CORRECTION/ China Carbon Reports 2009 Financial Results
April 20 2010 - 8:52AM
China Carbon Graphite Group, Inc. (OTCBB:CHGI) announced today that
it is correcting a previous press release, China Carbon Reports
2009 Financial Results and Reaffirms 2010 Guidance, issued on April
19, 2010, to clarify that management has provided information about
the steps being taken to bring the Company's 2010 results closer to
the Company's 2010 make good provision instead of providing
guidance. The complete, corrected release follows:
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, announced today its financial results for the fiscal year
ended December 31, 2009 and outlined the steps being taken to bring
the Company's 2010 results closer to the Company's make good
targets.
Fiscal Year 2009 Highlights
Full-year Results (USD)
|
|
|
|
|
|
(Years ended December 31)
|
2009
|
2008
|
Revenue
|
$15.3 million
|
$27.3 million
|
Gross Profit
|
$2.17 million
|
$6.69 million
|
GAAP Net Income (Loss)
|
$(1.47) million
|
$3.98 million
|
Adjusted Net Income
|
$(0.18) 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 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. Management is working
on finishing the due diligence to complete the acquisition.
Fiscal Year 2010 Make Good Provision
In connection with the private placement offering in December
2009 and January 2010, the Company agreed to certain covenants in
the event that the Company did not meet the performance target for
fiscal year ended December 31, 2010 of net income of at least $5.1
million ("Make Good"). For more information, visit
http://sec.gov/Archives/edgar/data/1284450/000121390009003775/f8k122209ex99i_chinacarbon.htm.
The Company completed the capacity expansion in March 2010. With
the increased capacity, the Company will focus its production on
fine grain graphite and high purity graphite and reduce the
production of graphite electrodes, which is the product line
severely affected by the slowdown in steel industry. The Company
will also strengthen its marketing effort to improve the sales on
fine grain graphite and high purity graphite. The Company also
signed a letter of intent to acquire a down-stream manufacturer
that uses fine grain graphite and high purity graphite as raw
materials. The Company believes that these steps will bring the
2010 performance closer to the make-good target.
For years ending December 31st
|
Adjusted Net Income *
|
|
Fiscal Year
|
(in USD, millions)
|
Adjusted EPS*
|
2010 Make Good Provision
|
$5.1
|
$0.25**
|
2009 A
|
(0.18)
|
(0.01)
|
2008 A
|
3.98
|
0.27
|
*Excluding change in fair value of warrants issued, deemed
preferred dividend and stock based compensation.
**If we achieve the make-good target, the adjusted earning per
share is expected to be $0.25 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
![](http://www.globenewswire.com/newsroom/ti?nf=MTYwIzE4OTIwOSMxMDE2Mw==)
China Carbon Graphite (CE) (USOTC:CHGI)
Historical Stock Chart
From Jun 2024 to Jul 2024
China Carbon Graphite (CE) (USOTC:CHGI)
Historical Stock Chart
From Jul 2023 to Jul 2024