China Sun Group High-Tech Co. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended February 29, 2012
April 13, 2012 at 08:39 am EDT
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China Sun Group High-Tech Co. announced unaudited consolidated earnings results for the third quarter and nine months ended February 29, 2012. For the quarter, the company reported net revenues of $11,268,804 against $13,359,930 a year ago. Income from operations was $3,297,958 against $3,666,837 a year ago. The decrease was due to the decrease in gross profit in the company's PRC subsidiaries. Income before income taxes was $3,318,508 against $3,681,368 a year ago. Net income was $2,448,743 or $0.04 per basic and diluted share against $2,659,680 or $0.05 per basic and diluted share a year ago. 100% of the net revenue decrease was attributed to a decrease in sales of older product cobaltosic oxide. Sales of cobaltosic oxide totaled 235 tons and $6.8 million, a decrease of 69 tons and $2.7 million, or 23% in quantity and 28% in dollar value, from 304 tons and $9.5 million for the comparable period in 2011. Sales of LIP totaled 230 tons and $4.4 million, an increase of 25 tons and $0.6 million, or 12% in quantity or 16% in dollar value, from 205 tons and $3.8 million for the comparable period in 2011.
For the nine months, the company reported net revenues of $33,471,067 against $37,753,217 a year ago. Income from operations was $9,746,839 against $8,727,418 a year ago. Income before income taxes was $9,800,950 against $8,810,231 a year ago. Net income was $7,265,641 or $0.13 per basic and diluted share against $6,030,414 or $0.11 per basic and diluted share a year ago. Net cash provided by operating activities was $7,997,816 against $6,616,317 a year ago. Purchase of plant and equipment was $2,750,564 against $52,513 a year ago.
China Sun Group High-Tech Co. (CSGH) through its operating subsidiaries, is engaged in the production of cobaltosic oxide and lithium cobalt oxide, both anode materials for lithium ion batteries. The Company provides a range of cobalt products, such as battery cobalt carbonate, nano-level cobaltosic oxide and high-crystallinity ball lithium cobalt oxide. Its products are cobaltosic oxide (Co3O4) and lithium iron phosphate (LiFePo4). During the fiscal year ended May 31, 2010 (fiscal 2010), it began producing lithium iron phosphate and planned to convert five of its twelve production lines to the production of lithium iron phosphate. As of May 31, 2010, the Company had seven production lines for the production of cobaltosic oxide and lithium cobalt oxide and five production lines for the production of lithium iron phosphate. As of May 31, 2010, the Companyâs subsidiaries included Dalian Xin Yang Hi-Tech Development Co. and Dalian Xinyang High-Tech Development Co. Ltd (DLXY).