x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
14-1623047
|
|
(State
or other jurisdiction of incorporation
or
organization)
|
(I.R.S.
Employer Identification
No.)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
|
Non-accelerated
filer ¨
(Do not check if a smaller reporting company)
|
Smaller
reporting company x
|
Class
of Securities
|
Shares
Outstanding
|
|
Common
Stock, $0.001 par value
|
46,562,955
|
PART I
|
||
FINANCIAL INFORMATION
|
||
Item 1.
|
Financial Statements
|
2
|
Item 2.
|
Management’s Discussion and Analysis of Financial
Condition and Results of Operations
|
22
|
Item 3.
|
Quantitative and Qualitative Disclosures About
Market Risk
|
40
|
Item 4.
|
Controls and Procedures
|
40
|
PART II
|
||
OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
40
|
Item 1A.
|
Risk Factors
|
40
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of
Proceeds
|
40
|
Item 3.
|
Defaults Upon Senior
Securities
|
40
|
Item 4.
|
Submission of Matters to a Vote of Security
Holders
|
40
|
Item 5.
|
Other Information
|
41
|
Item 6.
|
Exhibits
|
41
|
ITEM
1.
|
FINANCIAL
STATEMENTS.
|
Contents
|
Page(s)
|
|
Consolidated
Balance Sheets as of December 31, 2009 (unaudited) and June 30,
2009
|
3
|
|
Consolidated
Statements of Operations and Comprehensive Income for the three and six
months ended December 31, 2009 and 2008 (unaudited)
|
4
|
|
Consolidated
Statements of Stockholders’ Equity for the six months ended December 31,
2009 and 2008 (unaudited)
|
5
|
|
Consolidated
Statements of Cash Flows for the six months ended December 31, 2009 and
2008 (unaudited)
|
6
|
|
Notes
to the Consolidated Financial Statements (unaudited)
|
|
7-21
|
(Unaudited)
|
|||||||||
December
31,
|
June
30,
|
||||||||
Notes
|
2009
|
2009
|
|||||||
Assets
|
|||||||||
Current
assets
|
|||||||||
Cash
and cash equivalents
|
$ | 12,752,288 | $ | 13,649,587 | |||||
Accounts
receivable
|
|||||||||
Trade,
net of allowances of $1,006,973 and $830,127
|
|||||||||
at
December 31 and June 30, 2009, respectively
|
5
|
23,524,856 | 25,140,834 | ||||||
Bills
receivable
|
317,391 | 6,131,143 | |||||||
Other
|
920,274 | 881,153 | |||||||
Inventories
|
6
|
25,149,536 | 16,275,070 | ||||||
Prepaid
expenses
|
161,427 | 75,917 | |||||||
Advances
to suppliers, net of allowance of $1,632,442 and
|
|
||||||||
$1,631,557
at December 31 and June 30, 2009, respectively
|
7
|
22,491,830 | 21,878,047 | ||||||
Total
current assets
|
85,317,602 | 84,031,751 | |||||||
Property,
plant and equipment
|
|||||||||
Property,
plant and equipment, net
|
8
|
72,880,841 | 46,812,484 | ||||||
Deposits
for building, plant and machinery
|
- | 8,348,496 | |||||||
Construction-in-progress
|
9
|
5,656,934 | 22,245,173 | ||||||
78,537,775 | 77,406,153 | ||||||||
Intangible
assets, net
|
10
|
1,852,015 | 1,871,211 | ||||||
Goodwill
|
99,999 | 99,999 | |||||||
Total
assets
