Florida corporation SinoCoking Coal and Coke Chemical Industries, Inc., engaged in coal and coke production in central China, owning its assets and making its operations through its subsidiary Top Favour Limited, which is a British Virgin Islands company, and through China-based subsidiaries, announced its financial results for the third quarter ending March 31, 2010.
In the reported period, company’s revenues decreased by 2%, from US$15.6mln in the third quarter of 2009 to US$15.2mln. The reason for this is mainly the coal product revenue decrease.
Operating expenses, which consisted of selling expenses and general and administrative expenses, increased by US$1,196,141, or 443.9%, and $920,542, or 70.6% in the three and nine-month periods ending March 31, 2010, respectively, compared to the same periods ending March 31, 2009. This was mainly due to the reverse acquisition transaction with the company formerly known as Ableauctions.com, Inc., and BVI holding company Top Favour Limited. Excluding the effect of the one-time acquisition-related costs, operating expenses decreased by US$15.644 for the third quarter ended March 31, 2010, compared to the same quarter of the previous year.
The company reported gross profit decrease by US$1,596,333, or 22.1 percent, to US$5,641,605 in the three month period ending March 31, 2010 from $7,237,938 in the corresponding period ending March 31, 2009. Adjusted net income in the quarter ending March 31, 2010 decreased by 20% to approximately $3.0 million, from US$3.7 million in the same quarter of 2009, primarily due to the one-time acquisition-related expenses incurred by the Company in the amount of $1.2 million as described above.