DALIAN CITY, China, Feb. 15, 2011 /PRNewswire-Asia-FirstCall/ -- BEFUT International Co., Ltd. (the "Company" or "BEFUT") (OTC Bulletin Board: BFTI), a developer, manufacturer and distributor of wire and cable products in China, today announced its financial results for the second quarter of fiscal 2011 and six months ended December 31, 2010.
Financial Highlights (year-over-year):
Mr. Cao continued, "In July 2010, we acquired Dalian Yuansheng Technology Co., Ltd., which enables us to develop and manufacture carbon fiber composite cable and other specialty cable for upgrading China's power grid. As compared to pure metal cable, carbon fiber composite cable is lighter, has better electrical conductivity and can better withstand increased external pressure caused by natural disasters. As a result, we plan to make carbon fiber cable a key focus for the Company over the next few years.
"As we look ahead, we see substantial opportunities to grow our business. Key elements of our growth strategy include new product introductions, entering new markets, broadening of our customer base and further expansion of our manufacturing facilities. These initiatives are currently underway. We are particularly excited about new products in our pipeline, such as specialty cables for wind and solar applications. We are also conducting R&D with the National Nuclear Industry Research Institute to develop technology that will boost the overall technical level of nuclear cables used in China."
Revenue for the second quarter ended December 31, 2010 was $14.9 million, compared to $7.1 million for the second quarter ended December 31, 2009. The increased revenue reflects growing demand across all product lines from new and existing customers and increased capacity to accommodate the demand. Gross profit was $3.9 million for the three months ended December 31, 2010, as compared to $1.9 million for the three months ended December 31, 2009. Operating income was $2.7 million for the three months ended December 31, 2010, as compared to $1.4 million for the three months ended December 31, 2009. Net income for the three months ended December 31, 2010 was $1.9 million, or $0.07 per diluted share, compared to net income of $1.0 million, or $0.03 per diluted share, for the same period the previous year.
Revenue for the six months ended December 31, 2010 was $30.8 million, compared to $12.6 million for the six months ended December 31, 2009. Gross profit was $8.2 million for the six months ended December 31, 2010, as compared to $3.5 million for the six months ended December 31, 2009. Operating income was $5.9 million for the six months ended December 31, 2010, as compared to $2.4 million for the six months ended December 31, 2009. Net income for the six months ended December 31, 2010 was $4.2 million, or $0.14 per diluted share, compared to net income of $1.7 million, or $0.06 per diluted share, for the same period the previous year.
About BEFUT International Co., Ltd.
BEFUT is a manufacturer of specialty cables in northeastern China for sale to industries, including, ship building, nuclear power plants, mining and petrochemical. The Company's cable products consist of (i) traditional electric power system cable and (ii) an assortment of specialty cable, including marine cable, mining specialty cable and petrochemical cable. BEFUT has recently begun to develop carbon fiber composite cable products. The Company has also developed the capability to produce other types of special cables such as submarine cable and certain "new energy" cable, including cable for wind and solar energy. BEFUT's switch application business mainly includes high and low voltage distribution cabinet switches and crane electronic control switches, which complement the cable product offerings.
Safe Harbor Statement
This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Safe Harbor Statement and the risk factors detailed in the Company's reports filed with the SEC. BEFUT undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release, except as required by applicable law or regulation.
