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San Meditech is a founding member of @JoslinDiabetes
Still no details on San Meditech valuation...CEO making out like a bandit and stock has always traded poorly. Kind of surprised news didn't blast it higher though with float and sexy sector.
Stock in the red after the news today. What's your take?
Booyah!!
Merger news!!
Ossen Innovation Enters into Agreements to Acquire America-Asia Diabetes Research Foundation and to Spin-Off Existing Business
OSN profitable 2M floater ready to light it up tomorrow with a .06 eps beat.
OSN once the merger goes through watch for this underfollowed little 2.3m floater to explode..the company they're merging with just hired nearly 50 new employees.
Google search "China diabetes".
Blood Glucose Monitoring (BGM) Devices Market Trends
http://www.strategyr.com/MarketResearch/Blood_Glucose_Blood_Sugar_Monitoring_Devices_Market_Trends.asp
I speculate management wants to take OSN private really cheap and their US exchange listing requirement isn't something they care about. Buyback cheaper? The conference call tomorrow might be informative or not. Who is going to listen and ask questions?
My two cents is Id be shocked if anything substantial changed tomorrow.
Sell, or short, into any significant strength.
Ossen Innovation (NASDAQ:OSN): Q2 EPS of $0.065
Revenue of $25.9M (-27.9% Y/Y)
I sold @ 1,4 and bought other stocks
GLTA
so what you are saying is, DO NOT BUY? LOL
Nice action, nice chart. Would like to see $OSN hold north of a buck now and base here, setting up for more upside.
http://chartdiligence.com/osn-testing-new-6-month-highs/
Ossen Innovation (NASDAQ:OSN): FQ1 EPS of $0.04
Revenue of $26.8M (-4.3% Y/Y)
Earnings per share, both basic and diluted, was $0.07 for the three months ended December 31, 2014, versus $0.06 for the same period of last year.
I bought. There are a few legit names. If Korea bought a bridge from OSN, they must have something.
DO NOT BUY THIS CHINESE STOCK
zero relationship between very good company performance and stock price
totally manipulated DO NOT BUY THIS CHINESE STOCK
sorry to be an honest bagholder here
this is the last time I invest in a chinese stock!!!
GREEN pre market
I am very curious about next week price performance... even if this is a chinese stock it could worth $2,0 -3,0
The CPC Committee Political Bureau held a meeting on April 25 and discussed the current Chinese economic situation and development. The meeting announced that the government will accelerate the development of railroad in Central and Western China. In addition, currently a number of Development and Reform Commission departments in Western provinces are studying a number of new high speed rail projects, including high speed rail projects from ??Guiyang to Zhengzhou, from Guiyang to Nanning, from Lanzhou to Yinchuan, from Lanzhou to Xi'an, and from Lanzhou to Taiyuan. We expect these projects should create additional bidding opportunities for us if they are successfully launched by the government
the value of these projects is 20nillion$ in 5 years or 50mil mt os steel
great results, check below regarding the outlook, without new railroad projects is 2014
The balance of prepayments to suppliers of raw materials was $54.4 million as of March 31, 2014, an increase of $3.8 million compared with December 31, 2013. The increase was mainly due to prepayment for raw materials due to an anticipated increase in future sales
BRILLIANT results!!!
in millions ex- EPS)
Q1 2014 Q1 2013 Chg.
Revenue $28.0 $14.6 +92%
Gross Profit $2.6 $1.7 +56%
Net Income* $0.5 $0.1 +550%
EPS $0.02 $0.004 +400%
Shares Outstanding
19.9 19.9 0%
*Net income attributable to Ossen Innovation Co., Ltd.
First Quarter Ended March 31, 2014 Financial Results
good chart ready for good news
I hope in a very good PR today after mkt close and in a consequent strong price recovery
SHANGHAI, June 24, 2014 /PRNewswire-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (NASDAQ: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it will hold its first quarter 2014 financial results conference call at 8:30 a.m. ET on Monday, June 30, 2014.