|
$ | 165,807,391 | $ | 163,409,114 | |||||
Liabilities
and Stockholders' Equity
|
|||||||||
Current
liabilities
|
|||||||||
Short-term
loans
|
11
|
$ | 25,791,988 | $ | 22,489,031 | ||||
Accounts
payable and accrued liabilities
|
6,346,626 | 7,144,242 | |||||||
Advances
from customers
|
12
|
2,786,380 | 1,742,944 | ||||||
Other
taxes payables
|
2,921,706 | 6,650,668 | |||||||
Current
income taxes payable
|
4,978,877 | 4,778,767 | |||||||
Total
current liabilities
|
42,825,577 | 42,805,652 | |||||||
Stockholders'
equity:
|
|||||||||
Preferred
stock: $0.001 per value, 8,000,000 shares
|
|||||||||
authorized,
no shares outstanding at December 31 and
|
|||||||||
June
30, 2009, respectively
|
13
|
||||||||
Common
stock: $0.001 par value, 62,000,000 shares
|
|||||||||
authorized,
46,562,955 and 46,562,955 issued and
|
|||||||||
outstanding
December 31 and June 30, 2009, respectively
|
13
|
46,563 | 46,563 | ||||||
Additional
paid-in capital
|
13
|
75,642,383 | 75,642,383 | ||||||
Accumulated
other comprehensive income
|
9,795,611 | 9,731,505 | |||||||
Retained
earnings
|
37,497,257 | 35,183,011 | |||||||
Total
stockholders' equity
|
122,981,814 | 120,603,462 | |||||||
Total
liabilities and stockholders' equity
|
$ | 165,807,391 | $ | 163,409,114 |
Three
Months Ended
|
Six
Months Ended
|
||||||||||||||||
December
31,
|
December
31,
|
December
31,
|
December
31,
|
||||||||||||||
Notes
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Revenues
|
|||||||||||||||||
Sales
revenues
|
$ | 27,013,838 | $ | 17,573,959 | $ | 44,055,827 | $ | 42,924,378 | |||||||||
Cost
of goods sold
|
23,377,883 | 14,122,622 | 39,716,513 | 35,520,383 | |||||||||||||
Gross
profit
|
3,635,955 | 3,451,337 | 4,339,314 | 7,403,995 | |||||||||||||
Operating
expenses
|
|||||||||||||||||
Selling
expenses
|
70,605 | 1,122,532 | 102,414 | 1,333,830 | |||||||||||||
Administrative
expenses
|
654,041 | 578,105 | 1,232,739 | 1,040,205 | |||||||||||||
Allowance
for bad and doubtful debts
|
101,067 | 3,829,462 | 218,184 | 3,829,462 | |||||||||||||
Depreciation
and amortization expense
|
36,755 | 33,318 | 80,493 | 59,521 | |||||||||||||
Total
operating expenses
|
862,468 | 5,563,417 | 1,633,830 | 6,263,018 | |||||||||||||
Income/(loss)
from operations
|
2,773,487 | (2,112,080 | ) | 2,705,484 | 1,140,977 | ||||||||||||
Other
income/(expense)
|
|||||||||||||||||
Other
revenues
|
91,041 | 138,998 | 110,963 | 259,701 | |||||||||||||
Interest
and finance costs
|
(275,091 | ) | (320,777 | ) | (503,434 | ) | (648,182 | ) | |||||||||
Total
other (expense)
|
(184,050 | ) | (181,779 | ) | (392,471 | ) | (388,481 | ) | |||||||||
Net
income/(loss) from operations before income tax
|
2,589,437 | (2,293,859 | ) | 2,313,013 | 752,496 | ||||||||||||
Provision
for/(benefit from) income tax
|
15
|
||||||||||||||||
Current
|
- | (318,878 | ) | (1,233 | ) | (148,257 | ) | ||||||||||
