VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 1, 2012) - Sunshine Agri-Tech Inc. (TSX VENTURE:SAI) ("Sunshine" or the "Company") today announced its annual financial results for the three month and the fifteen-month period ending December 31, 2011.
Annual Financial Results
- During the fifteen-month period ended December 31, 2011 the Company has successfully increased its sales by 24.1% compared with the same period ended December 31, 2010. This increase was a result of the improved volume and pricing of pig mix product which represented 43% of total volume during the period.
- The Company is pleased to announce that the Strategic Agreement with Jilin University announced on June 28, 2011 has been successful and allowed the company to increased manufacturing volumes with a focus on the pig mix product. During the fifteen month period ended December 31, 2011 the Company achieved a 287% increase (in RMB terms) in its pig mix product over the corresponding period ended December 31, 2010.
- Aggressive pricing of its pig mix products coupled with higher corn costs resulted in a reduction in gross margin to 14.8% for the fifteen month period ended December 31, 2011 compared with 17.2% during the same period ending December 31, 2010.
- Higher operating expenses caused net loss to increase to $760,211 during the fifteen-month period ended December 31, 2011 compared with a loss of $175,751 during the corresponding period ending December 31, 2010.
- The Company maintains a strong balance sheet with $1.84 million in cash and no debt.
"We have made good progress with our sales efforts into the pig marketplace thru our pig mix product category and are comfortable that we can continue to grow this business with our new capacity," stated Mr. Baojun Zhang, President and CEO of Sunshine. "We continue to strengthen our position in the organic feed industry thru research and development in the area of microbial feed. Our R&D activities have been expanded thru our Strategic Agreement with Jilin University."
SUMMARY FINANCIAL STATEMENTS
Driven by increases in volumes of pig mix, the Company's sales improved during both the quarter and the fifteen-month period ended December 31, 2011 by 27.2% and 24.1% respectively compared with the corresponding periods ending December 31, 2010.
|Three-Month Period Ended December 31 (Unaudited)||Change||Fifteen-
|Gross margin (% of Sales)||16.0%||18.5%||-14%||14.8%||17.2%||-14%|
|Loss from operations||(367,199)||(133,509)||175%||(936,939)||(502,269)||87%|
|Net income (loss)||(370,314)||52,588||-804%||(760,211)||(175,751)||333%|
|EBITDA before stock-based compensation||(178,204)||103,809||-272%||(447,380)||469,448||-195%|
|Earnings per share|
|Weighted average number of shares||72,006,250||71,997,880||72,004,565||71,997,880|
Higher general and administrative expenses caused operating expenses to increase during the fifteen month and three month periods ended December 31, 2011 respectively. As a result, earnings before interest, tax, depreciation and amortization (EBITDA) were lower during both reported periods.
After adjusting for, non-cash, stock based compensation expense, EBITDA declined to negative $627,330 for the fifteen-month period ended December 31, 2011 from a negative of $28,632 during the same period ending December 31, 2010.
Net loss for the fifteen-month period ended December 31, 2011 was $760,211 ($0.01 per share) compared with a net loss of $175,751 ($0.01 per share) during the corresponding period of 2010.
As at December 31, 2011 the Company maintained positive working capital of $2.2 million with a cash position of $1.84 million and no bank debt.
About Sunshine Agri-Tech Inc.:
Sunshine Agri-Tech Inc. (TSX VENTURE:SAI) is a public company listed on the TSX Venture exchange. The Company is engaged in the research, development, production and sales of bio-feed, microbial feed additives and related products that aim to improve the health and performance of animals. The Company's line of products include: (a) bio-feed; and, (b) microbial feed additives. The Company currently sells its products throughout China. The Company is based in the city of Dalian, Liaoning province in the Peoples Republic of China.
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.