NEW YORK, Aug. 24, 2011 /PRNewswire-Asia/ -- Asia Carbon Industries, Inc. (OTCBB: ACRB)
I am pleased to report that Asia Carbon continues to perform well in 2011, maintaining the trends that were established in the 4th quarter of 2010, and we have seen material improvements in both revenue and income. Demand for our newest product, N220-W, has been strong and we expect this to continue as China's economic growth persists, particularly in the automotive and related sectors.
Annual car sales are expected to exceed 20 million units in China by 2015, according to the Chinese Ministry of Industry and Information Technology, and the demand for tires is expected to follow suit. China's Rubber Industry Association reports approximately 404 million tires were sold in 2010; with the demand for replacement tires at about twice the level of that for new vehicle tires. While China has become the world's largest producer of automobiles and tires, we believe the full potential of its vehicle market is yet to develop, and we hope to participate fully in this growth.
As we reported in our quarterly report on Form 10-Q filed with the United States Securities and Exchange Commission on August 12, 2011, Asia Carbon generated $26.94 million in revenues during the first six months of 2011, more than twice the $11.15 million for the first six months in 2010. Net income for the six month period was $4.09 million in 2011 as compared to $695,196 during the same period of 2010.
I believe the Company's success is largely attributable to our dedicated management and staff, who remain focused on one thing: establishing Asia Carbon as a leading provider of high quality carbon black in China. Our commitment to quality and customer service continues to set us apart from competitors and makes Great Star brand one that our customers can rely on to help them manufacture superior products. This will be increasingly important as China's automobile sales continue to surge, driving ongoing demand for new and replacement tires.
To that end, we have prudently reinvested profits generated from operations to improve the quality and capacity of our production in an increasingly green facility, and we will continue augmenting our wet production capabilities organically and through acquisition.
I would also like to take this opportunity to reassure you that we remain committed to providing our shareholders and other market participants with the information and transparency expected from public companies. Asia Carbon became public through an S-1 Registration statement deemed effective by the SEC. There was no reverse merger, shell company, or other "back door" listing scenario. Our financial statements are audited yearly and reviewed quarterly by Goldman Parks Kurland Mohidin, an independent member of the BDO Alliance. Sichenzia Ross Friedman Ference LLP, our corporate counsel, while a U.S. based firm, has a strong China practice group and has significant experience working with U.S. listed Chinese public companies.
Overall, we are strong, stable and strategically on course. We are quite pleased to have been invited to participate in Rodman and Renshaw's prolific Global Investment Conference in New York City from September 10th – 12th. A select group of our senior management team will be traveling to the U.S. to present Asia Carbon at the conference, and they will also be meeting with investors and other market participants in Los Angeles, San Francisco and Las Vegas. If you are interested in meeting with us in one of these cities, please contact Mark Lubchenco, our U.S. investor contact, and he will do his best to accommodate you. Mark can be reached at 646-328-1502
In the meantime, please feel free to contact me or Mr. Lubchenco if you have questions or would like more information regarding Asia Carbon. Once again I thank you for your continued support and look forward to providing you with news of our progress going forward.
About Asia Carbon Industries, Inc.
Asia Carbon Industries Inc. is an emerging, China-based producer of a series of high quality carbon black products under the brand name "Great Double Star." The Company was established in 2003 in Shanxi, China's highest coal producing province. Asia Carbon is one of the top ten carbon black producers in the province and has established relationships with a high-profile customer base. The Company went public in 2010 through a registration statement on Form S-1 which was declared effective by the SEC on October 26, 2010, and is currently in the process of expanding its manufacturing capacity to meet the anticipated demand.
This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as "anticipate," "appear," "believe," "could," "estimate," "expect," "hope," "indicate," "intend," "likely," "may," "might," "plan," "potential," "project," "seek," "should," "will," "would," and other variations or negative expressions of these terms, including statements related to expected market trends and the Company's performance, are all "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
Director of Investor Relations
SOURCE Asia Carbon Industries, Inc.