NEW YORK and SHANDONG, China, April 18, 2011 (GLOBE NEWSWIRE) -- Tsingyuan Holding Inc. (OTCQB:BEER), a Shandong-based leading manufacturer and distributor of brewer's malt and beer in China, today announced its 2010 financial results and provided a business update.
Full Year Highlights
- Revenue increased 338.8% to $52.3 million compared to $11.9 million for 2009
- Gross profit increased 345.7% to $11.8 million versus $2.6 million for 2009
- Operating income increased 371.2% to $11.0 million versus $2.3 million for 2009
- Net income for 2010 increased 392.5% to $8.3 million, or $0.07 per basic and diluted share, versus $1.7 million, or $0.01 per basic and diluted share, for 2009
Zhang Dingyou, Chief Executive Officer, commented, "We are very pleased to report a 339 percent increase in revenue to $52.3 million for 2010 and a 393 percent increase in net income to $8.3 million for the full year. In 2010, we produced 72,770 metric tons of malt products and 6,159 metric tons of beer products compared to just 17,592 metric tons and 878 metric tons of malt products and beer products, respectively, in 2009. As the largest malt producer and one of the leading beer producers in Shandong Province, we benefit from economies of scale and a broader distribution network than our local competitors. Additionally, by internally producing the malt for our beer, we are able to keep costs low and offer attractive incentives to our beer distributors. Our malt is now distributed to breweries across three provinces, our beers are distributed by retailers in seven provinces, and we look forward to further expanding our footprint in the coming months and years. Lastly, as we further increase our capacity utilization we expect to benefit from significant operating leverage and thereby increase profitability as we continue to raise our production levels. "
Mr. Zhang continued, "The beer industry in China continues to grow rapidly and Chinese consumers perceive Tsingyuan beer to be an excellent value that is well-crafted yet moderately priced. Given the rapid urbanization, increasing disposable income of the Chinese consumer, and the relatively low per capita consumption of beer in China, we believe the demographic trends that have helped bolster domestic beer demand will continue for many years. Our 2010 performance clearly demonstrates that we are well-positioned to exploit the growth trends in this rapidly evolving market."
2010 Financial Highlights
Revenue for the year ended December 31, 2010, increased 338.8% to $52.3 million, as compared to $11.9 million for the 2009. Gross profit increased 345.7% to $11.8 million, as compared with $2.6 million for 2009. Operating income increased 371.2% to $11.0 million as compared with $2.3 million for 2009. Net income for 2010 increased 392.5% to $8.3 million, or $0.07 per basic and diluted share, as compared with $1.7 million, or $0.01 per basic and diluted share, for 2009.
The Company ended the year at December 31, 2010, with $1.1 million in cash and cash equivalents, no debt and $21.2 million of shareholder's equity.
About Tsingyuan Holding Inc.
Tsingyuan Holding Inc., located in Shandong province, is a leading manufacturer and distributor of brewer's malt and beer throughout northern and eastern China. Tsingyuan Holding has two business lines: brewer's malt and beer production. The brewer's malt is currently shipped to brewers in three provinces across China. The beer products are distributed throughout seven provinces, and are well-renowned for their high quality yet affordable price. The company utilizes the latest German brewing techniques and uses the highest quality barley, water and hops. Tsingyuan promotes eight products under its trademarked brand names "Qinglin," "Qingyi," and "Qingyuan."
