China Gengsheng Minerals, Inc., China’s leading manufacturer of mineral-based and heat-resistant industrial materials, conducting its business through the BVI-registered subsidiary Gengsheng International Corporation and its Chinese subsidiaries, reported its unaudited financial results for the third quarter of 2009.
In the third quarter ended September 30, 2009, company’s sales revenue made US$14.9 million – that is 16% growth from the same period of 2008. The company also reported 39.5% increase of net income attributable to company’s stockholders – in Q3 2009 it was US$1.7 million. Net income margin was 11.2% compared to 9.3% in the third quarter of 2008.
Diluted Earnings per Share were $0.07 against $0.05 in the third quarter of 2008. Also, at September 30, 2009 cash on hand was US$1.9 million. Cost of sales for the third quarter made US$10.7 million, a 21.7% increase compared to US$8.8 million in the same period of 2008. Gross profit was US$4.2 million, which is a 3.6% increase from the third quarter of 2008. Selling expenses made US$1.5 million. General and administrative expenses were $1.1 million; operating expenses were $2.6 million – a 5% decrease from Q3 2008.
Income before taxes and non-controlling interest was approximately $1.71 million in the third quarter of 2009, compared to US$1.28 million in 2008. The increase is primarily attributable to an increase in sales and other income.
As one of the main developments for the reported period, the company announced the invention of a new type of castable which is a breakthrough in industrial material technology. Also, in September the company received US$337,000 subsidy from the Henan Provincial Government for purposes of the development and commercialization of its new product line, the fine precision abrasives.