2014

Shiner International Announces Financial Results for the Fourth Quarter and Fiscal Year 2012

HAIKOU, China, March 26, 2013 /PRNewswire/ -- Shiner International, Inc. (OTCQB: BEST) ("Shiner" or the "Company"), an emerging global supplier of packaging solutions for food, tobacco and consumer products, today announced its financial results for the fourth quarter and fiscal year 2012.

Fourth Quarter 2012 Financial Performance

Revenues for the three months ended December 31, 2012 decreased $1.35 million (or 5.89%), to $21.56 million compared to $22.91 million for the corresponding 2011 period. The decrease was primarily attributable to decreased revenues from coated film, color printing advanced film and water-based latex, which was partially offset by increase in revenues generated from BOPP tobacco. For the three months ended December 31, 2012, revenue from coated film decreased $5.76 million (or 25.44%) to $16.88 million, from $22.64 million for the corresponding 2011 period, and sales from color printing decreased $2.44 million (or 42.51%) to $3.30 million, from $5.74 million for the corresponding 2011 period. For the three months ended December 31, 2012, revenue from BOPP tobacco increased $6.35 million (or 16.53%) to $44.76 million, from $38.41 million for the corresponding 2011 period; revenue from advanced film decreased $1.39 million (or 17.10%) to $6.74 million, from $8.13 million for the corresponding 2011 period; and revenue from water-based latex decreased $0.02 million (or 5.26%) to $0.36 million, from $0.38 million for the corresponding 2011 period.

Shiner's gross profit for the three months ended December 31, 2012 was $0.53 million, a profit margin of 2.46%, a decrease of 10.69% from 13.15% for the corresponding 2011 period. The decrease in profit margin was primarily a consequence of an increase in labor costs and depreciation of new property.

Operating loss for the three months ended December 31, 2012 was $5.40 million, compared to an operating loss of $0.81 million for the same quarter ended December 31, 2011. Selling, general and administrative expenses for the three months ended December 31, 2012 decreased by 44.76%, or $1.71 million, to $2.11 million in 2012, compared to $3.82 million for the corresponding 2011 period. General and administrative expenses decreased during the 2012 period mainly due to a $0.40 million decrease in insurance and a $0.30 million decrease in sales commissions. There was also an increase of $2.04 million and $1.78 million in impairment loss of goodwill and patents, respectively, during the 2012 period.

Shiner reported a net loss of $4.98 million for the three months ended December 31, 2012, compared to a net loss of $0.55 million in the same period of 2011. Earnings per share for the quarter were ($0.18), compared to earnings of ($0.02) per share for the same period of 2011.

Fiscal Year 2012 Financial Performance

Revenue for the year ended December 31, 2012 decreased $3.25 million (or 4.32%), to $72.04 million, compared to $75.29 million in the 2011 period.  Gross profit for 2012 was $4.64 million, a profit margin of 6.44%, a decrease of 6.87% from 13.31% for 2011. Operating loss was $10.18 million, down from an operating income of $2.03 million in 2011. The Company saw a net loss of $10.56 for 2012, representing a decrease of $12.20 million (or 743.90%) from a net income of $1.64 million for 2011. Fully diluted loss per share was $(0.33), compared to fully diluted earnings per share of $0.06 for 2011.

Financial Condition

As of December 31, 2012, the Company had $4.23 million in cash and equivalents on hand, $11.10 million in long-term debt and working capital of $6.28 million. Stockholders' equity stood at $33.21 million, compared to $43.43 million as of December 31, 2011. Net cash used in operating activities for the year ended December 31, 2012 was $2.56 million, an increase of $2.94 million, compared to net cash flow provided by operating activities of $0.38 for the corresponding 2011 period.

About Shiner International, Inc.

Shiner International, Inc. is engaged in the research and development, manufacture and sale of flexible packaging material and advanced film. Its products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company's products are used by manufacturers in the food and consumer products industry to preserve the texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou, China. Approximately 80% of Shiner's current customers are located in China, with the remainder spanning Southeast Asia, Europe, the Middle East and North America. Shiner holds 20 patents on products and production equipment, and has an additional 9 patent applications pending. The Company's flexible packaging meets U.S. FDA requirements, as well as the requirements for food packaging sold in the EU. Shiner's product manufacturing process is certified under ISO 9001:2000. Additional information on Shiner is available at http://www.shinerinc.com.

