Asia Bio-Chem Group Corp. Announces Third Quarter 2015 Financial Results

TORONTO, Nov. 30, 2015 /CNW/ - Asia Bio-Chem Group Corp. (CSE: ABC) ("Asia Bio-Chem" or the "Company") announces its financial results for the three-month period ending September 30, 2015.

Highlights

  • During the third quarter, the Company had no production and sold only a small amount of Fibre.
  • Net loss for the third quarter was $13.4 million (-$0.16 per share) compared with a net loss of $8.6 million (-$0.10 per share) during the third quarter of 2014.
  • The company's EBITDA was negative $2.6 million during the third quarter compared with negative $2.6 million during the third quarter of 2014.
  • The Company continues to fund its losses with loans from various sources. As at September 30, 2015, total loans outstanding were $277.6 million.
  • The Company maintains unrestricted cash balance of $0.5 million at September 30, 2015.

 

"Our Company continues to struggle with the weak Chinese economy and low product prices", stated Mr. Zhiping Wang, President and CEO of Asia Bio-Chem.  "We are continuing to work through the structure and necessary approvals for our transaction with Beidahuang."

During the third quarter, in reaction to weak product prices, the Company discontinued production and had negligible sales from inventory.   This is similar to the situation during the corresponding third quarter of 2014.  The lack of production was due to the weak Chinese economy and soft demand for the Company's products.

Operating expenses were $6.0 million during the quarter compared with $6.2 million during the corresponding period in 2014. Consequently, operating losses remained at $6.1 million compared with $6.2 million during the same period in 2014.

Other expenses increased during the quarter to $7.6 million compared with $3.4 million during the same quarter of 2014. This increase was due to higher average loan balances and higher borrowing costs from lenders.

 

SUMMARY FINANCIAL STATEMENTS

in thousands of Canadian

dollars except per share and



Three Months Ended

September 30,



percentage data



2015


2014


% Change









Sales



(16)


0


n/a

Gross profit



(74)


0


n/a

Gross margin (% of Sales)



n/a


n/a



Operating expenses



6,044


6,156


-1.8%

Income (loss) from operations



(6,118)


(6,156)


0.6%

Other income (expense)



(7,598)


(3,443)


-120.7%

Income taxes (recoveries)



(353)


(1,035)


n/a

Net (loss)



(13,364)


(8,551)


-56.3%

EBITDA



(2,649)


(2,614)


-1.3%

Earnings per share:








Basic



(0.16)


(0.10)




Diluted



(0.16)


(0.10)



Weighted average number of shares:








Basic



85,306,258


85,306,258




Diluted



85,306,258


85,306,258



















Balance Sheet Highlights



As at 9/30/15


As at 12/31/14



Cash



541


7,538



Restricted Cash



0


246



Working Capital



(280,184)


(224,549)



Total assets



254,469


252,487



Current Ratio



0.26:1


0.31:1



 

During the third quarter, the Company's refinanced or renewed its short-term borrowings, which totaled $277.6 million as at September 30, 2015.   Further, during the quarter the company reduced its BA lines of credit, which resulted in the elimination of the restricted cash balance at September 30, 2015.

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.

For further information: For Investor Relations: Robert Wilson, Tel: 416-603-7500, Email: robert.wilson@asiabiochem.com

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www.asiabiochem.com

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