(tables follow)
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Consolidated Balance Sheets |
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December 31, |
June 30, |
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|
2010 |
2010 |
||
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Assets |
(Unaudited) |
||
|
Current assets: |
|||
|
Cash and cash equivalents |
$ 761,460 |
$ 1,319,173 |
|
|
Restricted cash |
3,494,084 |
1,181,095 |
|
|
Accounts receivable, net of allowance for doubtful accounts of $85,783 |
17,292,392 |
9,292,310 |
|
|
and $83,295 at December 31, 2010, and June 30, 2010, respectively |
|||
|
Inventory |
5,234,237 |
2,543,789 |
|
|
Loans to unrelated parties |
1,888,835 |
1,054,090 |
|
|
Bank loan security deposits |
1,089,206 |
1,031,100 |
|
|
Advance payments |
1,929,467 |
693,473 |
|
|
Due from related party |
- |
472,838 |
|
|
Other current assets |
1,227,666 |
521,739 |
|
|
Total current assets |
32,917,347 |
18,109,607 |
|
|
Property and equipment, net |
32,394,534 |
31,618,074 |
|
|
Other assets: |
|||
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Intangibles, net |
15,485,194 |
15,669,375 |
|
|
Advance payments – Research & Development |
2,151,106 |
2,088,714 |
|
|
Total other assets |
17,636,300 |
17,758,089 |
|
|
Total assets |
$82,948,181 |
$67,485,770 |
|
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Liabilities |
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Current liabilities: |
|||
|
Accounts payable and accrued expenses |
$ 2,770,621 |
$ 3,119,646 |
|
|
Trade notes payable |
3,034,000 |
- |
|
|
Short-term bank loans |
9,086,830 |
6,039,300 |
|
|
Current portion of long-term bank loans |
758,500 |
294,600 |
|
|
Loans from unrelated parties |
2,220,740 |
370,000 |
|
|
Advances from customers |
1,007,947 |
533,806 |
|
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Income taxes payable |
3,120,515 |
1,655,747 |
|
|
Other current liabilities |
1,334,564 |
969,787 |
|
|
Total current liabilities |
23,333,717 |
12,982,886 |
|
|
Long-term bank loan |
14,108,100 |
14,435,400 |
|
|
Total liabilities |
37,441,817 |
27,418,286 |
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Equity |
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Stockholders' equity: |
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Preferred stock, $0.001 par value, 10,000,000 shares authorized, |
- |
- |
|
|
no shares issued or outstanding |
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|
Common stock, $0.001 par value, 200,000,000 shares authorized, |
29,716 |
29,716 |
|
|
29,715,640 and 29,715,666 shares issued and outstanding at |
|||
|
December 31, 2010 and June 30, 2010, respectively |
|||
|
Additional paid-in capital |
21,838,047 |
21,838,047 |
|
|
Statutory reserves |
1,181,189 |
1,181,189 |
|
|
Retained earnings |
17,994,979 |
13,810,157 |
|
|
Accumulated other comprehensive income |
3,447,965 |
2,166,533 |
|
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Total stockholders' equity |
44,491,896 |
39,025,642 |
|
|
` |
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Noncontrolling interest |
1,014,468 |
1,041,842 |
|
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Total equity |
45,506,364 |
40,067,484 |
|
|
Total liabilities and equity |
$82,948,181 |
$67,485,770 |
|
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Consolidated Statements of Operations and Other Comprehensive Income (Unaudited) |
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For the Three Months Ended |
For the Six Months Ended |
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December 31, |
December 31, |
||||
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2010 |
2009 |
2010 |
2009 |
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Sales |
$ 14,871,164 |
$ 7,126,044 |
$30,801,975 |
$12,609,703 |
|
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Cost of sales |
10,954,272 |
5,235,323 |
22,625,032 |
9,098,097 |
|
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Gross profit |
3,916,892 |
1,890,721 |
8,176,943 |
3,511,606 |
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Operating expenses: |
|||||
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Selling expenses |
149,643 |
14,828 |
188,250 |
36,701 |
|
|
General and administrative expenses |
1,032,259 |
442,264 |
2,043,879 |
1,030,549 |
|
|
Total operating expenses |
1,181,902 |
457,092 |
2,232,129 |
1,067,250 |
|
|
Income from operations |
2,734,990 |
1,433,629 |
5,944,814 |
2,444,356 |
|
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Other income (expenses): |
|||||
|
Government subsidy |
180,155 |
304,704 |
316,642 |
354,658 |
|
|
Interest expense, net |
(493,390) |
(5,195) |
(879,788) |
(137,504) |
|
|
Other income (expenses) |
