Business
Asia Bio-Chem Group Corp. Announces Fourth Quarter and Fiscal Year End Financial Results
Asia Bio-Chem Group Corp. Announces Fourth Quarter and Fiscal Year End Financial Results
About this update from Absolutely Critical Resources Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, Mar. 26, 2010 (Canada NewsWire Group) -- /CNW/ -- Asia Bio-Chem Group Corp. (TSXV: ABC) (\"Asia Bio-Chem\" or the \"Company\") today announced its interim financial statements for the three month and fiscal year ending December 31, 2009. The Company will also provide an update on its operations at the newly opened Daqing plantInterim Financial ResultsHighlights- In October of 2009 the Company began trial production at its newDaqing facility and began ramping up the production in January 2010.The Daqing facility is among the largest of its kind in China.- During fiscal 2009 the Company's Changtu plant continued to operateat above industry average utilization rates generating more than270,000 tonnes of cornstarch and related by-products and revenues of$88.7 million.- After experiencing extremely challenging market conditions in thefirst quarter of 2009, the market for the Company's products hasimproved significantly throughout the year. Driven by improvedeconomic activity and higher prices for sweeteners, the Company hasexperienced improved gross margins for the past three consecutivequarters to 19.6% in the fourth quarter.- Cash flow and earnings have continuously improved throughout theyear, as EBITDA before stock based compensation has risen from$1 million in the first quarter to $3.0 million in the fourth quarterto a total of $8.3 million for the year. Net income increased to$1.7 million in the fourth quarter to total of $2.1 million for theyear.- The Company has been successful in securing $52 million in debtfinancing during fiscal 2009 at attractive terms. The company securedoperating loans for both of its facilities and a six year term loanfrom China Construction bank. In addition, the Company was successfulin securing a five year term loan from the local government at a costof only 1% per year. As at December 31, 2009, the Company had$14.1 million in cash and $48.9 million in carrying balance for thegovernment and bank debt.- Daqing Update:The disruptions at the Daqing plant relating to coal supply and railcar availability have been resolved. During February the Daqing plantachieved continuous production and volumes surpassed those of theChangtu facility.\"We are pleased to report that the market for our products have improved steadily through the year and we are now achieving near our historical gross mar...