Sancon Resources Recovery Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported revenue of $2.81 million in the 2009 third quarter representing $190,880 or 6% decrease compared to $3 million in the 2008 third quarter. Net income was $0.5 million or $0.02 per basic & diluted share compared to $0.46 million or $0.01 per basic & diluted share one year ago. Although the sales and gross profit decreased in the third quarter 2009, the significant reduction in SG&A expenses in China operation lead to the increase in net income. The company continues to strengthen its balance sheet position with $3.3 million cash balance. Operating income was $550,917 compared to $290,635 for the same period of last year. Income from continued operations before income taxes and discontinued operation was $510,556 or $0.02 per basic and diluted share compared to $221,035 or $0.02 per basic and diluted share for the same period of last year. Income before income taxes was $510,556 compared to $224,190 for the same period of last year. For the nine months, the company reported revenue of $8.15 million, representing $154,361 or 2% increase compared to the revenue of $8 million in the same period of 2008. Net income was $1.61 million or $0.07 per basic & diluted share compared to $1.45 million or $0.07 per basic & diluted share in the year ago period, an increase of $164,131 or 11%. In order to control the cost, the company has eliminated numerous outsourced services and consulting fees. This contributed greatly to the increase of net income for the nine months period ended September 30, 2009. Operating income was $1,672,040 compared to $1,612,911 for the same period of last year. Income from continued operations before income taxes and discontinued operation was $1,670,743 or $0.07 per basic and diluted share compared to $1,568,972 or $0.07 per basic and diluted share for the same period of last year. Income before income taxes was $1,668,859 compared to $1,535,726 for the same period of last year.

Sancon Resources Recovery Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. The company generated strong 2009 second quarter revenue of $2.74 million, representing $329,849 or 14% increase compared to $2.41 million in the 2008 second quarter. Net income was $0.53 million, or $0.02 per share, compared to $0.22 million, or $0.01 per share in the year ago period. Operating income was $550,812 against $490,064 for the same period last year. Income from continued operations before income taxes and Discontinued Operation was $561,917, or $0.02 per share against $362,899, or $0.02 per share for the same period last year. Income before income taxes was $561,917 against $362,706 for the same period last year. Net comprehensive income was $569,479 against $238,599 for the same period last year. The revenue for the six months period ended June 30, 2009 were $5.34 million, representing $345,241 or 7% increase compared to the sales of $4.99 million in the same period of 2008. Net income was $1.11 million, or $0.05 per share, compared to $0.99 million, or $0.05 per share in the year ago period. Operating income was $1,121,123 against $1,322,276 for the same period last year. Income from continued operations before income taxes and Discontinued Operation was $1,160,187, or $0.05 per share against $1,347,937, or $0.06 per share for the same period last year. Income before income taxes was $1,158,303 against $1,311,536 for the same period last year. Net comprehensive income was $1,140,502 against $1,033,477 for the same period last year.

On July 31, 2009, Mr. Gary Li resigned as the Chief Financial Officer of the Sancon Resources Recovery Inc. due to his personal reason. On August 1, 2009, the Board of Directors appointed Ms. Maggie Zhang as the Acting Chief Financial Officer. Ms. Maggie Zhang joined the company in 2008 as Finance Manager of the company.