NEW YORK, Nov. 17, 2009 (GLOBE NEWSWIRE) -- China Carbon Graphite Group, Inc. (OTCBB:CHGI), 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, today announced its financial results for the third quarter ended September 30, 2009.
Third Quarter 2009 Highlights
-- Net sales for the third quarter increased 52.58% to $5,580,776
from $3,657,515 for the second quarter.
-- Gross profit for the third quarter increased 78.7% to $1,524,823
from $853,285 for the second quarter.
-- Third quarter gross profit margin was 27.32% compared to 23.33%
for the second quarter, an increase of approximately 4%.
-- Operating income for the third quarter increased 152.85% to
$1,273,103 from $503,302 for the second quarter.
-- Net income increased to $935,265 from $529,550, a 76.61% increase
from the previous quarter.
The Company substantially increased its earnings in the third quarter by 50% to $.06 per diluted share compared to the previous quarter of $.04 per diluted share.
Donghai Yu, the Company's CEO, stated, "We are extremely pleased with the significant increase in our third quarter production and bottom line performance. The Company's shift from low margin graphite electrodes to fine grain and high purity graphite is now resulting in greater revenue growth and higher gross margins. We continue to see a strong demand for our products as our customer base expands. We believe we are well positioned to grow our existing operations and increase our revenue base through strategic acquisitions in China."
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong Carbon Co., Ltd., manufactures carbon and graphite 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 Ministry of Science & Technology as a "National Hi-tech Enterprise." Of the 400 plus carbon graphite producers in China, China Carbon is the only non-state-owned company to receive this honor. For more information, visit http://www.chinacarbongroup.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.