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Asia Bio-Chem Group Corp. Announces Third Quarter Financial Results
Asia Bio-Chem Group Corp. Announces Third Quarter Financial Results
About this update from Absolutely Critical Resources Corp.
[{"type":"text","content":"\n\n\n\nNov. 13, 2009 (Canada NewsWire Group) -- TORONTO, Nov. 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 September 30, 2009.In recognition for the work undertaken in completion of the Daqing plant, the Company further announces that it has granted stock options to certain members of management of the Company.Interim Financial ResultsHighlights- Asia Bio-Chem achieved it's third consecutive quarter of improvementin gross margin and growth in cash flow. In the third quarter grossmargin improved to 16.7% while EBITDA, excluding the (non-cash)stock-based compensation expense, improved by 14% over thesecond quarter to $2.3 million.- The Company successfully completed the Daqing plant construction, onbudget and on schedule and began production in October 2009. Up toSeptember 30, 2009, the Company has invested approximately$80.0 million on Daqing project, which, at full capacity, will triplethe Company's processing capacity to 900,000 tonnes of corn per year- During the third quarter of 2009, the Company received the seconddrawdown of RMB 20 million ($3.2 million) under its RMB 100 millionloan facility with Zhaoyuan County Government. Subsequent toSeptember 30, 2009, the Company received the third drawdown ofRMB 20 million ($3.2 million).- As at September 30, 2009, the Company had $4.0 million in cash and$25.4 million in government and bank debt outstanding.Asia Bio-Chem, today reported third quarter sales of $23.2 million representing a 7.8% increase compared to the corresponding period of 2008. This increase was due to increased selling prices for starch, higher volumes and the improvement in the value of the Chinese RMB relative to the Canadian Dollar.Gross profit during the third quarter was the highest achieved during fiscal 2009 at $3.9 million or 16.7% of sales. This improvement was primarily due to improved markets for starch which has been driven by higher sweetener prices.\"We are pleased to see that market conditions have begun to improve particularly for our starch product following a difficult first half. With the completion of our new Daqing facility, our Company is well positioned to take advantage of this improvement in demand.\" stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem.Imp...