Attached files
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| 8-K - Shiner International, Inc. | v222827_8k.htm |
Exhibit 99.1
Shiner International, Inc. Announces Results for the First Quarter of 2011
HAIKOU, China, May 16, 2011 — Shiner International, Inc. (Nasdaq: BEST) ("Shiner" or the "Company"), an emerging global supplier of packaging solutions for food, tobacco, and consumer products, today announced its financial results for the quarter ended March 31, 2011.
Shiner reports revenue of $15.9 million and an operating profit of $1,205,392 for the three months ended March 31, 2011, which is an increase of 37.3% in revenue, compared to $11.6 million for the same period in 2010. This increase was mainly a result of increased sales in flexible packaging materials, which increased by 53.8% to $14.6 million from $9.5 million from the first quarter in 2010. In addition, revenue from biaxially-oriented polypropylene (BOPP) tobacco film increased 94.1% to $8.0 million from $4.1 million, revenue from color printing segment increased 141% to $1.7 million from $0.7 million, and revenue from coated film increased 5.2% to $4.9 million from $4.7 million.
The increase in revenue was primarily caused by two factors: an increase in domestic product volume and an improvement in our sales prices. Approximately 82.2%, or $13.1 million, of our total sales in the three months ended March 31, 2011 were made domestically to companies in China.
Management Comments
Mr. Qingtao Xing, the CEO and President of Shiner stated, "We are excited about our promising growth in the first quarter of 2011. We believe this solid growth is the result of solid and healthy operations. We are also glad to report that the 2011 first quarter revenue from flexible packaging material has increased 53.8% compared to the first quarter of 2010."
Mr. Xing further stated, "We continue to believe that our growth is based on the capability of our QC system and the production inspection system, which will enhance the safety of incoming raw material in order to satisfy the specified product shelf life at the end. We have been efficient in providing packaging solutions in order to meet the market demand for extending product shelf life. We currently plan to set up six sales facilities domestically and eight sales facilities worldwide. Overall, our healthy financial operations have encouraged us to continue to grow in the international marketplace."
Mr. Xing continued, "Our goal is to increase the sales volume both domestically and internationally. We have been working on the basic construction and sales network build up with the followings actions:
We have imported a state-of-the-art BOPP production line from Europe which is made to fit our capacity to produce high quality anti-counterfeiting film and coated film. Bank of China has provided us with financial support for this BOPP line purchase. We plan to install this BOPP line in the second quarter of 2011. This new production line will increase the production efficiency and the production quality to achieve the cost reduction measures needed to be more competitive in the marketplace.
We have also established a sales company in Shanghai to provide service to the Chinese food packaging industry and to food processing manufacturers.
With all of these efforts, we believe that we can be a leader in the increasing food packaging industry and grow in the international marketplace.
About Shiner International, Inc.
Shiner is engaged in the research and development, manufacture and sale of flexible packaging material. Products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company's flexible packaging products are used by manufacturers in the food and consumer products industry to preserve texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou, China. Approximately 80% 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 16 patents on products and production equipment, and has an additional ten patent applications pending. The Company's flexible packaging meets 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. Additional information on Shiner is available at www.shinerinc.com .
1
Safe Harbor Statement
All statements in this press release that are not historical are forward- looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Shiner's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Shiner's filings with the Securities and Exchange Commission. The information contained in this press release is made as of the date of the press release, even if subsequently made available by Shiner on its website or otherwise. Shiner assumes no obligation to update any forward-looking statement.
Contact:
Investor Relations
Shiner International, Inc.
Email: ir@shinerinc.com
The Company's policy is to handle all questions by email to ir@shinerinc.com and they will be answered as soon as possible.
(Financial statements follow)
2
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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March 31,
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December 31,
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2011
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2010
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(unaudited)
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ASSETS
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CURRENT ASSETS:
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Cash & cash equivalents
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$ | 3,022,375 | $ | 8,622,035 | ||||
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Accounts receivable, net of allowance for doubtful accounts of $297,899 and $262,502
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9,480,195 | 10,005,572 | ||||||
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Advances to suppliers
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7,956,711 | 3,462,074 | ||||||
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Notes receivable
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199,896 | 26,056 | ||||||
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Inventory, net
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8,935,337 | 7,355,601 | ||||||
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Prepaid expenses & other current assets
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669,423 | 610,066 | ||||||
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Total current assets
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30,263,937 | 30,081,404 | ||||||
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Property and equipment, net
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27,740,711 | 19,399,717 | ||||||
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Construction in progress
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4,784,948 | 4,017,721 | ||||||
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Advance for the purchase of equipment
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1,752,849 | 1,356,989 | ||||||
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Intangible assets, net
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1,067,039 | 1,061,855 | ||||||
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TOTAL ASSETS
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$ | 65,609,484 | $ | 55,917,686 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Accounts payable
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$ | 3,089,699 | $ | 5,350,064 | ||||
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Other payables
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4,698,530 | 4,655,300 | ||||||
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Unearned revenue
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1,144,723 | 295,609 | ||||||
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Accrued payroll
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136,420 | 141,884 | ||||||
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Short-term loans
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7,635,000 | 6,826,500 | ||||||
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Total current liabilities
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16,704,372 | 17,269,357 | ||||||
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Long-term loans
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9,024,570 | - | ||||||
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Commitments and contingencies
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- | - | ||||||
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Total Liabilities
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25,728,942 | 17,269,357 | ||||||
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EQUITY:
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Shiner stockholders' equity:
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Common stock, par value $0.001; 75,000,000 shares authorized, 27,603,336 shares issued and 27,541,491 shares outstanding at March 31, 2011 and December 31, 2010
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27,603 | 27,603 | ||||||
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Additional paid-in capital
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14,322,179 | 14,321,484 | ||||||
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Treasury stock (61,845 shares)
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(58,036 | ) | (58,036 | ) | ||||
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Other comprehensive income
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4,286,905 | 4,060,637 | ||||||
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Statutory reserve
