Asia Bio-Chem Group Corp. Announces Third Quarter 2013 Financial Results

About this update from Absolutely Critical Resources Corp.

[{"type":"text","content":"\n\n\nTORONTO, Nov. 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 September 30, 2013.\n\n\nHighlights\n\n\n\nDuring the third quarter, lower starch prices caused a negative gross\n margin of 13.7% compared with a negative gross margin of 8.1% during\n the same period in 2012.\n\n\n\n\nThe Company continues to manage its capacity utilization in reaction to\n market conditions.  During the third quarter the Company's Changtu and\n Daqing plants operated at approximately 35% capacity while the newly\n acquired Tieling facility remained closed pending a decision regarding\n its relocation.\n\n\n\n\nAs a result of depreciation and interest expenses from the addition of\n Tieling, net loss for the third quarter was $13.8 million (-$0.16 per\n share) compared with a net loss of $11.1 million (-$0.13 per share)\n during the third quarter of 2012.\n\n\n\n\nThe company achieved a 34.1% improvement in EBITDA during the third\n quarter to negative $5.2 million compared with negative $7.9 million\n during the third quarter of 2012.\n\n\n\n\nThe Company continues to enjoy the strong support of its banking group\n and successfully renewed or repaid $141.0 million in loans since\n December 31, 2012.  Further, these loan renewals were achieved on more\n favorable terms as the Company was able to reduce the level of\n restricted cash by $28.6 million (including $22.1 million restricted\n cash from Tieling) during the first nine months of the year.\n\n\n\n\nThe Company maintains unrestricted cash balance of $4.0 million at\n September 30, 2013.\n\n\n\n\"The corn processing industry in China continues to face challenges of a\n slow economy and overcapacity,\" stated Mr. Zhiping Wang, President and\n CEO of Asia Bio-Chem. \"We continue to manage our production output\n depending on market conditions.\"\n\n\nDuring the third quarter, total production was 74,296 tonnes which\n represents 35% capacity utilization for both the Daqing and Changtu\n plants.  This level of production represents a 30.5% increase from the\n same quarter in 2012.\n\n\nDuring the third quarter, corn cost declined by 3.3% from the third\n quarter of 2012 while starch and germ prices have declined by 10.6% and\n 14.1% respectively for the same third...

More updates from Absolutely Critical Resources Corp.