PINGDINGSHAN, China, May 15, 2013 /PRNewswire-FirstCall/ -- SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq: SCOK) (the "Company" or "SinoCoking"), a vertically-integrated coal and coke processor, announced today its financial results for the fiscal 2013 third quarter ended March 31, 2013.
Fiscal 2013 Third Quarter vs. Fiscal 2012 Third Quarter
Product type | Fiscal 2013 Third Quarter | Fiscal 2012 Third Quarter | ||||||
MT* Sold | Weighted Average Price/MT* | Revenue (million) | % of Total Revenue | MT* Sold | Weighted Average Price/MT* | Revenue (million) | % of Total Revenue | |
Coke Products | ||||||||
Coke | 38,220 | $ 212 | $ 8.1 | 57.6% | 37,111 | $ 230 | $ 8.5 | 50.7% |
Coal Tar | 1,357 | $ 258 | $ 0.4 | 2.9% | 1,563 | $ 257 | $ 0.2 | 1.1% |
Coal Products | ||||||||
Raw Coal | 11,281 | $ 58 | $ 0.7 | 4.7% | 15,778 | $ 88 | $ 1.3 | 8.0% |
Washed Coal | 27,295 | $ 177 | $ 4.8 | 34.7% | 38,425 | $ 176 | $ 6.8 | 40.2% |
*metric ton |
Discussing fiscal 2013 third quarter financial results, SinoCoking's Chairman and CEO, Mr. Jianhua Lv, noted, "The ongoing mining moratorium continues to limit raw coal supplies in Henan. In addition, operations at our four coal mines remain idle, and we must continue to meet our coal requirements from other provinces."
The 17.3% decrease in total revenue for the quarter was due to:
Of note, decreases in washed coal, raw coal and coke revenue were slightly offset by an increase in coal tar revenue due to higher average selling price, despite the decreased sales volume."
Recent business highlights:
Mr. Lv added, "Over the last several quarters, we have seen a slight but steady improvement in coke demand, mainly from steel mills. Thus, since the beginning of fiscal 2013, we have taken steps to position SinoCoking to take advantage of market opportunities that may arise if demands for coal, coke and coke by-products recover in fiscal 2014. Such steps include:
Upgrading technical capabilities of our existing coking facility
Resuming construction of the new coking facility
Signing a leasing agreement to operate a 200,000 metric tons coking facility for a period of one year
Continuing to invest to improve safety of our coal mines
Mr. Lv. concluded, "Due to the recent steps taken to increase production of coke and coke by-products, we expect our top and bottom lines to substantially improve in the final quarter of fiscal 2013 and in fiscal 2014. We currently have coke production capacity of 450,000 metric tons annually, including the 200,000 metric tons we are leasing. Once construction of our new facility is completed, our coking capacity will increase by approximately 1.2 million metric tons annually."
Conference Call
Mr. Lv and Sam Wu, the Company's CFO, will host a conference call on Thursday, May 16, 2013 at 10:00 am ET / 10:00 pm China time to discuss fiscal 2013 third quarter financial results as well as recent corporate developments.
Interested parties may participate in the call by dialing: (201) 493-6744. Please call in 10 minutes before the conference is scheduled to begin and ask for the SinoCoking call. After opening remarks, there will be a question and answer period. Questions may be asked during the live call, or alternatively, you may e-mail questions in advance to lcati@equityny.com.
The conference call will also be broadcast live over the Internet. To listen to the webcast, please go to http://www.investorcalendar.com/IC/CEPage.asp?ID=170993 or visit the Company's website www.sinocokingchina.com and then go to Presentations/Events page where the conference call is posted. Please go to the website at least 15 minutes early to register, and download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days. We suggest listeners use Microsoft Internet Explorer as their web browser.
About SinoCoking
SinoCoking and Coke Chemical Industries, Inc., a Florida corporation, is a vertically-integrated coal and coke processor that uses coal from both its own mines and that of third-party mines to produce basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking currently owns its assets and conducts its operations through its subsidiaries, Top Favour Limited and Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd., and its affiliated companies, Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd., Baofeng Coking Factory, Baofeng Hongchang Coal Co., Ltd., Baofeng Hongguang Environment Protection Electricity Generating Co., Ltd., Zhonghong Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd., Baofeng Shuangri Coal Mining Co., Ltd., and Baofeng Xingsheng Coal Mining Co., Ltd.
For further information about SinoCoking, please refer to our periodic reports filed with the Securities and Exchange Commission.
Forward Looking Statement
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position and business strategy. The words or phrases "plans", "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "think", "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of local, regional, and global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's expectations and estimates. The Company provides no assurances that any potential acquisitions will actually be consummated, or if consummated that such acquisitions will be on terms and conditions anticipated on the date of this press release, and the Company makes no assurances with regard to any results of any such acquisitions.
