Business News
Shiner International Announces Second Quarter 2009 Financial Results
Friday 14. August 2009 - Shiner International, Inc. (NASDAQ:BEST), an emerging global supplier of anti-counterfeiting and advanced packaging products, today announced financial results for the quarter ended June 30, 2009.
Financial Summary
— Total revenue of $8.0 million versus $7.1 million in the prior 2009
quarter and $14.2 million for the second quarter of 2008.
— Net loss of $0.28 million, relatively flat compared to the first
quarter of 2009, and down from net income of $1.83 million in the
second quarter of 2008.
— Gross profit of $1.11 million, compared to $0.47 in the prior 2009
quarter and $2.8 million for the second quarter of 2008.
— Gross margin of 13.8%, compared to 6.7% for the first quarter of 2009
and 19.9% for the second quarter of 2008.
— Earnings per share of ($0.01) for the quarter, unchanged from the prior
quarter, and down from $0.07 in the 2008 second quarter.
Revenues and Earnings
Shiner’s revenue for the three months ended June 30, 2009 was up approximately 13% on a quarter to quarter basis, but down when compared to the same period in 2008. The quarter to quarter increases in revenue related directly to increases in sales in three of Shiner’s business lines, including a 10.7% increase in coated film sales, a 53.6% increase in anti-counterfeit film sales and a 36.3% increase in color printing sales. Sales of tobacco BOPP film decreased about 3.6% from the prior quarter. International sales for the three months ended June 30, 2009 totaled $2.6 million, accounting for 32.8% of Shiner’s total revenue in comparison to $1.8 million for the three months ended March 31, 2009. The increase in Shiner’s international sales quarter to quarter was primarily due to continuous market improvement.
Year over year, Shiner’s revenues were negatively impacted by declining sales prices and volume across all business lines. The decrease in sales was attributable to the global economic financial crisis and melamine milk scare, which affected the entire packaged food industry in China. The newly enacted Food Safety Law of the People’s Republic of China, which has been an incentive to the food industry, has positively impacted Shiner’s revenue. As evidenced by its quarter to quarter growth, Shiner has begun to see an increase in sales across most of its business lines. The Company believes that this trend will continue going forward.
Management Comments
Commenting on Shiner’s performance, Jian Fu, Shiner’s Chief Executive Officer, stated that, “we are encouraged by the positive volume trends we have seen in the last quarter across all of our business lines. We have increased our marketing efforts to develop new customers, while maintaining a solid foundation of existing customers. As a result, we are seeing positive results, especially in international sales. We are focused on maintaining our unparalleled technology, upgrading our research and manufacturing facilities, and producing the highest quality products available. As a result, we believe we will increase our capability to compete domestically and abroad.”