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3,020,985 | 2,905,861 | ||||||
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Retained earnings
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18,243,434 | 17,353,554 | ||||||
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Total Shiner stockholders' equity
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39,843,070 | 38,611,103 | ||||||
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Noncontrolling interest
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37,472 | 37,226 | ||||||
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Total equity
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39,880,542 | 38,648,329 | ||||||
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TOTAL LIABILITIES AND EQUITY
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$ | 65,609,484 | $ | 55,917,686 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
3
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
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2011
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2010
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(unaudited)
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(unaudited)
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Net Revenue
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$ | 15,906,845 | $ | 11,586,719 | |||||
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Cost of good sold
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13,539,738 | 9,699,466 | |||||||
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Gross profit
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2,367,107 | 1,887,253 | |||||||
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Operating expenses
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| Selling | 444,676 | 403,770 | |||||||
| General and administrative | 717,039 | 441,372 | |||||||
| Total operating expenses | 1,161,715 | 845,142 | |||||||
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Income from operations
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1,205,392 | 1,042,111 | |||||||
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Non-operating income (expense):
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| Other income, net | 194,611 | 86,191 | |||||||
| Interest income | 6,273 | 2,286 | |||||||
| Interest expense | (142,951 | ) | (42,829 | ) | |||||
| Exchange loss | (55,795 | ) | (7,461 | ) | |||||
| Total non-operating income (expense) | 2,138 | 38,187 | |||||||
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Income before income tax
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1,207,530 | 1,080,298 | |||||||
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Income tax expense
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210,836 | 158,205 | |||||||
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Net income
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996,694 | 922,093 | |||||||
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Net loss attributed to noncontrolling interest
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8,310 | - | |||||||
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Net income attributed to Shiner
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$ | 1,005,004 | $ | 922,093 | |||||
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Comprehensive income (loss)
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Net income
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$ | 996,694 | $ | 922,093 | |||||
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Foreign currency translation gain (loss)
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226,514 | (9,337 | ) | ||||||
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Comprehensive income
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$ | 1,223,208 | $ | 912,756 | |||||
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Weighted average shares outstanding :
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| Basic | 27,541,491 | 24,588,155 | |||||||
| Diluted | 27,546,675 | 24,598,358 | |||||||
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Earnings per share attributed to Shiner common stockholders
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| Basic | $ | 0.04 | $ | 0.04 | |||||
| Diluted | $ | 0.04 | $ | 0.04 | |||||
The accompanying notes are an integral part of these consolidated financial statements.
4
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
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2011
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2010
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(unaudited)
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(unaudited)
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income
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$ | 1,005,004 | $ | 922,093 | ||||
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Adjustments to reconcile net income to net cash used in operating activities:
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Depreciation
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518,462 | 395,917 | ||||||
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Amortization
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1,809 | 31,819 | ||||||
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Stock compensation expense
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695 | 6,318 | ||||||
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Change in working capital components:
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Accounts receivable
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589,310 | (829,991 | ) | |||||
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Inventory
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(1,526,012 | ) | (1,822,659 | ) | ||||
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Advances to suppliers
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(4,456,522 | ) | (958,247 | ) | ||||
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Other assets
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(74,521 | ) | (186,285 | ) | ||||
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Accounts payable
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(2,287,552 | ) | 1,713,513 | |||||
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Unearned revenue
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844,269 | 75,803 | ||||||
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Other payables
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14,066 | 27,353 | ||||||
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Accrued payroll
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(6,377 | ) | (8,941 | ) | ||||
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Net cash used in operating activities
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(5,377,369 | ) | (633,307 | ) | ||||
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CASH FLOWS FROM INVESTING ACTIVITIES
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Issuance of notes receivable
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(173,074 | ) | (205,019 | ) | ||||
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Payments for property and equipment
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(9,089,081 | ) | (50,441 | ) | ||||
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Payments for construction in progress
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(738,208 | ) | (1,079,695 | ) | ||||
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(Increase)/decrease in restricted cash
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- | 733,205 | ||||||
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Net cash used in investing activities
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(10,000,363 | ) | (601,950 | ) | ||||
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CASH FLOWS FROM FINANCING ACTIVITIES:
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Repayment of short-term loans
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(6,848,001 | ) | - | |||||
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Proceeds from notes payable
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16,602,598 | - | ||||||
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Net cash provided by financing activities
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9,754,597 | - | ||||||
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Effect of exchange rate changes on cash and cash equivalents
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23,475 | (411 | ) | |||||
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NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS
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(5,599,660 | ) | (1,235,668 | ) | ||||
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CASH & CASH EQUIVALENTS, BEGINNING BALANCE
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8,622,035 | 3,059,796 | ||||||
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CASH & CASH EQUIVALENTS, ENDING BALANCE
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$ | 3,022,375 | $ | 1,824,128 | ||||
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
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Interest paid
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$ | 142,784 | $ | 42,829 | ||||
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Income taxes paid
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$ | 219,128 | $ | 114,900 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
5