Business
Asia Bio-Chem Group Corp. Announces Second Quarter 2014 Financial Results and Strategic Transaction Update
TORONTO , Aug. 21, 2014 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("As...
About this update from Absolutely Critical Resources Corp.
[{"type":"text","content":"\n\n\n \n\n \n\n \n\nTORONTO, Aug. 21, 2014 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) (\"Asia Bio-Chem\" or the \"Company\") announces its financial results for the three-month period ending June 30, 2014.\n\nHighlights\n\n\nDuring the second quarter, lower starch prices caused a negative gross margin of 14.5% compared with a negative gross margin of 0.2% during the same period in 2013.  \nThe Company continues to manage its capacity utilization in reaction to market conditions.  During the second quarter, the Company's Changtu and Daqing plants had little operation (approximately 1% capacity utilization) while the Tieling facility remained closed pending a decision regarding its relocation. \nNet loss for the second quarter was $10.3 million (-$0.12 per share) compared with a net loss of $8.5 million (-$0.10 per share) during the second quarter of 2013. \nThe company's EBITDA decreased to negative $3.0 million during the second quarter compared with negative $1.5 million during the second quarter of 2013. \nThe Company continues to enjoy the strong support of its banking group and successfully renewed $33.3 million in loans in the second quarter. \nThe Company maintains unrestricted cash balance of $4.0 million at June 30, 2014. \nBeidahuang has recently advised the Company that it intends to amend the previous letter of intent (\"LOI\") which would result in the purchase of a 49% interest in the operating subsidiaries of Asia Bio-Chem rather than the purchase of Asia Bio-Chem shares from the major shareholders as previously contemplated.  Management is currently working through the details of the transaction and in the process of obtaining various levels of approvals.\n\"We are pleased to announce that we have completed the due diligence and audit process with Beidahuang Group\", stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem.  \"We have been actively working with Beidahuang to finalize the transaction and to secure the necessary approvals.\" \n\nFor the second quarter ended June 30, 2014, sales were $15.5 million, which represents a 51.3% decline compared with the corresponding period of 2013.  A weak Chinese economy caused starch, germ and gluten prices to deteriorate compared with the same period in 2013.    \n\nDuring the second quarter, the Company ceased production ...