China Minerals Technologies, Inc. Announces Revenues for Its Wholly Owned Subsidiary Powersmart Holdings Limited of $8.5 Million
July 13 2007 - 5:56PM
PR Newswire (US)
GONGYI, China, July 13 /PRNewswire-FirstCall/ -- China Minerals
Technologies, Inc. ("CMT") (OTC:CMIT.OB) (BULLETIN BOARD: CMIT.OB)
announced financial results for the three-month period ended on
March 31, 2007 for its wholly owned British Virgin Islands ("BVI")
subsidiary, Gengsheng International Corporation ("Gengsheng
International"), formerly Powersmart Holdings Limited, which CMT
acquired on April 25, 2007 through a reverse merger transaction.
Quarter to Quarter Comparison For the three-month period ended on
March 31, 2007, Gengsheng International reported revenues of $8.5
million, an increase of 69.4 % compared to $5.0 million reported
for the same period last year. Gross profit for the three months
ended March 31, 2007 was $3.4 million, or 39.4% of net revenues,
compared to gross profit of $1.9 million, or 38.1% of net revenues
for the same period last year. Total operating expenses were $1.8
million for the three-month period ended on March 31, 2007, or
21.5% of net revenues, compared to $1.1 million in total operating
expenses, or 22.0% of net revenues for the same period last year.
Net income for the three-month period ended on March 31, 2007 was
$1.3 million, or 14.8% of net revenues, compared to $0.8 million,
or 15.0% of net revenues for the same period last year. Gengsheng
International had $2.1 million in unrestricted cash and cash
equivalents as of March 31, 2007 compared to $0.4 million on
December 31, 2006. Working capital as of March 31, 2007 was $12.8
million compared to $11.5 on December 31, 2006. CMT is a
mineral-based manufacturer whose products include monolithic
refractories, industrial ceramics and fracture proppant. Monolithic
refractories serve as heat resistant protective linings in
industrial furnaces and other heavy machinery used in the steel,
iron, cement, glass and aluminum industries. Ceramic products are
heat and erosion resistant, which are used to house high voltage
switches and fuses and to transfer liquids, solids and gases.
Fracture proppant is used in operating oil wells to release trapped
oil allowing it to be extracted to the earth's surface. CMT
conducts business through Gengsheng International and its Chinese
subsidiaries: Henan Gengsheng Refractories Co., Ltd., Zhengzhou
Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng
High-Temperature Materials Co., Ltd. Powersmart Holdings Limited
Name Change. CMT also announced that it has filed a certificate
with the Registry of Corporate Affairs, BVI Financial Services
Commission, to change the name of Powersmart Holdings Limited to
"Gengsheng International Corporation," effective as of June 6,
2007. The purpose of the name change is to achieve consistency in
names between CMT's BVI subsidiary and CMT's primary Chinese
subsidiary, Henan Gengsheng Refractories Co. Ltd. FORWARD LOOKING
STATEMENTS This release may contain certain "forward-looking
statements" relating to the business of China Minerals
Technologies, Inc. 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. You 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 (http://www.sec.gov/). All forward- looking
statements attributable to China Minerals Technologies, Inc. or to
persons acting on its behalf are expressly qualified in their
entirety by these factors other than as required under the
securities laws. China Minerals Technologies, Inc. does not assume
a duty to update these forward-looking statements. CONTACT: Mr.
Denis Tontodonato (704) 562 0082 China Minerals Technologies, Inc.
DATASOURCE: China Material Technologies, Inc. CONTACT: Mr. Denis
Tontodonato of China Minerals Technologies, Inc., +1-704-562-0082
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