Safe Harbor Statement

This press release may contain forward-looking statements regarding Shiner International, Inc. and its subsidiaries (the "Company") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the financial outlook of the Company; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "seeks," "should," "could," "intends," or "projects" or similar expressions, involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Any indication of the merits of a claim does not necessarily mean the claim will prevail at trial or otherwise. Financial performance in one fiscal period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a "penny stock" and those listed in other reports posted on The OTC Markets Group, Inc.

Contact: Cindy Gong
Tel: 86-898-6858 1104
Fax: 86-898-6858 1513
Email: ir@shinerinc.com
Web: http://www.shinerinc.com

- Financial Tables Follow -

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2012 AND 2011












2012


2011








ASSETS












CURRENT ASSETS:






 Cash & equivalents 

$

4,233,183

$

2,831,808


 Restricted cash 


925,039


57,613


 Accounts receivable, net of allowance for doubtful 






   accounts of $850,123 and $121,017 at 2012 and 2011 


7,807,846


7,744,377


 Advances to suppliers 


15,141,398


10,042,214


 Notes receivable 


542,802


7,865


 Inventory, net 


10,110,732


10,252,955


 Prepaid expenses & other current assets 


711,537


1,072,326










 Total current assets 


39,472,537


32,009,158









 Property and equipment, net 


30,689,391


27,836,253


 Construction in progress 


5,840,483


12,037,154


 Advance for purchase of equipment 


426,536


763,427


 Intangible assets, net 


1,069,988


3,063,646


 Goodwill 


-


2,023,342









 TOTAL ASSETS 

$

77,498,935

$

77,732,980








 LIABILITIES AND STOCKHOLDERS' EQUITY  












 CURRENT LIABILITIES: 






 Accounts payable 

$

6,808,524

$

5,133,835


 Other payables 


8,213,146


7,021,179


 Unearned revenue 


1,622,318


1,313,320


 Accrued payroll 


147,722


193,884


 Short-term loans 


16,404,115


10,684,625










 Total current liabilities 


33,195,825


24,346,843









 Long-term loans 


11,095,000


9,957,090



 Total Liabilities 


44,290,825


34,303,933









 Commitments and contingencies 












 EQUITY: 






     Shiner stockholders' equity: 






 Common stock, par value $0.001; 75,000,000 shares authorized,  






     27,603,336 shares issued and 27,541,491 shares outstanding 


27,603


27,603


 Additional paid-in capital 


14,336,456


14,332,392


 Treasury stock (61,845 shares) 


(58,036)


(58,036)


 Other comprehensive income 


5,745,728


5,426,393


 Statutory reserve 


3,414,514


3,523,273


 Retained earnings 


9,526,528


18,478,618



 Total Shiner stockholders' equity  


32,992,793


41,730,243

     Noncontrolling interest: 


215,317


1,698,804



 Total equity  


33,208,110


43,429,047









 TOTAL LIABILITIES AND EQUITY 

$

77,498,935

$

77,732,980















 The accompanying notes are an integral part of these consolidated financial statements. 

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

YEARS ENDED DECEMBER 31, 2012 AND 2011
















2012


2011



















Net revenue




$

72,036,187

$

75,294,512

Cost of goods sold





67,397,899


65,275,356

Gross profit





4,638,288


10,019,156










Operating expenses:









Selling





2,648,251


2,443,574


General and administrative




6,248,043


5,544,604


Impairment of intangible assets




3,819,214


-


Loss on sale and write off of assets




2,106,379


-


     Total operating expenses




14,821,887


7,988,178










Income (loss) from operations




(10,183,599)


2,030,978










Non-operating income (expense):








Other income, net





1,651,176


1,404,336


Interest income





40,877


14,064


Interest expense





(1,464,104)


(1,107,159)


Exchange gain (loss)




(55,588)


61,442


     Total non-operating income (expense)



172,361


372,683










Income (loss) before income tax




(10,011,238)


2,403,661

Income tax expense 





546,057


763,424










Net income (loss)





(10,557,295)


1,640,237










Net loss attributed to noncontrolling interest



(1,496,446)


(102,239)

Net income (loss) attributed to Shiner



$

(9,060,849)

$

1,742,476










Comprehensive income (loss):








Net income (loss)




$

(10,557,295)

$

1,640,237


Foreign currency translation gain 




332,294


1,406,496










Comprehensive income (loss)



$

(10,225,001)

$

3,046,733










Weighted average shares outstanding:








Basic





27,541,491


27,541,491


Diluted





27,541,491


27,543,922










Earnings (loss) per share attributed to Shiner common stockholders:






Basic




$

(0.33)

$

0.06


Diluted




$

(0.33)

$

0.06


The accompanying notes are an integral part of these consolidated financial statements. 

