China Forestry Industry Group Inc., a company involved in the production and sale of floor materials and related products to residential and commercial customers in China, recently announced its financial results for the fourth quarter and fiscal year 2010 ended December 31, 2010.
“We are pleased to report strong growth in revenues, operating margins, and earnings in 2010,” Yulu Bai, chairman and CEO of CNFI stated in the press release. “This performance was mainly driven by our strategy to expand into flooring products, develop forestry resources and build a large distribution network for floor products in southwestern China.”
For the three months ended December 31, 2010, CNFI reported revenues of $11.3 million, an increase of 206.1 percent from $3.7 million reported for the comparable quarter of 2009.
Cost of sales for the fourth quarter of 2010 increased 225.4 percent to $8.2 million, up from $2.5 million for the fourth quarter of 2009. Gross profit was $3.1 million, an increase of 164.8 percent for the fourth quarter of 2009. Gross margin was 27.6 percent, compared to 31.9 percent in the comparable three-month period of the previous year.
Net income for the fourth quarter was $2.1 million, or $0.08 per diluted share, for the fourth quarter of 2010, compared to $0.8 million, or $0.04 per diluted share, for the corresponding three-month period during the previous year.
For the fiscal year ended December 31, 2010, CNFI reported revenues at $37.0 million, an increase of 178.8 percent from $13.3 million in 2009. Gross profit was $11.7 million, an increase of 257.1 percent from gross profit of $3.3 million in 2009. Gross margin was 31.7 percent, compared to 24.8 percent in fiscal 2009. Operating expenses for 2010 were $1.7 million, as compared to $0.7 million for the same period a year ago. Income from operations was $10.0 million, an increase of 288.4 percent from $2.6 million in 2009. Net income for 2010 was $9.3 million, or $0.42 per diluted share, an increase of 313.7 percent from $2.2 million, or $0.11 per diluted share, previous year.
As of December 31, 2010, CNFI had cash and cash equivalents of $2.3 million, accounts receivable of $5.4 million, and working capital of $14.6 million. The company has no long-term debt.
The company said it expects to continue its strong performance in the upcoming year as it capitalizes on growing urban residential housing deman in southwestern China.
“We are optimistic about our business and believe that we are well positioned to benefit from the rising demand for flooring and fiberboard in China. We believe that our vertically integrated business model will help us to become a leading player in the flooring industry in southwestern China. We also expect that the availability of raw materials from our own forestry lands by 2012 will enable us to keep our raw material costs stable and support our gross margin going forward,” Bai stated.
For more information visit www.chinaforestrygroup.com