300 Percent Plus Rip in Shares of China Advanced Construction Materials Group


 
 
01:22 11/16/2017

Record volume and blue sky territory propels China Advanced Construction Materials Group, Inc. CADC  to new 52 week highs intraday after a positive 10 Q filing hit the news wires.

During the quarter, the advanced construction materials company generated revenue of about $13.8 million. About a $6 million improvement year over year from $7.5 million. The increase in revenue can be attributed to an increase in sales volume of 56% as a result of customers expediting their construction progress before the severe winter ahead. Also, an increase in the selling price of concrete by 19% played a key role in the increased revenue.

The total cost of revenue was about $12.3 million, an increase of 47% as a result of an increase of production volume. However, the cost was counteracted by a decrease in the unit production cost of 19%.

The company’s total gross profit was approximately $1.4 million for the three months ended September 30, 2017, as compared to approximately $1.0 million in gross loss for the three months ended September 30, 2016, an increase of approximately $2.4 million, which was primarily a result of increases in sales volume and unit selling prices and decreases in unit production costs during the three months ended September 30, 2017, as compared to the same period in 2016.

CADC  had a net loss of approximately $0.5 million for the three months ended September 30, 2017, as compared to a net loss of approximately $5.3 million for the three months ended September 30, 2016, a positive change in the amount of approximately $4.8 million.

Due to recurring losses, the Company’s working capital was approximately $7.4 million as of September 30, 2017, as compared to $7.5 million as of June 30, 2017. As of September 30, 2017, the Company had cash on-hand of approximately $0.9 million and restricted cash balances of approximately $1.8 million, with remaining current assets mainly composed of accounts receivables and prepayments and advances.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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