China Gengsheng Minerals, Inc., a materials technology company making its business through its BVI-registered subsidiary Gengsheng International Corporation, announced its unaudited financial results for the first quarter ended March 31, 2009.
For the first quarter of the year, the company reported sales in the amount of $12.4 million, compared with $9.6 million in the same period of 2008. Gross profit was $3.8 million, compared with $3.6 million in the same period of 2008. Gross margin made 30.3%, compared with 37.0% in the first quarter of 2008, and 22.3% in the fourth quarter of 2008.
Selling expenses in the first quarter of 2009 were $1.5 million ($1.4 million in the same period of 2008), showing higher sales level. General and administrative expenses were $2.6 million ($2.1 million in the same period of 2008). The company reported net income of $954,000, or diluted earnings per share in the amount of $0.04, compared with $1.2 million, or diluted earnings per share of $0.05 in the first quarter of 2008.
By March 31, 2009, China Gengsheng Minerals had total cash and cash equivalents of $3.8 million, compared with $955,732 at the end of the year 2008. Total shareholders’ equity increased from $43.3 million at December 31, 2008 to $44.2 million at March 31, 2009. Also, by this date the amount of total shares outstanding on a fully diluted basis was 24.2 million.
Among other achievements, the company named a $5.5 million supply contract with PetroChina’s Changqing Oilfield, signed on May 15, 2009. Also, in May 2009 the wholly owned subsidiary of the company, Henan Gengsheng Refractories Co., Ltd., has been designated the National High & New Tech Enterprise (HNTE), meaning it will receive easier business terms from Chinese government. On April 29, the company announced it has signed a full-service contract with Zibo Zhang Steel Co., Ltd. in Shandong Province, and the value of this contract is estimated to be approximately $2.9 million per year.