THE COMPANY ANTICIPATES RELEASING ITS FINANCIAL RESULTS AFTER THE MARKET CLOSE ON FRIDAY, JUNE 27, 2014.
the current stock price is unbelievable... it should be $4,0 - 5,0
OSN - Earnings for Q1 due in late June, 6/27 last year.
Ossen expects Q1 2014 sales and net income will be higher than the first quarter of 2013
1Q2013 $14.6m in rev $.1m net, $.004/share 19.9m shares
2Q2013 $24.2m in rev $.7m net, $.04/share 19.9m shares
I like all three of those picks!
Are you in OSN currently?
GO OSN!!
It was a one day trade, just when PR was released Oct 21 when I saw it. Good luck.
What a loser!
LOL
I'm out of it now. I alerted when I saw the contract PR, bought and sold within the hour for gains. I had 3 chinese stock winners LLEN, DHRM, and OSN. So if you want to hear me rant, just follow me....I could get some right, I could be wrong too.. Good luck
very interesting small float with contract.
Pullback here 1.40s and 1.50, good entry point. Watching for run again, still have plenty of trading day left.
Multi million dollars contract, this who ever holding this stock... better days are ahead for this little gem :)
Can't say I blame you.
Keep an eye on it for a reversal soon.
WOW sold out at .98 along time ago.
Well, I've been on the bid for the last few weeks, picking up what others are throwing away. I think we're near bottom- and am expecting positive news soon that will reverse the downward trend.
CSP
This next reporting should be very good,assuming they started their rail production. Target 4.00 Near term
Third Quarter 2012 Financial Results
Revenue for the three months ended September 30, 2012 was $41.1 million, an increase of $10 million, or 32%, from the same period a year ago.
Gross profit decreased from $4.2 million to $2.9 million, a 31% year-over-year decline. Gross margin was 7.1%, flat from the second quarter of 2012 and down from 13.6% in the third quarter of 2011.
Gross margin for the third quarter of 2012 were 9.2% and 3.4% for coated pre-stressed steel products and for plain surface pre-stressed steel products, respectively.
Net income attributable to controlling interest decreased 63% to $0.7 million in the third quarter of 2012 from $2 million in the year-ago period.
Earnings per share were $0.04 versus $0.10 a year ago. The weighted average diluted shares outstanding was 19.9 million compared to 20.0 million a year ago as a result of 88,616 shares repurchased by Ossen as of September 30, 2012.
"We had positive revenue growth for a second consecutive quarter," said Dr. Liang Tang, Chairman of Ossen Innovation. "More importantly, we generated positive net income. These developments indicate a rebound in the industry and strong execution from our team. As the market demand improves further, we anticipate our margins to gradually return to historical levels."
Business Updates and Outlook
Accounts receivable collection improved during the first three quarters of 2012. The average accounts receivable days sales outstanding in Q1, Q2 and Q3 of 2012 were 201 days, 145 days and 101 days respectively. The Company expects accounts receiveable collection will further improve and return to the historical levels in the near future.
According to recent government announcements, total investments in railway construction in China will reach RMB530 billion (approx. USD84 billion) in 2013. Funding sources to support these constructions include central government support, bond issuance and bank loans. These funding sources have been secured by the Ministry of Railways in China.
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MUST READ:
webpage: http://220.178.253.10/ossen/index.html
Ossen Innovation Co., Ltd. Announces Closing of Initial Public Offering
Press Release Source: Ossen Innovation Co., Ltd. On Thursday December 23, 2010, 11:00 am EST
SHANGHAI, Dec. 23, 2010 /PRNewswire-Asia-FirstCall/ -- Ossen Innovation Co., Ltd. ("Ossen" or the "Company") (Nasdaq:OSN - News), a China-based manufacturer and seller of an array of plain surface prestressed steel materials and rare earth coated and zinc coated prestressed steel materials, announced today that it has closed its initial public offering ("IPO"), raising gross proceeds of $22.5 million less the underwriters discount and expenses. The Company has granted the underwriters an option to purchase up to an additional 750,000 American Depositary Shares (the "ADSs") each representing one ordinary share, to cover over-allotments. The Company's ADSs commenced trading on NASDAQ under the symbol "OSN" on December 21, 2010.
