Business
Asia Bio-Chem Group Corp. Announces Second Quarter 2010 Financial Results and Changtu Plant Upgrade
Asia Bio-Chem Group Corp. Announces Second Quarter 2010 Financial Results and Changtu Plant Upgrade
About this update from Absolutely Critical Resources Corp.
[{"type":"text","content":"\n\n\n\n Aug. 13, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nTSX Venture: ABC\n\nTORONTO, Aug. 13 /CNW/ Asia Bio-Chem Group Corp. (TSXV: ABC) ("Asia Bio-Chem" or the "Company") today announced its interim financial statements for the three month period ending June 30, 2010.\n\nInterim Financial Results\n\n\n >\n\n\n"We are pleased to report that our new Daqing facility is running smoothly and contributing to earnings" stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem. "With Daqing up and running, we will use this opportunity to upgrade the Changtu facility to improve cost efficiency through a reduction in energy comsumption and discharge. These improvements will position our company to win business with the largest players in the global market."\nWith the improved capacity from the Daqing plant, second quarter revenues increased over the first quarter of fiscal 2010 by $16.8 million or 43%. Second quarter gross profit also increased by $2.8 million or 42% compared with the first quarter.\nAs a percentage of sales, gross margin was 17% during the quarter which was consistent with the first quarter even with a 17% increase in average corn costs experienced during the second quarter.\n\n\n >\n\n\nWith the contribution from Daqing together with strong product prices, the Company achieved EBITDA before stock based compensation of $7.6 million during the second quarter, the highest in the Company's history and 40% improvement over the first quarter.\nDuring the first six months of 2010, the Company's cash position declined to $7.3 million as at June 30, 2010 primarily due to increased working capital requirements including higher deposits on corn purchases.\n\nDaqing Update\n\nProduction at Daqing has improved during the second quarter with the average corn processing capacity utilization reaching 79% during the quarter.\nAs stated, in previous announcements, the Company is expanding it...