Deferred
|
- | - | - | - | |||||||||||||
Total
income tax (benefit)
|
- | (318,878 | ) | (1,233 | ) | (148,257 | ) | ||||||||||
Net
income/(loss)
|
$ | 2,589,437 | $ | (1,974,981 | ) | $ | 2,314,246 | $ | 900,753 | ||||||||
Basic
earnings/(loss) per share
|
$ | 0.06 | $ | (0.04 | ) | $ | 0.05 | $ | 0.02 | ||||||||
Basic
weighted average shares outstanding
|
46,562,955 | 46,562,955 | 46,562,955 | 46,559,531 | |||||||||||||
Diluted
earnings/(loss) per share
|
$ | 0.06 | $ | (0.04 | ) | $ | 0.05 | $ | 0.02 | ||||||||
Diluted
weighted average shares outstanding
|
46,562,955 | 46,562,955 | 46,562,955 | 46,566,423 | |||||||||||||
The
Components of comprehensive income/(loss):
|
|||||||||||||||||
Net
income/(loss)
|
$ | 2,589,437 | $ | (1,974,981 | ) | $ | 2,314,246 | $ | 900,753 | ||||||||
Foreign
currency translation adjustment
|
(11,086 | ) | 677,905 | 64,106 | 750,424 | ||||||||||||
Comprehensive
income/(loss)
|
$ | 2,578,351 | $ | (1,297,076 | ) | $ | 2,378,352 | $ | 1,651,177 |
Accumulated
|
||||||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||||||
Ordinary Shares
|
Paid-in
|
Comprehensive
|
Retained
|
Stockholders'
|
||||||||||||||||||||
Share
|
Amount
|
Capital
|
Income
|
Earnings
|
Equity
|
|||||||||||||||||||
Balance
at June 30, 2008
|
46,472,953 | $ | 46,473 | $ | 75,372,488 | $ | 9,295,658 | $ | 35,591,349 | $ | 120,305,968 | |||||||||||||
Transfer
agent adjustment
|
2 | - | - | - | - | - | ||||||||||||||||||
Exercise
of warrants
|
90,000 | 90 | 269,895 | - | - | 269,985 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | 435,847 | - | 435,847 | ||||||||||||||||||
Net
income
|
- | - | - | - | (408,338 | ) | (408,338 | ) | ||||||||||||||||
Balance
at June 30, 2009
|
46,562,955 | 46,563 | 75,642,383 | 9,731,505 | 35,183,011 | 120,603,462 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | 64,106 | - | 64,106 | ||||||||||||||||||
Net
income
|
- | - | - | - | 2,314,246 | 2,314,246 | ||||||||||||||||||
Balance
at December 31, 2009 (unaudited)
|
46,562,955 | $ | 46,563 | $ | 75,642,383 | $ | 9,795,611 | $ | 37,497,257 | $ | 122,981,814 |
2009
|
2008
|
|||||||
Cash
flows from operating activities
|
||||||||
Net
income
|
$ | 2,314,246 | $ | 900,753 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
Depreciation
and amortization
|
2,181,380 | 1,825,544 | ||||||
Allowance
for bad and doubtful debts
|
218,184 | 3,829,462 | ||||||
Inventory
impairment
|
42,534 | - | ||||||
Net
changes in assets and liabilities:
|
||||||||
Accounts
receivable, net
|
7,189,783 | 3,801,518 | ||||||
Inventories
|
(8,908,192 | ) | (461,094 | ) | ||||
Prepaid
expenses
|
(85,504 | ) | (50,382 | ) | ||||
Advances
to suppliers
|
(601,926 | ) | 2,890,245 | |||||
Accounts
payable and accrued expenses
|
(801,406 | ) | (147,831 | ) | ||||
Advances
from customers
|
1,042,492 | (3,006,670 | ) | |||||