Global Hunter Securities, LLC and Knight Capital Markets LLC acted as the joint book-running managers for the offering, and Ladenburg Thalmann & Co. Inc. acted as the co-manager for the offering.
Ossen's registration statement relating to the IPO has been declared effective by the United States Securities and Exchange Commission. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities, in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful under the securities laws of any such state or jurisdiction.
A copy of the prospectus relating to the offering may be obtained by contacting: Global Hunter Securities, LLC, 777 Third Avenue, New York, NY 10017, 646-264-5600.
http://finance.yahoo.com/news/Ossen-Innovation-Co-Ltd-prnews-412754084.html?x=0&.v=1
Deal Data
Status: | Priced (12/21/2010) |
| |
Share Price: | $4.50 |
| |
Shares Offered: | 5,000,000 |
| |
Offer Amount: | |
| |
Total Expenses: | $1,342,175.80 |
| |
Shares Over Alloted: | 0 |
| |
Shareholder Shares Offered: | |
| |
Shares Outstanding: | 20,000,000 |
| |
Lockup Period / Expiration: | 180 days - 6/20/2011 |
| |
Quiet Period Expiration: | 1/31/2011 |
Financials (6 months ended June 30, 2010) |
Revenue: | $58,708,775.00 |
| |
Net Income: | $8,535,535.00 |
| |
Total Assets: | $108,127,799.00 |
| |
Total Liabilities: | $79,295,383.00 |
| |
Stockholders' Equity: | $28,832,416.00 |
Company Description
we manufacture and sell an array of plain surface prestressed steel materials
and rare earth coated and zinc coated prestressed steel materials, which we
believe is the most comprehensive array among our competitors in China. Our
materials are used in the construction of bridges, highways and other
infrastructure projects in the PRC and internationally. Our facilities are
located in Maanshan City, Anhui Province and in Jiujiang City, Jiangxi
Province, in the People’s Republic of China. According to a report issued
by the Institute of Quantitative and Technical Economics, Chinese Academy of
Social Sciences, or the CASS report, dated October 8, 2010, we were among the
top five prestressed concrete, or PC, material producers in the PRC as
measured by annual output from 2006 through 2008. According to the PRC PC
Strand Industry Investment and Market Operation Research Report, in 2008,
our products were ranked third in sales in the PRC for PC strands and wires,
and ranked first in export sales of these materials by Chinese prestressed
steel manufacturers. Historically, we and our customers have had a greater
than 90% success rate with respect to winning projects on which either we or
our customers have bid. Based on our extensive experience in the industry,
we believe that Ossen is one of the leading enterprises in the PRC in the
design, engineering, manufacture and sale of customized prestressed steel
materials used in the construction of bridges, highways, and other
infrastructure projects in China.
Description of Business
we manufacture and sell an array of plain surface prestressed steel materials
and rare earth coated and zinc coated prestressed steel materials, which we
believe is the most comprehensive array among our competitors in China. Our
materials are used in the construction of bridges, highways and other
infrastructure projects in the PRC and internationally. Our facilities are
located in Maanshan City, Anhui Province and in Jiujiang City, Jiangxi
Province, in the People’s Republic of China. According to a report issued
by the Institute of Quantitative and Technical Economics, Chinese Academy of
Social Sciences, or the CASS report, dated October 8, 2010, we were among the
top five prestressed concrete, or PC, material producers in the PRC as
measured by annual output from 2006 through 2008. According to the PRC PC
Strand Industry Investment and Market Operation Research Report, in 2008,
our products were ranked third in sales in the PRC for PC strands and wires,
and ranked first in export sales of these materials by Chinese prestressed
steel manufacturers. Historically, we and our customers have had a greater
than 90% success rate with respect to winning projects on which either we or
our customers have bid. Based on our extensive experience in the industry,
we believe that Ossen is one of the leading enterprises in the PRC in the
design, engineering, manufacture and sale of customized prestressed steel
materials used in the construction of bridges, highways, and other
infrastructure projects in China.
