omniture

Pacific Bepure Announces Record Financial Results for 2010

2011-03-31 17:17 1032

NEW JERSEY and JINJIANG CITY, China, March 31, 2011 /PRNewswire-Asia/ -- Pacific Bepure Industry Inc. (OTC Bulletin Board: PBEP), one of China's leading domestic casual and sports footwear manufacturers with products sold under the brand name "Baopiao," a.k.a. "Bepure," today announced results for the year ended December 31, 2010.


Full Year Financial Highlights

  • Sales revenue rises 43.1% to $36.4 million
  • Gross profit rises 37.7% to $11.9 million
  • Net income rises 44.8% to $7.5 million, or $0.50 per share

Mr. Haiting Li, President and CEO of Pacific Bepure, stated, "Revenue for calendar and fiscal year 2010 increased by 43 percent to $36.4 million, gross profit grew nearly 38 percent to $11.9 million, and net profit rose 44.8 percent to $7.5 million. The strong double-digit increases in sales revenue, gross profit and net income resulted from continuing domestic and international expansion in our core Bepure footwear business and reflect the strong underlying consumer demand for our product lines and the strength of our distribution network. We continue to allocate resources to grow our business having recently completed the construction phase for our modernized, new production manufacturing facility in Quanzhou, Fujian Province. The new manufacturing facility expands the Company's annual production capacity by more than 70%, or 1.5 million additional pairs of footwear."

Full Year and Quarterly Financial Results

Revenue for the full year 2010 was $36.4 million versus $25.4 million for the same period last year, an increase of 43.1 percent. Gross profit for the full year 2010 was $11.9 million versus $8.6 million for the full year 2009, an increase of 37.7 percent. Operating income for the full year 2010 was $10.3 million versus $7.2 million for the full year 2009, an increase of 42.9 percent. Net income for 2010 was $7.5 million, or $0.50 per basic and diluted share, versus net income of $5.3 million, or $0.46 per basic and diluted share, for 2009 based on 15,000,000 and 11,202,740 weighted average basic shares outstanding, and 15,006,915 and 11,202,740 weighted average diluted shares outstanding, respectively.

Operational Highlights

Construction of the new manufacturing facility in Quanzhou, Fujian Province began in 2008 and cost approximately RMB 100 million (US$ 15.2 million). The facility is located in the Huinan Industrial Zone, Quanzhou, Fujian Province and has a total area of approximately 60,000 square meters (646,000 sq. feet) and floorage of approximately 30,000 square meters (323,000 sq. feet). To date, the physical plant and worker dormitories have been completed, and two new production lines have been constructed and assembled into the new facility. The new manufacturing facility, which commenced operations on February 10, 2011, expands the Company's annual production capacity by more than 70%, or 1.5 million additional pairs of footwear. The company previously outsourced a portion of its production to keep up with demand.

About Pacific Bepure Industry Inc.

Pacific Bepure footwear, sold under the brand name "Baopiao" a.k.a. "Bepure," is one of the most well- known footwear manufacturers in China. The Company's four lines of "Travel Time" casual and sports shoes are targeted primarily at people aged 15 to 50 years old in China's second- and third-tier cities who appreciate comfort, style and value. The brand is especially known for its hidden height shoe technology, which makes the wearer appear taller. The products are primarily manufactured internally and sold to all provinces and autonomous regions in China except Xinjiang Autonomous Region, as well as on the Internet, through an expanding network of distributors in retail stores and other outlets and through a distributor in South America.

For more information, please visit the Company's website at www.baopiao.com.

Safe Harbor Statement

This press release may contain forward-looking statements which are based upon the current beliefs and expectations of our management, but are subject to risks and uncertainties which could cause actual results and/or the timing of events to differ materially from those set forth in the forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" or words of similar meaning. They may also use words such as, "would," "should," "could" or "may." Factors that may cause our actual results to differ materially from those described in forward-looking statements include, among others, changes in the level of consumer spending or preferences or demand for our products; disruptions in the global financial markets; increasing competition; our ability to hire and retain key personnel and our relationship with our employees; our control of competent distributors; effectively carrying out and managing our growth strategy; failure to maintain the value and image of our brand and protect our intellectual property rights; declines in comparable store sales; seasonality; costs of materials and labor; location of our facilities in the same geographic area; manufacturing, supply or distribution difficulties or disruptions; compliance with or changes in laws and regulations; costs as a result of operating as a public company; material weaknesses in internal controls; interest rate and foreign currency risks; general economic and industry conditions, and other risks as more fully detailed in our filings with the Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K for the year ended December 31, 2010 and any subsequent filings. Our filings with the SEC are available at www.sec.gov. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances unless as required by applicable laws or regulations. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, the Company disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

- financial tables follow -

Pacific Bepure Industry Inc.

