Sancon Announces 2011 Second Quarter Results
(firmenpresse) - SHANGHAI, CHINA -- (Marketwire) -- 08/22/11 -- Sancon Resources Recovery, Inc. (OTCBB: SRRY) (or "Sancon"), a growing environmental services and waste recycling company with operations in both China and Australia, announced today results for its 2011 second quarter ended June 30, 2011.
On April 1, 2011, Sancon approved an infusion of equity in to Sancon Resources Recovery (Shanghai) Co., Ltd. ("Sancon SH") for a total of USD 2,000,000, of which Sancon invested USD1,400,000 to Sancon SH and the minority shareholder invested USD 600,000. After completion of this transaction, ownership % remains unchanged.
Revenue increased 14% to $6.97 million
Gross profit of $2.73 million, a gross margin of 39%
Net Income of $0.69 million, a net margin of 10%
EBITDA of $0.7 million, or $0.02 per share.
The Company generated revenue of $6.97 million in the 2011 second quarter, representing $836,962 or 14% increase compared to $6.14 million in the 2010 second quarter. Revenue from China operation increased $892,500 or 19% from $4.8 million in 2010 second quarter to $5.7 million in 2011 second quarter. Revenue from Australia operation has decreased $55,538 or 4% from $1,346,260 in 2010 second quarter to $1,290,722 in 2011 second quarter. The increase in revenue in China operation is partially because of the acquisition of the newly started waste paper and cardboards collection business from June 2010.
Gross profit decreased $296,347 or 10% to $2.73 million in the second quarter 2011 from $3.02 million in the second quarter 2010. Gross profit of China operation decreased $359,448 or 16% from $2.28 million in 2010 second quarter to $1.92 million in 2011 second quarter. The increase of raw material in our waste paper collection business is the main reason for the decrease of gross profit. However, our management believes the gross margin will be increased along with the expansion of the market in waste paper collection. In Australia, gross profit increased $63,101 or 8% from $743,604 in 2010 second quarter to $806,705 in 2011 second quarter. Gross margin decreased from 50% in the 2010 second quarter to 39% in the 2011 second quarter.
Net income for 2011 second quarter was $0.69 million, or $0.03 basic and diluted earnings per share, compared to $1.10 million or $0.05 basic and diluted earnings per share one year ago. Net income of our China operation decreased $0.34M or 29% from $1.15M in 2010 first quarter to $0.81M in 2011 first quarter. Net income of our Australia operation decreased $63,800 or 124% from $51,088 in 2010 second quarter to $114,888 for the same period in 2011. The high wage expenses and consulting fee result in the decrease of net income in Australia.
At June 30, 2011, the Company had cash and cash equivalents totaling $6.98 million, total assets of $11 million, working capital of $6 million and stockholders' equity of $8.13 million. The Company generated $1.31 million in net cash from operating activities for the six months ended June 30, 2011.
"We are pleased with our continued increase in revenue in 2011 second quarter. However, our gross profit and net income has dropped. That is mainly due to the poor performance in our Australia operation and small scale of waste paper business in China," said Jack Chen, Sancon's Chief Executive Officer. "We have recently changed the management in our Australia operation and we are working hard to turn it around in the next quarter. In China, we've installed additional equipments which will triple our daily waste paper processing capacity. By expanding the waste paper business rapidly within a short period, we can negotiate a better pricing and increase our margin."
Sancon Resources Recovery, Inc. is an environmental service company specializes in the collection, processing, and selling of the reprocessed waste material such as plastic, metal, paper, cardboard, glass etc. The recycled materials are re-used by Sancon's manufacturing clients to make a wide variety of new products that include outdoor furniture, construction materials, building materials, packaging materials, and various other products. The use of recycled raw materials is both environmentally friendly and an important method to lower production costs for manufacturers to stay competitive. Sancon also invests in the renewable energy area by sponsoring the development of biofuel production technique that thrives on the supplies of carbon dioxide. Sancon currently has recycling plants based in Melbourne Australia and China. For more information please visit:
The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
Contact:
Sancon Resources Recovery, Inc.
Ms Amy Ping Li
+86 21 6775 6099
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 22.08.2011 - 12:42 Uhr
Sprache: Deutsch
News-ID 1032591
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
SHANGHAI, CHINA
Phone:
Kategorie:
Plastics and fibers
Anmerkungen:
Diese Pressemitteilung wurde bisher 259 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Sancon Announces 2011 Second Quarter Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Sancon Resources Recovery, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
