CHONGQING, China, Oct. 14 /PRNewswire-Asia-FirstCall/ --China Redstone Group, Inc. (OTC Bulletin Board: CGPI) ("China Redstone" or the "Company"), the largest private provider of cemetery products and services in Chongqing, China, today reported that it sold 1,726 cemetery plots for its fiscal second quarter ending September 30, 2010. The Company also announced that based on its preliminary estimates it expects revenue for its fiscal second quarter to be at least $11.8 million. This compares with revenue of $7 million reported for the second quarter of fiscal 2010, representing an increase of 69.3% year-over-year.
China Redstone sold 613 and 577 cemetery plots in July and August 2010, representing an increase of 56.8% and 34.5% from the same periods last year, respectively. The average selling price gained momentum throughout the quarter, increasing from $6,524 in July to $6,738 in August to $6,907 in September. The $6,800 average selling price for fiscal second quarter 2011 is approximately 2.0% higher than the average selling price for fiscal first quarter 2011 average and well above the $5,000-$6,250 forecast for the fiscal year ending March 31, 2011.
The following summarizes the Company's recent cemetery plot sales trends:
(Fiscal year ending March 30)
Cemetery Plot Sales
Average Sales Per Plot
"We continue to see very strong demand for our products, as evidenced by the 3,580 plots we sold in the first six months of fiscal 2011," stated Mr. Yiyou Ran, Chairman and Chief Executive Officer of China Redstone. "We are especially encouraged by our customers' preference for premium lots, which command selling prices 32.3% higher than non-premium lots. The combination of higher sales, no credit risk and limited working capital needs for our core business position us well to generate significant cash flow growth in 2011 and beyond."
Financial Outlook for Fiscal Year 2011
For the fiscal year ending March 30, 2011, management expects revenues of $40 million, GAAP net income of $19.5 million, and GAAP earnings per share of $1.45, representing an increase of approximately 9.6%, 59.8%, and 9.0%, respectively, from fiscal 2010. Guidance includes projected sales of approximately 7,000 plots sold during fiscal year 2011 with average selling prices of $5,000 to $6,250.
China Redstone will report its full financial results for its fiscal second quarter ending September 30, 2010 in November 2010.
China Redstone Group, Inc.
China Redstone is a cemetery developer and provider of cemetery products and services in Chongqing, China, through its contractually controlled affiliate Chongqing Foguang Tourism Development (Group) Co., Ltd. Founded in 2002, the Company provides a complete range of funeral merchandise and services, including cemetery property, both at the time of need and on a preneed basis. Its cemeteries are highly regarded in terms of a number of factors such as tradition, reputation, physical size, capacity of business, available supply, name recognition, aesthetics and potential for development or expansion.
Safe Harbor Statement
Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
China Redstone Group, Inc.
Mr. Michael Wang, CFO
HC International, Inc.
Ted Haberfield, Executive VP
SOURCE China Redstone Group, Inc.