CBPO Reports

All the smaller cap Chinese stocks are starting to pour in. I saw the CCME reported today and was up about 14%. They were one of my picks in my Chinese stock cruncher blog I ran on January 24th. They were $12.80 then and are now 14.70 after blow out earnings.

CBPO released their 10K today (I have not seen a press release yet). Recall CBPO fell on hard times on January 26th when a blog started a rumor that they had felons running/associated with the company. They dropped from 11.76 to 8.71 that day. I bought additional shares the next day, so I was waiting with anticipation to see their earnings.

I wasn't sure what to make of them. They had very good operating earnings (the basis for MFI) and strong revenues. However, they had some substantial losses to what appeared to be investments/derivative products.

                         Fiscal Years Ended December 31

                                                                     $          Percentage
                                                                 Increase        Increase
                                   2009            2008         (Decrease)      (Decrease)
Revenue                       $  118,998,155   $  46,751,160   $  72,246,995         154.5%
Cost of revenue                   32,621,908      14,040,602      18,581,306         132.3%
Gross profit                      86,376,247      32,710,558      53,665,689         164.1%
Gross profit as a                      72.6%           70.0%            2.6%
percentage of revenue
Operating expenses                24,999,055      12,374,787      12,624,268         102.0%
Other expense                     33,250,706         449,656      32,801,050        7294.7%
Income before taxes and           28,126,486      19,886,115       8,240,371          41.4%
minority interest
Income taxes                      10,513,100       4,596,603       5,916,497         128.7%
Net income before minority    $   17,613,386   $  15,289,512   $   2,323,874          15.2%

Note the 33m in the other expense row. As an owner, I certainly want additional information on what that represents.

We'll see what kind of guidance they give and what the stock market does to them tomorrow.