Total unterbewertet - 5 Mio. Cash - 500 Beiträge pro Seite

[mcdiamond]

Sancon Announces 2010 Third Quarter Results Significant Undervaluation With Strong Cash Position and Continued Growth Prospects



SHANGHAI, CHINA -- (MARKET WIRE) -- 11/16/10 -- Sancon Resources Recovery, Inc. (OTCBB: SRRY) (or "Sancon"), a growing environmental waste logistics and recycling company with operations in both China and Australia, announced today the results for its 2010 third quarter ended September 30, 2010. Sancon presents a significant investment opportunity and is an undervalued company underpined by its strong cash balance and continued growth prospects.

Financial highlights of 2010 third quarter:

Revenue of $3.35 million, an increase of 19% compare to the same period in 2009.
Gross profit of $1.49 million, an increase of 25% compare to the same period in 2009.
Gross margin was 44%, an increase of 2% compared to the same period in 2009.
EBITDA of $0.6 million, an increase of 9% compared to the same period in 2009.
Cash Balance of $5.6 million
Results of Operations -- Comparison between the three months ended September 30, 2010 and the same periods in 2009

The Company generated revenues of $3.35 million in the 2010 third quarter, representing $452,691 or 19% increase compared to $2.81 million in the 2009 third quarter. Revenue from our China operations increased $421,359 or 19% from $2.19 million in the 2009 third quarter to $2.61 million in the 2010 third quarter. Revenue from our Australia operations has increased by $121,332 or 19% from $622,921 in the 2009 third quarter to $744,253 in the 2010 third quarter. The increase in revenue from China operations is partially because of the investment in the waste paper and cardboards recycling business from June 2010. Although exports of materials from Australia are still suffering from the global financial crisis, our Australia operation business is gradually recovering.

Gross profit increased $298,355 or 25% to $1.49 million in the third quarter 2010 from $1.19 million in the third quarter 2009. Gross profit of China operation increased $197,168 or 24% from $0.8 million in the 2009 third quarter to $1.03 million in the 2010 third quarter. In Australia, gross profit also increased by $101,187 or 28% from $357,073 in the 2009 third quarter to $458,260 in the 2010 third quarter. Gross margin increased from 42% in the 2009 third quarter to 44% in the 2010 third quarter.

Net income for the 2010 third quarter was $0.546 million, or $0.02 basic and diluted earnings per share, compared to $0.504 million or $0.02 basic and diluted earnings per share one year ago.

Results of Operations -- Comparison between the nine months ended September 30, 2010 and the same periods in 2009

The Company generated revenue of $9.49 million for the nine months ending 2010, representing $1.34 million or 16% increase compared to $8.15 million for the nine months ending 2009. Revenue from China operations increased $791,681 or 12% from $6.61 million for the nine months ending 2009 to $7.4 million for the nine months ending 2010. Revenue from Australia operations has increased by $549,191 or 36% from $1.54 million for the nine months ending 2009 to $2.09 million for the nine months ending 2010.

Gross profit increased $589,029 or 15% to $4.51 million for the nine months period ended September 30, 2010 from $3.93 million for the same period in 2009. Gross profit of China operation increased $0.3 million or 11% from $3 million for the nine months ending 2009 to $3.3 million for the nine months ending 2010. In Australia, gross profit also increased by $272,247 or 29% from $929,617 for the nine months ending 2009 to $1.2 million for the same period in 2010. Gross margin was 48% for the nine months ending 2009 and 2010.

Net income for the nine months ending 2010 was $1.65 million, or $0.07 basic and diluted earnings per share, compared to $1.6 million, or $0.05 basic and $0.07 diluted earnings per share one year ago.

"The revenue and profit from our existing business continues to grow in 2010 third quarter. With our strong balance sheet we are well positioned to consider acquisitions and investment opportunities to accelerate growth to our business," said Jack Chen, Sancon's Chief Executive Officer. "Our new waste paper and cardboards collection business that we have invested in June 2010 has been ramping up nicely. We are now closely evaluating a number of investment and consolidation opportunities that will complement our existing business and extend our footprints in China and service offerings. We will be updating our shareholders on the potential acquisitions and investment opportunities which will enable us to expand and scale."

