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| 8-K - FORM 8-K - Annec Green Refractories Corp | v232674_8-k.htm |
EXHIBIT 99.1
Annec Green Refractories Corporation Reports Financial Results for the Second Quarter of 2011
Achieves 53.2% Increase in Revenues to $24 Million and 19.3% Increase in Net Income to $1.39 Million for the Second Quarter of 2011 compared to the same period of 2010
ZHENGZHOU, China, Aug. 17, 2011 /PRNewswire-Asia/ -- ANNEC GREEN REFRACTORIES CORPORATION (OTCBB:ANNC.ob -News), one of leading refractory enterprises in China, today announced financial results for the second quarter of 2011:
Second Quarter 2011 Highlights
● Revenue increased 53.2% to $24.3 million compared to $15.8 million for Q2 2010
● Gross profit increased 59.3% to $8.5 million versus $5.3 million for Q2 2010
● Net income for increased 19.3% to $1.39 million versus $1.16 million for Q2 2010
Mr. Fuchao Li, Chairman, commented, "We are very pleased to report a 53.2 percent increase in revenues and a 19.3 percent increase in net income for the second quarter of 2011 compared to the same period of 2010. Our strategy is to increase our presence in overseas markets while consolidating market share based on established distribution channels in China in 2011."
In the second quarter of 2011, one of the Company's R&D programs was awarded the first prize of Zhengzhou progress prize in scientific and collective technology, another R&D program was honored with a scientific achievement second prize by Henan industry and information technology.
ABOUT ANNEC GREEN REFRACTORIES CORPORATION
We indirectly control through subsidiaries, Zhengzhou Annec Industrial Co., Ltd. ("Annec"), a PRC wholly-Foreign Owned Enterprise, which is engaged in the business of design, manufacturing and selling of medium and high level refractory materials for top combustion type, internal combustion type, and external combustion type hot blast stoves, and through our variable interest entity ("VIE"), Annec (Beijing) Engineering Technology Co., Ltd. ("Beijing Annec"), a PRC limited company, we provide turnkey service for large hot blast stove projects, integrating the structural design, equipment purchase, construction, refractory production/sale and after-sale service of hot blast stoves.
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 include, but are not limited to, that our brand will continue to have strong brand recognition, that our operations are efficient and scalable, that we be able to enter into new regional markets in China and high-end overseas markets, that we will be able to find and consummate strategic and accretive acquisitions and that our net income will increase by 200% this year. Further the 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. [Not sure what that statement means] The Company does not assume a duty to update these forward-looking statements.
– Financial tables follow –
ANNEC GREEN REFRACTORIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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June 30,
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December 31,
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2011
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2010(1)
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ASSETS
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Current assets:
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Cash
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$ | 1,044,785 | $ | 1,504,971 | ||||
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Restricted cash
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5,415,555 | 4,425,167 | ||||||
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Bank notes receivable
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1,468,582 | 1,056,569 | ||||||
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Accounts receivable (net of allowance of $803,385 and $572,793 at
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||||||||
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June 30, 2011 and December 31, 2010, respectively)
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18,187,504 | 16,130,117 | ||||||
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Retentions receivable
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8,771,042 | 4,553,071 | ||||||
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Prepaid expenses and deposits
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12,173,860 | 5,604,102 | ||||||
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Other receivables
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4,782,949 | 5,420,233 | ||||||
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Inventories
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30,377,388 | 25,703,214 | ||||||
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Total current assets
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82,221,665 | 64,397,444 | ||||||
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Long-term retentions receivable
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4,971,764 | 5,425,110 | ||||||
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Deposits for capital expenditure
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3,170,386 | 3,235,272 | ||||||
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Plant and equipment, net
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12,651,927 | 12,093,625 | ||||||
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Land use rights, net
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2,210,017 | 2,193,823 | ||||||
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Long-term investment
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154,703 | 151,722 | ||||||
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Total assets
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$ | 105,380,462 | $ | 87,496,996 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Short-term loans
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9,569,926 | 8,475,193 | ||||||
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Bank notes payable
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6,961,634 | 5,310,272 | ||||||
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Accounts payable and accrued expenses
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18,126,525 | 11,271,228 | ||||||
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Advances from customers
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28,254,389 | 23,105,778 | ||||||
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Salaries payable
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493,795 | 436,635 | ||||||
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Taxes payable
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1,838,959 | 2,535,965 | ||||||
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Related party payable
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1,383,663 | 917,008 | ||||||
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Loans payable to employees
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1,920,593 | 2,154,409 | ||||||
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Loans payable to other individuals
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2,784,653 | 1,972,387 | ||||||
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Other payable
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2,193,531 | 1,918,056 | ||||||
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Total current liabilities
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73,527,668 | 58,096,931 | ||||||
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Deferred income
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2,855,312 | 2,884,600 | ||||||
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Long-term loans
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1,061,262 | 1,189,501 | ||||||
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Total liabilities
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77,444,242 | 62,171,032 | ||||||
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Commitments and contingencies (Note 13)
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Stockholders' equity:
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Series A preferred stock, $0.0001 par value; 20,000,000 shares authorized; zero shares
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issued and outstanding
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- | - | ||||||
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Common stock, $0.0001 par value; 100,000,000 shares authorized; 19,995,701 issued
