NEW YORK and SHANDONG, China, Nov. 16, 2010 (GLOBE NEWSWIRE) -- Sabre Industrial Inc. (OTCQB:SBRD), also known as Tsingyuan Holding Inc., a Shandong-based leading manufacturer and distributor of brewer's malt and beer in China, today announced its third quarter financial results and provided a business update.
Q3 2010 financial highlights:
- Revenue increased 388% to $18.5 million compared to $3.8 million for Q3 2009
- Gross profit increased 279% to $4.1 million versus $1.1 million for Q3 2009
- Operating income increased 295% to $3.9 million versus $1.0 million for Q3 2009
- Net income increased 350% to $3.0 million, or $0.02 per share, versus $0.7 million for Q3 2009
Zhang Dingyou, Chief Executive Officer, commented, "We are very pleased to report a 388% increase in revenue to $18.5 million, which exceeded our combined sales for the entire first half of 2010. The beer industry in China continues to grow rapidly due to increased discretionary spending, especially in the second- and the third-tier cities where we are focused. In particular, these consumers are looking for well-crafted yet moderately priced beer. In fact, 90% of the beer produced in China today is low quality, low price beer developed to meet the demands of a less developed economy. Our recent growth clearly illustrates that our brands have resonated with the growing middle-class consumers and we are rapidly gaining market share. Our brewing professionals come from the leading beer companies and we use the latest brewing technologies. We are also known for the high quality natural spring water used in our manufacturing process. We now offer 9 varieties of beer, catering to a wide array of palates and seasonal trends."
Mr. Zhang continued, "In addition to growing beer sales, we have also seen strong growth in our brewer's malt line of products, which we sell to breweries in 10 provinces across China. We've established ourselves as a high-end producer of malt due to our insistence on importing barley from Australia, France and Canada, as well as our use of high-quality Dongbei rice and the best hops from Ganshu Province."
Zhang Dingyou continued, "In addition to our strong brand, we have also established an extensive sales and distribution network across China, which spans Shandong, Hebei, Tianjin, Henan, Anhui, Jiangsu, and Shanxi provinces. We plan to leverage our brand, our malt production, and our nationwide distribution network by acquiring regional brewers that are well established in their respective markets. In addition to expanding our product portfolio, we can gradually introduce our own brand into these markets. The beer market in China is highly fragmented, especially within the tier II and tier III markets. We believe we can acquire these companies at highly accretive multiples, and then increase capacity utilization to achieve meaningful operating leverage and economies of scale."
Revenue for the third quarter ended September 30, 2010 increased 388% to $18.5 million, compared to $3.8 million for the third quarter ended September 30, 2009. Gross profit increased 279% to $4.1 million for the three months ended September 30, 2010, compared to $1.1 million for the third quarter ended September 30, 2009. Operating income increased 295% to $3.9 million for the three months ended September 30, 2010, compared to $1.0 million for the same period last year. Net income for the three months ended September 30, 2010 increased 350% to $3.0 million, or $0.02 per diluted share, compared to $0.7 million for the same period last year.
Revenue for the nine months ended September 30, 2010 increased 233% to $32.9 million, compared to $9.9 million for the nine months ended September 30, 2009. Gross profit increased 188% to $6.7 million for the nine months ended September 30, 2010, compared to $2.3 million for the nine months ended September 30, 2009. Operating income increased 197% to $6.3 million for the nine months ended September 30, 2010, compared to $2.1 million for the same period last year. Net income for the nine months ended September 30, 2010 increased 229% to $4.8 million, or $0.04 per share, compared to $1.5 million for the same period last year.
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 ten provinces across China. The beer products are distributed throughout six 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 nine 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.
