OTC Bulletin Board

S & P Company Insight for CHINA CARBON GRAPHIT

Business Summary: Develops, manufactures and markets graphite products, including graphite electrodes, fine grain graphite, high purity graphite and other carbon derived products. The company produces all of its products in China.
  787 Xicheng Wai
  Chengguantown , Inner Mongolia 013650
  Phone: 86.474.7209723
  Fax: 86-474-7209799
  BDO China Li Xin Da Hua CPA Co.,Ltd.
Transfer Agent
  Empire Stock Transfer Inc.
Employees:  553
ShareHolders:  49
Founded:  2003
Domicile:  Nevada

China Carbon Graphite Group, Inc. develops, manufactures and markets graphite products, including graphite electrodes, fine grain graphite, high purity graphite and other carbon derived products. The company produces all of its products in China. Graphite is a form of elemental carbon and is used in numerous low- and high-tech applications. Graphite electrodes are high-temperature electric conductors used in electric arc furnaces to melt scrap steel. Fine grain graphite is widely used for non-ferrous metals smelting as well as for the manufacture of molds. High purity graphite is used in aviation, electronics, nuclear energy, the chemical industry, and the food industry. China Carbon Graphite's products are generally used as a component in other products, as an element of a facility or in the manufacturing process of other products. The company sells its products to distributors which, in turn, sell to producers in both the domestic Chinese market and the international market. China Carbon Graphite also sells graphite electrodes directly to domestic end users. Although its products are sold in the international market, substantially all of the company's sales are to Chinese firms that may, in turn, sell the products in the international market. The company has over 50 customers in 22 provinces in China. The company's near-term strategy includes efforts to double capacity from 15,000 tons to 30,000 tons annually, to expand sales of fine grain and high purity graphite to fill capacity, and to acquire other carbon graphite companies in China in order to increase capacity of high power electrode graphite as well as fine grain and ultra fine grain graphite. The company's long-term strategy is to develop nuclear graphite capabilities and capacity for new nuclear power plants. China Carbon Graphite holds a Chinese patent for high-density, high-strength and wear-resistant graphite material and the production of this material. It has a technology cooperation agreement with Hunan University, which offers a major in carbon studies. In addition, it is developing ultra high purity graphite with a diameter of 840mm, which is required for nuclear plants. The company's wholly owned subsidiary, Talent International Investment Ltd., owns 100% of the stock of Xinghe Yongle Carbon Co., Ltd., which in turn is a party to a series of contractual arrangements with Xinghe Xingyong Carbon Co., Ltd. (Xingyong). These agreements give the company the ability to operate and manage the business of Xingyong and to derive the profit (or sustain the loss) from Xingyong's business.
History:  INCORPORATED in Nevada Feb. 13, 2003, as Achievers Magazine Inc.; name changed to China Carbon Graphite Group, Inc. Jan. 22, 2008. On Dec. 17, 2007, the company acquired Talent International Investment Limited, a British Virgin Islands corporation and the sole stockholder of Xinghe Yongle Carbon Co., Ltd., a company organized under the laws of the People's Republic of China (PRC). The company issued 9,388,172 Common shares in exchange for all of the outstanding Common stock of Talent. Talent International Investment Limited was incorporated in the British Virgin Islands on Feb. 1, 2007. It formed Xinghe Yongle Carbon Co., Ltd. in the PRC on Sept. 18, 2007.
Talent International Investment Limited
Xinghe Yongle Carbon Co., Ltd.


 Donghai  YuPresident & Chief Executive Officer
 Ting  ChenChief Financial Officer
 Ting  ChenInvestor Relations Contact

