| |
| 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. | | | | Subsidiaries: |
|---|
Talent International Investment Limited
Xinghe Yongle Carbon Co., Ltd.
| | | | | | | | | |
|
|
|
| |
| Annual Report |
|---|
| | | Income Statement | |
| 2009 | 2008 |
|---|
| Net sales | 15,369,978 | 27,303,385 | | Cost of Goods Sold | 13,192,496 | 20,605,710 | | Depreciation and amortization | 75,352 | 68,422 | | Selling expenses | 365,865 | 504,884 | | General and administrative | 2,594,713 | 1,951,642 | | Other income | 644,654 | 401,860 | | Other expenses | 117,341 | 11,491 | | Interest expense | 833,854 | 580,808 | | Net income | (1,474,276) | 3,982,288 | | Share earns. basic | (0.16) | 0.25 | | Share earns. diluted | (0.16) | 0.21 |
| | | | Balance Sheet | |
| 2009 | 2008 |
|---|
| Assets: |
|
| | Current Assets |
|
| | Cash & equiv. | 2,709,127 | 51,799 | | Trade accounts receivable | 5,170,419 | 4,224,410 | | Notes receivable | 248,452 | 27,720 | | Advance to related party | - | 290,409 | | Prepaid expenses | 50,000 | - | | Advance to suppliers, net | 790,767 | 1,017,088 | | Other receivables | 1,130,795 | 150,694 | | Inventories | 16,430,754 | 15,889,549 | | Tot. curr assets | 26,530,314 | 21,651,669 | | Property and equipment, net | 25,959,141 | 23,033,384 | | Land use rights, net | 3,548,273 | 3,604,324 | | Total assets | 56,037,728 | 48,289,377 | | Liabilities: |
|
| | Current Liabilities |
|
| | Short term bank loans | 8,573,901 | 4,887,514 | | Accts. pay. & accruals | 2,005,583 | 1,253,265 | | Advance from customers | 1,084,206 | 640,346 | | Taxes payable | 370,777 | 362,298 | | Long term bank loan | 1,613,566 | 1,896,647 | | Other payables | 922,109 | 551,096 | | Tot. curr. liabs. | 14,570,142 | 9,591,166 | | Accounts payable in long term | 1,243,842 | - | | Warrant liabilities | 708,091 | - | | Long term bank loan | 1,613,566 | 3,209,711 | | Convertible preferred stock Ser A | 125 | 1,200 | | Convertible preferred stock Ser B | 2,161 | - | | Com. stk. p.$0.001 | 18,122 | 12,218 | | Paid-in cap. | 13,298,332 | 8,690,426 | | Retained earns. | 19,546,285 | 21,793,543 | | Accumulated other comprehensive income | 5,037,062 | 4,991,113 | | Total stockholders' equity | 37,902,087 | 35,488,500 | | Total liabs. | 56,037,728 | 48,289,377 |
| | | |
* The company was originally incorporated on February 13, 2003 under the name Achievers Magazine Inc. On December 17, 2007, the company completed a share exchange pursuant to a share exchange agreement, dated as of December 14, 2007, with Sincere Investment (PTC), Ltd. (Sincere), a British Virgin Islands corporation, which is the sole stockholder of Talent International Investment Limited (Talent), a British Virgin Islands corporation, which is the sole stockholder of Xinghe Yongle Carbon Co., Ltd. (Yongle), a company organized under the laws of the Peoples Republic of China. Pursuant to the share exchange agreement, Talent became the companys wholly-owned subsidiary and the company's sole business became the business of Sincere and its affiliated companies. Effective January 30, 2008, the corporate name was changed to China Carbon Graphite Group, Inc.
The following statement of operations represents the results of Xinghe Xingyong Carbon Co., Ltd. | | | |
|
|
|
| |
| Quarterly Report Information
|
|---|
| | | Quarterly Revenue, US$ |
|---|
| Year | Quarter | Revenue | | 2009 |
1 | 2,890,000 | | 2008 |
1 | 5,730,000 | | 2008 |
2 | 13,650,000 | | 2008 |
3 | 21,160,000 | | 2008 |
Full Year
| 27,300,000 | | 2007 |
1 | 5,370,000 | | 2007 |
2 | 11,450,000 | | 2007 |
3 | 18,800,000 | | 2007 |
Full Year
| 25,360,000 | | 2005 |
1 | 50,000 | | 2005 |
4 | 30,000 | | 2005 |
Full Year
| 90,000 | | 2004 |
3 | 70,000 | | 2004 |
4 | 10,000 | | 2004 |
Full Year
| 200,000 |
| | | | | | Quarterly Net Income, US$ |
|---|
| Year | Quarter | Revenue | | 2009 |
1 | 470,000 | | 2008 |
1 | 1,240,000 | | 2008 |
2 | 2,800,000 | | 2008 |
3 | 4,330,000 | | 2007 |
1 | 840,000 | | 2007 |
2 | 1,910,000 | | 2007 |
3 | 2,940,000 | | 2007 |
Full Year
| (100,000) | | 2006 |
Full Year
| (140,000) | | 2005 |
Full Year
| (100,000) | | 2004 |
Full Year
| (80,000) |
| | | | | | Quarterly EPS, US$ |
|---|
| Year | Quarter | Revenue | | 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 |
4 | Nil | | 2007 |
Full Year
| .34 | | 2006 |
1 | Nil | | 2006 |
2 | Nil | | 2006 |
3 | Nil | | 2006 |
4 | Nil | | 2006 |
Full Year
| (.02) | | 2005 |
1 | Nil | | 2005 |
2 | Nil | | 2005 |
3 | Nil | | 2005 |
4 | Nil | | 2005 |
Full Year
| (.01) | | 2004 |
3 | Nil | | 2004 |
4 | Nil | | 2004 |
Full Year
| (.01) |
| | | |
|
|
|