China GengSheng Minerals, Inc., a leading China-based industrial materials manufacturer conducting its business through the BVI-registered Gengsheng International Corporation, reported financial results for the second quarter ended June 30, 2010. In this period, company’s sales revenue was approximately US$15.0 million – 4.3% increase, compared with US$14.4 million in the same period of the previous year.
Gross profit for the second quarter, 2010, was approximately US$4.9 million, or 32.8% of revenue, compared with gross profit of approximately US$4.4 million in the second quarter of 2009. The reason for the increase in gross profit in the second quarter was the growth of sales prices of the company’s products, decrease in cost of raw materials, and increased revenues from full-service programs.
Total operating expenses of the company were approximately US$3.5 million, compared with US$2.5 million in the second quarter of 2009. Company’s selling expenses were US$1.8 million, an increase of $0.4 million, compared with selling expenses in the second quarter of 2009. The increase in selling expenses was related to increase in export sales of company’s fracture proppant products and activities associated with the launch of Gengsheng’s fine precision abrasives.
In the reported period, Company’s general and administrative expenses were US$1.4 million, compared with US$1.0 million in the second quarter of 2009. Research and development expenses made US$0.3 million – a US$0.1 million increase from the second quarter of 2009.
For the second quarter of 2010, the company reported decrease of income tax expense to approximately US$121,000, from US$282,000 million in the second quarter of 2009. Net income attributable to China Gengsheng’s common stockholders was approximately US$1.0 million, or US$0.04 per share, compared with net income of approximately US$2.0 million, or US$0.09 per share, in the second quarter of 2009.