Perfectenergy International Ltd (fka PFGY)

[jmurfk]

Gross profit was approximately $3.7 million for the six months ended April 30, 2010 as compared to gross loss of approximately $2.3 million for the six months ended April 30, 2009, representing a gross margin of 10.1% in 2010 and a negative gross margin of 22.0% in 2009. The increase in gross profit was primarily due to the decrease in our raw material costs and falling module sales prices. The cost of silicon wafers/cells fell by 60% while the sales price of modules was reduced by 50% compared to the same period last year. In addition, the increase in gross margin is also attributed to continuous cost-savings measures taken in the manufacturing process.