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Message: AGORACOM 100 Welcomes China ACM With $4.9 Million In Net Income

AGORACOM 100 Welcomes China ACM With $4.9 Million In Net Income

posted on Feb 03, 2009 01:15PM

I am very pleased to welcome China Advanced Construction Materials to The AGORACOM 100. As all of you know, I'm a big believer that results speak louder than "corporate speak", so please have a look at the following:

Financial Highlights (Fiscal Year Ended June 30, 2008 - Figures Rounded)

  • Revenues $US 27,600,000 (Up 30.7%)
  • Gross Profit $US 6,750,000 (Up 44%)
  • Net Income $US 4,900,000 (Up 49.3%)

China ACM (CADC: OTCBB), based in Beijing, China, is a leading producer of advanced construction materials for large scale commercial, residential, and infrastructure developments. More than just lipservice, 80% of China ACM revenues are directly derived from major state-owned construction companies.

I also like the fact that China ACM only has about 10.5 million shares outstanding and insiders hold more than 83% of it.

Financial Highlights for Q1 Ended September 30, 2008

  • Revenue decreased to $5.0 million, down from $6.0 million in the corresponding period in 2007. However, the decrease in revenue is due to a switch to higher margin products, as reflected in gross margin increases below.
  • Gross profit increased by 170% to $2.7 million, representing a 52.3% gross margin, compared with gross profit of $1.0 million, or a 17.2% gross margin, for the same period in 2007. The increase in gross profit is mainly attributable to a deliberate shift in the Company's product and services mix.
  • Net income increased to $1.1 million, as compared to a $1.0 million for the same period in 2007. However, this quarter also included one-time expenses related to completion of a reverse merger transaction.

CHINA ACM ANTICIPATES $9 MILLION IN NET INCOME FOR 2009

""We look forward to beginning the projects recently awarded to us such as the East Datong to Gudian railway and the Beijing to Shi Jiazhuang high-speed railroad. As a result of these and other projects underway, our current backlog stands at over 1.5 million cubic meters of ready-mix concrete through June 30, 2009, securing our ability to achieve a net income of at least $9 million for fiscal 2009, after adjusting for certain transaction-related charges and expenses."

Xianfu Han, Chairman and Chief Executive Officer

CONCLUSION

China ACM is dialed into China's infrastructure development and I can't think of a better space on the planet to be involved in over the next 50 years. This is especially true given the fact China recently announced it would spend an estimated $586 billion over the next two years to construct new railways, subways and airports and to rebuild communities devastated by an earthquake in 2008.

Make sure to keep up to date with China ACM developments right here on the Company's IR HUB.

Regards,
George

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