GONGYI, China, July 13 /Xinhua-PRNewswire/ -- China Minerals Technologies, Inc. ("CMT") (OTC Bulletin Board: CMIT) announced financial results for the three-month period ended on March 31, 2007 for its wholly owned British Virgin Islands ("BVI") subsidiary, Gengsheng International Corporation ("Gengsheng International"), formerly Powersmart Holdings Limited, which CMT acquired on April 25, 2007 through a reverse merger transaction.
Quarter to Quarter Comparison
For the three-month period ended on March 31, 2007, Gengsheng International reported revenues of $8.5 million, an increase of 69.4 % compared to $5.0 million reported for the same period last year. Gross profit for the three months ended March 31, 2007 was $3.4 million, or 39.4% of net revenues, compared to gross profit of $1.9 million, or 38.1% of net revenues for the same period last year. Total operating expenses were $1.8 million for the three-month period ended on March 31, 2007, or 21.5% of net revenues, compared to $1.1 million in total operating expenses, or 22.0% of net revenues for the same period last year. Net income for the three-month period ended on March 31, 2007 was $1.3 million, or 14.8% of net revenues, compared to $0.8 million, or 15.0% of net revenues for the same period last year.
Gengsheng International had $2.1 million in unrestricted cash and cash equivalents as of March 31, 2007 compared to $0.4 million on December 31, 2006. Working capital as of March 31, 2007 was $12.8 million compared to $11.5 on December 31, 2006.
CMT is a mineral-based manufacturer whose products include monolithic refractories, industrial ceramics and fracture proppant. Monolithic refractories serve as heat resistant protective linings in industrial furnaces and other heavy machinery used in the steel, iron, cement, glass and aluminum industries. Ceramic products are heat and erosion resistant, which are used to house high voltage switches and fuses and to transfer liquids, solids and gases. Fracture proppant is used in operating oil wells to release trapped oil allowing it to be extracted to the earth's surface. CMT conducts business through Gengsheng International and its Chinese subsidiaries: Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng High-Temperature Materials Co., Ltd.
Powersmart Holdings Limited Name Change.
CMT also announced that it has filed a certificate with the Registry of Corporate Affairs, BVI Financial Services Commission, to change the name of Powersmart Holdings Limited to "Gengsheng International Corporation," effective as of June 6, 2007. The purpose of the name change is to achieve consistency in names between CMT's BVI subsidiary and CMT's primary Chinese subsidiary, Henan Gengsheng Refractories Co. Ltd.
FORWARD LOOKING STATEMENTS
This release may contain certain "forward-looking statements" relating to the business of China Minerals Technologies, Inc. and its subsidiary companies. 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 as anticipated, believed, estimated or expected. You 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 ( http://www.sec.gov ). All forward-looking statements attributable to China
Minerals Technologies, Inc. or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. China Minerals Technologies, Inc. does not assume a duty to update these forward-looking statements.