About Sancon Resources Recovery, Inc .

Sancon Resources Recovery, Inc. is an environmental service company specializes in the collection, processing, and selling of the reprocessed waste material such as plastic, metal, paper, cardboard, glass etc. The recycled materials are re-used by Sancon's manufacturing clients to make a wide variety of new products that include outdoor furniture, construction materials, building materials, packaging materials, and various other products. The use of recycled raw materials is both environmentally friendly and an important method to lower production costs for manufacturers to stay competitive. Sancon also invests in the renewable energy area by sponsoring the development of biofuel production technique that thrives on the supplies of carbon dioxide. Sancon currently has recycling plants based in Melbourne Australia and China. For more information please visit: www.sanconinc.com

Forward-looking statements:

The statements made in this press release, which are not historical facts, may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.


SANCON RESOURCES RECOVERY, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

Assets
As at
September 30, December 31,
2010 2009
Current assets
Cash and cash equivalents $ 5,624,717 $ 3,703,716
Trade receivables, net 981,785 988,673
Inventory 22,604 16,013
Deferred Tax Asset 35,907 33,057
Other current assets 172,208 285,933
Advance and prepayment 115,467 49,502
Held to maturity securities 129,892 129,000
------------- -------------
Total current assets 7,082,580 5,205,894

Property, plant & equipment, net 1,215,711 958,041
Security deposit 30,820 9,824
Held to maturity securities -- non current - 129,993
Investment - 42,678
Long Term Deferred Expenses 14,792 -
Goodwill 27,688 -
------------- -------------
Total Assets $ 8,371,591 $ 6,346,430
============= =============

Liabilities and Stockholders' Equity

Liabilities
Current liabilities
Trade payables $ 742,572 $ 886,034
Capital lease -- current 2,398 15,925
Tax payables 80,789 97,779
Due to related parties 700,504 420,504
Loan Payable -- current 28,298 26,199
Accrued expenses and other payables 396,752 371,593
------------- -------------
Total current liability 1,951,313 1,818,034

Long term liability
Capital lease 23,679 21,799
Loan Payable 35,841 56,117
------------- -------------
Total liability 2,010,833 1,895,950
------------- -------------

Stockholders' Equity
Share Capital
Authorized: 500,000,000 common shares, par value $0.001
per share
Issued and Outstanding: 22,964,996 shares
as of September 30, 2010 and December 31,
2009 22,965 22,965
Additional paid-in capital 899,347 860,449
Deferred Compensation (113,100) (124,800)
Other comprehensive income 99,941 71,641
Retained Earnings 5,112,502 3,461,642
------------- -------------
Total 6,021,655 4,291,897
Non-controlling interest 339,103 158,583
------------- -------------
Total stockholders' equity 6,360,758 4,450,480
------------- -------------
Total liabilities & stockholders' equity $ 8,371,591 $ 6,346,430
============= =============





SANCON RESOURCES RECOVERY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

For the three months For the nine months
periods periods
ended September 30, ended September 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------

Net Revenue $ 3,354,608 $ 2,811,917 $ 9,490,416 $ 8,149,544
Cost of Revenue 1,861,857 1,617,521 4,975,953 4,224,110
----------- ----------- ----------- -----------
Gross profit 1,492,751 1,194,396 4,514,463 3,925,434

Operating Expenses
Depreciation 61,139 54,958 182,783 145,268
Selling, General and
Administrative 895,868 588,521 2,695,493 2,108,126
----------- ----------- ----------- -----------
Total operating
expenses 957,007 643,479 2,878,276 2,253,394
----------- ----------- ----------- -----------
Operating Income 535,744 550,917 1,636,187 1,672,040

