China Carbon Reports 2009 Financial Results and Reaffirms 2010 Guidance
April 19 2010 - 1:15PM
China Carbon Graphite Group, Inc. ("China Carbon" or the "Company")
(OTCBB:CHGI), one of China's leading non-state-owned producers and
wholesale suppliers of fine grain and high purity graphite,
announces today its financial results for the fiscal year ended
December 31, 2009 and reaffirms 2010 guidance.
Fiscal Year 2009 Highlights
Full-year Results (USD)
|
|
|
|
|
|
(Years ended December 31)
|
2009
|
2008
|
Revenue
|
$27.3 million
|
$15.3 million
|
Gross Profit
|
$2.17 million
|
$6.69 million
|
GAAP Net Income (Loss)
|
$(1.47) million
|
$3.98 million
|
Adjusted Net Income
|
$(.18) million*
|
$3.98 million
|
GAAP EPS (Basic and Diluted)
|
$(0.16)
|
$0.21
|
Adjusted EPS (Basic and Diluted)
|
$(0.01)*
|
$0.27
|
-
Annual net revenue decreased 43.7% year-over-year due to unusual
89% decline in sales of low purity graphite electrodes during the
fourth quarter of 2009, which represented approximately 35% of our
sales in 2008; residue effect of the closure of our facilities for
two months;
-
*Excluding non-cash charges reflecting stock-based compensation,
the change in fair value of warrants issued and deemed preferred
dividend, Non-GAAP net loss attributable to common stockholders in
2009 was $(182,000), with diluted net earnings per share of
$(0.01);
-
Positive cash flow from operations of $1.9 million despite
facility closure;
-
Completed a private placement offering of $3 million in
aggregate in December 2009 and January 2010 with institutional
investors.
Recent Development
-
Completed capacity expansion from 15,000 tons to 26,000
tons;
-
Signed a letter of intent to acquire Chiyu Carbon Graphite Ltd.,
a down-stream producer of graphite products.
Fiscal Year 2010 Guidance
For years ending December 31st (in USD, millions)
Fiscal Year
|
Adjusted Net Income *
|
Adjusted EPS*
|
2010E without acquisition
|
$5.1
|
$.25**
|
2009 A
|
(.16)
|
.01
|
2008 A
|
3.98
|
.27
|
*Excluding change in fair value of warrants issued, deemed
preferred dividend and stock based compensation.
**Based on 20 million weighted average shares outstanding.
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong
Carbon Co., Ltd., manufactures carbon and graphite based products
in China. The Company is the largest wholesale supplier of fine
grain and high purity graphite in China and is one of the nation's
top overall producers of carbon and graphite products. Fine grain
graphite is widely used in smelting for colored metals and
rare-earth metal smelting as well as the manufacture of molds. High
purity graphite is used in metallurgy, mechanical industry,
aviation, electronic, atomic energy, chemical industry, food
industry and a variety of other fields. In September 2007, the
Company was approved and designated by China's Ministry of Science
& Technology as a "National Hi-tech Enterprise." Of the 400
plus carbon graphite producers in China, China Carbon is the only
non-state-owned company which has received this honor. For more
information, visit http://www.chinacarboninc.com. Any information
on the Company's website or any other website does not constitute a
part of this press release.
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the Company's business and that of its subsidiaries.
These forward looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions. Such forward looking statements involve known
and unknown risks and uncertainties that may cause actual results
to be materially different from those described herein. Investors
should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on its website (www.sec.gov). All
forward-looking statements attributable to the Company or to
persons acting on its behalf are expressly qualified in their
entirety by these factors. The Company does not assume a duty to
update these forward-looking statements.
CONTACT: NUWA Group
Investor Relations:
925-330-8315
China Carbon Graphite Group, Inc.
Investor Relations:
ir@chinacarboninc.com
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