Contact: | |
SinoCoking | Investor Relations Counsel: |
Sam Wu, Chief Financial Officer | The Equity Group Inc. |
+ 86-375-2882-999 | Lena Cati |
lcati@equityny.com / (212) 836-9611 | |
See Accompanying Tables
SINOCOKING COAL AND COKE CHEMICAL INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
| ||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
REVENUE | $ | 13,903,951 | $ | 16,804,057 | $ | 52,704,787 | $ | 56,252,724 | ||
COST OF REVENUE | 11,815,066 | 14,166,799 | 45,770,689 | 43,122,271 | ||||||
GROSS PROFIT | 2,088,885 | 2,637,258 | 6,934,098 | 13,130,453 | ||||||
OPERATING EXPENSES: | ||||||||||
Selling | 37,018 | 43,602 | 122,775 | 168,469 | ||||||
General and administrative | 533,055 | 648,834 | 1,741,228 | 1,982,620 | ||||||
Total operating expenses | 570,073 | 692,436 | 1,864,003 | 2,151,089 | ||||||
INCOME FROM OPERATIONS | 1,518,812 | 1,944,822 | 5,070,095 | 10,979,364 | ||||||
OTHER INCOME (EXPENSE) | ||||||||||
Interest income | 174,788 | 222,583 | 605,889 | 999,883 | ||||||
Interest expense | (910,544) | (302,746) | (2,929,609) | (1,033,768) | ||||||
Other finance expense | (94,547) | (34,002) | (257,914) | (107,435) | ||||||
Other (expense) income, net | 219,838 | (47) | 228,171 | (9,136) | ||||||
Change in fair value of warrants | 1,150 | 163,394 | 715,997 | 4,526,330 | ||||||
Total other (expense) income, net | (609,315) | 49,182 | (1,637,466) | 4,375,874 | ||||||
INCOME BEFORE INCOME TAXES | 909,497 | 1,994,004 | 3,432,629 | 15,355,238 | ||||||
PROVISION FOR INCOME TAXES | 404,717 | 576,341 | 1,436,211 | 2,983,158 | ||||||
NET INCOME | 504,780 | 1,417,663 | 1,996,418 | 12,372,080 | ||||||
OTHER COMPREHENSIVE INCOME | ||||||||||
Foreign currency translation adjustment | 662,084 | 714,277 | 653,710 | 2,543,636 | ||||||
COMPREHENSIVE INCOME | $ | 1,166,864 | $ | 2,131,940 | $ | 2,650,128 | $ | 14,915,716 | ||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES | ||||||||||
Basic and diluted | 21,121,372 | 21,090,948 | 21,121,372 | 21,090,948 | ||||||
EARNINGS PER SHARE | ||||||||||
Basic and diluted | $ | 0.02 | $ | 0.07 | $ | 0.09 | $ | 0.59 |
SINOCOKING COAL AND COKE CHEMICAL INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| ||||||||||
ASSETS | ||||||||||
March 31, | June 30, | |||||||||
2013 | 2012 | |||||||||
CURRENT ASSETS | ||||||||||
Cash | $ | 2,081,078 | $ | 2,366,718 | ||||||
Restricted cash | 16,064,000 | 9,668,000 | ||||||||
Accounts receivable, trade, net | 8,382,172 | 12,017,231 | ||||||||
Notes receivable, trade | - | 14,176,800 | ||||||||
Notes receivable, mine acquisition | - | 9,155,520 | ||||||||
Other receivables | 4,398,235 | 1,412,008 | ||||||||
Loans receivable | 17,596,037 | 9,849,937 | ||||||||
Refundable deposit | 4,782,000 | 4,752,000 | ||||||||
Inventories | 3,015,779 | 2,382,444 | ||||||||
Advances to suppliers | 9,677,328 | 12,267,806 | ||||||||
Prepaid expenses | 2,702 | 633,313 | ||||||||
Total current assets | 65,999,331 | 78,681,777 | ||||||||
PLANT AND EQUIPMENT, net | 15,372,456 | 16,211,984 | ||||||||
CONSTRUCTION IN PROGRESS | 39,628,161 | 39,379,553 | ||||||||
OTHER ASSETS | ||||||||||
Prepayments | 61,134,100 | 36,071,853 | ||||||||
Intangible assets, net | 31,783,145 | 31,635,487 | ||||||||
Long-term investments | 2,843,569 | 2,825,730 | ||||||||
Other assets | 111,580 | 110,880 | ||||||||
Total other assets | 95,872,394 | 70,643,950 | ||||||||
Total assets | $ | 216,872,342 | $ | 204,917,264 | ||||||
LIABILITIES AND EQUITY | ||||||||||
CURRENT LIABILITIES | ||||||||||
Short term loan - bank | $ | 15,302,400 | $ | 5,702,400 | ||||||
Current maturity of long term loan | 23,910,000 | 20,592,000 | ||||||||
Accounts payable, trade | - | 4,023 | ||||||||
Notes payable | 9,564,000 | 4,752,000 | ||||||||
Other payables and accrued liabilities | 1,241,572 | 802,028 | ||||||||
Other payables - related parties | 167,787 | 156,227 | ||||||||
Acquisition payable | 4,622,600 | 4,593,600 | ||||||||
Customer deposits | 126,018 | 138,457 | ||||||||
Taxes payable | 1,089,367 | 1,522,062 | ||||||||
Total current liabilities | 56,023,744 | 38,262,797 | ||||||||
LONG TERM LIABILITIES | ||||||||||
Long term loan | 28,692,000 | 36,432,000 | ||||||||
Warrants liability | 651 | 716,648 | ||||||||
Total long term liabilities | 28,692,651 | 37,148,648 | ||||||||
Total liabilities | 84,716,395 | 75,411,445 | ||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
EQUITY | ||||||||||
Common stock, $0.001 par value, 100,000,000 shares authorized, 21,121,372 shares issued and outstanding | 21,121 | 21,121 | ||||||||
Additional paid-in capital | 3,592,053 | 3,592,053 | ||||||||
Statutory reserves | 3,689,941 | 3,689,941 | ||||||||
Retained earnings | 112,253,550 | 110,257,132 | ||||||||
Accumulated other comprehensive income | 8,267,682 | 7,613,972 | ||||||||
Total SinoCoking Coal and Coke Chemicals Industries, Inc's equity | 127,824,347 | 125,174,219 | ||||||||
NONCONTROLLING INTERESTS | 4,331,600 | 4,331,600 | ||||||||
Total equity | 132,155,947 | 129,505,819 | ||||||||
Total liabilities and equity | $ | 216,872,342 | $ | 204,917,264 | ||||||