Other Income (Expense)
Other income
/(Expense), net 7,671 (43,380) (1,343) (5,729)
Investment loss prior
to acquisition (9) 3,019 (3,148) 4,432
Gain on acquisition - - 34,805 -
Interest income
/(Expense), net 2,276 - 4,765 -
----------- ----------- ----------- -----------
Total other income 9,938 (40,361) 35,079 (1,297)
----------- ----------- ----------- -----------

Income from continued
operations before income
taxes and discontinued
Operation 545,682 510,556 1,671,266 1,670,743

Discontinued Operation
Loss from Discontinued
Operation - - - (50)
Loss on Disposal of a
subsidiary - - - (1,834)
----------- ----------- ----------- -----------
Loss on Discontinued
Operations - - - (1,884)
----------- ----------- ----------- -----------

Income before income
taxes and non-
controlling interest 545,682 510,556 1,671,266 1,668,859

Less:Income taxes 6,868 1,348 18,253 37,360

Less: Net income
attributed to non-
controlling interest (7,474) 5,196 2,153 20,045

----------- ----------- ----------- -----------
Net income 546,288 504,012 1,650,860 1,611,454
----------- ----------- ----------- -----------

Other comprehensive item:
Foreign currency
translation gain/(loss) 48,318 17,099 28,300 50,159

----------- ----------- ----------- -----------
Net comprehensive income $ 594,606 $ 521,111 $ 1,679,160 $ 1,661,613
=========== =========== =========== ===========

Earnings per share:
Basic earnings per
share-continued
operations $ 0.02 $ 0.02 $ 0.07 $ 0.07
Basic earnings per
share-discontinued
operations $ - $ - $ - $ -
----------- ----------- ----------- -----------
Basic earnings per
share $ 0.02 $ 0.02 $ 0.07 $ 0.07
=========== =========== =========== ===========
Basic weighted average
shares outstanding 22,964,996 22,964,996 22,964,996 22,833,746
=========== =========== =========== ===========
Diluted earnings per
share -- continued
operations $ 0.02 $ 0.02 $ 0.07 $ 0.07
Diluted earnings per
share -- discontinued
operations $ - $ - $ - $ -
----------- ----------- ----------- -----------
Diluted earnings per
share $ 0.02 $ 0.02 $ 0.07 $ 0.07
=========== =========== =========== ===========
Diluted weighted
average shares
outstanding 22,964,996 22,964,996 23,041,989 22,833,746
=========== =========== =========== ===========



Contact:

Sancon Resources Recovery, Inc.
Ms. Maggie Zhang
[phone]
[e-mail]


Read more: http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=2… &title=sancon-announces-2010-third-quarter-results-significant-undervaluation-with-strong-cash-position-and-continued-growth-prospects#ixzz15Wj0iK5D

[mcdiamond]

Ca. 23 Millionen Shares a´ 0.39 = 8,9 Mio. MK bei einem Casbestand von über 5 Millionen und den genannten, wohlgemerkt wachsenden Zahlen totale Unterbewertung.

[mcdiamond]

Irgenwelche Meinungen ???


Allein es fehlt der Bekanntheitsgrad und somit der Umsatz - aber wenn das noch kommt kann man m.m.n. nicht falsch machen - oder was denkt Ihr ???

[blubbs]

Antwort auf Beitrag Nr.: 40.535.799 von mcdiamond am 17.11.10 09:38:11

wie bist du denn darauf aufmerksam geworden? börsenbrief?
gibt ja weder in brd noch in us umsätze.
außerdem meinen wir: man kann immer falsch machen.

mfg,
blubbs

[mcdiamond]

Schau mir immer die News an von Werten und die Quartalsberichte derer.

Es finden in USA schon Umsätze statt, halten sich aber in Grenen - max ca. 150.000 - 400.000 Shares am Tag.

[nimm2nimm4]

also ich habe neben der EU Quellensteuer jetzt auch noch 10% Kapitalertragsteuer + Soli, d.h. fast 37% Abzüge auf eine Dividende von 57 Euro bleiben also nette 35 übrig, das ist doch ein Witz.

Meine Bank sagte, man kann pro Dividenendzahlung die Quellensteuer durch einen