09/11 15:30 CDT
SHANGHAI, China, Sept. 11 /Xinhua-PRNewswire/ -- China Precision Steel, Inc.
(Nasdaq: CPSL) ("China Precision Steel" or the "Company"), a niche precision
steel processing company principally engaged in producing and selling high
precision cold-rolled steel products, today announced preliminary results for
the fiscal year ended June 30, 2008.
China Precision Steel expects to report record revenues for fiscal year
2008 of $87.7 million, an increase of 62.6% from $54.0 million in revenues in
fiscal year 2007. The Company's strong revenue growth is attributable to
increased sales of high-carbon, cold-rolled products, subcontracting income and
exports of low-carbon, hard rolled products. Gross profit for the year is
expected to be a record $22.5 million, an increase of 49.6% from $15.0 million
in fiscal 2007. Gross margin is expected to be 25.6% in fiscal 2008, compared
to 27.9% in fiscal 2007. The slight decline in gross margin for the year was
primarily the result of an increase in the price of raw materials. The
foregoing results are preliminary and subject to revision based upon review by
the Company's independent auditor.
"Our record results for the full year are attributable to an increase in
orders from our current customers, as well as the addition of new customers,
the majority of whom came to us as a result of increasing media coverage of the
Company's high quality, specialty steel production," commented Dr Wo Hing Li,
China Precision Steel's Chairman and Ceo. "Currently, the utilization rate at
our second cold-rolling mill is at 55-60% capacity, and continues to ramp to
full capacity. Moreover, our production facilities are fully occupied with up
to three months of advanced bookings. Our new revenue stream from stainless
steel subcontracting projects increased as a percent of total revenue and we
expect it to continue growing in the future."
SHANGHAI, China, Sept. 11 /Xinhua-PRNewswire/ -- China Precision Steel, Inc.
(Nasdaq: CPSL) ("China Precision Steel" or the "Company"), a niche precision
steel processing company principally engaged in producing and selling high
precision cold-rolled steel products, today announced preliminary results for
the fiscal year ended June 30, 2008.
China Precision Steel expects to report record revenues for fiscal year
2008 of $87.7 million, an increase of 62.6% from $54.0 million in revenues in
fiscal year 2007. The Company's strong revenue growth is attributable to
increased sales of high-carbon, cold-rolled products, subcontracting income and
exports of low-carbon, hard rolled products. Gross profit for the year is
expected to be a record $22.5 million, an increase of 49.6% from $15.0 million
in fiscal 2007. Gross margin is expected to be 25.6% in fiscal 2008, compared
to 27.9% in fiscal 2007. The slight decline in gross margin for the year was
primarily the result of an increase in the price of raw materials. The
foregoing results are preliminary and subject to revision based upon review by
the Company's independent auditor.
"Our record results for the full year are attributable to an increase in
orders from our current customers, as well as the addition of new customers,
the majority of whom came to us as a result of increasing media coverage of the
Company's high quality, specialty steel production," commented Dr Wo Hing Li,
China Precision Steel's Chairman and Ceo. "Currently, the utilization rate at
our second cold-rolling mill is at 55-60% capacity, and continues to ramp to
full capacity. Moreover, our production facilities are fully occupied with up
to three months of advanced bookings. Our new revenue stream from stainless
steel subcontracting projects increased as a percent of total revenue and we
expect it to continue growing in the future."
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