Business
Asia Bio-Chem Group Corp. Announces First Quarter 2013 Financial Results
TORONTO, May 14, 2013 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" or the "C...
About this update from Absolutely Critical Resources Corp.
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, May 14, 2013 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC)\n (\"Asia Bio-Chem\" or the \"Company\") announces its financial results for\n the three-month period ending March 31, 2013.\n\n\nHighlights\n\n\n\nDuring the first quarter, higher by-product prices coupled with lower\n corn costs enabled the Company to achieve breakeven gross profit.  The\n company achieved gross margin of 0.8% during the first quarter compared\n with a negative gross margin of 3.9% during the same period in 2012.\n Despite this improvement, the Company continues to experience negative\n cash flow and net loss.\n\n\n\n\nIn reaction to improved gross margins, the Company adjusted Daqing\n production volume to 92,300 tonnes during the quarter representing 65%\n of capacity.\n\n\n\n\nAs a result of higher selling and distribution expenses together with\n the depreciation and interest expenses from the acquisition of Tieling,\n net loss for the first quarter was $9.2 million (-$0.11 per share)\n compared with a net loss of $5.5 million (-$0.06 per share) during the\n first quarter of 2012.\n\n\n\n\nThe Company continues to enjoy the strong support of its banking group. \n Since the end of the first quarter, the Company has successfully\n secured a new short term credit facility in the amount of $3.2 million\n (RMB 20 million).\n\n\n\n\nThe Company maintains unrestricted cash balance of $3.9 million at March\n 31, 2013.\n\n\n\n\n\n\nAcquisition of Tieling Wanshunda Starch Company Ltd. (\"Tieling\")\nOn January 1, 2013, the Company closed the acquisition of 100% of\n interest in Tieling for an aggregate purchase price of RMB 280 million\n ($44.8 million), RMB 250 million ($40 million) in the form of overdue\n accounts receivable of Asia Bio-Chem, and RMB 30 million ($4.8 million)\n of note payable due 12 months after the completion of all title changes\n and filing approval with the local government in the PRC.\n\n\nThe Company's main reasons for completing this acquisition was to\n acquire additional corn processing plant capacity, to ultimately\n control a larger share of the corn processing market in Northern China,\n to obtain the corn processing and sweetener processing licenses held by\n Tieling, to eliminate a competitor from the market, and to take\n advantage of an opportunity to acquire an additional plant at a cost\n s...