Shiner International Announces First Quarter 2009 Results, Recent Increase in Sales; Annual Meeting of Shareholders to Be Held June 5th
Posted on: Friday, 15 May 2009, 05:55 CDT
HAINAN, China, May 15 /PRNewswire-Asia/ -- Shiner International, Inc.
(Nasdaq: BEST), an emerging global supplier of anti-counterfeiting and
advanced packaging products, today announced financial results for the quarter
ended March 31, 2009.
Financial Summary
-- Total revenue of $7.1 million versus $11.28 million in Q1 2008
-- Net loss of $275,013 compared to net income $1.56 million in Q1 2008
-- Gross profit of $0.47 million compared to $2.54 million in Q1 2008
-- Earnings per share of ($0.01) compared to $0.06 in Q1 2008
Revenues and Earnings
Shiner's revenue for the three months ended March 31, 2009 decreased by
37.3% compared to the same period last year, while the Company's net income
decreased 117.6% for the year to year period. The decreases were directly
related to decreases in sales in the Company's various business lines -- down
6.6% in tobacco BOPP, 26.2% in coated film, 45.3% in anti-counterfeit film,
and 80.6% color printing, coupled with a decrease in the sale prices of its
products. Shiner's margins were negatively impacted by the opening of a new
facility in Zhuhai, although the Company believes that the current costs
associated with the opening of this facility will be outweighed by its
long-term benefits.
The decrease in sales year over year was attributable to two major events
during the latter part of 2008 -- the global economic financial crisis and
melamine milk scare, which affected the entire packaged food industry in China.
As a result of the decrease in sales caused by these unforeseen events, Shiner
was overstocked in a number of raw materials that were purchased at higher
prices in the third and fourth quarters of 2008. The Company has, during the
first four months of 2009, depleted these reserves and is currently taking
advantage of lower pricing capabilities to restock these raw materials.
Shiner is currently seeing an increase in sales across most of its
business lines and believes that the melamine crisis has been contained. The
Company believes that this trend will continue going forward. Further, the
Company believes its results of operations will be positively impacted by the
recent opening of its new plant in Zhuhai. This facility contains state-of-
the-art technology that is expected to increase our operational efficiencies
and lower our unit cost. The Zhuhai plant began operating on a trial basis in
2008 and went fully operational on April 2, 2009.
Management Comments
Jian Fu, Shiner's Chief Executive Officer said, "although the first
quarter was economically challenging for us, we have recently seen positive
signs from our major clients. The market is recovering faster than we thought
and we believe the implementation of the recently enacted China Food Safety
Law beginning in June will attract new clients to us. We see tremendous
opportunity for us going forward." Jian Fu continued, "we are also beginning
to see signs of growth in new markets, including the United States and Canada.
We provide high quality coated film at competitive prices as compared to major
US coated film producers. Our international sales have great potential."
2009 Annual Meeting of Shareholders
The Company announced that its 2009 annual meeting of shareholders will be
held in the offices of Buchanan Ingersoll & Rooney PC, located at Two Liberty
Place, 50 S. 16th Street, Suite 3200, Philadelphia, PA 19102, on June 5, 2009
at 10:00 a.m. Eastern Daylight Time. April 17, 2009 has been established as
the record date for determining the shareholders eligible to vote at the
annual meeting. All shareholders are invited and encouraged to attend the
meeting. Shiner currently expects that members of the Board of Directors,
President Qingtao Xing, Corporate Secretary Feng Zou and members of Shiner's
Investor Relations department will be present to meet with shareholders.
About Shiner International, Inc.
NASDAQ listed Shiner International ( http://www.shinerinc.com ) is a U.S.
corporation that has its primary operations in China. Headquartered in the
city of Haikou -- China's "Hawaii" -- Shiner's products include coated
packaging film, shrink-wrap film, common packaging film, anti-counterfeit
laser holographic film and color-printed packaging materials. Approximately
60 percent of Shiner's current customers are located in China, with the
remainder spanning Southeast Asia, Europe, the Middle East and North America.
Shiner holds 14 patents on products and production equipment, and has an
additional eight patent applications pending. The Company's coated films meet
the approval of U.S. FDA requirements, as well as those required for food
packaging sold in the EU. Shiner's product manufacturing process is certified
under ISO 9001:2000.
Safe Harbor Statement
The information contained in this earnings release and the attachments is
as of May 15, 2009. The Company assumes no obligation to update any forward-
looking statements contained in this earnings release or the attachments as a
result of new information or future events or developments.
