its gross profit increased by 17.1% to approximately $4.9 million, or 29.5% of total sales, compared with approximately $4.2 million, or 28.3% of total sales in the same period a year ago. Total operating expense increased to approximately $3.5 million, compared with approximately $2.6 million in the third quarter of 2009. Net income was approximately $0.9 million, or $0.04 per share, compared with approximately $1.7 million in the third quarter of 2009.
The company recently completed the commercial launch of fine precision abrasives product line, and began shipping product under its first three supply contracts.
"Our strong sales for the period were led by our fracture proppant business with significant growth in demand driven by increased drilling activity," said Mr. Shunqing Zhang, China GengSheng’s Chairman and Chief Executive Officer. "Additionally, the third quarter was notable for the launch and first commercial sales of our fine precision abrasives product line. In addition to the immediate contributions, the introduction of fine precision abrasives gives us access to the sizeable, fast-growing solar market and a number of large, high-profile potential customers.
"Given our strong domestic foothold, we are working aggressively to expand our presence internationally in order to capitalize on the significant, untapped potential in the overseas markets. To better position the Company to pursue sales opportunities and demand in the domestic and international fracture proppant market, we recently increased our annual production capacity to 75,000 metric tons. As the near-term outlook for the Chinese steel industry remains uncertain, we continue to ramp our fracture proppant business and recently introduced fine precision abrasives products. Both business segments represent large and growing market opportunities where we can readily expand our business," Mr. Zhang concluded.
For the nine months ended September 30, 2010, sales revenue was approximately $43.6 million, compared with approximately $41.7 million for the nine months ended September 30, 2009.