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Asia Bio-Chem Group Corp. Announces Second Quarter 2013 Financial Results
TORONTO , Aug. 14, 2013 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" or...
About this update from Absolutely Critical Resources Corp.
[{"type":"text","content":"\n\n\nTORONTO, Aug. 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 June 30, 2013.\n\n\nHighlights\n\n\nDuring the second quarter, lower corn costs resulted in improved gross\n margin and lower operating losses compared with the same period of last\n year.  The company achieved breakeven gross margin during the second\n quarter compared with a negative gross margin of 4.0% during the same\n period in 2012.\n\n\nThe Company continues to manage its capacity utilization in reaction to\n market conditions.  During the second quarter the Company's Changtu and\n Daqing plants operated at approximately 30% capacity while the newly\n acquired Tieling facility remained closed.\n\n\nAs a result of depreciation and interest expenses from the addition of\n Tieling, net loss for the second quarter was $8.5 million (-$0.10 per\n share) compared with a net loss of $8.2 million (-$0.10 per share)\n during the second quarter of 2012.\n\n\nThe company achieved a 68.8% improvement in EBITDA during the second\n quarter to negative $1.5 million compared with negative $4.7 million\n during the second quarter of 2012.\n\n\nThe Company continues to enjoy the strong support of its banking group\n and successfully renewed or repaid $38 million in loans since December\n 31, 2012.  Further, these loan renewals were achieved on more favorable\n terms as the Company was able to reduce the level of restricted cash by\n $44.1 (including $22.1 million restricted cash from Tieling) million\n during the first six months of the year.\n\n\nThe Company maintains unrestricted cash balance of $12.5 million at June\n 30, 2013.\n\n\n\"While we have seen some improvement from lower corn costs, our industry\n continues to struggle from soft customer demand in a weak Chinese\n economy,\" stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem. \n \"Our results have also been suppressed this year due to the additional\n overhead associated with the addition of Tieling.  However, we are\n pleased with how this acquisition has come together and believe that it\n positions us well for future growth as the market improves.\"\n\n\nDuring the second quarter, total production was 63,634 tonnes which\n represents a 48.2% reduction from the ...