We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Guanwei Recycling Corporation (CE) | USOTC:GPRC | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.000001 | 0.00 | 01:00:00 |
Weaker Than Anticipated Economic Environment Impacts Results and Near Term Outlook
2014 First Quarter Investor Conference Call to Be Held Friday, May 16, 2014 at 8:00am ET
FUQING CITY, CHINA--(Marketwired - May 15, 2014) - Guanwei Recycling Corp. (NASDAQ: GPRC), China's leading clean tech manufacturer of recycled low density polyethylene (LDPE), today reported that weaker than anticipated demand from customers, a worsened South China labor shortage in the quarter, and changes in manufacturing implemented to comply with new government environmental rules, were key factors in generating lower year over year comparisons in its first quarter ended March 31, 2014.
While the Company saw prices for its manufactured LDPE continue to advance moderately in the 2014 first quarter, sales volume declined approximately 22% year over year, leading to a 20.6% year over year decrease in first quarter revenues to $11,780,338. This was coupled with an increase in the cost of manufacturing to 85.93% of net revenue from 73.86% in the first quarter last year which, combined with lower sales, resulted in a 68.04% year over year reduction in 2014 first quarter net income to $756,066.
Mr. Chen Min, Chairman and CEO of the Company, commented, "While the economic outlook for most of our customers going into the year was uncertain, as the quarter developed it became clear they were proceeding with much more caution than anticipated. At the same time, the labor situation in Southern China also got a lot tougher as reflected in the fact that following the Chinese Spring Festival in February, many more experienced workers than anticipated, including ours, did not return to their positions. This slowed our production and increased our labor costs as we raised wages and benefits to try to quickly attract and train new workers. This occurred as the government imposed new procedures on the industry to further improve environmental standards which also slowed production and increased our cost structure. This unusual confluence of negative occurrences, coupled with a somewhat higher than planned increase in raw material costs, is reflected in our results. Mr. Chen added, "Unfortunately, at least for the next quarter or two, these events are likely to continue to affect year over year comparisons, unless and until we see, in particular, an improvement in the domestic Chinese economy."
Continued Financial Strength
Mr. Chen noted further that the Company remained in a strong financial position, with no bank debt and cash and cash equivalents of $14,860,475 as of March 31, 2014, up from $13,491,880 at the same time last year. Working capital as of March 31, 2014 was $45,553,532, an increase of $94,342 from December 31, 2013.
Financial Highlights
Outlook
"While the near term outlook has become cloudier," Mr. Chen stated, "we are doing what we can about the situation and are fortunate to have strong financials and a committed and experienced management team to help weather the storm. In particular, we are focused on maintaining the cost differential between recycled and virgin plastic and working closely with our customer base to be responsive to their needs. The key boost required to improve the outlook must come, though, from an improved economy."
Conference Call Invitation The Company will discuss 2014 first quarter results during a live conference call and webcast on Friday, May 16, 2014 at 8:00am ET.
To participate in the call, interested participants should call 1-877-941-2068 when calling within the United States or 1-480-629-9712 when calling internationally. Please ask for the Guanwei Recycling Corp. 2014 First Quarter Conference Call, Conference ID: 4683630. There will be a playback available until May 23, 2014. To listen to the playback, please call 1-877-870-5176 when calling within the United States or 1-858-384-5517 when calling internationally. Use the Replay Pin Number: 4683630.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://public.viavid.com/index.php?id=109286 or at ViaVid's website at http://viavid.com.
Description of Guanwei Recycling Corp.
Adhering to the highest "green" standards, Guanwei Recycling Corp. (the "Company") has generated rapid growth producing recycled low density polyethylene (LDPE) from plastic waste procured mostly in Europe. The Company sells the recycled LDPE to more than 300 customers (including over 150 active recurring customers) in more than ten different industries in China. The Company is licensed by Chinese authorities and also has been issued a Compliance Certificate by TÜV Rheinland, which issues certificates of approval for certain plastics manufacturers that meet Germany's strict environmental standards. This enables the Company to procure high quality plastic waste directly from Germany and other European countries with no middlemen, and permits highly economic production of the highest grades of LDPE. Additional information regarding Guanwei Recycling Corp. is available at www.guanweirecycling.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
GUANWEI RECYCLING CORP. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 14,860,475 | $ | 11,887,032 | ||||
