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Asia Cork 4Q and Annual Financial Forecast
Nov. 29, 2010 (Business Wire) -- Asia Cork Inc. (OTCBB:AKRK) forecasts $7.36 million revenue for the 4th quarter. The Q4 forecasted net income reaches $1 million and quarterly EPS $0.03. Accordingly annual revenue is expected to reach $29.8 million, 22.17% up from $24.4 million in 2009. Net income is expected to be $4.7 million, a significant increase of over 40% compared to $3.3 million in 2009. Basic earning per share is expected to rise from 0.09 in 2009 to 0.13, an increase of 47%.

Asia Cork Inc. 2010 Q4 & Annual Financial Forecast
2010 Annual Expected 2010 Q4 Expected
Revenues $29,801,024 $7,364,779
Cost of Goods Sold 20,857,883 5,115,130
Gross Profit 8,943,142 2,249,650
Total Operating Expenses 2,882,845 852,664
Income From Operations 6,060,297 1,396,986
Net Income $4,704,298 $1,038,822
Earnings Per Share
-Basic $0.13 $0.03
-Diluted $0.12 $0.03

“In 2010 has continued the prosperity of construction and decoration materials market since the whole market gradually recovered from the heavy shock of 2008’s financial crisis. Our sales have been rapidly recovering since then,” said Mr. Chen Peng Cheng, CEO of Asia Cork Inc. “To deal with the problem of rising prices of raw materials in 2010, the management staff have made great endeavor to adjust our expense structure and successfully controlled the expenses, while assuring the high quality of our products and our services.” In 2010, the total operating expenses are expected to be $2.88 million, a decrease of over 25% compared to $3.88 million in 2009, among which the selling expenses are cut down by around 40%, while ensuring steadily growing sales revenue.

Because of the rise of raw material prices, cost of goods sold is expected to increase from $16 million in 2009 to $20 million by 30%, and gross profit margin should decrease from 34% in 2009 to 30% in 2010. To assure the existing market share and to further expand domestic market, the company did not consider significant increase of product prices in 2010.

Asia Cork Inc. is the leading cork products manufacturer in Asia, the business operation of which is mainly performed in China. Its major products include cork floor and wall board, sheets, rolls and crafts such as notepad and mouse pad, etc. It is listed on OTCBB with the symbol AKRK. See more information on www.hxrm.com.



Asia Cork Inc.

Becky Lee, [phone]

[e-mail]



Source: Business Wire (November 29, 2010 - 8:15 AM EST)

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