During the six months ended June 30, 2010, we generated revenue of
approximately $31.4 million, or 53.5% of our total revenue, from sales of
our rare earth coated PC wires and PC strands. We believe that we are the
only prestressed steel material manufacturer in the PRC that currently
manufactures rare earth coated materials. Based on current and anticipated
orders, we estimate that revenues generated by sales of coated products
(including rare earth coated and zinc coated products in the aggregate) for
the year ending December 31, 2010 will comprise approximately 49% of our
total revenue. Based on filled and anticipated orders, we believe that 95%
of our revenues generated by coated product sales in the year ending December
31, 2010 will be generated by sales of rare earth coated products and the
remaining 5% will be generated by sales of zinc coated products. Our plan
is to continue to increase sales of our rare earth coated products to
manufacturers of steel cables for bridges and other infrastructure projects,
both in the PRC and internationally, in order to increase our revenues and
profits.
While we believe that our rare earth coating capabilities provide us with a
competitive advantage among our competitors, it is likely that our
competitors will seek to develop similar competing products in the near
future. We intend to continue to expend research and development efforts
to advance our rare earth coating applications even further. However,
there can be no assurance that our initial competitive advantage will be
retained and that one or more competitors will not develop products that
are equal or superior to ours in quality or are better priced than our rare
earth coated products.
The primary characteristics of these newly designed rare earth coated
products, which are used primarily in the construction of new bridges
and the renovation of older bridges in need of repair, are as follows:
· Superior corrosion resistance;
· Superior toughness and plasticity;
· Endurance against extreme heat;
· Smooth and appealing coating; and
· Easily coated.
According to the CASS report, bridge and other infrastructure construction
is currently experiencing significant growth in China, which trend is
expected to continue until 2020. Under existing PRC governmental policies,
significant investments are expected to be made during the next decade to
construct more than 200 new bridges over dozens of Chinese rivers,
including the Yangtze River, Yellow River, Songhua River, Jiangxi River,
Xiang River, Han River, Minjiang River and Pearl River. In addition,
approximately 400 old bridges will need to be reinforced or expanded
during that period. In addition, over the next decade, China is expected
to build four cross-sea bridges and tunnels, including the Bohai Bay
Cross-Sea Bridge, the Hong Kong-Zhuhai-Macao Cross-Sea Bridge, the
Qiongzhou Strait Bridge and the Taiwan Strait Tunnel.
Our management’s core strategy for the near future is to expand the
production capacity for our rare earth coated PC strands and PC wires,
which generate higher margins than our other products, in order to
continue to take advantage of current trends in the bridge and
infrastructure industries in the PRC and other international markets,
including in Southeast Asia and Australia, in the development and
renovation of bridges and other infrastructure projects. Our products
are marketed under the “Ossen” brand name both domestically and
internationally. We handle all aspects of market research, product
design, engineering, manufacturing, sales and marketing. We conduct
our manufacturing operations in our ISO 9001 manufacturing facilities
in Maanshan City and Jiujiang City, in the PRC.
Ossen Materials, our operating subsidiary, was founded in 2004. In
2005, we expanded our manufacturing capabilities by acquiring a facility
in Jiujiang City in the PRC and forming Ossen Jiujiang. The founders of
Ossen were among the first in China to introduce and promote the use of
prestressed steel materials in construction projects. The founders of
Ossen have been involved in producing prestressed materials since 1994
and have accumulated more than 15 years of experience in the prestressed
materials industry.
