Sancon Resources Recovery revenues rise 12%
Waste material recycling specialist Sancon Resources Recovery (OTC:SRRY) reported an improvement in second quarter revenues and gross profit as it maintained strong gross margins and addition of a paper and cardboards business in June.
The US listed, Australia and China focused business chalked up a 12% increase in second quarter revenues to US$3.07 million, while gross profits climbed 5% to US$1.49 million and EBITDA (earnings before interest, tax, depreciation and amortization) climbed 2% to US$0.6 million. Net income came in at US$0.537 million, or 2 cents per share, similar to the second quarter in 2009.
Gross margins were maintained at a very healthy 50%.
Geographically, Sancon reported an 8% increase in revenues from its operations in China to $2.38 million and a 28% increase in revenues in Australia to $0.638 million.
“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,” Sancon noted to investors. “Although exports are still suffering from the global economic crisis, our Australia operation business is gradually recovering.”
For the first six months of 2010, Sancon reported total revenues of US$6.14 million, a 15% increase on the corresponding period in 2009, while net income was US$1.1 million, or 5 cents basic and diluted earnings per share.
As the end of June, Sancon had cash and cash equivalents of US$4.8 million, up from $3.7 million six months earlier.
Jack Chen, CEO of Sancon said that the company was continuing to seek acquisition opportunities to further consolidate its position in the waste recycling sector. Sancon specializes in the collection, processing, and selling of the reprocessed waste material (plastic, metal, paper, cardboard, glass) which are then used to make new products including building materials, outdoor furniture and packaging materials.
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