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Article Excerpt
SHENZHEN, China, May 18 /PRNewswire-Asia-FirstCall/ -- China Ritar Power Corp. (BULLETIN BOARD: CRTP) ('China Ritar' or the 'Company'), a leading Chinese manufacturer of lead acid batteries, today reported its fiscal 2009 first quarter results for the period ended 31 March, 2009.
First Quarter 2009 Highlights -- Revenue was $17.5 million, down 9% year-over-year -- Sales volume increased 21% year-over-year -- Gross profit was $3.3 million with 18.8% gross margin -- Net income increased 3% year-over-year to $0.53 million -- Fully diluted earnings per share were $0.03
"During the first quarter, our sales volume increased 21% over the first quarter in fiscal 2008 as a result of continued growth in the renewable energy sector," Mr. Jiada Hu, China Ritar's Chairman and Chief Executive Officer commented. "Moreover, we continued to ramp up production at our new facilities in Hengyang Industrial Park for our battery and lead plate production. Lead plates represented approximately 70.2% of the cost of our batteries for the quarter. As we increase the volume of lead plates manufactured internally, we expect to realize an improvement in our gross margins by 3%-5% over the next few years."
Revenue in the first quarter of 2009 was $17.5 million, down 9% from revenue of $19.3 million in the first quarter of 2008. The decrease in revenue was mainly attributable to a decline in the average selling price (ASP) as a result of approximately 40% drop in the price of lead. The decline in ASP was offset by a 21% increase in sales volume. Moreover, the first quarter is typically the Company's slowest quarter as a result of a slowdown in customers' orders due to the Chinese New Year holiday. Batteries used for telecom, uninterruptible power supply (UPS), renewable energy storage and light electronic vehicles (LEV) accounted for 33%, 31%, 25% and 11% of total sales of the first quarter of 2009, respectively. International sales represented 73% of total sales with domestic sales representing the balance of 27%.
Gross profit for the quarter decreased 18.3% to $3.3 million from $4.0 million in the same period of 2008. Gross margin for first quarter of 2009 was 18.8% compared to 21.0% in the first quarter of 2008. The decline in gross margin was mainly the result of a sales promotion offered...
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