China Precision Steel Inc. (CPSL, Financial) filed Quarterly Report for the period ended 2012-03-31.
China Precision has a market cap of $20.1 million; its shares were traded at around $0.39 with and P/S ratio of 0.1.
Cost of Goods Sold. Cost of sales decreased by $918,661, or 2.9%, period-on-period, to $30,612,073 for the period ended March 31, 2012, from $31,530,734 for the period ended March 31, 2011. Cost of sales represented 103.8% of sales revenues for the period ended March 31, 2012, compared to 100.1% for the period ended March 31, 2011. Average cost of production per ton decreased to $787 for the period ended March 31, 2012, compared to an average cost of production per ton of $864 for the period ended March 31, 2011, representing a decrease of $77 per ton, or 8.9%, period-on-period.
There were different trends of demand across various product categories during the nine months ended March 31, 2012. High-carbon cold-rolled steel products accounted for 13.1% of the current sales mix at an average selling price of $1,035 per ton for the period ended March 31, 2012, compared to 17.6% of the sales mix at an average selling price per ton of $931 for the period ended March 31, 2011. The products in this category are mainly used in the automobile industry. Low-carbon cold-rolled steel products accounted for 74.4% of the current sales mix at an average selling price of $810 per ton for the nine months ended March 31, 2012, compared to 67.8% of the sales mix at an average selling price per ton of $877 for the nine months ended March 31, 2011. The increase in demand in this category during the period was a result of increased orders of steel used in the production of home appliances due to government subsidies to encourage consumer spending in the prior period. Low-carbon hard-rolled steel products accounted for 6.3% of the current sales mix at an average selling price of $734 per ton for the nine months ended March 31, 2012, compared to 3.6% of the sales mix at an average selling price per ton of $812 for the nine months ended March 31, 2011, due to an improvement in demand at the current price level in the international market period-on-period. Subcontracting income revenues accounted for $6,339,606, or 6.0%, of the sales mix for the nine months ended March 31, 2011, as compared to $1,076,389, or 1.0%, of the sales mix for the nine months ended March 31, 2012.
Cost of Goods Sold. Cost of sales increased by $7,275,429, or 7.2%, period-on-period, to $108,178,198 for the period ended March 31, 2012, from $100,902,769 for the period ended March 31, 2011. Cost of sales represented 102.7% of sales revenues for the period ended March 31, 2012, compared to 96.0% for the period ended March 31, 2011. Average cost per ton sold increased to $870 for the period ended March 31, 2012, compared to $799 for the period ended March 31, 2011, representing an increase of $71 per ton, or 8.9%, period-on-period.
Selling Expenses. Selling expenses decreased by $29,331, or 14.6%, period-on-period, to $172,223 for the period ended March 31, 2012, compared to the corresponding period in 2011 of $201,554. This reflects our control of selling expenses as revenue increased 0.2% period-on-period.
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China Precision has a market cap of $20.1 million; its shares were traded at around $0.39 with and P/S ratio of 0.1.
Highlight of Business Operations:
There were different trends of demand across various product categories during the three months ended March 31, 2012. High-carbon cold-rolled steel products accounted for 11% of the current sales mix at an average selling price of $977 per ton for the period ended March 31, 2012, compared to 22% of the sales mix at an average selling price per ton of $959 for the period ended March 31, 2011. The products in this category are mainly used in the automobile industry. Sales volume decreased period-on-period as a result of the slow-down of the auto sector during the period. Low-carbon cold-rolled steel products accounted for 81% of the current sales mix at an average selling price of $723 per ton for the three months ended March 31, 2012, compared to 73% of the sales mix at an average selling price per ton of $828 for the three months ended March 31, 2011. The increase in demand in this category during the period was a result of increased orders of steel used in the production of home appliances. Low-carbon hard-rolled steel products accounted for 5% of the current sales mix at an average selling price of $712 per ton for the three months ended March 31, 2012, compared to 1% of the sales mix at an average selling price per ton of $1,236 for the three months ended March 31, 2011, due to an increased tonnage sold in the international market period-on-period as we saw an improvement of purchasing activity in the global space at the current price level and the return of old customers who had been holding off orders in the prior periods. Subcontracting income revenues accounted for $10,374, or less than 1% of the sales mix for the three months ended March 31, 2012, as compared to $96,601, or less than 1%, of the sales mix for the three months ended March 31, 2011.Cost of Goods Sold. Cost of sales decreased by $918,661, or 2.9%, period-on-period, to $30,612,073 for the period ended March 31, 2012, from $31,530,734 for the period ended March 31, 2011. Cost of sales represented 103.8% of sales revenues for the period ended March 31, 2012, compared to 100.1% for the period ended March 31, 2011. Average cost of production per ton decreased to $787 for the period ended March 31, 2012, compared to an average cost of production per ton of $864 for the period ended March 31, 2011, representing a decrease of $77 per ton, or 8.9%, period-on-period.
There were different trends of demand across various product categories during the nine months ended March 31, 2012. High-carbon cold-rolled steel products accounted for 13.1% of the current sales mix at an average selling price of $1,035 per ton for the period ended March 31, 2012, compared to 17.6% of the sales mix at an average selling price per ton of $931 for the period ended March 31, 2011. The products in this category are mainly used in the automobile industry. Low-carbon cold-rolled steel products accounted for 74.4% of the current sales mix at an average selling price of $810 per ton for the nine months ended March 31, 2012, compared to 67.8% of the sales mix at an average selling price per ton of $877 for the nine months ended March 31, 2011. The increase in demand in this category during the period was a result of increased orders of steel used in the production of home appliances due to government subsidies to encourage consumer spending in the prior period. Low-carbon hard-rolled steel products accounted for 6.3% of the current sales mix at an average selling price of $734 per ton for the nine months ended March 31, 2012, compared to 3.6% of the sales mix at an average selling price per ton of $812 for the nine months ended March 31, 2011, due to an improvement in demand at the current price level in the international market period-on-period. Subcontracting income revenues accounted for $6,339,606, or 6.0%, of the sales mix for the nine months ended March 31, 2011, as compared to $1,076,389, or 1.0%, of the sales mix for the nine months ended March 31, 2012.
Cost of Goods Sold. Cost of sales increased by $7,275,429, or 7.2%, period-on-period, to $108,178,198 for the period ended March 31, 2012, from $100,902,769 for the period ended March 31, 2011. Cost of sales represented 102.7% of sales revenues for the period ended March 31, 2012, compared to 96.0% for the period ended March 31, 2011. Average cost per ton sold increased to $870 for the period ended March 31, 2012, compared to $799 for the period ended March 31, 2011, representing an increase of $71 per ton, or 8.9%, period-on-period.
Selling Expenses. Selling expenses decreased by $29,331, or 14.6%, period-on-period, to $172,223 for the period ended March 31, 2012, compared to the corresponding period in 2011 of $201,554. This reflects our control of selling expenses as revenue increased 0.2% period-on-period.
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