HAINAN, China, July 31 /Xinhua-PRNewswire-FirstCall/ -- Shiner International, Inc. (Nasdaq: BEST; website: http://www.shinerinc.com ), a market leader in China’s packaging and anti-counterfeiting plastic film industry, today announced financial results for the second quarter ended June 30, 2008, highlighted by an 45.0 percent increase in revenues and 93.4 percent increase in net income.
Shiner reported total revenue of $14.2 million for 2nd quarter of 2008, compared with $9.8 million in the same period of 2007. Outstanding top line performance was primarily driven by strong growth cross its 4 core business lines, particular from anti-counterfeiting film, up a record high 440 percent from the same quarter last year, as a result of bigger orders from existing clients like Sonic Music and Vinataba Tobacco, and new orders from both domestic and international markets.
Net income in 2nd quarter increased to $1.8 million, or $0.07 per fully diluted share, compared to $0.9 million last year, or 93.4 percent increase. The continuing increase in both sale volume and price, with the help of better overall capacity utilization, are the main contributors to this record growth. Shiner also benefited from product structure adjustment and technical improvement, which resulted in gross margin improving from 18.4 percent in last year’s second quarter to 19.9 percent in the current quarter.
In terms of the breakdown, for the second quarter ended June 30, 2008, coated film products accounted for approximately 23.1 percent of overall revenue, while BOPP tobacco film accounted for 37.7 percent. The Company noted that anti-counterfeiting film products continue to grow as a percentage of overall revenue, contributing 18.6 percent, up from 5.0 percent in the second quarter of 2007. Color printing accounted for the remaining 20.6 percent of revenue in the quarter.
“We are very pleased with the 2nd quarter results, the strong financial performance reflects a continuation of the growth momentum we had established in 2007,” said Mr. Jian Fu, CEO of Shiner International. “The market once again tells us the popularity and the competitiveness of our two anchor product lines-anti counterfeiting film and coated film, there is no doubt that we are becoming a raising solution provider for counterfeiting problem in China. Looking ahead, we will continue to focus on our key markets in both anti-counterfeit and packaging, leveraging our brand influence, top tier market presence, and unique one-stop service model, to catch numerous growth opportunities domestically and internationally, our focused strategies, unique business model and superior execution give us the confidence in our abilities to deliver sustainable fast growth in 2008 and beyond.”
Shiner reiterated its previous guidance for 2008 and said the Company remains confident on its full-year projections
-- 2008 Revenue Guidance: Shiner projects 2008 revenue to be in the range
of $64 to $70 million, an increase of 50% to 64% from 2007
-- 2008 Net Income Guidance: Shiner projects 2008 net income to be in the
range of $8.0 to $9.0 million, an increase of 76% to 98% from 2007
-- 2008 EPS Guidance: Shiner projects 2008 EPS to be in the range of $0.31
to $0.35 per fully diluted share
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 13 patents on products and production equipment, and has additional 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
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Shiner International, Inc.’s current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Shiner’s filings with the Securities and Exchange Commission.
Shiner International, Inc.
Consolidated Statement Of Operations
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited)(unaudited) (unaudited)
Net Revenue $14,160,149 $9,767,737 $25,438,086 $15,741,978
Cost of Revenue 11,339,794 7,973,205 20,079,584 12,942,728
Gross profit 2,820,355 1,794,532 5,358,502 2,799,250
Operating expenses
Selling expenses 393,461 253,733 704,380 462,258
General and administrative
expenses 598,654 542,072 1,121,040 870,872
Total operating expenses 992,115 795,805 1,825,420 1,333,130
Income from operations 1,828,240 998,727 3,533,082 1,466,120
Non-operating income
(expense):
Other income, net 49,872 92,300 125,032 248,090
Interest income 4,823 861 17,439 4,741
Interest expense (1,879) (18,287) (18,711) (39,555)
Exchange loss 107,634 (25,634) 54,785 (26,375)
Total non-operating income
(expense) 160,450 49,240 178,545 186,901
Income before income tax 1,988,690 1,047,967 3,711,627 1,653,021
Income tax 162,425 103,752 321,479 162,205
Net income 1,826,265 944,215 3,390,148 1,490,816
Shiner International, Inc.
Consolidated Balance Sheets
June 30, December 31,
2008 2007
ASSETS (unaudited)
CURRENT ASSETS:
Cash & cash equivalents $ 2,489,874 $ 4,607,434
Accounts receivable, net of
allowance for doubtful accounts
of $95,333 and $84,964 10,849,461 8,988,559
Advances to suppliers 2,209,911 2,514,681
Notes receivable 566,546 39,755
Inventory 7,484,518 6,411,267
Prepaid expense & other current assets 287,840 432,211
Total current assets 23,888,150 22,993,907
Property and equipment, net 11,679,423 5,457,961
Advance for purchase of equipment 644,532 3,409,721
Intangible assets 357,963 339,593
TOTAL ASSETS $ 36,570,068 $ 32,201,182
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,551,759 $ 4,545,629
Other payables 273,890 1,396,233
Unearned revenue 510,114 520,056
Accrued payroll 38,432 41,267
Short term loan 2,112,216 822,528
Dividend payable 63,236 65,110
Tax and welfare payable 194,585 924,137
Total current liabilities 7,744,232 8,314,960
Commitments and contingencies -- --
STOCKHOLDERS’ EQUITY:
Common stock, par value $0.001;
75,000,000 shares authorized,
24,650,000 and 24,650,000 shares
issued and outstanding 24,650 24,650
Additional paid-in capital 11,233,287 11,153,503
Other comprehensive income 2,854,073 1,384,391
Statutory reserve 2,700,012 2,374,069
Retained earnings 12,013,814 8,949,609
Total stockholders’ equity 28,825,836 23,886,222
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY $ 36,570,068 $ 32,201,182
For more information, please contact:
U.S. Contact:
Mr. Arnold Staloff
Independent Board Member
Shiner International, Inc.
Tel: +1-212-631-3510
Corporate Contact:
Mr. Qingtao Xing
President
Shiner International, Inc.
Tel: +86-1387-6683-099
Email: qingtao.xing@shinerinc.com or info@shinerinc.com