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011






























Additional




Other






Total 








Common Stock


Paid in


Treasury 


Comprehensive


Statutory


Retained


Stockholders'


Noncontrolling


Total 




Shares


Amount


Capital


Stock


Income


Reserve


Earnings


Equity 


Interest


Equity 























Balance, December 31, 2010  


27,603,336

$

27,603

$

14,321,484

$

(58,036)

$

4,060,637

$

2,905,861

$

17,353,554

$

38,611,103

$

37,226

$

38,648,329























Stock compensation expense for options issued


-


-


10,908


-


-


-


-


10,908


-


10,908























Foreign currency translation gain 


-


-


-


-


1,365,756


-


-


1,365,756


40,740


1,406,496























Net income



-


-


-


-


-


-


1,742,476


1,742,476


(102,239)


1,640,237























Non controlling interest acquired with acquisition


-


-


-


-


-


-


-


-


1,723,077


1,723,077























Transfer to statutory reserve 


-


-


-


-


-


617,412


(617,412)


-


-


-























Balance, December 31, 2011 


27,603,336


27,603


14,332,392


(58,036)


5,426,393


3,523,273


18,478,618


41,730,243


1,698,804


43,429,047























Stock compensation expense for options issued


-


-


4,064


-


-


-


-


4,064


-


4,064























Foreign currency translation gain 


-


-


-


-


319,335


-


-


319,335


12,959


332,294























Net loss



-


-


-


-


-


-


(9,060,849)


(9,060,849)


(1,496,446)


(10,557,295)























Transfer from statutory reserve 


-


-


-


-


-


(108,759)


108,759


-


-


-























Balance, December 31, 2012 


27,603,336

$

27,603

$

14,336,456

$

(58,036)

$

5,745,728

$

3,414,514

$

9,526,528

$

32,992,793

$

215,317

$

33,208,110


 The accompanying notes are an integral part of these consolidated financial statements. 

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2012 AND 2011
















2012


2011











CASH FLOWS FROM OPERATING ACTIVITIES:







Net income (loss)



$

(10,557,295)

$

1,640,237


Adjustments to reconcile net income (loss) to net cash






  provided by (used in) operating activities:








Depreciation




3,245,986


2,256,579



Amortization




236,594


198,752



Stock compensation expense



4,064


10,908



Impairment of intangible assets



3,819,214





Loss on sale and write off of assets



2,106,379


-



Change in working capital components:









Accounts receivable



(4,390)


2,695,309




Inventory




220,441


(2,273,992)




Advances to suppliers



(5,022,577)


(6,347,879)




Other assets




361,440


(398,717)




Accounts payable and accrued expenses



1,635,791


(238,732)




Unearned revenue



301,598


984,652




Other payables



1,140,643


1,817,821




Accrued payroll



(47,641)


34,771












Net cash provided by (used in) operating activities


(2,559,753)


379,709











CASH FLOWS FROM INVESTING ACTIVITIES:








Purchase of Shimmer Sun Ltd



-


(3,200,000)



Cash acquired in acquisition of Shimmer Sun Ltd


-


248,742



Cash from the sale of assets



1,226,825


-



Issuance of notes receivable



(542,802)


-



Payment on note receivable



7,925


34,329



Payments for property and equipment



(2,592,970)


(9,555,336)



Payments for construction in progress



-


(7,112,596)



Increase in restricted cash



(866,987)


(56,697)












Net cash used in investing activities



(2,768,009)


(19,641,558)











CASH FLOWS FROM FINANCING ACTIVITIES:








Repayment of short-term loans



(22,354,037)


(6,966,000)



Proceeds from short-term loans



27,992,018


10,514,812



Proceeds from long-term loans



1,061,950


9,798,840












Net cash provided by financing activities



6,699,931


13,347,652











Effect of exchange rate changes on cash and cash equivalents


29,206


123,970











NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS


1,401,375


(5,790,227)











CASH AND EQUIVALENTS, BEGINNING BALANCE


2,831,808


8,622,035











CASH AND EQUIVALENTS, ENDING BALANCE


$

4,233,183

$

2,831,808











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:






Interest paid



$

1,265,341

$

923,998


Income taxes paid



$

7,613

$

789,711


 The accompanying notes are an integral part of these consolidated financial statements. 

 

SOURCE Shiner International, Inc.



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