SinoCoking Reports an 18% Increase in Net Income and a 30% Increase in Revenue for Quarter Ending December 31, 2009

SinoCoking Coal and Coke Chemical Industries, Inc. (NASDAQ: SCOK) (the "company” or "SinoCoking”), a coal and coke producer in central China, today released comments regarding its financial results for the quarter ending December 31, 2009. Top Favour Limited, the company’s British Virgin Islands holding company, maintains a fiscal year end of June 30, and the company intends to soon change its fiscal year from a December 31 year end to a June 30 year end.

In the quarter ending December 31, 2009, SinoCoking’s net income increased to $4.7 million, representing an 18% increase from $4.0 million in the same quarter of 2008. The increase was primarily related to higher coal product revenue and improved profit margins on coal products and coal tar.

SinoCoking’s revenues for the second quarter ending December 31, 2009 increased to $14,763,958, up by $3,409,488 or 30.03% from the same quarter of 2008. This increase was caused primarily by a strong increase in coal product sales revenue, offset by a moderate decrease in revenue from coke sales. Coal product sales revenue increased by $4.2 million while coke sales revenue decreased by $0.7 million, as management deliberately continued its strategy of increasing coal sales relative to its coke production during this period to bolster profitability.

Cost of revenue increased from $6,961,240 to $8,736,811, or 25.5%, for the three months ending December 31, 2009, as compared to the same period ending December 31, 2008. The increase of the cost of revenue was driven primarily by a significant increase in the sale of raw coal, offset by a moderate reduction in coke production. Cost of revenue for coal products alone for the three months ending December 31, 2009 increased to approximately $5.0 million, compared to $1.6 million for the same period ending December 31, 2008. In the quarter ending December 31, 2008, cost of revenue from coal products was 23% of the overall cost of revenue. In the same quarter ending December 31, 2009, cost of revenue for coal products rose to 57% of the overall cost of revenue.

Gross profit increased by $1,633,917 or 37%, to $6,027,147 in the three month period ending December 31, 2009 from $4,393,230 in the corresponding period ending December 31, 2008.

Gross profit as a percentage of sales increased to 40.82% in the three month period ending December 31, 2009 from 38.69% in the same period ending December 31, 2008. The increase in SinoCoking’s gross profit percentage, or gross margin, was due to higher margins on coal product sales and coal tar, offset by the effect of a reduction in high-margin coke product sales in the three month period ending December 31, 2009. While coke products generate the highest gross margin among the company’s products, increases in gross margins on coal products and coal tar sales coupled with a large increase in coal product sales more than offset the effect of reduced coke product sales on gross margin in this period.

Provision for income taxes increased by $1,293,377, for the three months ending December 31, 2009, as compared to the same period ending December 31, 2008, due primarily to higher taxable income caused mainly by the increase in SinoCoking’s gross profit for the three months ending December 31, 2009.

Mr. Jianhua Lv, Chairman and Chief Executive Officer of SinoCoking, commented "In 2009 our industry faced some tough challenges, with a cloudy macroeconomic outlook,” and added "however, we believe our company addressed these challenges successfully by strategically shifting our emphasis toward coal product sales during these periods. In the last half of 2009, the global economic picture began improving, and we are optimistic about the coming year in terms of industrial demand for coke and coking coal. Market prices for coke products rebounded firmly in late 2009, and we expect that trend to continue in 2010, particularly due to strong demand in China.”

The above financial information is in summary form only, and should be read in conjunction with the complete financial statements of the company, including footnotes and related disclosures, which are available in SinoCoking’s current report on Form 8-K filed with the Securities and Exchange Commission on March 5, 2010, and in other periodic reports filed with the commission.

About SinoCoking

SinoCoking Coal and Coke Chemical Industries, Inc., a Florida corporation (NASDAQ: SCOK), is a vertically-integrated coal and coke processor that uses coal from both its own mines and that of third-party mines to produce basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking currently has mining rights and capacity to extract 300,000 tons of coal per year from mines located in the Henan Province in central China. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking, a Florida corporation, owns its assets and conducts its operations through its subsidiaries, Top Favour Limited, a British Virgin Islands holding company, Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd. ("Hongyuan”), Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd. ("Hongli”), Baofeng Coking Factory, Baofeng Hongchang Coal Co., Ltd. and Baofeng Hongguang Environment Protection Electricity Generating Co., Ltd.

For further information about SinoCoking, please refer to the Definitive Proxy Statement of the Company (previously named Ableauctions.com, Inc.) filed on Schedule 14A with the Securities and Exchange Commission on November 27, 2009.

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