Metalnewsnet 21 May ：

Changfeng Energy Inc a China based natural gas distributor reported revenue of USD 5,089,456 for the quarter ended March 31st 2010 compared to USD 4,336,850 for the same period in 2009 representing a 17% increase. The increase was net of negative foreign exchange impact of 20% due to the strengthening of the Canadian dollar. The revenue in Chinese renminbi increased by 40% to CNY 33.4 million for the quarter ended March 31st 2010 from CNY 23.8 million compared to the same period in 2009.

Net income for the first quarter of 2010 was USD 445,685 or USD 0.007 per share compared to USD 622,684 or USD 0.009 per share for the same period in 2009. The decrease in net income was mainly a result of USD 514,679 increase in travel and business development expenses and slight decrease in gross profit margin. Gross profit margin for the first quarter of 2010 was 62% vs. 66% for the same period in 2009. The lower margin is due to the relatively higher procurement price for purchases in excess of quarterly contractual volume of natural gas.

Changfeng EBITDA decreased by 12% for first quarter of 2010 to USD 951,811 compared to USD 1,077,179 in the same period in 2009.

The Company cash and cash equivalents as at March 31st 2010 increased to USD 6,664,930 from USD 3,782,250 as at December 31st 2009, being an increase of USD 2.89 million, primarily as a result of proceeds from the long term bank loan.

During the first quarter of 2010, Changfeng connected 7,046 new residential customers compared to 2,180 in the same quarter in 2009. Total residential customers at the end of March 31st 2010 were 57,501 compared to 39,981 at March 31st 2009 a 44% increase. In the same quarter, the Company connected 27 new commercial customers compared to 15 in 2009. Total commercial customers at March 31 2010 increased to 467 from 390 at March 31st 2009 a 20% increase.

Mr Huajun Lin Chairman & CEO of Changfeng stated "We are very pleased with our progress in the first quarter of 2010. Sanya City remains a strong economy with increasing Central Government mandates and support for rapid expansion. With our new CNG business, the resultant relationships and initiatives in Jianxi and Hunan provinces, as well as Haitang Bay, we expect significant new projects to be finalized in 2010. We continue to experience high booking requests for connections from new customers and we believe that natural gas demand in Sanya City will continue its strong growth into 2010. We have worked with Sanya City authorities and our gas suppliers to secure additional gas supply."

(from steelguru)