Accounts receivable | 8,505,822 | 9,367,569 | ||||||
Accounts receivable from affiliate | - | 5,469,629 | ||||||
Inventories | 17,315,339 | 14,717,808 | ||||||
Advances to suppliers | 6,939,501 | 7,426,023 | ||||||
Value added tax refundable | 977,480 | - | ||||||
Prepaid expenses and other current assets | 218,318 | 136,396 | ||||||
Total current assets | 48,816,935 | 49,004,457 | ||||||
Property, plant and equipment, net | 11,799,360 | 11,074,021 | ||||||
Construction in progress | - | 534,556 | ||||||
Land use right, net | 659,063 | 668,597 | ||||||
Other assets | 200,831 | 203,751 | ||||||
Total Assets | $ | 61,476,189 | $ | 61,485,382 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,343,926 | $ | 612,303 | ||||
Accrued expenses and other payables | 549,803 | 720,888 | ||||||
Value added taxes payable | - | 827,517 | ||||||
Amount due to shareholder | 1,070,201 | 934,892 | ||||||
Income tax payable | 299,473 | 449,667 | ||||||
Total current liabilities | 3,263,403 | 3,545,267 | ||||||
Commitments and contingencies | ||||||||
Shareholders' Equity | ||||||||
Common stock, $0.001 par value, 500,000,000 shares authorized, 10,407,839 shares issued and outstanding, as of March 31, 2014 and December 31, 2013 | 10,408 | 10,408 | ||||||
Additional paid-in capital | 2,826,408 | 2,811,370 | ||||||
PRC statutory reserves | 805,483 | 805,483 | ||||||
Accumulated other comprehensive income | 3,650,553 | 4,148,986 | ||||||
Retained earnings | 50,919,934 | 50,163,868 | ||||||
Total shareholders' equity | 58,212,786 | 57,940,115 | ||||||
Total liabilities and shareholders' equity | $ | 61,476,189 | $ | 61,485,382 | ||||
GUANWEI RECYCLING CORP. | ||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Net revenue | $ | 11,780,338 | $ | 14,839,806 | ||||||
Cost of revenue | 10,122,495 | 10,960,865 | ||||||||
Gross profit | 1,657,843 | 3,878,941 | ||||||||
Operating expenses: | ||||||||||
Selling and marketing | 73,513 | 155,906 | ||||||||
General and administrative | 662,433 | 599,287 | ||||||||
Total operating expenses | 735,946 | 755,193 | ||||||||
Income from operations | 921,897 | 3,123,748 | ||||||||
Other income (expenses) | ||||||||||
Interest income | 10,511 | 13,402 | ||||||||
Interest expense | (15,038 | ) | - | |||||||
Net foreign exchange gain | 146,388 | 59,943 | ||||||||
Miscellaneous | (5,952 | ) | (681 | ) | ||||||
Total other income | 135,909 | 72,664 | ||||||||
Income before income taxes | 1,057,806 | 3,196,412 | ||||||||
Income taxes | 301,740 | 831,019 | ||||||||
Net income | 756,066 | 2,365,393 | ||||||||
Other comprehensive income (loss) - foreign currency translation adjustments | (498,432 | ) | 263,295 | |||||||
Comprehensive income | $ | 257,634 | $ | 2,628,688 | ||||||
Earnings per share - basic and diluted | $ | 0.07 | $ | 0.23 | ||||||
Weighted average number of common shares outstanding - basic and diluted | 10,407,839 | 10,407,839 |
GUANWEI RECYCLING CORP. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 756,066 | $ | 2,365,393 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation of property, plant and equipment | 324,320 | 243,715 | ||||||
Amortization of land use rights | 3,976 | 3,874 | ||||||
Imputed interest on advances from shareholder | 15,038 | - | ||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable | 789,386 | 1,666,653 | ||||||
Accounts receivable from affiliate | 5,464,978 | - | ||||||
Inventories | (2,741,136 | ) | 2,148,983 | |||||
Advances to suppliers | 427,670 | (565,584 | ) | |||||
Value added taxes refundable | (984,881 | ) | (131,445 | ) | ||||
Prepaid expenses and other current assets | (83,090 | ) | (24,388 | ) | ||||
Other assets | 1,226 | 1,195 | ||||||
Accounts payable | 742,318 | (3,915,641 | ) | |||||
Accrued expenses and other payables | (166,461 | ) | (52,857 | ) | ||||
Value added taxes payable | (826,813 | ) | (110,910 | ) | ||||
Income tax payable | (147,545 | ) | (204,048 | ) | ||||
Net cash provided by operating activities | 3,575,052 | 1,424,940 | ||||||
Cash flows from investing activities | ||||||||
Purchase of property, plant and equipment | (614,306 | ) | (256,362 | ) | ||||
Net cash used in investing activities | (614,306 | ) | (256,362 | ) | ||||
Cash flows from financing activities | ||||||||
Advance from shareholder | 135,308 | 171,219 | ||||||
Net cash provided by financing activities | 135,308 | 171,219 | ||||||
Effect of exchange rate change on cash | (122,611 | ) | 68,725 | |||||
Net increase in cash and cash equivalents | 2,973,443 | 1,408,522 | ||||||
Cash and cash equivalents at the beginning of period | 11,887,032 | 12,083,358 | ||||||
Cash and cash equivalents at the end of period | $ | 14,860,475 | $ | 13,491,880 | ||||
Supplemental disclosure of cash flow information | ||||||||
Income taxes paid | $ | 449,285 | $ | 1,035,067 | ||||
Non-cash investing and financing activities | ||||||||
Construction in progress transferred to property, plant and equipment | $ | 534,101 | $ | - | ||||
Accrued expense related to purchases of property, plant and equipment | $ | - | $ | 7,966 | ||||
Contacts: Richard Sun guanweirecycling@gmail.com Ken Donenfeld DGI Investor Relations kdonenfeld@dgiir.com Tel: 212-425-5700 Fax: 646-381-9727
1 Year Guanwei Recycling (CE) Chart |
1 Month Guanwei Recycling (CE) Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions