SOURCE: Songzai International Holding Group Inc.

May 13, 2008 17:59 ET

Songzai International Holding Group Inc. Announces First Quarter 2008 Financial Results

HARBIN, CHINA and WALNUT, CA--(Marketwire - May 13, 2008) - Songzai International Holding Group Inc. (the "Company") (OTCBB: SGZH), a coal producer and reseller based in China, today announced consolidated financial results for the first quarter ended March 31, 2007.

Q1 FY2007 Revenue Increases approximately 367% to $4.1 Million as compared to $0.88 Million in Q1 FY2006

Q1 FY2007 Net Income Increases to $1.62 Million as compared to -$174,507 in Q1 FY2006

                                     Quarter             Quarter
                                      Ending              Ending
                                     March 31,           March 31,
                                       2008       %of      2007        %of
                                    (unaudited)  Sales  (unaudited)   Sales
Sales                               $ 4,132,969    100% $   884,893   100 %
Cost of Sales                         1,813,284     44%     840,021    95 %
Gross Profit                          2,319,685     56%      44,872     5 %
General & Administrative Expenses       420,479     10%     199,980    23 %
Total operating Expense                 420,479     10%     199,980    23 %
                                    ===========         ===========
Operating Income / (Loss)             1,899,206     46%    (155,108)  (18)%
Other Income (Expense)                   (7,535)     -%      (2,348)    - %
                                    -----------         -----------
Earnings (Loss) Before Tax            1,891,671     46%    (157,456)  (18)%
Income Tax Expense                     (268,203)     7%     (17,051)   (2)%
                                    ===========         ===========
Net Income (Loss)                   $ 1,623,468     39% $  (174,507)  (20)%
Basic Earnings Per Share            $      0.23         $     (0.03)
                                    ===========         ===========
Diluted Earnings Per Share          $      0.22         $     (0.03)
Basic Weighted Average Shares
 Outstanding                          6,932,582           6,932,375
Diluted Weighted Average Shares
 Outstanding                          7,332,582           7,332,375
                                    ===========         ===========

"We are pleased with the results for the first quarter of 2008 in light of the increased sales and improved margins as compared to the same period last year," said Hongjun Li, President of Songzai. "At the same time, we believe that the outlook for the market needs of coal remains strong as energy demands in China continue to increase."

About Songzai International Holding Group Inc.

Songzai is a coal producer and reseller based in China. The company distributes coal to both industrial customers, such as power plants and cement factories, and to individual consumers for home heating.

Forward-looking Statements

This press release contains forward-looking statements. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as ''will,'' ''expects,'' ''believes,'' ''anticipates,'' ''intends,'' ''estimates'' and similar terms. Such statements reflect the current view of the Songzai with respect to future events and are subject to risks, uncertainties, assumptions and other factors relating to the coal mine industry and the operations of Songzai. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. This forward-looking information should be considered only in connection with "Risk Factors" detailed in Songzai's filings with the Securities and Exchange Commission. Songzai assumes no obligations to update any forward-looking statements or information set forth in this press release.

Contact Information

  • For more information, please contact:

    Will Lu
    IR Officer
    Tel: (909) 468-2840
    Email: Email Contact