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CORRECTION FROM SOURCE: Asia Packaging Group Inc. Announces Second Quarter Financial Results
By: Marketwired .
Nov. 30, 2012 01:12 PM
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/30/12 -- This press release corrects and replaces the press release of Nov. 29th titled: "Asia Packaging Group Inc. Announces Second Quarter Financial Results". The Summary Financial Statements table on the original press release contained incorrect figures, and has been corrected and replaced in this release.
Asia Packaging Group Inc. (TSX VENTURE:APX) ("Asia Packaging" or the "Company") announces its interim financial statements for the three-month period ended September 30, 2012.
Interim Financial Results Highlights -- During its fiscal second quarter ended September 30, 2012, the Company achieved revenues of $12.5 million representing 9.1% growth over the corresponding period of last year. This increase was due to a change in product mix to higher price, higher margin products. -- Higher value product sales contributed to an increase in gross profit margin during the second quarter to 26.5% from 25.1% during the second quarter of last year. -- The Company achieved EBITDA before share-based compensation of $3.0 million during the second quarter, representing a 10.7% improvement over the second quarter of last year. -- Net income increased 10.5% for the second quarter to $2.4 million compared with $2.2 million during the corresponding quarter of last year. -- As at September 30, 2012, the Company had $11.7 million in cash and no bank debt.
"We are pleased to report continued improvement in our product mix as we move towards higher margin product sales," stated Mr. Wenge Hong, President and CEO of Asia Packaging.
During the second quarter, sales at Asia Packaging increased to $12.5 million, representing a 9.1% increase compared with the corresponding period of last year. This increase was achieved as a result of improved product mix as average selling price increased by 6.1% compared with the same period of last year.
With the change in product mix, gross margin improved during the second quarter to 26.5% from 25.1% during the same quarter of last year.
Summary Financial Statements ------------------------------------- Three Months Period Ended September 30 (unaudited) ------------------------- Change 2012 2011 ------- Sales 12,523,588 11,481,324 9.1% Gross profit 3,318,645 2,883,887 15.1% Gross margin (% of Sales) 26.5% 25.1% 5.6% Operating expenses 535,756 377,031 42.1% Income from operations 2,782,889 2,506,856 11.0% Other income 12,425 11,248 10.5% Income taxes 390,310 340,724 14.6% Net income 2,405,004 2,177,380 10.5% EBITDA 2,942,837 2,641,658 11.4% EBITDA before stock-based compensation 3,025,503 2,733,158 10.7% Earnings per share Basic 0.019 0.019 Diluted 0.019 0.019 Weighted average number of shares Basic 128,059,000 115,557,300 Diluted 128,402,300 115,723,400 ------------------------------------
Both EBITDA and net income improved during the three months ended September 30, 2012 by 11.4% and 10.5% respectively compared to the same period last year.
The Company continues to maintain a strong balance sheet with over $23 million in working capital and $11.7 million in cash as at September 30, 2012. The Company continues to maintain no debt and total equity of $40.6 million at September 30, 2012.
Update on Acquisition of Yuanxing Holdings (Hong Kong) Ltd.
Please refer to our press release dated November 28, 2012 regarding the status of this acquisition. Upon receipt of approval for this acquisition from the TSXV and after the satisfaction of all closing conditions, management expects the shares of the Company to resume trading.
Update on Acquisition of Anhai Hongrizhong
The Company signed an asset purchase agreement dated February 27, 2012 with JinJiang City Anhai Hongrizhong Plastic Color Printing Co., Ltd. ("Anhai Hongrizhong") to purchase from Anhai Hongrizhong and from its owner, certain assets involved in plastic color printing.
As consideration the Company has agreed to pay to the Vendors RMB 50,000,000 as follows: RMB 40,000,000 in cash and RMB 10,000,000 worth of common shares (the "Consideration Shares") in the capital of the Company at a price of CDN$0.30 per share (approximately 5,343,336 common shares in the capital of the Company). The Consideration Shares are issuable after the following milestones have been achieved:
1. Total revenues generated from purchase orders, contracts, engagements or commitments with the customers of the Vendors for the period from April 1, 2012 to March 31, 2013 exceed RMB 60,000,000 ($9.5 million); and 2. Total revenues generated from purchase orders, contracts, engagements or commitments with the customers of the Vendors for the period from April 1, 2013 to March 31, 2014 exceed RMB 75,000,000 ($11.9 million).
As at September 30, 2012, the Company has paid $6,180,080 (RMB 39,435,000) to Anhai Hongrizhong as acquisition deposits. The Company is applying a business licenses and other permits to set up a wholly owned foreign entity as a subsidiary of Mei Tak. Once this subsidiary is incorporated, Mei Tak will transfer the assets acquired from Anhai Hongrizhong into its newly set up subsidiary. The acquisition of Anhai Hongrizhong will be closed once the assets are transferred.
About Asia Packaging Group Inc.
Asia Packaging Group, through its wholly-owned subsidiaries in the People's Republic of China ("PRC"), is in the business of manufacturing packaging products and services to the food and pharmaceutical industries in China. The Company operates a 38,000 square meter plant located in Yichun City, Jiangxi Province in PRC.
This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements, except as required by law, in the event that management's beliefs, estimates or opinions, or other factors, should change.
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