Use of Proceeds
We estimate that we will receive net proceeds of approximately $19.6 million
from this offering, or approximately $22.7 million assuming the underwriters
exercise their option to purchase additional ADSs in full, after deducting
estimated underwriting discounts, commissions and estimated offering expenses
payable by us.
We intend to use an aggregate of approximately $22 million of the net proceeds
from this offering to increase our production capacity. Specifically, our
plan is to allocate:
· $2 million toward the construction costs associated with the extension
of our Maanshan facility; and;
· $20 million toward the purchase and installation of eight new production
lines, to be located in the extended facility, which will be used for
the production of approximately 30,000 tons annually of coated PC wires
and PC strands.
The amounts and timing of these expenditures may vary depending on our ability
to expand our business, the amount of cash generated by our operations,
competitive and technological developments and the rate of growth, if any, of
our business. Accordingly, our management will have significant discretion in
the allocation of the net proceeds we will receive for this offering.
Depending on future events and other changes in the business climate, we may
determine at a later time to use the net proceeds for different purposes.
Proceeds from this offering above the amount needed for expansion, if any,
would be used for working capital. If we are unable to raise sufficient funds
from this offerings to pay for our anticipated expansion in full, we intend to
use cash from our operations or bank loans to complete the expansion.
Pending the use of the net proceeds, we intend to invest the net proceeds in a
variety of capital preservation instruments, including short-term, investment-
grade, interest-bearing instruments.
Competition / Competitors
China is one of the world’s largest producers and markets for prestressed
steel materials. In 2009 and during the six months ended June 30, 2010,
our sales were predominantly to customers located in the PRC, and as a
result, our primary competitors were PRC domestic companies.
We believe that being located in China provides us with a number of
competitive factors within our industry, including the following:
·Pricing. Flexibility to control pricing of products and the ability to
use economies of scale to secure competitive pricing advantages;
·Technology. Ability to manufacture products efficiently, utilize low-
cost raw materials, and to achieve better production quality; and
·Barriers to entry. Technical knowledge, access to capital, local market
knowledge and established relationships with suppliers and customers to
support the development of commercially viable production facilities and
products.
Competition among manufacturers of plain surface steel products in China
can be characterized as fragmented, with many large and small companies
competing with each other. Our primary competitors for these products
are Baosteel Group Shanghai Ergang Co. Ltd., Jiangyin Fasten Steel
Products Co., Ltd., Jiangyin Walsin Steel Cable Co. Ltd and Shuangyou
Eaststeel.
Competition among PRC manufacturers of zinc coated prestressed products
in China is limited to only four companies. Our main competitors for
these products are Baosteel Group Shanghai Ergang Co. Ltd., Shuangyou
Eaststeel and Jiangyin Walsin Steel Cable Co. Ltd. Furthermore, we
believe that we are the only Chinese rare earth coated prestressed
material manufacturer. While we believe that our rare earth coating
capabilities provide us with a competitive advantage among our
competitors, it is likely that our competitors will seek to develop
similar competing products in the near future. We intend to continue
to expend research and development efforts to advance our rare earth
coating applications even further. However, there can be no assurance
that our initial competitive advantage will be retained and that one
or more competitors will not develop products that are equal or superior
to ours in quality or are better priced than our rare earth coated
products.
We believe that we differentiate ourselves because we have built a
recognized brand name in the industry and because we offer superior
product quality, timely delivery and high value. We believe that we
have the following advantages over many of our competitors:
·the performance and cost effectiveness of our products;
·our ability to manufacture and deliver products in required volumes,
on a timely basis, and at competitive prices;
·superior quality and reliability of our products;
·our after-sale support capabilities, from both an engineering and an
operational perspective;
·effectiveness of customer service and our ability to send experienced
operators and engineers as well as a seasoned sales force to assist our
customers; and
·overall management capability.
