China Shuangji Cement Ltd a leading producer of high quality Portland cement in Shandong and Hainan Provinces, PRC announced its financial results for the Q3 ended September 30th 2009 which included an increase in both revenues and net income for the period.
Third Quarter Highlights:
1. Revenues for the three month period ended September 30th 2009 increased USD 935,481, or 7.07% from USD 13,225,008 to USD 14,160,489 for the comparable period in 2008
2. Net income was USD 807,827 for the three month period ended September 30th 2009, compared to USD 761,400 for the three month period ended September 30th 2008 an increase of USD 46,427, or 6.10%
3. Cement sales increased approximately 0.64% from 407,244 tonnes to 409,832 tonnes from the prior period in 2008
4. Selling and Administrative expenses for the three month period ended September 30th 2009 decreased USD 88,836 or 19.24%, from USD 461,838 to USD 373,002 for the comparable period in 2008
5. Other Income Expense was reduced to USD 22,241 for the Q3 from USD 287,468 for the same period in 2008, a reduction of 92%
6. Shareholder equity increased to USD 35,380,889 at September 30th 2009 from USD 30,907,077 at December 31st 2008
7. The Company's newly acquired plant at Longkou increased its annualized production rate from 300,000 tonnes to 500,000 tonnes.
Mr Wenji Song Chairman and President of China Shuangji Cement Ltd said that "We were pleased with our results for the Q3. The challenging economic climate, combined with the closing of our Zhaoyuan plant had a slight impact on results. However, our new plant in Longkou and sales from inventory were able to offset the impact."
He said that "Since the Chinese government has mandated the elimination of 250 million tonnes of outdated cement production capacity by 2010, we expect that industry consolidation will accelerate and market share and industry profits will be further consolidated among stronger companies, like China Shuangji Cement, Ltd. Organic growth of the cement industry in PRC should deliver solid operating results in the coming years. Approximately 300 cement plants will be closed in Shandong Province. Therefore, we expect that additional value will be created through acquisition opportunities. Management is positioning the Company accordingly."
Mr Jun Song CEO of China Shuangji Cement Ltd said "Our financial results reflect our continued efforts to reduce our costs while maximizing profits for our shareholders. We dramatically reduced administrative costs and slashed our interest expense. Our top priorities, which include the modernization of our physical plant operations and our financial control systems, are key to creating the long term growth we expect for our Company."
