China Carbon Graphite Group, Inc. Expects to Report Strong Sales Momentum for the First Quarter of 2011
May 05 2011 - 9:23AM
China Carbon Graphite Group, Inc. (OTCBB:CHGI) ("China Carbon" or
the "Company"), the largest wholesale supplier of fine-grain and
high-purity graphite in China and one of the nation's top
manufacturers of carbon and graphite products, today announced that
the Company anticipates reporting a considerable increase in
revenue for the first quarter of 2011 as compared with the same
quarter of 2010.
China Carbon's preliminary, unaudited revenue during the first
quarter of 2011 was approximately $11.6 million USD, reflecting an
increase of approximately $6.7 million USD or 138%, when compared
to revenue of $4.8 million during the first quarter of 2010. This
substantial improvement in revenue is due to its doubled capacity
and the significant increase in the sales of its high margin
products.
Industrial Minerals recently reported that the price range for
industry standard large flake high carbon graphite has risen from
$2,050-$2,500 per ton to $2,275-$3,000 per ton. In the third and
fourth quarters of 2010, China Carbon accurately projected that the
per ton graphite price would increase within this range.
Anticipating these price increases, after securing a $27 million
USD loans from the Construction Bank of China, China Carbon
purchased additional levels of inventory and paid advances to
suppliers to lock in the price of its raw materials. This
well-timed strategic move has China Carbon expecting improved gross
margins for the first quarter of 2011 as well as considerable full
year increases.
The notable rise in the commodity prices associated with carbon
graphite is being driven in large part by the mounting demand for
carbon graphite, which is in turn being driven by increased
manufacturing associated with global economic growth. At this time,
China Carbon plans to accommodate by expanding its current
operations and the Company estimates that the construction of its
new baking plant—which is expected to boost its annual production
capacity from 30,000 tons to 60,000 tons—will be completed by June
2011 and fully operational by August 2011, subject to potential
delays involved in construction, installation or production
involved in the development of a new manufacturing facility. The
Company is currently running at 100 percent capacity.
China Carbon plans to file its Form 10-Q containing first
quarter 2011 results by May 16, 2011.
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong
Carbon Co., Ltd., manufactures graphite and carbon based products
in China. The company is 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.
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 the Ministry of Science
& Technology as a "National Hi-tech Enterprise," a distinction
which the Company still holds. Of the more than 400 carbon graphite
producers in China, China Carbon is the only non-state-owned
company to receive this honor. For more information, please visit
www.chinacarboninc.com.
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the business of the Company and its subsidiary
companies. 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 as anticipated, believed, estimated or expected. 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 the risk factors set forth in the
Company's annual report on Form 10-K.
CONTACT: Investor Contact:
Mr. Kevin Fickle, English Speaking
NUWA Group, LLC
Tel: +1-925-330-8315
Email: Kevin@nuwagroup.com
Company Contact:
Mr. Kevin Ma, Mandarin Speaking
China Carbon Graphite Group, Inc.
Tel: +1-415-571-3640
Email: qma@nuwagroup.com
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