-- Full Year Revenue Increases 60% to $87.1 Million
-- Full Year Net Income Increases 61% to $8.6 Million
XIAN, China, April 1, 2008 /Xinhua-PRNewswire-FirstCall/ -- China Bio Energy Holdings (OTC Bulletin Board: CBEH), (CBEH or the "Company"), an energy company engaged in the wholesale distribution and processing of heavy oil and finished oil products and the development, production and distribution of bio- diesel fuel, today announced consolidated financial results for the fiscal year ended December 31, 2007.
Fiscal 2007 Results
Net sales for 2007 were approximately $87.1 million, a 60% increase as compared to net sales in 2006 of approximately $54.4 million. The net sales increase was a result of the Company's territorial expansion into five new provinces in China through the opening of two new representative offices. In addition, the Company started production of the new biodiesel production line in October 2007, which resulted in a $4.4 million increase in biodiesel sales.
Gross profit was approximately $10.5 million for 2007, an increase of 58% as compared to approximately $5.8 million for 2006. Gross margin as a percentage of sales increased from 11% in 2006 to 12 % in 2007. The slight increase in gross margin was mainly due to greater production of biodiesel and sales volume of oil products in 2007.
Operating expenses, consisting of selling, general and administrative expenses, were approximately $2.1 million for 2007 as compared to $0.4 million for 2006, an increase of approximately $1.8 million or 498%. General and administrative expenses increased $1.3 million from 2006, of which $1.1 million was associated with the Company's reverse merger and financing in 2007. The major expenses related to the reverse merger and financing included U.S. and Chinese legal counsel expenses, auditing expenses, consulting expenses, and due diligence expenses.
Net income in 2007 was $8.6 million as compare
|SOURCE China Bio Energy Holding Group Co., Ltd.|
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