Other
taxes payable
|
(2,236,478 | ) | (426,823 | ) | ||||
Current
income taxes
|
197,520 | (491,584 | ) | |||||
Net
cash provided by operating activities
|
552,633 | 8,663,138 | ||||||
Cash
flows from investing activities
|
||||||||
Purchase
of property, plant and equipment including construction in
progress
|
(4,746,139 | ) | (12,954,497 | ) | ||||
Net
cash (used in) investing activities
|
(4,746,139 | ) | (12,954,497 | ) | ||||
Cash
flows from financing activities
|
||||||||
Exercise
of common stock warrants
|
- | 269,985 | ||||||
Short-term
loan proceeds
|
3,735,169 | - | ||||||
Repayments
of short-term loans
|
(444,400 | ) | (87,690 | ) | ||||
Net
cash provided by financing activities
|
3,290,769 | 182,295 | ||||||
Effect
of exchange rate
|
5,438 | 303,887 | ||||||
Net
(decrease) in cash
|
(897,299 | ) | (3,805,177 | ) | ||||
Cash
and cash equivalents, beginning of period
|
13,649,587 | 18,568,842 | ||||||
Cash
and cash equivalents, end of period
|
$ | 12,752,288 | $ | 14,763,665 |
Plant
and machinery
|
10
years
|
Buildings
|
10
years
|
Motor
vehicles
|
5
years
|
Office
equipment
|
5
to 10 years
|
Customers
|
2009
|
% to
sales
|
2008
|
% to
sales
|
||||||||||||
Shanghai
Changshuo Steel Company, Ltd
|
8,473,414 | 19 | 4,555,411 | 11 | ||||||||||||
Shanghai
Shengdejia Metal Products Co., Ltd
|
6,465,502 | 15 | - | * | - | * | ||||||||||
Salzgitter
Mannesmann International GMBH
|
- | * | - | * | 13,651,071 | 32 |
Suppliers
|
2009
|
% to
purchases
|
2008
|
% to
purchases
|
||||||||||||
Dachang
Huizu Baosheng Steel Products Co., Ltd.
|
9,952,219 | 23 | - | * | - | * | ||||||||||
Guangzhou
Zhujiang Steel Co., Ltd.
|
7,973,946 | 19 | - | * | - | * | ||||||||||
Wuxi
Hangda Trading Co., Ltd.
|
7,363,868 | 17 | - | * | - | * | ||||||||||
BaoSteel
Steel Products Trading Co. Ltd.
|
- | * | - | * | 10,756,193 | 35 | ||||||||||
Shanghai
Pinyun Steel Co., Ltd.
|
- | * | - | * | 6,877,828 | 22 |
At cost:
|
December 31,
2009
|
June 30,
2009
|
||||||
Raw
materials
|
$ | 16,250,018 | $ | 8,846,663 | ||||
Work
in progress
|
4,556,219 | 2,818,832 | ||||||
Finished
goods
|
1,697,662 | 2,191,341 | ||||||
Consumable
items
|
2,688,166 | 2,418,234 | ||||||
25,192,065 | 16,275,070 | |||||||
Less:
impairment
|
(42,529 | ) | - | |||||
$ | 25,149,536 | $ | 16,275,070 |
December 31,
2009
|
June 30,
2009
|
|||||||
Plant
and machinery
|
$ | 61,505,494 | $ | 33,331,681 | ||||
Buildings
|
21,818,038 | 21,806,219 | ||||||
Motor
vehicles
|
562,186 | 534,652 | ||||||
Office
equipment
|
426,747 | 404,695 | ||||||
84,312,465 | 56,077,247 | |||||||
Less:
Accumulated depreciation
|
(11,431,624 | ) | (9,264,763 | ) | ||||
$ | 72,880,841 | $ | 46,812,484 |
December 31,
2009
|
June 30,
2009
|
|||||||
Construction
costs
|
$ | 5,656,934 | $ | 22,245,173 |
December 31,
2009
|
June 30,
2009
|
|||||||
Bank
