News Feed Item

Asia Bio-Chem Group Corp. Announces 2013 Fourth Quarter and Fiscal Year End Financial Results

TORONTO, March 31, 2014 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC) ("Asia Bio-Chem" or the "Company") announces its financial results for the three-month and fiscal year ending December 31, 2013.


  • The Company continues to manage its capacity utilization in reaction to market conditions.  During the fourth quarter, the Company's Changtu and Daqing plants operated at approximately 12% capacity while the newly acquired Tieling facility remained closed.  Consequently, revenues were $18.0 million during the fourth quarter representing a 12.3% decline from the same period of 2012.

  • During the fourth quarter, lower starch prices caused a negative gross margin of 13.4% compared with a negative gross margin of 13.0% during the same period in 2012.

  • The Company took a $30.0 million non-cash charge during the quarter to reflect impairment of the assets employed in the business.
  • As a result of the impairment charge, the Company 's EBITDA decreased during the fourth quarter to negative $34.3 million compared with negative $8.1 million during the fourth quarter of 2012.

  • Net loss for the fourth quarter was $41.0 million (-$0.48 per share) compared with a net loss of $14.4 million (-$0.17 per share) during the fourth quarter of 2012

  • The Company continues to enjoy the strong support of its banking group and successfully renewed all loans due in the fourth quarter and obtained additional $4.7 million in loans in the quarter.

  • The Company maintains unrestricted cash balance of $1.6 million at December 31, 2013.

  • On March 7, 2014 the Company announced that its controlling shareholders have entered into a letter of intent to sell of their shares of Asia Bio-Chem to a subsidiary of the Chinese state-owned Beidahuang State Farm Group General Corp.  This transaction is expected to close during the second quarter of the current fiscal year.

  • On February 28, 2014 the Company announced that it was put on notice by the Toronto Stock Exchange that its common shares will be delisted on March 28, 2014.  In order to provide continuous trading in its shares, the Company obtained approval for listing on the Canadian Securities Exchange which commenced on March 27, 2014.

"During 2013 our industry has continued to struggle from the weak Chinese economy and we have seen rationalization and consolidation," stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem.  "We are pleased to be part of this consolidation through our pending transaction with Beidahuang State Farm Group. Upon closing, Asia Bio-Chem expects to benefit from financial support and integration with the State Farm corn purchasing and down-stream processing capabilities".

During the fourth quarter, overall production was 24,732 tonnes representing 12% capacity utilization of the Daqing and Changtu facilities. For the fiscal your 2013, capacity utilization of these plants was 31%.

During the fourth quarter, gross margin reached -13.4% as starch and germ prices declined and corn costs remained relatively constant compared with the fourth quarter of 2012.  For the year as a whole, gross margin improved to -5.3% from -6.3% the previous year.  This improvement was primarily due to lower corn costs and higher product prices for gluten and fibre.


in thousands of Canadian
dollars except per share and
percentage data
Three Months Ended   Twelve Months Ended December 31
  31/12/13 31/12/12 % Change   2013   2012 % Change
Sales 18,027 20,565 -12.3%            109,261            130,440 29.1%
Gross profit (2,419) (2,680) -9.7%              (5,812)              (8,203)  
Gross margin (% of Sales) -13.4% -13.0%     -5.3%   -6.3% 112.6%
Operating expenses 5,519 7,908 -330.7%             23,014             24,247 -76.8%
Income (loss) from operations (7,938) (10,588) -244.6%            (28,826)            (32,450) -103.5%
Other income (expense) (33,378) (1,331) -150.4%            (42,876)              (6,306) n/a
Income recovery (taxes) (358) (2,446) n/a   809                (523) -80.8%
Net income (40,957) (14,385) 174.3%            (72,512)            (39,279) -75.6%
EBITDA (34,317) (8,120) 304.2%            (43,384)            (23,854) -78.2%
EBITDA before stock-based compensation (34,313) (8,092) 305.5%            (43,373)            (23,497) 29.1%
Earnings per share                
Basic (0.48) (0.17)                 (0.83)                (0.46)  
Diluted (0.48) (0.17)                (0.83)                (0.46)  
Weighted average number of shares                
Basic             85,306,258        85,306,258  
Diluted             85,306,258     85,306,258   
Balance Sheet
        As at
  As at
Cash         34,612   36,185  
Working capital          (169,290)   (48,553)  
Total assets         255,557   221,494  
Current ratio         0.33:1x   0.68:1x  

Earnings before interest, taxes, depreciation and amortization ("EBITDA") during the fourth quarter declined by $26.2 million compared with the same period of 2012. However adjusting for the non-cash impairment charge, EBITDA improved during the fourth quarter by $3.8 million compared with the fourth quarter of 2012.

For the fiscal year, EBITDA, after adjusting for the impairment charge, improved to negative $13.3 million from negative $19.5 million during fiscal 2012.

In addition to the impairment charge, the Company experienced higher depreciation and G&A costs during the fourth quarter and fiscal year ended December 31, 2013.  These higher costs were largely associated with the Tieling facility which remained closed during the year.

Net losses for the fourth quarter and year was $41.0 million and $72.5 million respectively.  While these losses were significantly higher than the corresponding periods of the previous year, the higher losses are almost entirely due to the impairment charge taken in the fourth quarter.

During 2013, the Company's unrestricted cash position declined to $1.6 million and total debt increased to $209.5 million as at December 31, 2013.

Conference Call
The Company will hold a conference call to discuss its results hosted by Mr. Zhiping Wang, President and Chief Executive Officer, Mr. Robert Wilson, Executive Vice President, and Ms. Elaine Zhao, Chief Financial Officer.  Details regarding the call are as follows:

Date:               Tuesday, April 1, 2014
Time:               9:00 AM Eastern Standard Time
Dial in number:    1-888-231-8191 or  647-427-7450
Conference ID and  
Replay pass code:   10088019
Taped Replay:      1-855-859-2056 or 416-849-0833
  (Available until April 7, 2014)

About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the People's Republic of China, is in the business of processing corn into cornstarch, germ and gluten for sale into the domestic Chinese market.  From its plants in Liaoning and Heilongjiang Province, the Company has a total processing capacity of 1.5 million tonnes of corn per year.

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.

SOURCE Asia Bio-Chem Group Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
SYS-CON Events announced today that Cemware will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Use MATLAB functions by just visiting website mathfreeon.com. MATLAB compatible, freely usable, online platform services. As of October 2016, 80,000 users from 180 countries are enjoying our platform service.
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...