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China Precision Steel Inc. Reports Operating Results (10-Q)

February 16, 2010 | About:
10qk

10qk

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China Precision Steel Inc. (CPSL) filed Quarterly Report for the period ended 2009-12-31.

China Precision Steel Inc. has a market cap of $90.33 million; its shares were traded at around $1.94 with and P/S ratio of 1.18.

Highlight of Business Operations:

Except as otherwise indicated by the context, all references in this Quarterly Report to (i) the “Group,” the “Company,” “we,” “us” or “our” are to China Precision Steel, Inc., a Delaware corporation, and its direct and indirect subsidiaries; (ii) “PSHL” are to our subsidiary Partner Success Holdings Limited, a BVI company; (iii) “Blessford International” are to PSHL s subsidiary Blessford International Limited, a BVI company; (iv) “Shanghai Blessford” are to Blessford International s subsidiary Shanghai Blessford Alloy Company Limited, a PRC company; (v) “Chengtong” are to PSHL s subsidiary Shanghai Chengtong Precision Strip Company Limited, a PRC company; (vi) “Tuorong” are to PSHL s subsidiary Shanghai Tuorong Precision Strip Company Limited, a PRC company; (vii) “SEC” are to the United States Securities and Exchange Commission; (viii) “Securities Act” are to the Securities Act of 1933, as amended; (ix) “Exchange Act” are to the Securities Exchange Act of 1934, as amended; (x) “RMB” are to Renminbi, the legal currency of China; (xi) “U.S. dollar,” “USD,” “US$” and “$” are to the legal currency of the United States; (xii) “China,” “Chinese” and “PRC” are to the People s Republic of China; and (xiii) “BVI” are to the British Virgin Islands.

During the three months ended December 31, 2009, we sold a total of 35,588 tons of products, an increase of 20,726 tons from 14,862 tons during the same period a year ago, due to increase in demand in a gradually improving market. We believe that such increase was mainly caused by increases in demand from the auto and home appliance products due to government subsidies to encourage consumer spending in these segments during the period ended December 31, 2009. Increased volume and sales have led to a gross profit of $3,635,955 and a net profit of $2,589,437 for the three months ended December 31, 2009.

Sales volume increased by 20,726 tons, or 139%, period-on-period to 35,588 tons for the three months ended December 31, 2009 from 14,862 tons for the three months ended December 31, 2008 and, as a result, sales revenues increased by $9,439,879, or 54%, period-on-period to $27,013,838 for the three months ended December 31, 2009 from $17,573,959 for the three months ended December 31, 2008. The increase in sales revenues during the three months ended December 31, 2009 is mainly attributable to increase in demand for high-carbon cold-rolled products used in automobile components production as well as increase in demand for low-carbon cold-rolled products used in home appliances production both due to favorable government policies and subsidies to encourage consumer spending.

Read the The complete Report

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