loan agreement dated July 7, 2009, due July 31, 2010 with an interest rate
of the Singapore Interbank Offered Rate (“SIBOR”) plus 3% (3.10% at
December 31, 2009) (Note 8)
|
5,300,000 | 5,300,000 | ||||||
Bank
loan agreement dated July 7, 2009, due July 31, 2010 with an interest rate
at 115% of the standard market rate set by the People’s Bank of China for
Renminbi loans (6.11% at December 31, 2009) (Note 8)
|
2,475,290 | 2,915,238 | ||||||
Bank
loan agreement dated July 7, 2009, due July 31, 2010 with an interest rate
at 115% of the standard market rate set by the People’s Bank of China for
Renminbi loans (6.11% at December 31, 2009) (Note 6 and 8)
|
18,016,698 | 14,273,793 | ||||||
$ | 25,791,988 | $ | 22,489,031 |
Exercise
Price
|
Outstanding
June 30, 2009
|
Granted
|
Expired or
Exercised
|
Outstanding
December 31,
2009
|
Expiration Date
|
||||||||||||||
$ | 3.60 | 100,000 | -0- | -0- | 100,000 |
February
22, 2010
|
|||||||||||||
$ | 7.38 | 225,600 | -0- | -0- | 225,600 |
November
5, 2010
|
|||||||||||||
$ | 3.00 | 358,392 | -0- | -0- | 358,392 |
February
22, 2011
|
|||||||||||||
$ | 8.45 | 1,420,000 | -0- | -0- | 1,420,000 |
May
5,
2013
|
Six months ended
December 31,
|
||||||||
2009
|
2008
|
|||||||
Tax
savings
|
$ | 675,840 | $ | 411,977 | ||||
Benefit
per share
|
||||||||
Basic
|
$ | 0.01 | $ | 0.01 | ||||
Diluted
|
$ | 0.01 | $ | 0.01 |
Deferred tax assets:
|
December 31,
2009
|
June 30,
2009
|
||||||
Net
operating loss carried forward
|
$ | 1,911,287 | $ | 1,823,487 | ||||
Temporary
differences resulting from allowances
|
1,905,901 | 1,850,921 | ||||||
Total
deferred income tax assets
|
$ | 3,817,188 | $ | 3,674,408 | ||||
Valuation
allowance
|
(3,817,188 | ) | (3,674,408 | ) | ||||
$ | — | $ | — |
Six months ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Computed
tax (benefit)/expense at the federal statutory rate of 34%
|
$ | 786,843 | $ | 255,849 | ||||
Adjustments
for PRC entities taxed at different rates
|
(252,963 | ) | (106,772 | ) | ||||
Valuation
allowance
|
142,289 | (32,867 | ) | |||||
Income
not subject to tax
|
(329 | ) | 147,510 | |||||
Overprovision
in prior year
|
(1,233 | ) | - | |||||
Benefit
of tax holiday
|
(675,840 | ) | (411,977 | ) | ||||
Income
tax (benefit) per books
|
$ | (1,233 | ) | $ | (148,257 | ) |
Six months ended December 31,
|
||||||||
2009
|
2008
|
|||||||
Income
tax (benefit) for the year - PRC
|
$ | (1,233 | ) | $ | (148,257 | ) | ||
Deferred
income tax benefit – PRC
|
- | - | ||||||
Income
tax (benefit) per books
|
$ | (1,233 | ) | $ | (148,257 | ) |
Income
|
Shares
|
Per Share
|
||||||||||
(Numerator)
|
(Denominator)
|
Amount
|
||||||||||
For
the three months ended December 31, 2009:
|
||||||||||||
Net
income
|
$ | 2,589,437 | ||||||||||
Basic
EPS income available to common shareholders
|
$ | 2,589,437 | 46,562,955 | $ | 0.06 | |||||||
Effect
of dilutive securities:
|
