Uni Core Holdings Corporation Announces Improvement in Financial Performance of APT Paper Group for February as Compared with the Same Period Last Year
SHENZHEN, China, April 11, 2012 /PRNewswire-Asia/ -- Uni Core Holdings Corporation (OTC Bulletin Board: UCHC), a Hong Kong based holding company, announced today that the performance of APT Paper Group ("APT"), one of UCHC's subsidiaries, in February 2012 represents a marked improvement over APT's performance in February 2011.
Sales turnover in February 2012 increased by 41% as compared with February 2011. Although the cost of goods sold increased drastically from the last quarter of 2011 due to the inflation and the increase in paper material costs resulting in an increase of 9% of the direct costs, APT managed to achieve an increase in the gross profit by 250% as compared with the same month last year.
Operating expenses increased by 9% due primarily to APT's aggressive expansion campaign. The effective control of the sale of recycled scrap paper helped bring in an increase in non-operating income by 607%, as a result of effective control of raw materials and sound management of the business when compared with the performance for February 2011. February results of APT was a small loss of US$20,448, which is 95% improved compared with same month last year which had a loss of US$435,318.
Since APT's rehiring of Mr. Wen, as CEO, last August, APT has undergone a significant restructuring in terms of its management and business model. Although the performance in February 2012 still represents a slight loss, as the first quarter is traditionally the weakest it is encouraging to note the improved performance after seven months' effort, which is a solid indicator demonstrating that APT's performance and control mechanism are progressing in the right direction.
Mr. Thomas Lee, Chief Operating Officer of UCHC, commented, "APT Paper Group has a much stronger management and structure now. With the right level of funding, which we are still raising, we intend to install more machines, expand our R & D and product design capabilities. I believe the business of APT could be increased at a significant growth rate. UCHC has full confidence and support in this investment."
About Uni Core Holdings Corporation (UCHC.OB)
Uni Core through its subsidiaries develops, manufactures and distributes environmental friendly paper and agricultural products based upon its proprietary technology and supply chains. The Company was founded in 1998 and is headquartered in Hong Kong.
APT Paper Group, a wholly owned subsidiary, headquartered in Shenzhen, Guangdong, China, was founded in November 1993. UCHC acquired 100% of APT in June 2010. Based upon proprietary technology, production, marketing and global supply chains, APT is one of the leaders of the modern environmentally friendly packing and honeycomb paper products industry in China. APT's products are produced from recycled materials and are recyclable. APT's products include honeycomb paper pallets, honeycomb paper panels, honeycomb paper cartons, honeycomb paper coffins, honeycomb paper cushions, paper slip-sheets, paper corner protectors and corrugated paper products. APT holds patents throughout the world on many of its products. Some of APT's customers include Wal-Mart, Costco, Sam's Club, Sony, Nokia, DHL, Haier, Hisense, among others.
Prosperous Agriculture, 51% of which is owned by UCHC, is headquartered in Xi'an, Shaanxi Province, China. Prosperous Agriculture manufactures and distributes agricultural brands and also establishes a national agricultural resources chain direct sales platform through the opening and acquiring of agricultural resources direct sales outlets and dealers, and by working with well-known manufacturers of agricultural products. Prosperous Agriculture integrated more than 2,000 agricultural resources.
Safe Harbor Statement:
Except for statements of historical fact, this document contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation expectations, beliefs, plans and objectives regarding the development, use and marketability of the Company's products. Such forward-looking statements are based on present circumstances and on the Company's predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, and are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results expressed or implied by such forward-looking statements. Such factors include the Company's ability to raise capital to engage in operations, general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to fund operations and other factors that the Company has little or no control. Such forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements. Risks, uncertainties and other factors are discussed in documents filed from time to time by the Company with the Securities and Exchange Commission.
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SOURCE Uni Core Holdings Corporation