Business News
Shiner International Re-affirms 2008 Guidance, and Reports Record Sales, Net Income in 2nd Quarter
Friday 01. August 2008 - Shiner International, Inc. (Nasdaq: BEST), a market leader in China's packaging and anti-counterfeiting plastic film industry, today announced financial results for the second quarter ended June 30, 2008, highlighted by an 45.0 percent increase in revenues and 93.4 percent increase in net income.
Shiner reported total revenue of $14.2 million for 2nd quarter of 2008, compared with $9.8 million in the same period of 2007. Outstanding top line performance was primarily driven by strong growth cross its 4 core business lines, particular from anti-counterfeiting film, up a record high 440 percent from the same quarter last year, as a result of bigger orders from existing clients like Sonic Music and Vinataba Tobacco, and new orders from both domestic and international markets.
Net income in 2nd quarter increased to $1.8 million, or $0.07 per fully diluted share, compared to $0.9 million last year, or 93.4 percent increase. The continuing increase in both sale volume and price, with the help of better overall capacity utilization, are the main contributors to this record growth. Shiner also benefited from product structure adjustment and technical improvement, which resulted in gross margin improving from 18.4 percent in last year’s second quarter to 19.9 percent in the current quarter.
In terms of the breakdown, for the second quarter ended June 30, 2008, coated film products accounted for approximately 23.1 percent of overall revenue, while BOPP tobacco film accounted for 37.7 percent. The Company noted that anti-counterfeiting film products continue to grow as a percentage of overall revenue, contributing 18.6 percent, up from 5.0 percent in the second quarter of 2007. Color printing accounted for the remaining 20.6 percent of revenue in the quarter.
”We are very pleased with the 2nd quarter results, the strong financial performance reflects a continuation of the growth momentum we had established in 2007,” said Mr. Jian Fu, CEO of Shiner International. ”The market once again tells us the popularity and the competitiveness of our two anchor product lines-anti counterfeiting film and coated film, there is no doubt that we are becoming a raising solution provider for counterfeiting problem in China. Looking ahead, we will continue to focus on our key markets in both anti-counterfeit and packaging, leveraging our brand influence, top tier market presence, and unique one-stop service model, to catch numerous growth opportunities domestically and internationally, our focused strategies, unique business model and superior execution give us the confidence in our abilities to deliver sustainable fast growth in 2008 and beyond.”
Shiner reiterated its previous guidance for 2008 and said the Company remains confident on its full-year projections
— 2008 Revenue Guidance: Shiner projects 2008 revenue to be in the range
of $64 to $70 million, an increase of 50% to 64% from 2007
— 2008 Net Income Guidance: Shiner projects 2008 net income to be in the
range of $8.0 to $9.0 million, an increase of 76% to 98% from 2007
— 2008 EPS Guidance: Shiner projects 2008 EPS to be in the range of $0.31
to $0.35 per fully diluted share