China Carbon Graphite Reports Q3 2010 Financial Results

Nov. 16, 2010 - China Carbon Graphite Group, Inc., the largest wholesale supplier of fine grain and high purity graphite in China and one of the nation's top overall producers of carbon and graphite products, today reiterated its financial results for its third-quarter ended September 30, 2010.
Third Quarter 2010 Highlights
Revenue was $9,979,707, up 78.8% from the same quarter of 2009.
Gross profit was $2,474,084, up 62.2% from the third quarter of 2009 with gross margin of 24.8%, slightly decreased 2.5% from 27.3% for the third quarter of 2009.
Net income was $1,900,563, an increase of $965,298 or 100% from the third quarter 2009, and earnings per diluted share were $0.09 based on 21,435,161 shares.
Third Quarter 2010 Results
Q3 2010 Q3 2009 CHANGE
Revenue $9.97 million $5.58 million +78.8%
Gross profit $2.47 million $1.52 million +62.3%
Net Income $1.9 million $0.94 million +100%
EPS (Diluted)*$0.09 $0.06 +50%
* Weighted average shares outstanding (diluted) for Q3 2010 was 21,435,161 and for Q3 2009 was 15,085,202.
"We are pleased to announce solid financial results and robust growth in the quarter," Donghai Yu, CEO of the Company commented. "Our Third Quarter results came in strong as anticipated, we experienced 78.8% growth in our revenues year over year. Due to our long production cycle, in the quarter, we began to deliver most of the orders we received at the beginning of this year. We expect to see increased demand in higher margin ultra purity graphite electrode, fine grain and high purity graphite product lines. We see this demand extending through 2010 and into 2011, primarily due to anticipated growth in the automobile, aerospace, defense, iron and steel industries in China. Thus far, in 2010, we have doubled our capacity from 15,000 tons to 30,000 tons. We have also begun construction on a new 30,000 ton facility to meet the increasing demands of our customers. Additionally, we have sufficient capital to fund all of our raw material needs for our new capacity expansion through our RMB 180 million loan from China Construction Bank."