NEW YORK, April 19, 2010 (GLOBE NEWSWIRE) -- China Carbon Graphite Group, Inc. ("China Carbon" or the "Company") (OTCBB:CHGI), one of China's leading non-state-owned producers and wholesale suppliers of fine grain and high purity graphite, announces today its financial results for the fiscal year ended December 31, 2009 and reaffirms 2010 guidance.
Fiscal Year 2009 Highlights
| Full-year Results (USD) | ||
| (Years ended December 31) | 2009 | 2008 |
| Revenue | $27.3 million | $15.3 million |
| Gross Profit | $2.17 million | $6.69 million |
| GAAP Net Income (Loss) | $(1.47) million | $3.98 million |
| Adjusted Net Income | $(.18) million* | $3.98 million |
| GAAP EPS (Basic and Diluted) | $(0.16) | $0.21 |
| Adjusted EPS (Basic and Diluted) | $(0.01)* | $0.27 |
- Annual net revenue decreased 43.7% year-over-year due to unusual 89% decline in sales of low purity graphite electrodes during the fourth quarter of 2009, which represented approximately 35% of our sales in 2008; residue effect of the closure of our facilities for two months;
- *Excluding non-cash charges reflecting stock-based compensation, the change in fair value of warrants issued and deemed preferred dividend, Non-GAAP net loss attributable to common stockholders in 2009 was $(182,000), with diluted net earnings per share of $(0.01);
- Positive cash flow from operations of $1.9 million despite facility closure;
- Completed a private placement offering of $3 million in aggregate in December 2009 and January 2010 with institutional investors.
Recent Development
- Completed capacity expansion from 15,000 tons to 26,000 tons;
- Signed a letter of intent to acquire Chiyu Carbon Graphite Ltd., a down-stream producer of graphite products.
Fiscal Year 2010 Guidance
For years ending December 31st (in USD, millions)
| Fiscal Year | Adjusted Net Income * | Adjusted EPS* |
| 2010E without acquisition | $5.1 | $.25** |
| 2009 A | (.16) | .01 |
| 2008 A | 3.98 | .27 |
*Excluding change in fair value of warrants issued, deemed preferred dividend and stock based compensation.
**Based on 20 million weighted average shares outstanding.
About China Carbon Graphite Group, Inc.
China Carbon Graphite Group, through its affiliate, Xingyong Carbon Co., Ltd., manufactures carbon and graphite based products in China. The Company is the largest wholesale supplier of fine grain and high purity graphite in China and is one of the nation's top overall producers of carbon and graphite products. Fine grain graphite is widely used in smelting for colored metals and rare-earth metal smelting as well as the manufacture of molds. High purity graphite is used in metallurgy, mechanical industry, aviation, electronic, atomic energy, chemical industry, food industry and a variety of other fields. In September 2007, the Company was approved and designated by China's Ministry of Science & Technology as a "National Hi-tech Enterprise." Of the 400 plus carbon graphite producers in China, China Carbon is the only non-state-owned company which has received this honor. For more information, visit http://www.chinacarboninc.com. Any information on the Company's website or any other website does not constitute a part of this press release.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the Company's business and that of its subsidiaries. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors. The Company does not assume a duty to update these forward-looking statements.