(All amounts in U.S. dollars, except for percentages) | ||||||||||||||||||||||||||||||||
For Six Months Ended June 30, | For Year Ended December 31, | |||||||||||||||||||||||||||||||
2010 | % of Revenue | 2009 | % of Revenue | 2009 | % of Revenue | 2008 | % of Revenue | |||||||||||||||||||||||||
Revenues | $ | 58,708,775 | 100 | % | $ | 40,416,407 | 100 | % | $ | 101,087,796 | 100 | % | $ | 82,742,310 | 100 | % | ||||||||||||||||
Cost of Goods Sold | 47,101,721 | 80.2 | % | 35,741,095 | 88 | % | 87,659,925 | 86.7 | % | 70,532,733 | 85.2 | % | ||||||||||||||||||||
Gross profit | 11,607,054 | 19.8 | % | 4,675,312 | 11.6 | % | 13,427,871 | 13.2 | % | 12,209,577 | 14.8 | % | ||||||||||||||||||||
Selling and distribution expenses | 195,706 | 0.3 | % | 241,880 | 0.6 | % | 503,724 | 0.5 | % | 4,326,491 | 5.2 | % | ||||||||||||||||||||
General and administrative expenses | 532,276 | 0.9 | % | 638,499 | 1.6 | % | 1,143,672 | 1.1 | % | 1,316,606 | 1.6 | % | ||||||||||||||||||||
Total operating expenses | 727,982 | 1.2 | % | 880,379 | 2.2 | % | 1,647,396 | 1.6 | % | 5,643,097 | 6.8 | % | ||||||||||||||||||||
Income from operation | 10,879,072 | 18.5 | % | 3,794,933 | 9.4 | % | 11,780,475 | 11.1 | % | 6,566,480 | 7.9 | % | ||||||||||||||||||||
Interest expenses, net | (1,069,659 | ) | 1.8 | % | (730,104 | ) | 1.8 | % | (1,496,712 | ) | 1.5 | % | (1,891,671 | ) | 2.3 | % | ||||||||||||||||
Other income, net | 96,720 | 0.2 | % | 14,583 | - | 183,495 | 0.2 | % | 380,766 | 0.5 | % | |||||||||||||||||||||
Income before income taxes | 9,906,133 | 16.9 | % | 3,079,412 | 7.6 | % | 10,467,258 | 10.4 | % | 5,055,575 | 6.1 | % | ||||||||||||||||||||
Income Taxes | (1,370,598 | ) | 2.3 | % | (348,394 | ) | 0.9 | % | (740,053 | ) | 0.8 | % | (291,520 | ) | 0.4 | % | ||||||||||||||||
Net Income | 8,535,535 | 14.5 | % | 2,731,018 | 6.8 | % | 9,727,205 | 9.6 | % | 4,764,0 55 | 5.7 | % | ||||||||||||||||||||
Less: net income attributable to non-controlling interest | 1,430,029 | 2.4 | % | 484,515 | 1.2 | % | 1,714,670 | 1.7 | % | 809,437 | 1.0 | % | ||||||||||||||||||||
Net income attributable to controlling interest | 7,105,506 | 12.1 | % | 2,246,503 | 5.6 | % | 8,012,535 | 7.9 | % | 3,954,618 | 4.7 | % | ||||||||||||||||||||
Other comprehensive income-Foreign currency translation gain, net of tax | 117,535 | 0.2 | % | (13,684 | ) | - | 31,146 | - | 420,883 | 0.5 | % | |||||||||||||||||||||
Total other comprehensive income, net of tax | - | - | - | - | 31,146 | - | 420,883 | 0.5 | % | |||||||||||||||||||||||
Comprehensive Income | $ | 7,223,041 | 12.3 | % | $ | 2,260,187 | 5.6 | % | 8,043,681 | 7.9 | % | 4,375,501 | 5.3 | % |
Year ended December 31, | ||||||||||||||||||||
2009 | 2008 | Change | ||||||||||||||||||
Revenue ($) | % of Total Revenue | Revenue ($) | % of Total Revenue | from 2008 to 2009 | ||||||||||||||||
Products: | ||||||||||||||||||||
Plain surface PC strands | 30,081,890 | 32 | % | 47,842,855 | 60 | % | (36.2 | )% | ||||||||||||
Zinc coated PC wires and PC strands | 2,225,113 | 2 | % | 3,332,883 | 4 | % | (35.1 | )% | ||||||||||||
Stabilized PC wires | 52,179,268 | 51 | % | 32,166,572 | 36 | % | 69.3 | % | ||||||||||||
Rare earth coated PC wires and PC strands | 16,601,524 | 15 | % | - | - |
Six months ended June 30, | ||||||||||||||||||||
2010 | 2009 | Change | ||||||||||||||||||
Revenue ($) | % of Total Revenue | Revenue ($) | % of Total Revenue | from 2009 to 2010 | ||||||||||||||||
Products: | ||||||||||||||||||||
Plain surface PC strands | 18,004,460 | 30.7 | 7,245,040 | 17.9 | 148.5 | % | ||||||||||||||
Zinc coated PC wires and PC strands | 1,516,857 | 2.6 | 978,756 | 2.4 | 55.0 | % | ||||||||||||||
