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| 8-K - FORM 8-K - SOONER HOLDINGS INC /OK/ | v232711_8k.htm |
Sooner Holdings Inc. Reports Results for the Second Quarter of 2011
NEW YORK and SHISHI, China, Aug. 16, 2011 /PRNewswire-Asia/ -- Sooner Holdings Inc. (OTCBB:SOON.ob - News), a Fujian-based manufacturer and distributor of synthetic polyurethane synthetic leather (PU leather) for the shoe industry in China, today announced financial results and provided a business update for the second quarter of 2011.
Ang Kang Han, Chairman and President, commented, "We continue to generate strong cash flow to fund our growth. In the second quarter of 2010 we entered a major cooperation agreement with one of our distributors who placed significant orders in anticipation of a major expansion initiative. This distributor accounted for approximately $0.26 million and $2.52 million of sales in the second quarter of 2011 and 2010, respectively. Excluding sales to this distributor, our revenue increased 13.9% over the same period last year.
"Overall, we believe we are extremely well positioned to capture market share due to insufficient local supply of PU leather and the high grade characteristics of our synthetic leather. We have built a very efficient and scalable operation with capacity to produce over 12 million meters of PU leather per year. We have a new facility in San Ming that we expected to commence operation by the second half of 2011, which will increase our capacity by more than 80%, and allow us to capitalize on the growing demand and new opportunities from our customers."
"We are in a strong competitive position due to the fact we are one of only a few fully integrated companies in Fujian. Operating our own resin plant, base cloth production line and PU leather plant has assisted us in mitigating increases in our raw material costs and enables us to customize products to meet the needs of our customers. Looking ahead, we expect to benefit from our new capacity coming online, while increasing higher margin direct-to-customer sales, entering new regional markets in China, such as Hunan and Jiangxi Provinces, and increasing our presence in high-end overseas markets."
About Sooner Holdings Inc.
Sooner Holdings Inc., located in Fujian province, is a leading producer of synthetic polyurethane leather ("PU leather") for the shoe industry in China. The company's primary business is to design, manufacture and distribute PU leather. Flying Eagle also manufactures flip-flops and slippers for sale in China and abroad. For its high performance series, Flying Eagle uses high-density nonwoven fabric as base cloth because of its superior hydrolysis resistance, peel and tear strength, durability and air and moisture permeability. High performance PU leather is mainly used to make high-grade athletic shoes. Flying Eagle is located in ShiShi City, Fujian, close to Quanzhou — China's largest production base for sports shoes, sneakers and casual shoes. In this one region alone, there are more than 3,000 shoe manufacturers producing over 1 billion shoes annually located in close proximity.
This release contains certain "forward-looking statements" relating to the business of the Company. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
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Company Contact:
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Jacqueline Zhang
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Cell: +86-187-0111-7213
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Email: jacqueline@China-wintop.com
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– financial tables follow –
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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June 30,
2011
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December 31,
2010
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ASSETS
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Current assets:
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Cash
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$ | 1,038,583 | $ | 1,084,204 | ||||
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Restricted cash
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772,741 | 137,688 | ||||||
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Accounts receivable
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6,527,522 | 6,171,639 | ||||||
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Prepaid expenses and other current assets
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1,697,426 | 555,283 | ||||||
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Related party receivable
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- | 1,334,545 | ||||||
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Inventories
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6,934,542 | 6,968,039 | ||||||
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Total current assets
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16,970,814 | 16,251,398 | ||||||
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Deposit for construction in progress
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14,701,231 | 8,074,441 | ||||||
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Plant and equipment, net
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13,805,299 | 11,589,924 | ||||||
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Land use rights, net
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1,807,125 | 1,793,496 | ||||||
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Long-term investment
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154,703 | 151,722 | ||||||
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Total assets
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$ | 47,439,173 | 37,860,981 | |||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Liabilities:
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Short-term loans and notes payable
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16,427,908 | 11,586,254 | ||||||
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Related party payable
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1,048,886 | 198,756 | ||||||
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Accounts payable and other liabilities
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2,623,505 | 2,447,151 | ||||||
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Customer deposits
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982,693 | 925,352 | ||||||
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Tax payable
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2,738,835 | 1,814,856 | ||||||
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Total liabilities
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23,821,827 | 16,972,369 | ||||||
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Stockholders' equity:
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Preferred stock, Series A, $0.0001 par value; 10,000,000 shares
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authorized; 19,200 shares issued and outstanding
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2 | 2 | ||||||
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Common stock, $0.001 par value; 100,000,000 shares authorized;
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14,632,553 and 12,688,016 shares issued and outstanding at
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June 30, 2011 and December 31, 2010, respectively
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14,633 | 14,633 | ||||||
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Additional paid-in capital
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9,576,438 | 9,126,468 | ||||||
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Retained earnings
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12,446,441 | 10,607,267 | ||||||
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Accumulated other comprehensive income
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1,579,832 | 1,140,242 | ||||||
