October 14, 2008

Puda Coal announces Q3 results

Puda Coal, Inc a leading supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing has announced its financial results for the quarter ended September 30th 2007.

Third Quarter 2007 Highlights
1. Third quarter revenue was USD 40.5 million, down 5% from the third quarter of 2006
2. Operating income totaled USD 5.5 million, down 23% from the third quarter of 2006
3. Net income was USD 3.4 million, or USD 0.03 per fully diluted share, up 55% from the third quarter of 2006
4. Sales of cleaned coal totaled 492,000 metric tons down 10% from the third quarter of 2006
5. Average selling price of cleaned coal was $81 per ton, unchanged from the third quarter of 2006
6. Streamlined corporate structure at recommendation of independent Audit committee
7. Enhanced corporate governance by establishing Compensation and Nominating and Corporate Governance committees
8. Signed letter of intent to acquire Jingle Muguashan coal mine in Jingle County
9. Engaged Deloitte & Touche to assist with Sarbanes-Oxley compliance

Mr Zhao Ming Chairman & CEO of Puda Coal commented that ''We achieved modest growth in revenue and operating income from the second quarter of 2007. However, we faced significant competition during the quarter, which resulted in lower tonnage sales year-over-year. This, combined with higher raw coal prices negatively impacted our margins.''