From the 10K
The gross profit for the year ended December 31, 2009 was $5,166,327, representing $743,393 or 13% decrease compared to $5,909,720 for the year ended December 31, 2008. The gross margin reduced from 56% for the year 2008 to 47% for the year 2009. The decrease of the gross profit is mainly due to its reduce in the waste service business of $644,932 or 14%. The increase in cost of sales leads to the decline of gross profit in the waste service business. The gross profit in the material recycling business also decreased $105,961 or 8% from $1,395,966 for the year ended December 31, 2008 to $1,290,005 for the same period in 2009. Due to the current economic crisis, our material recycling business declined a lot compare last year.
During the next twelve months, we expect to take the following steps in connection with the development of our business and the implementation of our plan of operations:
We intend to continue with our marketing strategies to deliver our products in China and provide our waste management service to clients;
Along with the continued plastic and glass materials products we are now processing, we are also developing to process other materials, such as electronic materials, waste battery and new energy.
During the next twelve months, the Company expects to set up larger network of collection and sales in China.
During the next twelve months, the Company is planning to raise additional US$3-4 million cash to facilitate our processing capacity. The capital will be used to some or all of the following activities: 1) acquisition of other companies running similar business in China and the USA; 2) purchase of new equipment to satisfy increasing new type of materials requirements; 3) marketing and general administrative expenses for new operation in China. We may raise such capital through issuing our common stocks or warrants.
