Changfeng Energy Inc. (CFY.V), a natural gas utility in China,
today reported its unaudited interim consolidated financial results
for the third quarter ended September 30, 2012.
Revenue for the third quarter of 2012 was $7.9 million, an
increase of $2.0 million, or 34%, from $5.9 million for the same
quarter in 2011. Revenue for the nine months ended September 30,
2012 was $22.4 million, an increase of $3.2 million, or 16%, from
$19.2 million for the same period in 2011.
Gross profit for the third quarter of 2012 increased by $1.1
million (or 54%) and for the nine months ended September 30, 2012
increased by $3.1 million (or 41%), compared to the same periods of
2011. Gross profit as a percentage of sales for the third quarter
and nine months of 2012 increased by 5% to 40% and by 8% to 47%,
respectively, compared to the same periods of 2011.
EBITDA increased by $0.7 million, or 120%, to $1.4 million and
for the nine months ended September 30,2012 increased by $2.2
million, or 65%, to $5.6 million, compared to the same periods of
Net income for the third quarter of 2012 was $0.06 million or
$0.001 per basic and diluted share compared to a net loss of $0.3
million or -$0.005 per basic and diluted share for the same period
in 2011, primarily due to the reasons stated above. The net income
for the nine months ended September 30, 2012 was $1.7 million, or
$0.026 per basic and diluted share compared to $0.5 million or
$0.008 per basic and diluted share for the same period of 2011.
Xiangdong project, Xiangdong District, Pingxiang City, Jiangxi
The Company continues to accelerate the first phase of
construction at Xiangdong. Currently, the Company has completed
construction of the 7km main pipelines and site preparation for
construction of the citygate in the Park, and it is expected that
the Company will be able to supply gas for the ceramic
manufacturers in the Park by late 2012 upon completion of the first
phase of construction. In addition, the Company is negotiating with
a local bank for financing related to upcoming second phase of