- | |||||||||||
Diluted
EPS income available to common shareholders
|
$ | 2,589,437 | 46,562,955 | $ | 0.06 | |||||||
For
the three months ended December 31, 2008:
|
||||||||||||
Net
loss
|
$ | (1,974,981 | ) | |||||||||
Basic
EPS (loss) available to common shareholders
|
$ | (1,974,981 | ) | 46,562,955 | $ | (0.04 | ) | |||||
Effect
of dilutive securities:
|
- | |||||||||||
Diluted
EPS (loss) available to common shareholders
|
$ | (1,974,981 | ) | 46,562,955 | $ | (0.04 | ) |
Income
|
Shares
|
Per Share
|
||||||||||
(Numerator)
|
(Denominator)
|
Amount
|
||||||||||
For
the six months ended December 31, 2009:
|
|
|||||||||||
Net
income
|
$ | 2,314,246 | ||||||||||
Basic
EPS income available to common shareholders
|
$ | 2,314,246 | 46,562,955 | $ | 0.05 | |||||||
Effect
of dilutive securities:
|
- | |||||||||||
Diluted
EPS income available to common shareholders
|
$ | 2,314,246 | 46,562,955 | $ | 0.05 | |||||||
For
the six months ended December 31, 2008:
|
||||||||||||
Net
income
|
$ | 900,753 | ||||||||||
Basic
EPS income available to common shareholders
|
$ | 900,753 | 46,559,531 | $ | 0.02 | |||||||
Effect
of dilutive securities:
|
||||||||||||
Warrants
|
6,892 | |||||||||||
Diluted
EPS income available to common shareholders
|
$ | 900,753 | 46,566,423 | $ | 0.02 |
|
·
|
Revenues:
Our revenues were approximately $27.0 million for the second quarter, an
increase of 53.7% from last year.
|
|
·
|
Gross
Margin: Gross margin was 13.5% for the second quarter, as compared
to 19.6% last year.
|
|
·
|
Income/(loss)
from operations before tax: Income from operations before tax was
approximately $2.6 million for the second quarter, as compared to loss
from operations before tax of $2.3 million last
year.
|
|
·
|
Net
Income/(loss): Net income was approximately $2.6 million for the
second quarter, as compared to a net loss of approximately $2.0 million
last year.
|
|
·
|
Fully
diluted Income/(loss) per share: Fully diluted income per share was
$0.06 for the second quarter compared to a fully diluted loss per share of
$0.04 last year.
|
Three Months Ended December 31,
|
Six Months Ended December 31,
|
|||||||||||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||||||||||||
Amount
|
%
of
Revenues
|
Amount
|
%
of
Revenues
|
Amount
|
%
of
Revenues
|
Amount
|
%
of
Revenues
|
|||||||||||||||||||||||||
Revenues
|
$ | 27,013,838 | 100.0 | $ | 17,573,959 | 100.0 | $ | 44,055,827 | 100.0 | $ | 42,924,378 | 100.0 | ||||||||||||||||||||
Cost
of sales (including depreciation and amortization)
|
23,377,883 | 86.5 | 14,122,622 | 80.4 | 39,716,513 | 90.2 | 35,520,383 | 82.8 | ||||||||||||||||||||||||
Gross
profit
|
3,635,955 | 13.5 | 3,451,337 | 19.6 | 4,339,314 | 9.8 | 7,403,995 | 17.2 | ||||||||||||||||||||||||
Selling
and marketing expenses
|
70,605 | 0.3 | 1,122,532 | 6.4 | 102,414 | 0.2 | 1,333,830 | 3.1 | ||||||||||||||||||||||||
