Here's new CHRB earnings. Things look great until you get down to EPS. I just hope that they don't continue the dilution any further. If they can hold the line as to # of shares, the stock has a great chance to appreciate and appreciate quickly. But based on recent history, that's a big if.
Sorry about the format problems in the financial data below. I'm using Internet Explorer temporarily, and haven't got all the tricks learned yet.
Tuesday August 13 4:21 PM EDT
China Resources Reports Second Quarter Earnings
Six Months Net Income Rose 62%; Gross Profit Margin Improved
Significantly
HONG KONG--(BUSINESS WIRE)--Aug. 13, 1996--China Resources Development,
Inc. (Nasdaq Small Cap: CHRB), a Nevada Corporation with rubber and
other agricultural/raw material operations in the People's Republic of
China ("PRC"), today announced operating results for the second quarter
and six months ended June 30, 1996.
For the six months ended June 30, 1996, sales rose 33% to Rmb796 million
from Rmb598 million in the comparable 1995 period. Net income for the
first half of 1996 increased 62% to Rmb13.1 million, or Rmb0.59 per
share, compared with net income of Rmb8.1 million, or Rmb0.68 per share,
in the comparable 1995 period. The gross profit margin for the six month
period more than doubled to 9.5% from 4.7% during the comparable
year-ago period. Per share results are based on 22,192,850 and
12,000,000 weighted average shares outstanding for the 1996 and 1995 six
month periods, respectively.
For the three months ended June 30, 1996, sales rose 28% to Rmb541
million (Renminbi is the lawful currency of the PRC; the exchange rate
on June 30, 1996 was U.S.$1.00=Rmb8.32) from Rmb421 million in the
comparable 1995 quarter. During the quarter, the Company commenced sales
of coffee beans and other agricultural products which contributed
approximately Rmb150 million in sales and gross profit of approximately
Rmb25 million, yielding a gross profit margin of nearly 17%. Gross
profit margins on CRDI's core natural rubber business also improved
significantly to 6.1% from 4.1% in the year-ago period, due mainly to
1996 recurring farm purchase discounts.
Second quarter net income increased 43% to Rmb10.6 million, or Rmb0.48
per share, compared with net income of Rmb7.4 million, or Rmb0.62 per
share, in the second quarter of 1995. The second quarter gross profit
margin for the Company rose more than 170%, to 11.4% from 4.2% in the
previous year's period. Per share results are based on 22,192,850 and
12,000,000 weighted average shares outstanding for the 1996 and 1995
three month periods, respectively. The increase in shares is primarily
due to CHRB's March 8, 1996 private placement of Series B Convertible
Preferred Shares which raised gross proceeds of approximately U.S.$12.53
million to fund expansion of the Company's higher margin agricultural
distribution operations, the proposed acquisition of a Hainan-based
timber and wood products production facility and repayment of
short-term debt.
Yang Jiangang, chairman of China Resources Development, Inc., said, "We
are particularly pleased with the sales gains achieved during the second
quarter primarily through our successful diversification into the
distribution of additional agricultural commodities including coffee
beans. Proceeds from our private placement in early March have allowed
us to enter these new areas of distribution which offer both incremental
revenue and higher gross profit margins. We plan to continue adding
additional agricultural/raw materials to our distribution product mix as
well as pursue complementary investment opportunities."
China Resources Development, Inc., with offices in Hong Kong and the
Hainan province in the PRC, markets and distributes dry, natural rubber
and liquid latex, and procures production materials and supplies for
major customers. The Hainan Province supplies over 60% of the PRC's
natural rubber production. CHRB through a subsidiary, owns a 56%
interest in Hainan Agricultural Resources Co. Ltd. (HARC).
CHINA RESOURCES DEVELOPMENT, INC., AND SUBSIDIARIES
Condensed Consolidated Income Statements (Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1996 1995 1996
RMB RMB US$(a) RMB RMB US$(a)
Sales 540,599 420,709 64,976 795,719 598,139 95,639
Cost of Sales 478,773 403,052 57,545 719,794 569,741 86,514
Gross Profit 61,826 17,657 7,431 75,925 28,398 9,125
Depreciation of
fixed assets 613 616 74 1,208 1,192 145
Selling and
administrative
expenses 15,187 14,203 1,825 25,173 22,729 3,026
Operating income 46,026 2,838 5,532 49,544 4,477 5,954
Financial
expenses, net 16,487 934 1,982 21,676 2,502 2,605
Other income
(losses), net (5,095) 13,421 (612) 4,243 15,541 510
Income before
income taxes 24,444 15,325 2,938 32,111 17,516 3,859
Income taxes 3,586 1,941 431 5,577 2,612 670
Net income before
minority
interests 20,858 13,384 2,507 26,534 14,904 3,189
Minority interests 10,221 5,962 1,228 13,401 6,807 1,611
Net income 10,637 7,422 1,279 13,133 8,097 1,578
Earnings per share 0.48 0.62 0.06 0.59 0.68 0.07
Weighted average
number of common
and common
equivalent shares
outstanding 22,193 12,000 22,193 22,193 12,000 22,193
(a) Based on an exchange rate of U.S.$1.00=Rmb8.32 on June 30, 1996.
CONTACT: China Resources Development Inc.
Edward Wong
Financial Controller
011/852/28107205
or
Joseph N. Jaffoni, Robert L. Rinderman
Jaffoni & Collins Incorporated
212/505-3015 or jciir@aol.com |
