Yalian Steel Corporation announced its financial and operating results for the year ended September 30 2010. The Company or Yalian refers to Yalian Steel Corporation and its subsidiary, Yangzhou Yalian Steel Pipe Co Ltd which operates primarily within the People Republic of China. The Company completed its qualifying transaction and began trading as a public company in December 2008.
For the year ended September 30 2010
1. Yalian reported revenues of CAD 908,737
2. Cost of sales of CAD 1,335,324
3. Operating expenses of CAD 2,637,896 and other expenses of CAD 349,117
4. Net loss for the year was CAD 3,413,600 or CAD 0.04 per share.
For the three month period ended September 30, 2010
1. Yalian reported revenues of CAD 387,547
2. Cost of sales of CAD 666,954
3. Operating expenses of CAD 545,205
4. Net loss for the three month period was CAD 823,467 or CAD 0.01 per share.
As at September 30 2010, cash and cash equivalents were CAD 7,442,099, restricted cash was CAD 5,078,700, and the Company's working capital position was CAD 17,677,544. Total assets were CAD 84,493,204, the long term loans, net of financing costs, were CAD 30,975,324 and total shareholders' equity was CAD 43,921,511.
Operational and Business Highlights
During the year ended September 30 2010 Yalian achieved a number of operational and business milestones including:
1. In February 2010, Yangzhou Yalian received approval from the American Petroleum Institute for certification and license registration of "5L X-70 Grade" for its high grade steel large diameter pipe mill and is in the process of applying for additional certification of X-80 grade and higher.
2. In March 2010, Yangzhou Yalian received an A1 Grade production license from the State General Administration of the PRC for Quality Supervision, Inspection and Quarantine. The A1 Grade is the highest production license available and permits Yangzhou Yalian to manufacture LSAW pipes for all grades of steel to be manufactured and sold within the PRC. By the end of March 2010, Yangzhou Yalian had received all of its required permits, licenses and industry certifications necessary to commence operations in China.
3. For the quarter ended September 30 2010, the Company manufactured and delivered several sales orders and continued to focus its efforts on the development and expansion of its sales and marketing activities within PRC and abroad. In addition to completing numerous bid submissions for a number of large oil & gas projects in PRC, Europe and the Middle East, the Company was added to the pre-approved natural gas vendor lists for Hubei province, Jiangsu province, Guangdong province and Zhejiang province in the PRC.
As at September 30 2010, the Company had substantially completed the installation, testing and commissioning of plant and equipment and has recently commenced commercial operations. During the year ended September 30 2010, the Company completed the planning and engineering phase of its new anticorrosion line and the construction commenced during the month of September. The project is expected to cost approximately USD 5,300,000 and is expected to be completed in calendar year 2011. The Company production plant has a rated capacity to produce up to 200,000 tonnes of LSAW pipes per year, depending on product and mix specifications.
