HAINAN, China, Aug. 14 /PRNewswire-Asia/ -- Shiner International, Inc. (Nasdaq: BEST), an emerging global supplier of anti-counterfeiting and advanced packaging products, today announced financial results for the quarter ended June 30, 2009.
Financial Summary
-- Total revenue of $8.0 million versus $7.1 million in the prior 2009
quarter and $14.2 million for the second quarter of 2008.
-- Net loss of $0.28 million, relatively flat compared to the first
quarter of 2009, and down from net income of $1.83 million in the
second quarter of 2008.
-- Gross profit of $1.11 million, compared to $0.47 in the prior 2009
quarter and $2.8 million for the second quarter of 2008.
-- Gross margin of 13.8%, compared to 6.7% for the first quarter of 2009
and 19.9% for the second quarter of 2008.
-- Earnings per share of ($0.01) for the quarter, unchanged from the prior
quarter, and down from $0.07 in the 2008 second quarter.
Revenues and Earnings
Year over year, Shiner’s revenues were negatively impacted by declining sales prices and volume across all business lines. The decrease in sales was attributable to the global economic financial crisis and melamine milk scare, which affected the entire packaged food industry in China. The newly enacted Food Safety Law of the People’s Republic of China, which has been an incentive to the food industry, has positively impacted Shiner’s revenue. As evidenced by its quarter to quarter growth, Shiner has begun to see an increase in sales across most of its business lines. The Company believes that this trend will continue going forward.
Management Comments
Commenting on Shiner’s performance, Jian Fu, Shiner’s Chief Executive Officer, stated that, "we are encouraged by the positive volume trends we have seen in the last quarter across all of our business lines. We have increased our marketing efforts to develop new customers, while maintaining a solid foundation of existing customers. As a result, we are seeing positive results, especially in international sales. We are focused on maintaining our unparalleled technology, upgrading our research and manufacturing facilities, and producing the highest quality products available. As a result, we believe we will increase our capability to compete domestically and abroad."
About Shiner International, Inc.
Safe Harbor Statement
The information contained in this earnings release and the attachments is as of May 15, 2009. The Company assumes no obligation to update any forward-looking statements contained in this earnings release or the attachments as a result of new information or future events or developments.
Shiner International, Inc.
Consolidated Statement of Operations
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues $8,006,378 $14,160,149 $15,076,786 $25,438,086
Cost of goods sold 6,900,881 11,339,794 13,499,804 20,079,584
Gross profit 1,105,497 2,820,355 1,576,982 5,358,502
Operating expenses
Selling expenses 496,853 393,461 774,704 704,380
General and
administrative
expenses 816,751 598,654 1,340,669 1,121,040
Total
operating
expenses 1,313,604 992,115 2,115,373 1,825,420
Income (loss) from
operations (208,107) 1,828,240 (538,391) 3,533,082
Non-operating
income (expense):
Other income, net 15,394 49,872 26,267 125,032
Interest income 6,931 4,823 14,037 17,439
Interest expense (42,240) (1,879) (88,289) (18,711)
Exchange gain
(loss) (4,214) 107,634 (2,756) 54,785
Total non-
operating
income
(expense) (24,129) 160,450 (50,741) 178,545
Income (loss)
before income tax (232,236) 1,988,690 (589,132) 3,711,627
Income tax
(benefit) expense 44,180 162,425 (37,703) 321,479
Net income (loss) (276,416) 1,826,265 (551,429) 3,390,148
Shiner International,Inc.
Consolidated Balance Sheets
June 30, December 31,
2009 2008
(unaudited)
ASSETS
CURRENT ASSETS:
Cash & cash equivalents $2,459,671 $3,816,454
Restricted cash 1,244,218 684,212
Accounts receivable, net of
allowance for doubtful accounts
of $52,423 and $223,973 5,809,049 7,594,718
Advances to suppliers 4,926,148 3,677,890
Note receivable 960,020 43,503
Inventory, net 6,930,119 7,079,390
Prepaid expenses & other current
assets 1,700,540 1,283,650
Total current assets 24,029,765 24,179,817
Property and equipment, net 13,219,858 12,412,689
Construction in progress 2,165,868 32,265
Advance for purchase of equipment -- 1,531,590
Intangible assets, net 352,488 356,447
TOTAL ASSETS $39,767,979 $38,512,808
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $4,762,184 $3,798,790
Other payables 280,860 145,507
Unearned revenue 363,114 161,516
Accrued payroll 51,803 39,979
Short term loan 3,223,000 3,884,197
Notes payable 1,111,314 --
Dividend payable 63,088 63,267
Total current liabilities 9,855,363 8,093,256
Commitments and contingencies
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.001;
75,000,000 shares authorized,
24,650,000 shares issued and
24,606,321shares outstanding
at June 30, 2009
24,650,000 shares issued and
24,650,000 shares outstanding
at December 31, 2008 24,650 24,650
Additonal paid-in capital 11,343,487 11,214,071
Other comprehensive income 2,933,223 2,977,847
Statutory reserve 2,854,686 2,854,686
Treasury stock (43,679 shares) (40,299) --
Retained earnings 12,796,869 13,348,298
Total stockholders’ equity 29,912,616 30,419,552
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY $39,767,979 $38,512,808
For more information, please contact:
Corporate Contact:
Mr. Qingtao Xing
President
Shiner International, Inc.
Tel: +86-1387-6683-099
Email: qingtao.xing@shinerinc.com or info@shinerinc.com
Ms. Feng Zou
Corporate Secretary
Shiner International, Inc.
Tel: +86-1500-8081-666
Email: feng.zou@shinerinc.com