| SABRE INDUSTRIAL, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| September 30, 2010 | December 31, 2009 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $411,069 | $2,923,238 |
| Account Receivable | 3,710,354 | 505,464 |
| Inventories | 3,358,687 | 569,886 |
| Advances to suppliers | -- | -- |
| Due from related parties | -- | -- |
| Other current assets | -- | -- |
| Total Current Assets | 7,480,110 | 3,998,588 |
| Plant and Equipment | 17,008,324 | 16,836,710 |
| Construction in progress | -- | -- |
| Restricted assets | -- | 808,564 |
| Deferred tax assets | -- | 71,158 |
| Intangible asset, net | 1,426,942 | 1,419,029 |
| Total Assets | $25,915,376 | $23,134,049 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Short-term loans | $-- | $6,581,642 |
| Accounts payable and accrued expense | 1,219,287 | 3,835,656 |
| Advances from customers | 283,663 | -- |
| Taxes payable | 2,698,067 | 91,834 |
| Due to related parties | 4,350,389 | 371,106 |
| Total Current Liabilities | 8,551,406 | 10,880,238 |
| Stockholders' Equity: | ||
| Preferred stock, Series B - 1,000 authorized, $0.01 par value | 10 | -- |
|
Common stock ($0.0001 par value, 300,000,000 shares authorized, 125,715,573 share issued and outstanding) |
125,715 | -- |
| Additional paid in capital | 11,013,178 | 11,158,533 |
| Statutory surplus reserves | 482,389 | -- |
| Retained earnings (cumulated deficits) | 4,043,460 | -264,851 |
| Accumulated other comprehensive income | 1,699,218 | 1,360,129 |
| Total Stockholders' Equity | 17,363,970 | 12,253,811 |
| Total Liabilities and Stockholders' Equity | $25,915,376 | $23,134,049 |
| SABRE INDUSTRIAL, INC. AND SUBSIDIARIES | ||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||
|
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||
| 2010 | 2009 | 2010 | 2009 | |||||
| Sales | $18,525,985 | $3,798,568 | $32,869,038 | $9,861,691 | ||||
| Cost of goods sold | 14,432,621 | 2,719,463 | 26,141,747 | 7,528,546 | ||||
| Gross profit | 4,093,364 | 1,079,105 | 6,727,291 | 2,333,145 | ||||
| Operating expenses: | ||||||||
| General and administrative expenses | 121,943 | 83,781 | 331,690 | 197,340 | ||||
| Selling expenses | 42,010 | 730 | 66,356 | 5,426 | ||||
| Total operating expenses | 163,953 | 84,511 | 398,046 | 202,766 | ||||
| Income from operations | 3,929,411 | 994,594 | 6,329,245 | 2,130,379 | ||||
| Other income (expense): | ||||||||
| Interest expense | -3,328 | -154,180 | -189,788 | -742,700 | ||||
| Interest income | 5,519 | 44,177 | 149,983 | 286,484 | ||||
| Other (expense) income | 46,161 | 15,971 | 98,147 | 226,873 | ||||
| Total other income (expenses) | 48,352 | -94,032 | 58,342 | -229,343 | ||||
| Income before income taxes | 3,977,763 | 900,562 | 6,387,587 | 1,901,036 | ||||
| Income taxes expense (benefit) | 997,912 | 237,739 | 1,596,887 | 442,884 | ||||
| Net income | 2,979,851 | 662,823 | 4,790,700 | 1,458,152 | ||||
| Other comprehensive income: | ||||||||
|
Unrealized foreign currency translation adjustment |
280,664 | 15,971 | 339,089 | 26,660 | ||||
| Comprehensive income | $3,260,515 | $678,794 | $5,129,789 | $1,484,812 | ||||
| SABRE INDUSTRIAL, INC. AND SUBSIDIARIES | ||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
|
For the Nine Months Ended September 30, |
||
| 2010 | 2009 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | $4,790,700 | $1,458,152 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||
| Capital recapitalization | -19,630 | -- |
| Depreciation and amortization | 722,799 | 376,915 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | -3,138,953 | -388,453 |
| Advances to suppliers | -- | -1,616,741 |
| Inventories | -2,728,772 | -1,328,373 |
| Restricted assets | 811,031 | -654,493 |
| Deferred tax assets | 71,376 | 442,884 |
| Accounts payables and accrued expense | -2,648,893 | 185,243 |
| Taxes payable | 2,559,127 | 227,535 |
| Other payables | -- | 3,108,084 |
| Advances from customers | 278,740 | -- |
| Total adjustments | -4,093,175 | 352,601 |
| Net cash (used in) provided by operating activities | 697,525 | 1,810,753 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchase of intangible assets | -- | -268,727 |
| Purchase of plant and equipment | -526,671 | -- |
| Net cash used in investing activities | -526,671 | -268,727 |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from short-term loans | -- | 6,284,244 |
| Repayments to short-term loans | -6,601,725 | -13,591,504 |
| Due to related parties | 3,902,649 | 1,154,407 |
| Due from related parties | -- | 9,230,564 |
| Net cash (used in) provided by financing activities | -2,699,076 | 3,077,711 |
| NET (DECREASE) INCREASE IN CASH | -2,528,222 | 4,619,737 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | 16,053 | -29,091 |
| CASH, BEGINNING OF YEAR | 2,923,238 | 1,482,645 |
| CASH, END OF PERIOD | $411,069 | $6,073,291 |