This earnings release and the attachments contain forward-looking
information about the Company's financial results and estimates, business
plans and prospects that involve substantial risks and uncertainties. You can
identify these statements by the fact that they use words such as "will,"
"anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"
"target," "forecast" and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance or
business plans and prospects. Among the factors that could cause actual
results to differ materially are the following: the availability and prices of
raw materials, fuel and supplies; product pricing; the competitive environment
and related market conditions; operating efficiencies; interest rate and
foreign currency exchange rate fluctuations; access to capital; the cost of
compliance with environmental and health standards; actions of the PRC
government; governmental laws and regulations affecting our operations,
including tax obligations; the success of our research and development
activities, changes in generally accepted accounting principles; uncertainties
related to general economic, political, business, industry, regulatory and
market conditions; any changes in business, political and economic conditions
due to the threat of terrorist activity; and other risks and uncertainties
described in the Company's Annual Report on Form 10-K for the year ended
December 31, 2008 and in its subsequent Quarterly Reports on Form 10-Q.
Readers are cautioned not to place undue reliance on forward-looking
statements because actual results may differ materially from those expressed
in, or implied by, the statements. Any forward-looking statement that the
Company makes speaks only as of the date of such statement, and the Company
undertakes no obligation to update any forward-looking statements, whether as
a result of new information, future events or otherwise. Comparisons of
results for current and any prior periods are not intended to express any
future trends or indications of future performance, unless expressed as such,
and should only be viewed as historical data.
Shiner International, Inc.
Consolidated Statement of Operations
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
2009 2008
(unaudited) (unaudited)
Revenues $ 7,070,408 $ 11,277,937
Cost of revenue 6,598,923 8,739,790
Gross profit 471,485 2,538,147
Operating expenses
Selling expenses 277,851 310,919
General and administrative expenses 523,918 522,386
Total operating expenses 801,769 833,305
Income from operations (330,284) 1,704,842
Non-operating income (expense):
Other income (expense), net 10,873 75,160
Subsidy income --
Interest income 7,106 12,616
Interest expense (46,049) (16,832)
Exchange gain (loss) 1,458 (52,849)
Total non-operating income
(expense) (26,612) 18,095
Income before income tax (356,896) 1,722,937
Income tax (benefit) expense (81,883) 159,054
Net income (loss) (275,013) 1,563,883
Shiner International, Inc.
Consolidated Balance Sheets
March 31, December 31,
2009 2008
(unaudited)
ASSETS
CURRENT ASSETS:
Cash & cash equivalents $ 3,885,841 $ 3,816,454
Restricted cash 342,223 684,212
Accounts receivable, net of allowance
for doubtful accounts of
$159,571 and $223,973 6,575,741 7,594,718
Advances to suppliers 3,741,341 3,677,890
Note receivable 692,187 43,503
Inventories 6,685,894 7,079,390
Prepaid expense & other current assets 1,769,497 1,283,650
Total current assets 23,692,724 24,179,817
Property and equipment, net 13,660,450 12,412,689
Construction in progress 434,167 32,265
Advance for purchase of equipment -- 1,531,590
Intangible assets 354,225 356,447
TOTAL ASSETS $ 38,141,566 $ 38,512,808
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,006,683 $ 3,798,790
Other payables 58,060 145,507
Unearned revenue 342,110 161,516
Accrued payroll 49,497 39,979
Short term loan 3,479,253 3,884,197
Dividend payable 63,181 63,267
Total current liabilities 7,998,784 8,093,256
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Common stock, par value $0.001;
75,000,000 shares authorized,
24,650,000 and 24,650,000 shares
issued and outstanding 24,650 24,650
Additional paid-in capital 11,253,963 11,214,071
Other comprehensive income 2,936,198 2,977,847
Statutory reserve 2,872,691 2,854,686
Retained earnings 13,055,280 13,348,298
Total stockholders' equity 30,142,782 30,419,552
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 38,141,566 $ 38,512,808
For more information, please contact:
Corporate Contact:
Mr. Qingtao Xing
President
Shiner International, Inc.
Tel: +86-1387-6683-099
Email: qingtao.xing@shinerinc.com or info@shinerinc.com
Ms. Feng Zou
Corporate Secretary
Shiner International, Inc.
Tel: +86-1500-8081-666
Email: feng.zou@shinerinc.com
SOURCE Shiner International, Inc.
Source: PR Newswire
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