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To: straight life who wrote (61289)	8/16/2008 6:31:32 PM
From: schzammm	Respond to of 118717

TAI'AN, Shandong, China, Aug. 15 /Xinhua-PRNewswire-FirstCall/ -- ShengdaTech Inc. ("ShengdaTech" or "The Company") (Nasdaq: SDTH - News), a leading manufacturer of nano precipitated calcium carbonate ("NPCC") in the People's Republic of China (PRC) and a major manufacturer of coal-based chemical products in Tai'an City, Shandong Province, PRC, today reported financial results for the second quarter ended June 30, 2008. Second Quarter 2008 Highlights -- Revenue for the second quarter increased 75.7% year-over-year to $39.8 million -- Gross margin increased 300 basis points year-over-year to a record 36.8% -- Net income increased 66.3% year-over-year to $10.0 million, or $0.18 per diluted share -- Developed new NPCC product for application in automobile undercoating paints -- Began production and shipment of NPCC products from the three new stainless steel NPCC lines with a total annual capacity of 60,000 metric tons -- Raised $115 million in gross proceeds from a convertible senior notes offering, including full exercise of the over-allotment option -- Selected Zibo, Shandong Province as site to build the next new NPCC production facility with annual capacity of 120,000 metric tons -- Announced intent to acquire leading nitric acid fertilizer company, Jinan Fertilizer Co. Ltd. ("Jinan Fertilizer"), and relocate coal- based chemical operations to Jinan City, Shandong Province Revenues for the second quarter of 2008 increased to $39.8 million, up 75.7% from $22.7 million in the same quarter of 2007. The strong revenue growth was due to higher selling prices and increased demand for both chemical and NPCC products. The revenue growth was also attributable to the NPCC capacity expansion with three new stainless steel NPCC production lines added in April 2008. At quarter end, total annual NPCC production capacity was 190,000 metric tons compared to 90,000 metric tons a year ago. The NPCC segment contributed 47.9% of total revenue in the quarter and the chemical segment contributed the remaining 52.1%, compared to 47.7% and 52.3%, respectively, in the same period a year ago. biz.yahoo.com