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Total stockholders' equity
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23,617,346 | 20,888,612 | ||||||
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Total liabilities and stockholders' equity
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$ | 47,439,173 | 37,860,981 | |||||
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2011
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2010
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2011
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2010
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Revenues
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$ | 8,427,545 | $ | 9,430,652 | $ | 15,637,376 | $ | 13,589,767 | ||||||||
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Cost of revenues
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6,652,456 | 7,231,834 | 12,185,270 | 10,392,354 | ||||||||||||
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Gross profit
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1,775,089 | 2,198,818 | 3,452,106 | 3,197,413 | ||||||||||||
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Operating expenses:
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Selling
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158,495 | 117,841 | 243,895 | 238,010 | ||||||||||||
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General and administrative
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208,960 | 143,139 | 348,922 | 252,216 | ||||||||||||
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Total operating expenses
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367,455 | 260,980 | 592,817 | 490,226 | ||||||||||||
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Income from operations
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1,407,634 | 1,937,838 | 2,859,289 | 2,707,187 | ||||||||||||
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Other income (expense), net
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(195,833 | ) | (89,726 | ) | (346,769 | ) | (194,613 | ) | ||||||||
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Income before provision for
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income taxes
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1,211,801 | 1,848,112 | 2,512,520 | 2,512,574 | ||||||||||||
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Provision for income taxes
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325,214 | 231,743 | 673,345 | 314,801 | ||||||||||||
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Net income
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$ | 886,587 | $ | 1,616,369 | $ | 1,839,175 | $ | 2,197,773 | ||||||||
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Net income per share - basic and diluted
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$ | 0.04 | $ | 0.08 | $ | 0.09 | $ | 0.11 | ||||||||
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Shares used in computing net income per share - basic and diluted
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20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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(Unaudited)
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Six Months Ended
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June 30,
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2011
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2010
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Cash flows from operating activities:
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Net income
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$ | 1,839,175 | $ | 2,197,773 | ||||
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Adjustments to reconcile net income to net cash provided by
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(used in) operating activities:
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Depreciation and amortization
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293,885 | 248,278 | ||||||
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Change in assets and liabilities:
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Accounts receivable
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(231,610 | ) | (3,472,138 | ) | ||||
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Prepaid expenses and other current assets
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(994,515 | ) | (872,439 | ) | ||||
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Inventories
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168,209 | (253,621 | ) | |||||
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Accounts payable and other liabilities
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126,623 | 6,293 | ||||||
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Customer deposits
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38,657 | 69,469 | ||||||
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Tax payable
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876,899 | 616,824 | ||||||
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Net cash provided by (used in) operating activities
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2,117,323 | (1,459,561 | ) | |||||
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Cash flows from investing activities:
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Net proceeds from bank notes receivable
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(122,171 | ) | - | |||||
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Deposit for construction in progress
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(6,384,978 | ) | - | |||||
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Purchase of plant and equipment
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(2,234,663 | ) | (25,821 | ) | ||||
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Restricted cash for issuance of bank notes payable
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(624,217 | ) | (264,971 | ) | ||||
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Net cash used in investing activities
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(9,366,029 | ) | (290,792 | ) | ||||
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Cash flows from financing activities:
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Net proceeds from issuance of short term loans
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3,688,036 | 5,852,488 | ||||||
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Net proceeds from issuance of notes payable
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866,650 | (118,513 | ) | |||||
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Related party receivable
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1,343,268 | (3,660,195 | ) | |||||
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Related party payable
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835,344 | (407,786 | ) | |||||
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Proceeds from capital contributions
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449,970 | - | ||||||
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Net cash provided by financing activities
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7,183,268 | 1,665,994 | ||||||
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Net decrease in cash
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(65,438 | ) | (84,359 | ) | ||||
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Effect of exchange rate changes
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19,817 | 4,880 | ||||||
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Cash at beginning of period
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1,084,204 | 1,619,559 | ||||||
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Cash at end of period
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$ | 1,038,583 | $ | 1,540,080 | ||||