This release contains certain "forward-looking statements" relating to the business of the Company. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
– financial tables follow –
| TSINGYUAN BREWERY LTD. AND SUBSIDIARIES | ||
| (formerly known as SABRE INDUSTRIAL, INC.) | ||
| CONSOLIDATED BALANCE SHEETS | ||
| December 31, | ||
| 2010 | 2009 | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 1,117,383 | $ 3,731,802 |
| Accounts receivable | 2,710,730 | 505,464 |
| Inventories | 2,358,178 | 569,886 |
| Advances to suppliers | 214,671 | -- |
| Other receivables | 35,945 | -- |
| Total Current Assets | 6,436,907 | 4,807,152 |
| Plant and equipment, net of accumulated depreciation of $2,747,621 and | ||
| $1,675,766 at December 31, 2010 and 2009, respectively | 17,462,287 | 16,836,710 |
| Deferred tax assets | -- | 71,158 |
| Intangible asset, net | 1,442,271 | 1,419,029 |
| Total Assets | $ 25,341,465 | $ 23,134,049 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Short-term loans | $ -- | $ 6,581,642 |
| Accounts payable and accrued expense | 346,798 | 3,835,656 |
| Advances from customers | 322,943 | -- |
| Taxes payable | 2,978,635 | 91,834 |
| Due to related parties | 519,381 | 371,106 |
| Total Current Liabilities | 4,167,757 | 10,880,238 |
| Stockholders' Equity: | ||
|
Preferred stock, Series B - ($0.001 par value, 1,000 authorized, no shares issued and outstanding) |
-- | -- |
|
Common stock ($0.0001 par value, 300,000,000 shares authorized, 126,857,289 and 125,107,671 shares issued and outstanding) |
126,857 | 125,108 |
| Additional paid in capital | 11,012,046 | 11,033,425 |
| Statutory surplus reserves | 832,981 | -- |
| Retained earnings (accumulated deficit) | 7,155,952 | (264,851) |
| Accumulated other comprehensive income | 2,045,872 | 1,360,129 |
| Total Stockholders' Equity | 21,173,708 | 12,253,811 |
| Total Liabilities and Stockholders' Equity | $ 25,341,465 | $ 23,134,049 |
| TSINGYUAN BREWERY LTD. AND SUBSIDIARIES | ||
| (formerly known as SABRE INDUSTRIAL, INC.) | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
| For the Year Ended December 31, | ||
| 2010 | 2009 | |
| Sales | $ 52,303,074 | $ 11,919,013 |
| Cost of goods sold | 40,510,932 | 9,273,236 |
| Gross profit | 11,792,142 | 2,645,777 |
| Operating expenses: | ||
| General and administrative expenses | 569,295 | 307,092 |
| Selling expenses | 232,604 | 6,280 |
| Total operating expenses | 801,899 | 313,372 |
| Income from operations | 10,990,243 | 2,332,405 |
| Other income (expense): | ||
| Interest expense | (119,637) | (893,090) |
| Interest income | 16,947 | 321,491 |
| Other income | 127,542 | 476,933 |
| Total other income (expenses) | 24,852 | (94,666) |
| Income before income taxes | 11,015,095 | 2,237,739 |
| Income taxes expense | 2,761,311 | 561,767 |
| Net income attributable to common stockholders | 8,253,784 | 1,675,972 |
| Other comprehensive income: | ||
| Foreign currency translation adjustment | 685,743 | 27,134 |
| Comprehensive income | $ 8,939,527 | $ 1,703,106 |
| Earnings per share - basic and diluted: | ||
| Weighted-average shares outstanding, basic and diluted | 125,630,160 | 125,107,671 |
| Earnings per share, basic and diluted | $ 0.07 | $ 0.01 |
| TSINGYUAN BREWERY LTD. AND SUBSIDIARIES | ||
| (formerly known as SABRE INDUSTRIAL, INC.) | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| For the Year Ended December 31, | ||
| 2010 | 2009 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | $ 8,253,784 | $ 1,675,972 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||
| Depreciation and amortization | 1,013,063 | 501,153 |
| Income tax expense | 71,972 | 546,204 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (2,131,757) | (133,310) |
| Advances to suppliers | (207,828) | 2,519,407 |
| Inventories | (1,722,855) | (234,425) |
| Other receivables | (36,526) | -- |
| Accounts payables and accrued expense | (3,541,384) | 3,605,484 |
| Taxes payable | 2,811,328 | 53,509 |
| Advances from customers | 314,874 | -- |
| Total adjustments | (3,429,113) | 6,858,022 |
| Net cash provided by operating activities | 4,824,671 | 8,533,994 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchase of intangible assets | -- | (268,791) |
| Purchase of plant and equipment | (980,784) | (9,210,161) |
| Net cash used in investing activities | (980,784) | (9,478,952) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from short-term loans | -- | 9,209,341 |
| Repayments to short-term loans | (6,656,903) | (16,079,803) |
| Proceeds from related parties | 1,696,475 | -- |
| Repayment to related parties | (1,584,560) | 9,603,670 |
| Net cash (used in) provided by financing activities | (6,544,988) | 2,733,208 |
| NET (DECREASE) INCREASE IN CASH | (2,701,101) | 1,788,250 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | 86,682 | 5,781 |
| CASH, BEGINNING OF YEAR | 3,731,802 | 1,937,771 |
| CASH, END OF YEAR | $ 1,117,383 | $ 3,731,802 |