Stabilized PC wires | 7,261,189 | 12.4 | 32,192,611 | 79.7 | (77.4 | )% | ||||||||||||||
Rare earth coated PC wires and PC strands | 31,926,269 | 53.5 | - | - | - |
| · | We experienced increased demands for our plain surface PC strands for use in highways, docks and other infrastructure projects in the PRC, resulting in a 148.5% increase in sales of these products during the six months ended June 30, 2010 as compared to the six months ended June 30, 2009. The reason for this significant increase in demand is that the PRC Ministry of Transportation’s implementation of the Eleventh Five-Year Plan is focused in large part on the construction of highways, docks and other infrastructure projects. Although we expect demand for these products to remain high in the PRC in the near future, we do not expect to continue to increase our revenues from sales of plain surface PC strands at this rate because we intend to utilize a greater percentage of our production capacity to manufacture rare earth coated PC wires and PC strands to be used in the construction of bridges. Rare earth coated materials generate higher profit margins, and demand for these products in the PRC market is high as well. |
| · | We generated over half of our revenue from sales of our rare earth coated products during the six months ended June 30, 2010. Demand for our rare earth coated PC wires and PC strands, which are new products that we began selling in the second half of 2009, has been very high in the PRC, and we expect this trend to continue in the near future. Our customers that are in the bridge construction and restoration industry in the PRC and overseas have reported that they prefer rare earth coated products to zinc coated products because of the anti-corrosion and other beneficial properties of the rare earth coated products, including their long life span. In addition, because of the high strength of the individual rare earth coated PC strands and wires, fewer wires and strands are required for these projects, thereby decreasing the overall cost to our customers. During the six months ended June 30, 2010, we entered into 13 contracts to supply rare earth PC wires and PC strands to be used in the construction of bridges in the PRC, Taiwan and South Korea. |
| · | We generated significantly lower levels of revenue from sales of our stabilized PC wires, which are products that are developed during the middle stages of our production process prior to coating, during the six months ended June 30, 2010. Stabilized PC wires are lower margin products compared to rare earth coated or zinc coated products. During the first half of 2009, when we had to increase sales in the PRC in response to anti-dumping regulations in the US and the EU, our revenue stream was heavily dependent on these products, which were in demand due to the limited number of supplies of the products in the PRC. Once we initiated production of our rare earth coated materials during the second half of 2009, we began producing rare earth coated materials in place of stabilized PC wires, since the margins are higher. We expect that revenue generated by sales of our rare earth coated products will continue to increase, especially after we construct a new building and install a new rare earth coated material production line, as we plan to fill more orders for rare earth coated materials from the PRC and international markets, where demand for use of these products in the construction and restoration of bridges is expected to continue to grow in the near future. |
OSN Auditor: Sherb & Co
A list of companies audited by Sherb & Co:
Information on auditor provided by Zero Hedge at the following link:
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