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

News provided by

Shiner International, Inc.

Aug 15, 2012, 12:18 ET

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: [email protected]; [email protected]
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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