China GengSheng Minerals, Inc., China-based high-tech industrial materials manufacturer conducting business through GengSheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, announced its financial results for the second quarter ended June 30, 2012.
According to the issued financial results, company’s revenue decreased 4% year-over-year, and made approximately $19.6 million. Gross profit was $3.1 million (15.6% of total sales), compared with approximately $5.3 million (26.1% of total sales) in the second quarter of 2011.
In the second quarter ended June 30, 2012 there was the increase of total operating expenses to approximately $5.0 million, as compared to $4.5 million in the second quarter of 2011. General and administrative expenses increased by $307,000 to $1.9 million in the second quarter of 2012 (compared to $1.6 million in the same period of 2011). Finance costs increased by $379,000, or 24.1% to $2.0 million, as compared to $1.6 million in the second quarter of 2011.
Net loss attributable to the company was approximately $3.8 million, or $0.14 per share, compared with $247,000, or $0.01 per share in the second quarter of the previous year.
As of June 30, 2012, China Gengsheng reported cash and cash equivalents of approximately $5.2 million, total equity of approximately $47.3 million, and working capital of $5.3 million.
China Gengsheng’s Chairman and CEO Mr. Shunqing Zhang commented on the financial results for the second quarter of the year: “Our sales recovered gradually from the disappointing first quarter as we stabilized refractory products sales and re-positioned our sales of fracture proppant products to the domestic market… While rising costs continued to put pressure on our bottom line number, we still have confidence in our ability and readiness to capture new market opportunities.”