China Carbon Graphite Group, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Reports Impairment Charges or the Third Quarter Ended September 30, 2013
December 02, 2013 at 02:15 pm EST
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China Carbon Graphite Group, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported sales of $2,721,723 compared to $6,491,133 a year ago. Operating loss before other expense was $6,001,793 compared to operating income before other income of $592,014 a year ago. The decrease was mainly due to decreased sales commission and lower shipping and handling expenses during the three months ended September 30, 2013 as compared to the three months ended September 30, 2012. Loss before income tax expense was $6,888,099 compared to $798,650 a year ago. Net loss was $6,888,099 compared to $798,650 a year ago. Net loss available to common shareholders was $6,887,273 or $0.26 per share diluted compared to $803,187 or $0.03 per share diluted a year ago. The decrease in sales was mainly due to industry-wide demand weakness for products as a result of continued struggles of steel manufacturers. In particular, demand for fine grain graphite and high purity graphite products remained extremely low during the third quarter with sales decreasing 64.9% and 57.0% to $0.94 million and $1.19 million, respectively. Sales of graphite electrodes decreased 54.2% to $0.36 million while sales of semi-processed and other types of products declined 12.6% to $0.24 million.
For the nine months, the company reported sales of $8,496,893 compared to $28,429,886 a year ago. The decrease in sales was mainly due to industry-wide demand weakness for products as a result of continued struggles of steel manufacturers. Demand for fine grain graphite and high purity graphite products was particularly weak for the nine months ended September 30, 2013 with sales decreasing 73.9% and 77.6% to $3.25 million and $2.69 million, respectively. Sales of graphite electrodes also decreased by 41.1% to $2.02 million. Sales of semi-processed and other types of products grew 1.3% to $0.53 million. Operating loss before other expense was $15,239,181 compared to operating income before other income of $4,200,395 a year ago. The decrease was mainly due to decreased sales commission and lower shipping and handling expenses during the nine months ended September 30, 2013 as compared to the same period of last year. Loss before income tax expense was $17,834,370 compared to income of $325,779 a year ago. Net loss was $17,834,370 compared to income of $325,779 a year ago. Net loss available to common shareholders was $17,842,569 or $0.69 per share basic and diluted compared to income of $311,599 or $0.01 per share basic and diluted a year ago. Net cash used in operating activities was $11,571,444 against net cash provided by operating activities of $538,078 a year ago. Acquisition of property, plant and equipment was $64,803 against $65,156 a year ago period.
The company also recorded impairment of property and equipment of $3.54 million for the third quarter of 2013.
China Carbon Graphite Group, Inc., formerly Achievers Magazine Inc., is engaged in the manufacturing of graphene, graphene oxide and graphite bipolar plates products. The Company also operates a business-to-business and business-to-consumers Internet portal, www.roycarbon.com, for graphite related products. Vendors can sell raw materials, industrial commodities and consumer (household) commodities to both business and consumers through the Website by paying a fee for each transaction conducted through the Website. Its business scope includes manufacturing and selling primarily the graphite products. The Company's customers primarily include international customers, which generally purchase products pursuant to purchase orders. The Company does not enter into long-term contracts with its customers. Its subsidiaries include Talent International Investment Limited, XingheYongle Carbon Co., Ltd., Golden Ivy Limited and Royal Elite International Limited.
China Carbon Graphite Group, Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Reports Impairment Charges or the Third Quarter Ended September 30, 2013