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[September 2009]
Ceramic Valve Supplier Boosts Revenues & Profits
Shengkai Innovations Inc (Tianjin, China), a leading industrial ceramic valve supplier in China, has announced its financial results for the year ended 30 June 2009.
Revenue for the year increased by 21.5% to $39,297,235, compared to $32,355,693 for the comparable period in 2008. The increase was primarily attributable to the broadening of the company’s customer base and increased orders from existing customers.
Gross profit for the year increased by 25.5% to $24,029,991, compared to $19,144,085 for the comparable period in 2008. The gross profit margin increased to 61.1% from 59.2% for the comparable period in 2008 due to slight upward adjustment of the selling price during the year.
General and administrative expenses increased by 25.4% to $2,474,872, compared to $1,973,331 for the comparable period in 2008. The increase was primarily attributable to increases in research and development.
Net income increased $3,490,655 or 34.6% to $13,577,694, up from $10,087,039 for the comparable period in 2008.
The company had approximately $39 million in cash and cash equivalents on 30 June 2009. Shareholders' equity was approximately $55.5 million, with total assets of approximately $60.3 million and total liabilities of approximately $4.7 million. For the fiscal year 2009, the company generated $15,889,016 in cash from operations, an increase of $5,988,231 or 60.5% from $9,900,785 for the comparable period in 2008.
"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," commented Chen Wang, Chief Executive Officer of Shengkai.
In March 2009, the company broke ground on its new headquarters. The facility is expected to measure 33,000 square metres, including 20,000 square metres of manufacturing space and 10,000 square metres of office space. The company expects to complete the project by the second quarter of calendar year 2010.
ENDS