Shiner International, Inc. AnnouncesResults for the Second Quarter of 2012

HAIKOU, China, Aug. 15, 2012 /PRNewswire-Asia/ -- Shiner International, Inc. (Nasdaq: 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 quarter ended June 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20111122/CN11164LOGO)

Total revenue for the three months ended June 30, 2012 were $16.4 million, a decrease of $1.5 million (or 8.2%) compared to total revenue of $17.9 million for the same quarter ended June 30, 2011. The decrease was primarily attributable to decreased revenues generated from coated film and color printing, which was partially offset by increase in revenues generated from BOPP tobacco, advanced film and water-based latex. For the three months ended June 30, 2012, revenue from coated film revenue decreased $3.1 million (or 45.3%) to $3.8 million from $6.9 million for the corresponding period in 2011, and sales from color printing decreased $1.1 million (or 73.8%) to $0.4 million from $1.5 million for the corresponding period in 2011.  For the three months ended June 30, 2012, revenue from BOPP tobacco increased $3.0 million (or 38.5%) to $10.6 million from $7.6 million for the corresponding period in 2011; revenue from advanced film decreased $0.3 million (or 18.2%) to $1.4 million from $1.7 million for the corresponding period in 2011; and revenue from water-based latex increased $0.1 million (or 60.9%) to $0.3 million from $0.2 million for the corresponding period in 2011.

Shiner's gross profit for the three months ended June 30, 2012 was $0.5 million, the gross profit margin decreased to 3.0% compared to 14.1% of total revenue for the corresponding period in 2011. The decrease in gross profit margin was primarily a consequence of increased labor costs and depreciation of the new property.

Operating loss for the three months ended June 30, 2012 was $(1.5) million compared to operating income of $1.3 million for the same quarter ended June 30, 2011. Selling, general and administrative ("SG&A") expenses increased by 61.6%, or $0.7 million, to $2 million for 2012 compared to $1.2 million for the corresponding period in 2011. The increase in "SG&A" expenses was mainly due to a $0.2 million increase in R&D expense and a $0.2 million increase in for marketing expense.

Shiner reported net income of $(1.4) million for the three months ended June 30, 2012, compared to $0.8 million in the same period of 2011. Earnings per share for the quarter were $(0.05), compared to earnings of $0.03 per share for the same period of 2011.

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

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. The information contained in this press release is made as of the date of the press release, even if subsequently made available by Shiner on its website or otherwise

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

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS












June 30,


December 31,





2012


2011





(unaudited)



ASSETS












CURRENT ASSETS:






 Cash & equivalents 

$

3,435,300

$

2,831,808


 Restricted cash 


214,645


57,613


 Accounts receivable, net of allowance for doubtful 






   accounts of $216,097 and $121,017 at 2012 and 2011 


7,518,337


7,744,377


 Advances to suppliers 


12,123,083


10,042,214


 Notes receivable 


23,760


7,865


 Inventory, net 


12,601,434


10,252,955


 Prepaid expenses & other current assets 


597,395


1,072,326










 Total current assets 


36,513,954


32,009,158









 Property and equipment, net 


35,287,561


27,836,253


 Construction in progress 


4,868,557


12,037,154


 Advance for the purchase of equipment 


786,082


763,427


 Intangible assets, net 


2,966,848


3,063,646


 Goodwill 


2,037,492


2,023,342


 TOTAL ASSETS 

$

82,460,494

$

77,732,980








 LIABILITIES AND STOCKHOLDERS' EQUITY  












 CURRENT LIABILITIES: 






 Accounts payable 

$

3,227,289

$

5,133,835


 Other payables 


6,848,762


7,021,179


 Unearned revenue 


1,759,492


1,313,320


 Accrued payroll 


154,069


193,884


 Short-term loans 


17,676,554


10,684,625










 Total current liabilities 


29,666,166


24,346,843









 Long-term loans 


11,088,000


9,957,090










 Total Liabilities 


40,754,166


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 


14,334,424


14,332,392


 Treasury stock (61,845 shares) 


(58,036)


(58,036)


