Business
Asia Bio-Chem Group Corp. Announces Second Quarter 2011 Financial Results
TORONTO, Aug. 11, 2011 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" or the "...
About this update from Absolutely Critical Resources Corp.
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Aug. 11, 2011 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC)\n (\"Asia Bio-Chem\" or the \"Company\") today announced its interim\n financial statements for the three-month and six-month periods ending\n June 30, 2011.\n\n\nInterim Financial ResultsHighlights\n\n\nRecord revenues of $68.7 million in the second quarter and $119.8\n million in the first half of 2011.\n\n\nStrong starch and germ prices contributed to a 20.7% improvement in\n sales during the second quarter of 2011 to $68.7 million compared with\n the same period in 2010.\n\n\nProduction capacity for the Company's total operations was over 80% in\n the second quarter.\n\n\nHigher corn costs caused gross margin to decline to 12.2% during the\n second quarter and 13.7% during the first half year compared with 16.9%\n and 16.9% during the same periods of 2010, respectively.\n\n\nLower gross profit and higher selling and general expenses caused net\n income to decline to $1.3 million or $0.02 per share during the second\n quarter compared with $4.5 million or $0.06 per share during the second\n quarter of 2010. For the first six months of 2011, though gross profit\n was flat, higher selling and general expenses caused net income to\n decline to $3.8 million or $0.05 per share compared with $6.6 million\n or 0.09 per share during the first half of 2010.\n\n\nThe Company is strongly supported by its banking group as evidenced by\n the addition of $7.6 million (RMB 50 million) loan through CITIC Trust\n Co., Ltd., a national financial institution in China.  This RMB 50\n million loan replaced the RMB 30 million loan from Shanghai Pudong\n Development Bank that was repaid in May 2011.\n\n\nThe Company's Daqing downstream expansion will be delayed until later in\n 2012 due to the current corn processing market conditions and due to a\n delay of the local Government's financial commitment to the project. \n The Company now expects the first phase of the project to contribute to\n revenues during the second half of 2012 and achieve margin improvement.\n\n\n\"We are pleased to report that both of our plants are running smoothly,\n capacity utilization is over 80% and we continue to enjoy a stable\n supply of corn,\" stated Mr. Zhiping Wang, President and CEO of Asia\n Bio-Chem.  \"While corn costs have been higher during the quarter, we\n expec...