107,024 |
(403,138) |
138,145 |
(397,441) |
|
|
Total other income (expenses) |
(206,211) |
(103,629) |
(425,001) |
(180,287) |
|
|
Income before provision for income tax |
2,528,779 |
1,330,000 |
5,519,813 |
2,264,069 |
|
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Provision for income tax |
614,895 |
336,819 |
1,422,030 |
585,723 |
|
|
Net income |
1,913,884 |
993,181 |
4,097,783 |
1,678,346 |
|
|
Less: Net loss attributable to noncontrolling |
(22,681) |
(963) |
(87,038) |
(6,121) |
|
|
interest |
|||||
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Net income attributable to BEFUT |
1,936,565 |
994,144 |
4,184,821 |
1,684,467 |
|
|
International Co., Ltd. |
|||||
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Other comprehensive income |
|||||
|
Foreign currency translation adjustment |
597,575 |
263 |
1,281,432 |
48,070 |
|
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Comprehensive income |
$2,534,140 |
$ 994,407 |
$5,466,253 |
$ 1,732,537 |
|
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Basic earnings per share |
$ 0.07 |
$ 0.03 |
$ 0.14 |
$ 0.06 |
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|
Diluted earnings per share |
$ 0.07 |
$ 0.03 |
$ 0.14 |
$ 0.06 |
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Weighted average number of common shares |
|||||
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outstanding: |
|||||
|
Basic |
29,715,640 |
29,511,277 |
29,715,640 |
29,511,277 |
|
|
Diluted |
29,786,677 |
30,280,532 |
29,771,813 |
30,280,532 |
|
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Consolidated Statements of Cash Flows (Unaudited) |
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For the Six Months Ended |
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December 31, |
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2010 |
2009 |
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Cash flows from operating activities: |
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Net Income |
$ 4,097,783 |
$ 1,678,346 |
|
|
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 |
1,583,652 |
718,680 |
|
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Changes in current assets and current liabilities: |
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Accounts receivable |
(7,894,969) |
(53,500) |
|
|
Inventory |
(2,574,960) |
(1,000,998) |
|
|
Advance payments |
(1,066,359) |
(197,666) |
|
|
Other current assets |
(935,345) |
(1,032,681) |
|
|
Accounts payable and accrued expenses |
(176,022) |
1,637,214 |
|
|
Trade notes payable |
2,983,200 |
(1,173,120) |
|
|
Advances from customers |
450,523 |
(174,496) |
|
|
Income taxes payable |
1,391,612 |
585,724 |
|
|
Other current liabilities |
711,714 |
104,016 |
|
|
Total adjustments |
(5,526,954) |
(586,827) |
|
|
Net cash provided by (used in) operating activities |
(1,429,171) |
1,091,519 |
|
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Cash flows from investing activities: |
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Due from related party |
478,809 |
- |
|
|
Additions to property and equipment |
(755,610) |
(1,594,161) |
|
|
Additions to construction in progress |
(39,808) |
(2,442,107) |
|
|
Advance payment for fixed assets |
(104,131) |
(8,011,520) |
|
|
Acquisition of intangible assets |
(5,964) |
(6,452) |
|
|
Long-term investment |
- |
2,933 |
|
|
Loans to unrelated parties |
(789,809) |
1,521,543 |
|
|
Net cash used in investing activities |
(1,216,513) |
(10,529,764) |
|
|
Cash flows from financing activities: |
|||
|
Restricted cash |
(2,239,572) |
586,000 |
|
|
Bank loan security deposits |
(26,849) |
(163,877) |
|
|
Loans from unrelated party |
1,819,753 |
2,274,251 |
|
|
Proceeds (repayment) of short-term bank loans |
2,844,524 |
(2,786,160) |
|
|
Proceeds (repayment) of long-term bank loans |
(298,320) |
14,664,000 |
|
|
Proceeds from minority shareholders |
59,183 |
43,992 |
|
|
Net cash provided by financing activities |
2,158,719 |
14,618,206 |
|
|
Effect of foreign currency translation on cash |
(70,748) |
(4,369) |
|
|
Net increase (decrease) in cash and cash equivalents |
(557,713) |
5,175,592 |
|
|
Cash and cash equivalents – beginning |
1,319,173 |
210,301 |
|
|
Cash and cash equivalents – ending |
$ 761,460 |
$ 5,385,893 |
|
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Contact: |
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Crescendo Communications, LLC |
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David Waldman, Vivian Huo or Klea Theoharis |
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Tel: (212) 671-1020 |
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E-mail: bfut@crescendo-ir.com |
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