 Other comprehensive income 


5,721,604


5,426,393


 Statutory reserve 


3,301,528


3,523,273


 Retained earnings 


16,731,553


18,478,618



 Total Shiner stockholders' equity  


40,058,676


41,730,243

    Noncontrolling interest 


1,647,652


1,698,804



 Total equity  


41,706,328


43,429,047









 TOTAL LIABILITIES AND EQUITY 

$

82,460,494

$

77,732,980








 

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

(unaudited)
















Three Months Ended June 30,







2012


2011



















Net Revenue




$

16,401,485

$

17,867,227

Cost of goods sold





15,913,476


15,347,733

Gross profit





488,009


2,519,494










Operating expenses









Selling





577,500


548,952


General and administrative




1,386,968


666,360


     Total operating expenses




1,964,468


1,215,312










Income (loss) from operations




(1,476,459)


1,304,182










Non-operating income (expense):








Other income, net





294,712


(122,778)


Interest income





9,565


2,191


Interest expense





(323,196)


(271,329)


Exchange (loss)





(3,775)


116,508


     Total non-operating income (expense)



(22,694)


(275,408)










Income (loss) before income tax




(1,499,153)


1,028,774










Income tax expense (benefit)




(63,222)


222,402










Net income (loss)





(1,435,931)


806,372










 Net loss attributed to noncontrolling interest



(21,641)


7,001










Net income (loss) attributed to Shiner



$

(1,414,290)

$

799,371










Comprehensive income (loss)







     Net income (loss)




$

(1,435,931)

$

806,372

     Foreign currency translation gain




28,762


476,031










Comprehensive income (loss)



$

(1,407,169)

$

1,282,403










Weighted average shares outstanding :








Basic





27,541,491


27,541,491


Diluted





27,541,491


27,541,491










Earnings (loss) per share attributed to Shiner common stockholders






Basic




$

(0.05)

$

0.03


Diluted




$

(0.05)

$

0.03



















 

 

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)








Six Months Ended June 30,








2012


2011





















CASH FLOWS FROM OPERATING ACTIVITIES:







Net income (loss)



$

(2,031,837)

$

1,803,066


Adjustments to reconcile net income (loss) to net cash






used in operating activities:








Depreciation




1,654,126


1,151,187



Amortization




118,214


46,606



Stock compensation expense



2,032


1,390



Change in working capital components:









Accounts receivable



280,177


2,967,525




Inventory




(2,276,621)


(2,353,513)




Advances to suppliers



(2,010,504)


(5,942,213)




Other assets




475,505


165,556




VAT receivable



-


(1,547,708)




Accounts payable and accrued expenses



(1,942,069)


(186,329)




Unearned revenue



439,576


1,433,840




Other payables



(219,453)


1,409,669




Accrued payroll



(41,167)


2,460












Net cash used in operating activities



(5,552,021)


(1,048,464)











CASH FLOWS FROM INVESTING ACTIVITIES








Purchase of Shimmer Sun Ltd



-


(1,300,000)



Cash acquired in acquisition of Shimmer Sun Ltd


-


248,742



Issuance of notes receivable



(23,764)


-



Payment on note receivable



7,925


25,684



Payments for property and equipment



(1,675,316)


(8,830,790)



Payments for construction in progress



-


(4,002,547)



Increase in restricted cash



(156,619)


-












Net cash used in investing activities



(1,847,774)


(13,858,911)











CASH FLOWS FROM FINANCING ACTIVITIES:








Repayment of short-term loans



(11,655,944)


(6,880,500)



Proceeds from short-term loans



18,572,677


7,645,000



Proceeds from long-term loans



1,061,206


9,036,390












Net cash provided by financing activities



7,977,939


9,800,890











Effect of exchange rate changes on cash and cash equivalents


25,348


14,533











NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS


603,492


(5,091,952)











CASH AND EQUIVALENTS, BEGINNING BALANCE


2,831,808


8,622,035











CASH AND EQUIVALENTS, ENDING BALANCE


$

3,435,300

$

3,530,083











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:






Interest paid



$

546,020

$

397,998


Income taxes paid



$

7,608

$

439,962











 

SOURCE Shiner International, Inc.



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