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China Ruitai International Holdings Co., Ltd. Reports Financial Results for the Second Quarter 2010
Date:8/17/2010

a membrane reagent in pharmaceuticals, a thickener and binding agent for foods and cosmetics, including fruit preserves, ice cream, toothpaste and lipsticks. The Company produces 220 industry- specific products under its "RuiTai" brand, which are sold through a network of domestic and international distributors to Asia, Europe, the Middle East and North America. In total China Ruitai has 8,500 tons of capacity for its product lines.

During the three-month period ended June 30, 2010, the Company posted revenues of $11.2 million, a 32.0% increase from $8.5 million in the same year ago period. At the beginning of 2010 and continuing in the second quarter of this year, the Company initiated an aggressive price promotion targeting potential customers and offering 2009 pricing for initial orders placed in 2010. All this in the context of the Company's competitors raising customers' prices due to a global increase in the price of cotton, the key raw material essential in the production of the cellulose ether additives. As a result of the price promotion, the Company secured an additional 330 customers in the quarter. Adding to the Company's revenues for the quarter were sales of cellulose ether to their domestic and international pharmaceutical and PVC sectors, which increased 28.4% and 38.6%, respectively. Primary exports from the Company include Hydroxypropyl Methyl Cellulose (known as "HPMC") used in the construction and pharmaceutical industries, and Ethyl and Hydroxyethyl (EC and HC) used in the petrochemical industry and for other products in the pharmaceutical industry.

Capacity utilization during the second quarter of 2010 was 75% vs. 65% in the year ago period. The increase in capacity utilization was a result of increased production on the Company's HPMC, MC and EC production lines and subsequent shipments of its products to China Ruitai's customer base.

During the three-month period ended June 30, 2010, the Company's cost of sales increas
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SOURCE China Ruitai International Holdings Co., Ltd.
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