Administrative
expenses
|
654,041 | 2.4 | 578,105 | 3.3 | 1,232,739 | 2.8 | 1,040,205 | 2.4 | ||||||||||||||||||||||||
Allowance
for bad and doubtful debts
|
101,067 | 0.4 | 3,829,462 | 21.8 | 218,184 | 0.5 | 3,829,462 | 8.9 | ||||||||||||||||||||||||
Depreciation
and amortization expense
|
36,755 | 0.1 | 33,318 | 0.2 | 80,493 | 0.2 | 59,521 | 0.1 | ||||||||||||||||||||||||
Total
operating expenses
|
862,468 | 3.2 | 5,563,417 | 31.7 | 1,633,830 | 3.7 | 6,263,018 | 14.6 | ||||||||||||||||||||||||
Income/(loss)
from operations
|
2,773,487 | 10.3 | (2,112,080 | ) | (12.0 | ) | 2,705,484 | 6.1 | 1,140,977 | 2.7 | ||||||||||||||||||||||
Other
revenues
|
91,041 | 0.3 | 138,998 | 0.8 | 110,963 | 0.3 | 259,701 | 0.6 | ||||||||||||||||||||||||
Interest
and finance costs
|
(275,091 | ) | (1.0 | ) | (320,777 | ) | (1.8 | ) | (503,434 | ) | (1.1 | ) | (648,182 | ) | (1.5 | ) | ||||||||||||||||
Total
other (expense)
|
(184,050 | ) | (0.7 | ) | (181,779 | ) | (1.0 | ) | (392,471 | ) | (0.9 | ) | (388,481 | ) | (0.9 | ) | ||||||||||||||||
Income/(loss)
before income taxes
|
2,589,437 | 9.6 | (2,293,859 | ) | (13.1 | ) | 2,313,013 | 5.3 | 752,496 | 1.8 | ||||||||||||||||||||||
Income
tax (benefit)
|
- | - | (318,878 | ) | (0.2 | ) | (1,233 | ) |
<(0.1)
|
(148,257 | ) | (0.3 | ) | |||||||||||||||||||
Net
income/(loss)
|
$ | 2,589,437 | 9.6 | $ | (1,974,981 | ) | (11.0 | ) | $ | 2,314,246 | 5.3 | $ | 900,753 | 2.1 | ||||||||||||||||||
Basic
earnings/(loss) per share
|
$ | 0.06 | $ | (0.04 | ) | $ | 0.05 | $ | 0.02 | |||||||||||||||||||||||
Diluted
earnings/(loss) per share
|
$ | 0.06 | $ | (0.04 | ) | $ | 0.05 | $ | 0.02 |
Three
Months Ended December 31,
|
||||||||||||||||||||||||||||
2009
|
2008
|
Period-on-
|
||||||||||||||||||||||||||
Product
Category
|
Quantity
(tons)
|
$
Amount
|
%
of
Sales
|
Quantity
(tons)
|
$
Amount
|
%
of
Sales
|
period
Qty.
Variance
|
|||||||||||||||||||||
Low
carbon hard rolled
|
4,453 | 3,520,889 | 13 | 11,755 | 13,238,537 | 75 | (7,302 | ) | ||||||||||||||||||||
Low
carbon cold-rolled
|
16,627 | 11,303,581 | 42 | 1,834 | 2,107,484 | 12 | 14,793 | |||||||||||||||||||||
High-carbon
hot-rolled
|
1,440 | 1,236,831 | 5 | 861 | 903,754 | 5 | 579 | |||||||||||||||||||||
High-carbon
cold-rolled
|
7,167 | 7,402,355 | 27 | 196 | 168,782 | 1 | 6,971 | |||||||||||||||||||||
Subcontracting
income
|
5,901 | 3,256,866 | 12 | 216 | 49,110 |
<1
|
5,685 | |||||||||||||||||||||
Sales
of scrap metal
|
- | 293,316 | 1 | — | 1,106,292 | 6 | - | |||||||||||||||||||||
Total
|
35,588 | 27,013,838 | 100 | 14,862 | 17,573,959 | 100 | 20,726 |
Three Months Ended December
31,
|
||||||||||||||||
2009
|
2008
|
Variance
|
||||||||||||||
Average Selling Prices
|
($)
|
($)
|
($)
|
(%)
|
||||||||||||
Low-carbon
hard rolled
|
791 | 1,126 | (335 | ) | (30 | ) | ||||||||||
Low-carbon
cold-rolled
|
680 |