Sancon Resources Recovery Announces Record Preliminary 2008 Third Quarter Results
Tuesday October 28, 8:00 am ET
Revenue Increases 204%, Gross Margins Increase from 32.6% to 47.4%; Company Earns $0.02 Per Share Compared to $0.00 Year Ago
SHANGHAI, China--(BUSINESS WIRE)--Sancon Resources Recovery, Inc. (OTCBB:SRRY - News) (or “Sancon”), a rapidly growing environmental services and waste recycling company with operations in both China and Australia, announced today preliminary results for its 2008 third quarter ended September 30, 2008. The Company generated record 2008 third quarter revenue of $3.86 million, a 204% increase compared to $1.27 million in the 2007 third quarter. Gross profit increased to $1.83 million compared to $0.41 million in the third quarter 2007. Gross margin increased from 32.6% in the 2007 third quarter to 47.4% in the 2008 third quarter. 2008 third quarter net income was $0.46 million, or $0.02 per share, compared to $0.08 million, or $0.00 per share in the year ago period. Quarterly results were impacted by investments the Company made in expanding its recycling plants. The 2008 third quarter represented the Company’s third consecutive quarter of profitability. The quarterly revenue was also the highest in the Company’s history.
For the nine months ended September 30, 2008, Sancon had total revenue of $9.75 million, a 134% increase compared to $4.17 million in the nine months of 2007. Gross profit increased to $4.70 million in the 2008 nine months compared to $0.78 million in the year-earlier period. Gross margin increased from 18.7% in the 2007 nine months period to 48.2% in the 2008 nine months period. 2008 net income for the nine months was $1.45 million, or $0.06 per share, compared to a loss of $(0.14) million, or a loss of $(0.01) per share in the year ago period.
“The third quarter represented another quarter of strong operating performance, as the Company generated the highest quarterly revenue in its history, reported improved gross margins reflecting a more favorable mix of business, and recorded another quarter of profitability,” said Jack Chen, Sancon’s Chief Executive Officer. “We were able to accomplish this despite making investments in infrastructure to capitalize on the many opportunities being created due to China beginning to recycle more. We believe these investments in technology and recycling plants will support our growth during the fourth quarter and throughout 2009.”
The Company expects to announce complete results in mid-November and to hold a conference call at that time.
About Sancon Resources Recovery Inc
Sancon Resources Recovery, Inc. is an environmental service and waste management company that operates recycling facilities in China and Australia. Sancon specializes in the collection and recovery of industrial and commercial solid wastes such as plastic, paper, cardboard, and glass. The recycled materials are re-used by Sancon's manufacturing customers in China to make a wide variety of new products including outdoor furniture, construction materials, building materials, road surface, and various new products. Sancon's China operation is licensed by the Chinese government for waste management services, and is certified with ISO9001 and ISO14001 standards. For more information please visit: www.sanconinc.com
Forward-looking statements:
The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
Contact:
Sancon Resources Recovery, Inc.
Jack Chen, +86 21 5284 3310 (CEO)
info@sanconinc.com
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Source: Sancon Resources Recovery, Inc.
