|SRRY.OB...have had this out here several times...believe it to be a strong buy here at .35. Qtrs going forward will be stronger on the numbers and as the cartridge biz begins to ramp up along with other initiatives the company is undertaking I expect the numbers to end up surpassing last year (below)....22m shares out--nice--|
LAST QTR MARCH 31--
Sancon Resources Recovery Announces 2009 First Quarter Results
Maintaining Growth in the China Market
SHANGHAI, China--(BUSINESS WIRE)--Sancon Resources Recovery, Inc. (OTCBB:SRRY) (or “Sancon”), a rapidly growing environmental services and waste recycling company with operations in both China and Australia, announced today results for its 2009 first quarter ended March 31, 2009.
The Company generated strong 2009 first quarter revenue of $2.59 million, a small increase compared to $2.58 million in the 2008 first quarter. Revenue from China operation increased by $233,677 from $1,978,436 in 2008 first quarter to $2,212,113 in 2009 first quarter. Revenue from Australia operation decreased by $218,285 from $600,677 in 2008 first quarter to $383,382 in 2009 first quarter. Gross profit decreased $0.23 million or 15% to $1.31 million in the first quarter 2009 from $1.54 million in the first quarter 2008, primarily due to lower profitability in Australia. However, gross profit of China operation decreased only by $85,226 from $1,158,597 in 2008 first quarter to $1,073,371 in 2009 first quarter. In comparison, gross profit of Australia operation decreased sharply by $157,293 from $396,485 in 2008 first quarter to $239,192 in 2009 first quarter. Gross margin decreased from 60% in the 2008 first quarter to 51% in the 2009 first quarter mainly due to a decline in U.S. dollar denominated plastics materials sales in Australia. 2009 first quarter net income was $0.57 million, or $0.03 per share, compared to $0.77 million, or $0.04 per share in the year ago period. It decreased $0.2 million or 26%. The company continues to strengthen its balance sheet position with $2.22mil cash balance.
“Due to the decline of the Australia dollar and slower economic activity in the country, the quantity of waste materials we processed and sold was significantly lower in Australia than in the year-earlier period, which offset growth in China. We are encouraged that demand in China remains strong, helped by the Chinese Government emphasizing environmental policies and projects for all sectors and entities. Chinese waste management market is one of the fastest growing markets in the world. It is estimated to be $35 billion by 2010,” said Jack Chen, Sancon’s Chief Executive Officer. “It is for this reason that we continue to invest in growing our position in that market, such as through the recently announced Joint Venture with “Close The Loop” for building printer cartridges and toners recycling facilities for China. We believe this new venture positions us well to work with leading printer cartridge makers in the world, who seek a reliable and cost-effective way to dispose of the cartridge waste. China uses over 100 million of printer cartridges and tonners a year and recycles less than 1%. While we expect our margins and profitability to return to customary levels in the second quarter, we believe that our joint venture with Close The Loop as well as other initiatives to be announced shortly positions us for growth during the latter part of the year and into 2010.”
LAST YEAR--DEC 31
Sancon Announces Profitable 2008 Full Year Results
Revenue Increases 166%, Gross Margins Increase from 29% to 47%; Company Earns $0.08 Per Share
SHANGHAI--(BUSINESS WIRE)--Sancon Resources Recovery, Inc. (OTCBB:SRRY - News) or “Sancon”, a rapidly growing environmental services and waste recycling company, with operations in both China and Australia, today announced results for the fiscal year ended December 31, 2008.
Financial highlights of 2008 fiscal year are:
* Revenue in 2008 grew 166% to $12.7 million from $4.78 million in 2007 due to significant growth in our Waste Management Service. Revenue in 2006 was $3.45 million.
* Gross profit increased 324% to $5.95 million in 2008 from $1.4 million in 2007. Gross profit in 2006 was $0.518 million.
* Gross margin increased significantly from 29% in 2007 to 47% in 2008 due to the expansion of higher margin services business in waste management. Gross margin in 2006 was 15%.
* EBITDA increased from $0.02 Million in 2007 to $1.76 million in 2008.
* Net income in 2008 was $1.65 million, or $0.08 per share, compared to the loss of $0.17 million, or $0.002 per share in the year ago period.
Operating highlights of 2008 fiscal year are:
* Sancon recycles plastic silage wrap into pine posts helping Australia local government to achieve ''Towards Zero'' waste strategy
* Sancon develops raw materials from recycled waste glass, used in the manufacturing of numerous consumer products
* One of world’s largest personal computer manufacturer selects Sancon to recycle computer packaging materials
* Sancon sponsors the development of new biofuel technology using algae, the Future Fuels Consortium™ which comprised the South Australian Research and Development Institute, Flinders University and CSIRO
In China, our business continued expanding rapidly. The number of full-time and contracted employees increased from 154 to 190 in 2008. We processed around 14 million waste glass bottles in 2008 to produce reusable raw materials. Nine additional trucks were purchased during the year taking the total number of trucks to 49 at the end of 2008 to expand our logistic operations.
In Australia, despite economic downturn, we did not lose any customers. We continue to process industry and consumer recyclable wastes from companies such as Toyota, Ford, Masterfood, Hella and Woolworth supermarkets.
In Hong Kong, due to the poor performance of the material trading business and ever narrowing margins since its inception and unlikelihood of it will generate any meaningful profit in the future, the company decided to dispose its subsidiary GuangCheng. The company will focus on higher margin businesses in China and Australia.
“The year 2008 represented a year of strong operating performance, as the Company generated the highest annual revenue in its history, reported improved gross margins reflecting a more favorable mix of business, and recorded a year of profitability,” said Jack Chen, Sancon’s Chief Executive Officer. “We were able to accomplish this result despite suffering the current economic crisis. The Chinese Government is emphasizing environmental policies & projects for all sectors of the economy and corporate entities”. Mr. Chen continued, “On August 2008, China's top legislature passed a law to promote a circular and recovery economy and will come into force on January 1, 2009. The aim of the law is to boost sustainable development through energy saving and reduction of pollutant discharges. This backdrop provides an excellent growth opportunity for Sancon in China. We aim to continuously expand our recycling and waste management operations in China by setting up larger network of processing facilities and logistics operations around China. Meanwhile, we are developing new processing facilities aiming at electronic waste materials and electronic production waste. We believe these strategies will support our growth throughout 2009”.
About Sancon Resources Recovery, Inc.
Sancon Resources Recovery, Inc. is an environmental service and waste management company that operates recycling facilities in China and Australia. Sancon specializes in the collection and recovery of industrial and commercial solid wastes such as plastic, paper, cardboard, and glass. The recycled materials are made into raw materials and used by Sancon's manufacturing customers in China to make a wide variety of new products including outdoor furniture, construction and building materials, road surface, and various new products. Sancon's China operation is fully licensed by the Chinese government for waste management services, and is certified with ISO9001 and ISO14001 standards. For more information please visit: www.sanconinc.com