 |
 |
||||||
[January 2009]
Shengkai Innovations Announces Strong First Quarter
Shengkai Innovations Inc (Tianjin, China), a market leader in the design, manufacture and sales of ceramic valves, the manufacture and sales of high-tech ceramic materials, technical consultation and services, and the import and export of ceramic valves and related technologies, announced first quarter 2009 financial results ended 30 September 2008.
Revenue for first fiscal quarter (to 30/09/08) increased 39.2% to US$9,197,247, compared to US$6,605,357 for the first quarter of 2007. The increase was partially attributable to the company's successful expansion in the petrochemical and chemical industry, its biggest potential market.
Gross profit for the first fiscal quarter increased 42.7% to US$5,589,673, compared to US$3,915,770 for the first quarter of 2007. The gross profit margin increased to 60.8% from 59.3% for the comparable period in 2007.
General and administrative expenses for the first fiscal quarter increased 62.8% to US$596,486 compared to US$366,377 for the comparable period in 2007. The increase was primarily attributable to increases in research and development.
Net income for first fiscal quarter increased 51.5% to US$3,126,317 compared to US$2,069,056 for the first quarter of 2007. The company had US$28.7 million in cash and cash equivalents on 30 September. Shareholders' equity was US$45.0 million, with total assets of US$48.4 million and total liabilities of US$3.4 million. For the first quarter of fiscal year 2009, the company generated US$3.2 million in cash from operations.
"The demand for our portfolio of industrial ceramic valve products continues to be strong. We are pleased with the progress we've made this year in expanding in the petro-chemical industry, and we look forward to demand continuing to grow as the advantages of ceramic valve over metal valve become more widely accepted across industries," said Chen Wang, CEO of Shengkai Innovations.
ENDS