 Ting  Chen
 Hongbo  Liu
 Donghai  Yu
 Annual Report

Annual Report
Income Statement
Net sales15,369,97827,303,385
Cost of Goods Sold13,192,49620,605,710
Depreciation and amortization75,35268,422
Selling expenses365,865504,884
General and administrative 2,594,7131,951,642
Other income644,654401,860
Other expenses117,34111,491
Interest expense833,854580,808
Net income(1,474,276)3,982,288
Share earns. basic(0.16)0.25
Share earns. diluted(0.16)0.21
Balance Sheet
Current Assets
Cash & equiv.2,709,12751,799
Trade accounts receivable5,170,4194,224,410
Notes receivable248,45227,720
Advance to related party -290,409
Prepaid expenses50,000-
Advance to suppliers, net790,7671,017,088
Other receivables1,130,795150,694
Tot. curr assets26,530,31421,651,669
Property and equipment, net 25,959,14123,033,384
Land use rights, net3,548,2733,604,324
Total assets56,037,72848,289,377
Current Liabilities
Short term bank loans8,573,9014,887,514
Accts. pay. & accruals2,005,5831,253,265
Advance from customers1,084,206640,346
Taxes payable370,777362,298
Long term bank loan1,613,5661,896,647
Other payables922,109551,096
Tot. curr. liabs.14,570,1429,591,166
Accounts payable in long term1,243,842-
Warrant liabilities708,091-
Long term bank loan1,613,5663,209,711
Convertible preferred stock Ser A1251,200
Convertible preferred stock Ser B2,161-
Com. stk. p.$0.00118,12212,218
Paid-in cap.13,298,3328,690,426
Retained earns.19,546,28521,793,543
Accumulated other comprehensive income5,037,0624,991,113
Total stockholders' equity37,902,08735,488,500
Total liabs.56,037,72848,289,377
 * The company was originally incorporated on February 13, 2003 under the name Achievers Magazine Inc. On December 17, 2007, the company completed a share exchange pursuant to a share exchange agreement, dated as of December 14, 2007, with Sincere Investment (PTC), Ltd. (Sincere), a British Virgin Islands corporation, which is the sole stockholder of Talent International Investment Limited (Talent), a British Virgin Islands corporation, which is the sole stockholder of Xinghe Yongle Carbon Co., Ltd. (Yongle), a company organized under the laws of the Peoples Republic of China. Pursuant to the share exchange agreement, Talent became the companys wholly-owned subsidiary and the company's sole business became the business of Sincere and its affiliated companies. Effective January 30, 2008, the corporate name was changed to China Carbon Graphite Group, Inc. The following statement of operations represents the results of Xinghe Xingyong Carbon Co., Ltd.
 Interim Report

Interim Report   
Data Not Available
 Pro Forma Report

Pro Forma Report   
Data Not Available
 Quarterly Report

Quarterly Report Information   
Quarterly Revenue, US$
  2009   12,890,000
  2008   15,730,000
  2008   213,650,000
  2008   321,160,000
  2008   Full Year 27,300,000
  2007   15,370,000
  2007   211,450,000
  2007   318,800,000
  2007   Full Year 25,360,000
  2005   150,000
  2005   430,000
  2005   Full Year 90,000
  2004   370,000
  2004   410,000
  2004   Full Year 200,000
Quarterly Net Income, US$
  2009   1470,000
  2008   11,240,000
  2008   22,800,000
  2008   34,330,000
  2007   1840,000
  2007   21,910,000
  2007   32,940,000
  2007   Full Year (100,000)
  2006   Full Year (140,000)
  2005   Full Year (100,000)
  2004   Full Year (80,000)
Quarterly EPS, US$
  2009   1.04
  2008   1.02
  2008   2.10
  2008   3.18
  2008   Full Year .21
  2007   1.08
  2007   2.18
  2007   3.28
  2007   4Nil
  2007   Full Year .34
  2006   1Nil
  2006   2Nil
  2006   3Nil
  2006   4Nil
  2006   Full Year (.02)
  2005   1Nil
  2005   2Nil
  2005   3Nil
  2005   4Nil
  2005   Full Year (.01)
  2004   3Nil
  2004   4Nil
  2004   Full Year (.01)
 Stock Data

Capitalization as of 12/31/2009:
 Authorized SharesOutstanding Shares
Common $0.001 par100,000,00018,121,661
Preferred $0.001 par20,000,0002,285,500so2
LONG TERM DEBT: $1,613,566.
Common $0.001 par
Stockholders:  04/12/2010, 49.
Transfer Agent:  Empire Stock Transfer Inc.   Henderson , NV
OTC Bulletin Board( Primary): CHGI
OTC Bulletin Board20091.90000.1100
OTC Bulletin Board20086.25000.2500
DIVIDENDS: Common $0.001 par: No cash. Common split 1.6-for-1, Jan. 22, 2008.
  so2Closely held. Consists of 125,000 Ser. A Conv. Preferred; and 2,160,500 Ser. B Con. Preferred. Each Ser. A and B share is convertible into one Common share. Liquidation preference, $1.00 per share.