China Sun Group High Tech Co. (China Sun), a China-based producer of anode materials, has reported net revenue of $8.8 million for the third quarter of fiscal 2009, up 24%, compared with the net revenue of $7.1 million in the year-ago quarter. It has also reported net income of $2 million, or $0.04 per share, for the third quarter of fiscal 2009, compared with $3.5 million, or $0.05 per diluted share, in the year-ago quarter.
The increase in net revenue was primarily attributable to increased customer demand for DLX products. Gross profit was $3.2 million in the third fiscal quarter of 2009, an increase of 26% compared to $2.6 million reported in the third fiscal quarter of 2008. The increase in gross profit was primarily due to revenue generated by increased production and sales. The decrease in net income was primarily attributable to the one-off reversal of allowance for doubtful accounts and an increase in general and administrative expenses during the three months ended February 28, 2009.
For the nine months ended February 28, 2009, net revenue increased 69% to $27.4 million, compared to $16.2 million reported in the comparable period of 2008. Gross profit for the nine months ended February 28, 2009 was $10.2 million, an increase of 80% from $5.7 million reported in the same period in 2008. Net income for the nine months ended February 28, 2009 was $6.2 million, or $0.12 per diluted share, an increase of 49% compared to $4.2 million, or $0.08 per share, for the same period in 2008. Basic and diluted common shares outstanding used in per share calculations totaled 53,422,971.
“China Sun Group is pleased with DLX’s performance in the third fiscal quarter. Despite downward pricing pressure in the global manufacturing industry, DLX successfully captured new sales, expanded gross profit margins and increased profitability during the first nine months of fiscal 2009,” said Bin Wang, chief executive officer of China Sun. “While DLX filled new orders for its existing product lines in the third fiscal quarter of 2009, it introduced its next generation, ‘green’ power source, lithium iron phosphate. Lithium iron phosphate is ideally used in batteries that power eco-friendly vehicles like hybrids and electric cars. We anticipate commencing deliveries on large-scale orders for lithium iron phosphate in the fourth quarter of fiscal 2009.”