HAINAN, China, Nov 10 /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 third quarter ended September 30, 2008, highlighted by a 22.9 percent increase in revenue and a 51.5 percent increase in net income.
Shiner reported total revenue of $15.2 million for 3rd quarter of 2008, compared with $12.3 million in the same period of 2007. Outstanding top line performance was primarily driven by strong growth across its core business lines, particular from anti-counterfeiting film, which was up a record 934 percent from the same quarter last year as a result of bigger orders from existing clients and new orders from both domestic and international markets.
Net income in the 3rd quarter increased to $1.9 million, or $0.08 per fully diluted share, compared to $1.2 million, or $0.06 per fully diluted share, in the same quarter of last year, a 51.5 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 improvements, which resulted in the Company's gross margin improving from 4.4 percent in last year's third quarter to 18.8 percent in the current quarter.
In terms of the breakdown, for the quarter ended September 30, 2008, coated film products accounted for approximately 24.9 percent of overall revenue, while BOPP tobacco film accounted for 27.4 percent. The Company noted that anti-counterfeiting film products continue to grow as a percentage of overall revenue, contributing 27.9 percent, up from 3.0 percent in the third quarter of 2007. Color printing accounted for the remaining 19.8 percent of revenue in the quarter.
"We are very pleased with the 3rd 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 rising solution provider for combatting the 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 take advantage of 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."
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 Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Net Revenue $15,159,122 $12,331,074 $40,597,208 $27,630,207
Cost of Revenue 12,312,144 10,559,937 32,391,728 22,996,228
Gross profit 2,846,978 1,771,137 8,205,480 4,633,979
Operating expenses
Selling expenses 427,943 310,505 1,132,323 835,176
General and administrative
expenses 765,306 312,934 1,886,346 1,190,893
Total operating expenses 1,193,249 623,439 3,018,669 2,026,069
Income from operations 1,653,729 1,147,698 5,186,811 2,607,910
Non-operating income
(expense):
Other income, net 464,488 236,310 589,520 496,692
Interest income 3,425 4,671 20,864 12,961
Interest expense (41,104) (22,458) (59,815) (62,013)
Exchange loss (43,126) (37,702) 11,659 (134,287)
Total non-operating income
(expense) 383,683 180,821 562,228 313,353
Income before income tax 2,037,412 1,328,519 5,749,039 2,921,263
Income tax 173,915 98,347 495,394 245,979
Net income 1,863,497 1,230,172 5,253,645 2,675,284
Shiner International, Inc.
Consolidated Balance Sheets
September 30, December 31,
2008 2007
ASSETS (unaudited)
CURRENT ASSETS:
Cash & cash equivalents $ 2,610,137 $ 4,607,434
Accounts receivable, net of allowance
for doubtful accounts of $144,049 and
$84,964 11,653,565 8,988,559
Advances to suppliers 2,659,604 2,514,681
Notes receivable 380,380 39,755
Inventory 8,764,445 6,411,267
Prepaid expense & other current assets 259,774 432,211
Total current assets 26,327,905 22,993,907
Property and equipment, net 15,211,527 5,457,961
Advance for purchase of equipment -- 3,409,721
Intangible assets 357,210 339,593
TOTAL ASSETS $ 41,896,642 $ 32,201,182
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 6,855,739 $ 4,545,629
Other payables 363,878 1,396,233
Unearned revenue 433,898 520,056
Accrued payroll 37,912 41,267
Short term loans 3,288,407 822,528
Dividend payable 63,141 65,110
Tax and welfare payable 147,575 924,137
Total current liabilities 11,190,550 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 11,174,179 11,153,503
Other comprehensive income 2,929,940 1,384,391
Statutory reserve 2,893,175 2,374,069
Retained earnings 13,684,148 8,949,609
Total stockholders' equity 30,706,092 23,886,222
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 41,896,642 $ 32,201,182
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
