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We sold 127 tons of EDLC carbon for the six months ended June 30, 2016, compared to 175 tons for the same period of last year. The average selling price of EDLC carbon decreased by 18.4% to $26,551 per ton for the six months ended June 30, 2016 from $32,535 per ton for the same period of last year. Cost of revenues Total cost of revenues decreased by $3.8 million, or 18.6%, to $16.8 million for the six months ended June 30, 2016 from $20.6 million for the same period of last year. As a percentage of revenues, the cost of revenue increased by 5.8 percentage points to 73.6% for the six months ended June 30, 2016 from 67.9% for the same period of last year. Gross profit Total gross profit decreased by $3.8 million, or 38.8%, to $6.0 million for the six months ended June 30, 2016 from $9.8 million for the same period of last year. Gross margin was 26.3% for the six months ended June 30, 2016, compared to 32.1% for the same period of last year. On segment basis, gross margins for consumer product, trading, and energy were 29.4%, 19.1%, and 11.8%, respectively, for the six months ended June 30, 2016, compared to 38.2%, 1.6%, and 27.7%, respectively, for the same period of last year. Operating expenses Selling expenses decreased by $0.05 million, or 11%, to $0.39 million for the six months ended June 30, 2016 from $0.44 million for the same period of last year. As a percentage of revenues, selling expenses increased to 1.7% of revenues for the six months ended June 30, 2016, as compared to 1.4% for the same period of last year. The increase was primarily attributable to higher shipping expenses for the six months ended June 30, 2016 as compared to the same period of last year.
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