Asia Packaging Group Inc. Announces Third Quarter Fiscal 2012 Financial Results and a Pending Acquisition
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 03/01/12 -- Asia Packaging Group Inc. (TSX VENTURE: APX) ("Asia Packaging" or the "Company") announces its interim financial statements for the three-month period ending December 31, 2011. The Company is also pleased to announce that it has signed a purchase agreement to acquire JinJiang City Anhai Hongrizhong Plastic Color Printing Co., Ltd.
Interim Financial Results
Highlights
"We are pleased to report that we have improved our performance as we continue to shift our product focus towards higher margin Medical products," stated Mr. Wenge Hong, President and CEO of Asia Packaging. "Further, the acquisition of Anhai Hongrizhong will increase our mix of higher margin products while bringing us closer to larger customers. The Anhai Hongrizhong business generated over $6 million in revenue last year and is profitable. Given the minimum share dilution, the acquisition is expected to be immediately accretive to the earnings per share of Asia Packaging."
During the third quarter, sales at Asia Packaging increased to over $11 million representing an 8.7% increase compared with the corresponding period of last year. This increase was achieved thru a change in product mix away from lower margin CPP film in favor of higher margin medical packaging products. As a result of this change in mix, the average sale price experienced during the quarter increased by 29.7% compared with the same period last year.
With the change in product mix towards medical packaging and away from the commodity CPP film products, gross margin improved during the third quarter to 27.3% from 24.9% during the same quarter of last year.
SUMMARY FINANCIAL STATEMENTS
:
For the three months ended December 31, 2011, EBITDA increased by $340,061 or 13.7%. The increase in EBITDA was primarily the result of the aforementioned increase in income before tax.
Net income for the three months ended December 31, 2011 was $2,311,130, representing a 10.3% increase compared to the same period last year. Net income in the current three months ended December 31, 2011 represents 21% of gross revenue, compared to 20.7% of gross revenue for the comparable period last year.
Acquisition of Anhai Hongrizhong
Mei Tak (HK) Group Limited ("Mei Tak"), The Company's wholly-owned subsidiary, has signed an asset purchase agreement (the "Agreement") dated February 27, 2012 with JinJiang City Anhai Hongrizhong Plastic Color Printing Co., Ltd. ("Anhai Hongrizhong"), a company incorporated in the People's Republic of China, and Jinyang Yang, a Chinese businessman.
Under the terms of the Agreement, Mei Tak has agreed to buy from Anhai Hongrizhong and from Mr. Yang (together, the "Vendors") certain assets involved in plastic color printing located in the People's Republic of China (the "Business Assets").
In consideration for the Business Assets, Mei Tak has agreed to pay to the Vendors RMB 50,000,000 as follows: RMB 40,000,000 in cash and RMB 10,000,000 worth of common shares (the "Consideration Shares") in the capital of the Company at a price of CDN$0.30 per share (approximately 5,343,336 common shares in the capital of the Company). The Consideration Shares are issuable to Mr. Yang or his personal holding company only after all of the following milestones has been achieved:
The Company expects to close the acquisition within the next week.
About Asia Packaging Group Inc.
Asia Packaging Group, through its wholly-owned subsidiaries in the People's Republic of China ("PRC"), is in the business of manufacturing packaging products and services to the food and pharmaceutical industries in China. The Company operates a 38,000 square meter plant located in Yichun City, Jiangxi Province in PRC.
This news release contains certain statements that may be deemed "forward looking statements". Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward looking statements, except as required by law, in the event that management's beliefs, estimates or opinions, or other factors, should change.
Contacts:
Asia Packaging Group
Robert Wilson
Vice President
416-666-4005
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Datum: 01.03.2012 - 07:00 Uhr
Sprache: Deutsch
News-ID 1088680
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