China Advanced Construction Materials Group (China ACM) announced its financial results for the fiscal year ended June 30, 2015. Total revenue was approximately $55.5 million.
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This compares to approximately $48.7 million during the year ended June 30, 2014, an increase of approximately $6.8 million or 14%.
The increase in revenue was principally due to increased sales volume resulted from the commencement of operation of our manufacturing plant in the eastern suburban area of Beijing in early 2014.
The company generated total cost of revenue of approximately $50.8 million compared to approximately $44.1 million during the year ended June 30, 2014, an increase of approximately $6.7 million or 15%.
The increase in cost of revenue was primarily associated to the increase in production from our concrete plants during the year ended June 30, 2015 compared to the year ended June 30, 2014.
Total gross profit was approximately $4.7 million for the year ended June 30, 2015, as compared to approximately $4.6 million for the year ended June 30, 2014, an increase of approximately $0.1 million. Percentage of gross profit over revenue for each of the years ended June 30, 2015 and 2014 was approximately 9%.
The company had recovery of doubtful accounts of $2.8 million for the year ended June 30, 2015, we incurred $7.7 million of provision for doubtful accounts for the year ended June 30, 2014.
As compared to the balances of June 30, 2014, through improved collection efforts and certain agreements to offset customer receivables with vendor payables, we effectively reduced balances aged from one to two years by approximately $10.5 million and balances aged beyond two years by approximately $2.8 million.
The company incurred selling, general and administrative expenses of approximately $10.1 million for the year ended June 30, 2015, a decrease of approximately $0.5 million, or 5%, as compared to approximately $10.7 million for the year ended June 30, 2014.
We incurred approximately $0.5 million of stock-based compensation for the year ended June 30, 2015, which was offset by decreases of $0.4 million in consulting expense, $0.1 million in office expenses, $0.2 million in business development expenses, and $0.2 million in conference expense as compared to the year ended June 30, 2014.
Research and development expenses for the year ended June 30, 2015 were $1.1 million, a decrease of approximately $0.3 million, or 23%, as compared to approximately $1.5 million for the year ended June 30, 2014.
The company's R&D expenditure was maintained relative to the level of revenue and was adjusted based on economic outlook, plus discretionary spending on projects that were deemed to help improve our competitive advantage.
For the year ended June 30, 2015, the company incurred approximately $0.1 million of loss realized from disposal of property, plant and equipment, as compared to approximately $1.7 million for the year ended June 30, 2014.The change was caused by our disposal of certain vehicles at loss during the year ended June 30, 2014.
The company incurred net loss of approximately $4.2 million for the year ended June 30, 2015, as compared to net loss of approximately $16.6 million for the year ended June 30, 2014, a decrease of $12.5 million. Such decrease in net loss was the result of the combination of the changes as discussed above. ■