HQSM posts positive 10-percent increase in Q1

 

 

HQ Sustainable Maritime Industries Inc. (HQSM) has announced a 10-percent increase in total sales for the three months period ended June 30, 2009.

 

Sales increased from US$14.5 million for the three months period ended June 30, 2008 to US$16 million for the three months period ended June 30, 2009.

 

The gross profit for the three months period ended June 30, 2009 increased by 37 percent to US$6.8 million when compared to the corresponding period of 2008.

 

That increase in the gross profit in 2009 was the result of higher sales from both segments in the current quarter when compared to the corresponding quarter of 2008. The overall gross profit ratio improved in the current three months of 2009 to 43 percent from 34 percent in the same period of 2008, coming from both segments. 

 

Income from operations for the three months period ended June 30, 2009 increased by US$2.6 million when compared to the same period of 2008 mostly as a result of improved gross profit realised during the current period.

 

Net income for the three months period ended June 30, 2009 increased by US$2.07 million mostly due to increased activity and related gross profit from both segments, added to a reduction in financing costs in the amount of US$636,439 in 2009.

 

Total sales for the six months period ended June 30, 2009 increased by 13 percent, from US$23.7 million in 2008 to $26.8 million in 2009. 

 

Approximately 54 percent of the increase in sales originates from the aquaculture product segment and 46 percent from the health and bio-product segment.

 

Gross profit for the six months period ended June 30, 2009 increased by 30 percent to US$11.5 million when compared to the same period of 2008. The gross profit ratio for the six months period ended June 30 increased from 37 percent in 2008 to 43 percent in 2009.

 

HQSM manufacturing subsidiary, Jihua Marine - engaged in the manufacturing and selling of Marine Bio and Health-care products - realized sales of US$9.0 million and US$7.6 million respectively, an increase of 19 percent.

 

The gross profit ratio from this segment went from 74 percent in the six months period ended June 2008 compared to 77 percent in the corresponding period of 2009. 

 

HQSM is an integrated aquaculture and aquatic product processing company with operations based in the environmentally pristine island province of Hainan in China's South Sea.