IGS Capital Group Ltd. (IGSC)

[lugan]

The Company generated revenue of $3.07 million in the 2010 second quarter, representing $324,127 or 12% increase compared to $2.74 million in the 2009 Second quarter. Revenue from China operation increased $176,274 or 8% from $2.21 million in 2009 second quarter to $2.38 million in 2010 second quarter. Revenue from Australia operation has increased by $147,893 or 28% from $536,019 in 2009 second quarter to $683,912 in 2010 second quarter. The increase in revenue in China operation is partially because of acquisition of the newly started waste paper and cardboards collection business in June 2010. Although exports are still suffering from the global economic crisis, our Australia operation business is gradually recovering.

Gross profit increased $72,834 or 5% to $1.49 million in the second quarter 2010 from $1.42 million in the second quarter 2009. Gross profit of China operation increased $49,169 or 5% from $1.09 million in 2009 second quarter to $1.13 million in 2010 second quarter. In Australia, gross profit also increased by $23,665 or 7% from $333,352 in 2009 second quarter to $357,017 in 2010 second quarter. Gross margin dropped slightly from 52% in the 2009 second quarter to 49% in the 2010 second quarter.

Net income for 2010 second quarter was $0.537 million, or $0.02 basic and diluted earnings per share, compared to $0.535 million or $0.02 basic and diluted earnings per share one year ago.