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[November 2007]
China GengSheng Minerals Reports Q3 Figures
China GengSheng Minerals Inc (Gongyi, China) has announced financial results for the three-month period ended on 30 September 2007.
For Q3 2007, the company reported revenues of US$10.3 million, an increase of 46.5% compared to the US$7 million reported for the same period last year. Gross profit for Q3 2007 was US$4.5 million, or 43.8% of net revenues, compared to gross profit of US$2.9 million, or 41.2% of net revenues, for the same period last year. Total operating expenses were US$1.9 million for Q3 2007 compared to US$1.6 million in total operating expenses for Q3 2006. Net income for Q3 2007 was US$2.1 million compared to US$1.2 million for Q3 2006.
For the nine-month period ended on 30 September 2007, the company reported revenues of US$28.8 million, an increase of 52.6% compared to US$18.9 million reported for the same period last year. Gross profit for the first nine months was US$11.7 million compared to US $7.5 million for the same period last year. Total operating expenses were US$5.7 million for the first nine months period compared to US$4.3 million for the same period last year. Net income for the first nine months was US$5 million compared to US$3.1 million for the same period last year.
The company fell short of it sales goal for Fracture Proppant a new product launched in Q2 this year. However, the company's cost containment efforts and higher than expected sales for its other products made up the shortfall in net income created by lower Fracture Proppant sales. The company expects that new Q4 purchase commitments for Fracture Proppant combined with its cost containment efforts along with continued demand for its other products and other business activities will enable it to meet its net income goal for 2007.
CGM is a mineral-based manufacturer whose products include monolithic refractories, industrial ceramics and fracture proppant. CGM conducts business through Gengsheng International Corporation and its Chinese subsidiaries: Henan Gengsheng Refractories Co Ltd, ZhengZhou Duesail Fracture Proppant Co Ltd and Henan Gengsheng High-Temperature Materials Co Ltd
ENDS