TORONTO, Sept. 2, 2015 /CNW/ - Asia Bio-Chem Group Corp. (CSE: ABC) ("Asia Bio-Chem" or the "Company") announces its financial results for the three-month period ending June 30, 2015.
Highlights
Highlights for the Second Quarter of 2015
- During the second quarter, the Company had no production and only small sales.
- Net loss for the second quarter was $12.3 million (-$0.14 per share) compared with a net loss of $10.3 million (-$0.12 per share) during the second quarter of 2014.
- The company's EBITDA was negative $2.2 million during the second quarter compared with negative $3.0 million during the second quarter of 2014.
- The Company continues to fund its losses with loans from various sources. As at June 30, 2015, total loans outstanding were $292.0 million.
- The Company maintains unrestricted cash balance of $1.0 million at June 30, 2015.
"Due to poor market conditions, the Company ceased production during the first half of the year", stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem. "We continue to maintain our borrowings and have received increasing support from Beidahuang Group."
For the quarter ended June 30, 2015, only minimal revenues were achieved through sales from inventory. Due to inventory valuation write-down at December 31, 2014, gross margin was 13.8% during the first six months of the year compared with negative 7.4% during the corresponding period of 2014.
During the six month period ended June 30, 2015 net income fell to negative $25.4 million compared with negative $18.5 million during the first half of 2014.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian dollars except per share and percentage data | Six Months Ended June 30, | |||||||
2015 | 2014 | % Change | ||||||
Sales | 1,737 | 39,283 | -95.6% | |||||
Gross profit (loss) | 240 | (2,890) | 108.3% | |||||
Gross margin (% of Sales) | 13.8% | -7.4% | ||||||
Operating expenses | 12,942 | 13,425 | -3.6% | |||||
Income (loss) from operations | (12,702) | (16,315) | 22.1% | |||||
Other income (expense) | (13,353) | (2,332) | -472.5% | |||||
Income taxes (recovery) | (682) | (103) | n/a | |||||
Net income (loss) | (25,373) | (18,544) | -36.8% | |||||
EBITDA | (5,444) | (4,355) | -25.0% | |||||
Earnings per share: | ||||||||
Basic and diluted | (0.30) | (0.22) | ||||||
Weighted average number of shares: | ||||||||
Basic and diluted | 85,306,258 | 85,306,258 | ||||||
Unrestricted cash position declined to $1.0 million from $7.5 million at December 31, 2014. As at June 30, 2015, total loans outstanding was $292.0 million.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the People's Republic of China, is in the business of processing corn into cornstarch, germ and gluten for sale into the domestic Chinese market. From its plants in Liaoning and Heilongjiang Province, the Company has a total processing capacity of 1.5 million tonnes of corn per year.
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.
SOURCE Asia Bio-Chem Group Corp.