 

 

Consolidated Statements of Income and Comprehensive Income

 

 

(Stated in US Dollars)

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

 

2010

 

 

2009

 

 

 

 

 

 

 

Sales revenue

 

$36,376,209

 

 

$25,428,497

 

 

Cost of sales

 

24,492,757

 

 

16,796,818

 

 

 

 

 

 

 

Gross profit

 

11,883,452

 

 

8,631,679

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

  Administrative expenses

 

1,273,636

 

 

1,174,410

 

 

  Share-based compensation

 

17,863

 

 

-

 

 

  Selling expenses

 

311,491

 

 

263,749

 

 

 

1,602,990

 

 

1,438,159

 

 

 

 

 

 

 

Income from operations

 

10,280,462

 

 

7,193,520

 

 

Other income

 

164,488

 

 

29,869

 

 

Finance costs

 

(287,176)

 

 

(124,207)

 

 

 

 

 

 

 

Income before income taxes

 

10,157,774

 

 

7,099,182

 

 

Income taxes

 

(2,623,735)

 

 

(1,897,661)

 

 

 

 

 

 

 

Net income

 

$7,534,039

 

 

$5,201,521

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

  Foreign currency translation adjustments

 

645,916

 

 

48,519

 

 

 

 

 

 

 

Total comprehensive income

 

$8,179,955

 

 

$5,250,040

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

  - Basic

 

$0.50

 

 

$0.46

 

 

  - Diluted

 

$0.50

 

 

$0.46

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

  - Basic

 

15,000,000

 

 

11,202,740

 

 

  - Diluted

 

15,006,915

 

 

11,202,740

 

 

 

 

 

 



Pacific Bepure Industry Inc.

 

 

 

 

 

Consolidated Balance Sheets as of December 31,

 

 

(Stated in US Dollars)

 

 

 

2010

 

 

2009

 

 

 

U.S. $

 

 

U.S. $

 

 

ASSETS

 

 

 

 

 

 Current assets

 

 

 

 

 

   Cash and cash equivalents

 

$5,815,257

 

 

$4,325,176

 

 

   Trade receivables

 

13,094,012

 

 

7,274,214

 

 

   Prepayments and other receivables

 

249,118

 

 

69,618

 

 

   Advances to customers and distributors

 

1,293,733

 

 

2,934,000

 

 

   Inventories

 

1,232,557

 

 

698,135

 

 

 Total current assets

 

21,684,677

 

 

15,301,143

 

 

 Properties, plant and equipment, net

 

7,592,866

 

 

6,407,851

 

 

 Land use rights

 

6,021,489

 

 

5,949,593

 

 

 Intangible asset

 

190,505

 

 

214,182

 

 

 

 

 

 

 

TOTAL ASSETS

 

$35,489,537

 

 

$27,872,769

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 Current liabilities

 

 

 

 

 

   Trade payables

 

$2,988,361

 

 

$3,477,541

 

 

   Other payables and accrued expenses

 

3,524,874

 

 

6,201,508

 

 

   Dividend payable

 

-

 

 

2,019,252

 

 

   Loans payable

 

4,717,870

 

 

1,467,000

 

 

   Amount due to a director

 

1,998,085

 

 

-

 

 

   Income tax payable

 

1,248,649

 

 

1,986,162

 

 

 Total current liabilities

 

$14,477,839

 

 

$15,151,463

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

$14,477,839

 

 

$15,151,463

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 Common stock : par value of $0.0001 per share
   Authorized 70,000,000 shares; issued and outstanding
   15,000,000 shares in 2010 and 2009

 

1,500

 

 

1,500

 

 

 Additional paid-in capital

 

3,234,650

 

 

3,124,213

 

 

 Statutory reserve

 

309,688

 

 

309,688

 

 

 Accumulated other comprehensive income

 

1,987,222

 

 

1,341,306

 

 

 Retained earnings

 

15,478,638

 

 

7,944,599

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS’ EQUITY

 

21,011,698

 

 

12,721,306

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

35,489,537

 

 

27,872,769

 

 

 

 

 

 




Source: Pacific Bepure Industry Inc.
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Keywords: Fashion Textiles
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