HAIKOU, China, Nov. 16 /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 September 30, 2009.
Financial Summary
-- Total revenue of $8.66 million versus $8.01 million in the prior 2009
quarter and $15.16 million for the third quarter of 2008.
-- Net income of $0.30 million versus net loss of $0.28 million in the
second quarter of 2009, and down from net income of $1.86 million in
the third quarter of 2008.
-- Gross profit of $1.50 million, compared to $1.11 million in the prior
2009 quarter and $2.85 million for the third quarter of 2008.
-- Gross margin of 17.3%, compared to 13.8% for the second quarter of 2009
and 18.8% for the third quarter of 2008.
-- Earnings per share of $0.01 for the quarter, up from ($0.01) in the
prior quarter, but down from $0.08 in the 2008 third quarter.
Revenues and Earnings
Shiner's revenue for the three months ended September 30, 2009 was up approximately 8.2% on a quarter to quarter basis, but down when compared to the same period in 2008. The quarter to quarter increases in revenue related directly to increases in sales in two of Shiner's main business lines, including a 14.6% increase in food safety packaging sales and a 4.5% increase in anti-counterfeit packaging sales. International sales for the three months ended September 30, 2009 totaled $3.1 million, accounting for 35.7% of Shiner's total revenue, in comparison to $2.6 million for the second quarter. The increase in Shiner's international sales quarter to quarter was primarily due to continuous market improvement.
Management Comments
Mr. Qingtao Xing, Shiner's President, commented, "The newly enacted Food Safety Law continues to impact domestic food producers throughout China, as the Chinese government exercises its authority on the supervision of food production and packaging. In reaction to the melamine-tainted milk scare in March 2008, the Chinese government took decisive steps to strengthen its oversight of food production, packaging and distribution. These actions have strengthened consumer confidence. With the recovery of the global market, especially the Chinese domestic market, we expect that consumption capacity will rebound to, or exceed, pre- food safety crisis levels."
Commenting on Shiner's performance, Jian Fu, Shiner's Chief Executive Officer, stated that, "We are encouraged by the continued positive trends in revenue, gross profit and net income we have seen in the previous quarter across several of our business lines and the overall improvement in our market in comparison with the second quarter. The Chinese economy has steadily increased over the first three quarters of 2009, posting GDP marks of 6.1%, 7.9% and 8.9%, respectively. As the world economy begins to recover, we are increasing our marketing efforts to develop new customers, while maintaining a solid foundation of existing customers. We believe that Shiner will continue to improve its bottom line as the world economy continues to recover and the effects of China's Food Safety Law are fully realized. We are confident that we will benefit from these factors and achieve our growth objectives for the next year."
About Shiner International, Inc.
NASDAQ listed Shiner International (http://www.shinerinc.com) is a U.S. corporation that has its primary operations in China. Headquartered in the city of Haikou - China's "Hawaii" -- Shiner's products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. Approximately 60 percent of Shiner's current customers are located in China, with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 14 patents on products and production equipment, and has an additional eight patent applications pending. The Company's coated films meet the approval of U.S. FDA requirements, as well as those required for food packaging sold in the EU. Shiner's product manufacturing process is certified under ISO 9001:2000.
Safe Harbor Statement
The information contained in this earnings release and the attachments is as of the date of the release. 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.
This earnings release and the attachments contain forward-looking information about the Company's financial results and estimates, business plans and prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans and prospects. Among the factors that could cause actual results to differ materially are the following: the availability and prices of raw materials, fuel and supplies; product pricing; the competitive environment and related market conditions; operating efficiencies; interest rate and foreign currency exchange rate fluctuations; access to capital; the cost of compliance with environmental and health standards; actions of the PRC government; governmental laws and regulations affecting our operations, including tax obligations; the success of our research and development activities, changes in generally accepted accounting principles; uncertainties related to general economic, political, business, industry, regulatory and market conditions; any changes in business, political and economic conditions due to the threat of terrorist activity; and other risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and in its subsequent Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements because actual results may differ materially from those expressed in, or implied by, the statements. Any forward-looking statement that the Company makes speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2009 2008
(unaudited)
ASSETS
CURRENT ASSETS:
Cash & cash equivalents $1,769,730 $3,816,454
Restricted cash 830,694 684,212
Accounts receivable, net of
allowance for doubtful accounts
of $64,252 and $223,973 5,938,780 7,594,718
Advances to suppliers 3,684,950 3,677,890
Notes receivable 152,568 43,503
Inventory, net 7,880,643 7,079,390
Prepaid expenses & other current
assets 863,711 1,283,650
Total current assets 21,121,076 24,179,817
Property and equipment, net 12,818,320 12,412,689
Construction in progress 3,393,965 32,265
Advance for purchase of equipment -- 1,531,590
Intangible assets, net 351,230 356,447
TOTAL ASSETS $37,684,591 $38,512,808
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $3,177,670 $3,798,790
Other payables 249,127 145,507
Unearned revenue 349,528 161,516
Accrued payroll 134,901 39,979
Short term loan 2,787,300 3,884,197
Notes payable 693,132 --
Dividend payable -- 63,267
Total current liabilities 7,391,658 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 September 30, 2009
24,650,000 shares issued and
24,650,000 shares outstanding
at December 31, 2008 24,650 24,650
Additional paid-in capital 11,379,919 11,214,071
Other comprehensive income 2,979,200 2,977,847
Statutory reserve 2,858,620 2,854,686
Treasury stock (43,679 shares) (40,299) --
Retained earnings 13,090,843 13,348,298
Total stockholders' equity 30,292,933 30,419,552
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $37,684,591 $38,512,808
SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
(LOSS)
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues $8,662,339 $15,159,122 $23,739,125 $40,597,208
Cost of goods sold 7,162,799 12,312,144 20,662,603 32,391,728
Gross profit 1,499,540 2,846,978 3,076,522 8,205,480
Operating expenses
Selling expenses 447,338 427,943 1,222,042 1,132,323
General and
administrative
expenses 786,711 765,306 2,127,380 1,886,346
Total
operating
expenses 1,234,049 1,193,249 3,349,422 3,018,669
Income (loss) from
operations 265,491 1,653,729 (272,900) 5,186,811
Non-operating income
(expense):
Other income, net 97,002 464,488 123,269 589,520
Interest income 6,954 3,425 20,991 20,864
Interest expense (39,322) (41,104) (127,611) (59,815)
Exchange gain
(loss) 57,583 (43,126) 54,827 11,659
Total non-
operating
income
(expense) 122,217 383,683 71,476 562,228
Income (loss) before
income tax 387,708 2,037,412 (201,424) 5,749,039
Income tax expense 89,800 173,915 52,097 495,394
Net income (loss) 297,908 1,863,497 (253,521) 5,253,645
For more information, please contact:
Investor Relations:
Shiner International, Inc.
Tel: +86-898-6858-1713
Email: ir@shinerinc.com or info@shinerinc.com