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and outstanding
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2,000 | 2,000 | ||||||
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Additional paid-in capital
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4,046,992 | 4,046,992 | ||||||
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Retained earnings
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22,792,112 | 20,700,451 | ||||||
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Accumulated other comprehensive income
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1,095,116 | 576,521 | ||||||
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Total stockholders' equity
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27,936,220 | 25,325,964 | ||||||
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Total liabilities and stockholders' equity
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$ | 105,380,462.00 | $ | 87,496,996.00 | ||||
(1) Derived from the consolidated audited financial statements for the year ended December 31, 2010 contained in our amended current report on Form 8-K/A filed with the SEC on May 11, 2011.
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ANNEC GREEN REFRACTORIES CORPORATION
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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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2,011
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2,010
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2,011
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2,010
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Revenues
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24,271,294
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15,839,082
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37,329,323
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23,811,563
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Cost of revenues
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15,791,816
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10,516,874
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23,365,232
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15,558,446
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Gross profit
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8,479,478
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5,322,208
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13,964,091
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8,253,117
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Operating expenses:
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Selling
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4,540,047
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1,742,207
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6,637,934
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2,923,093
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General and administrative
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1,329,832
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1,563,140
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2,681,962
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2,827,785
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Total operating expenses
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5,869,879
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3,305,347
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9,319,896
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5,750,878
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Income from operations
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2,609,599
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2,016,861
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4,644,195
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2,502,239
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Other income (expense):
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Interest income
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85,808
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26,981
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184,644
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51,492
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Interest expense
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(1,087,524
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)
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(340,310
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)
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(1,692,784
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)
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(619,466
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)
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Other income (expense), net
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105,213
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(303,228
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)
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241,763
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(378,130
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)
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Total other income (expense), net
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(896,503
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)
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(616,557
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)
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(1,266,377
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)
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(946,104
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)
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Income before provision for
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Income taxes
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1,713,096
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1,400,304
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3,377,818
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1,556,135
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Provision for income taxes
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326,020
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237,494
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587,891
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265,617
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Net income
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1,387,076
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1,162,810
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2,789,927
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1,290,518
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Net income per share–basic
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0.07
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0.06
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0.14
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0.06
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Net income per share–diluted
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0.07
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0.06
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0.14
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0.06
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Shares used in computing net income
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per share–basic
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19,995,701
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19,995,701
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19,995,701
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19,995,701
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Shares used in computing net income
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per share–diluted
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19,995,701
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19,995,701
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19,995,701
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19,995,701
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For more information, please contact:
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Yolanda Li
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Tel: +86-371-6999-9012
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Mobile: +86-152-1012-1018
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Email: annecyolanda@annec.com.cn
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