HONG KONG, Nov. 12 /CNW/ - PACRIM INTERANTIONAL CAPITAL INC. (PCN: TSX) ("Pacrim" or the "Company"), is pleased to report the Company's results for the first quarter ended September 30, 2009.
FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2009:
- FINANCIAL HIGHLIGHTS
Three months ended September 30
Revenue 30,146 590,772
Income (Loss) from Operations (50,202) 431,880
Equity Income from PICH 353,000 -
Net Income/(Loss) 3,314,654 (53,826)
Funds from (used in) Operations (282,927) 9,309
Total Assets 56,760,115 52,105,205
Rental Properties 11,589,469 15,217,979
Mortgages 4,789,817 6,175,116
Per Common Share
Net Income/(Loss) 0.052 (0.001)
Revenue for the first three months decreased by $560,626 to $30,146 when compared to the same period last year.
In the first three months of the fiscal year income from rental properties was $30,104, decreased by $23,010 compared to the same period last year. The decrease was mainly due to expiration of most of the rental leases with no renewal.
Interest income for the three months ending September 30, 2009 decreased by $537,616 to $42 when compared to the same period last year. The decrease was due to the retirement of all related party loans with interest bearing.
Equity Income from PICH:
The equity income from PICH is $353,000 for the first quarter of fiscal 2010. The equity investment in PICH is based on the fair values of the assets and liabilities of PICH at the date of acquisition, November 14, 2008.
Net income for the first three months increased by $3,368,480 from a loss of $53,826 to an income of $3,314,654 when compared to the same period last year. The increase was mainly due to the sale of the long-lived assets held for sale and real estate facilities for $6,090,000 during the quarter. The net proceeds to us were approximately $5,800,000. The long-lived assets held for sale were 17 apartments of Greenland Garden in Beijing, PRC. One of the real estate facilities sold was the apartment at Robinson Road in Hong Kong. As a result, the Company recognized a gain on sale of $3,036,273.
The Company has chosen to change its strategic direction from being a firm focused on Canadian real estate to one that is focused on one of the fastest growing economies in the world - China.
Using the same formula as in the past, management believes the company will successfully transit into the Chinese marketplace and continue to grow through a well-defined internal growth and external acquisition program. Management intends to seek out and take advantage of opportunities in the Asian market and will not restrict itself to the real estate or hospitality industries.
The full financial statements for the year end and the first quarter and the related Management's Discussion & Analysis are available on the System for Electronic Document Analysis and Retrieval (SEDAR) and can be accessed electronically at www.sedar.com.
About Pacrim International Capital Inc.
Pacrim International Capital Inc. ("Pacrim") is an investment holding company with its investments focused mostly in southern China. Pacrim's business strategy is to concentrate on the corrugated paper products and packaging industry in the Pearl River Delta area of southern China, the heart of the "World's Factory". The Company's head office is in Hong Kong with offices in Shenzhen, Guangzhou and Beijing. An intended strategy of Pacrim is to acquire selected small or medium size enterprises in China and to merge them for better operational efficiency. Like many industries in a developing economy, China's corrugation sector is comprised of mostly SMEs, some of which are weakened by the recent international financial crises, and may therefore be available to be taken over.
Caution concerning forward-looking statements
Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking and subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend" or "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: risks associated with China including state ownership, government sector intervention, foreign investment, repatriation of profit and currency conversion, tax, the developing legal system, protection of intellectual property rights, shareholder rights and enforcement of judgments, permits and business licenses, appropriation, political stability considerations, the central planned economy, fluctuations in foreign exchange rates and Chinese accounting and auditing standards; risks in business and operations including risks associated with expansion, future capital requirements, dependence on key personnel, environmental regulation, competition, risk in purchasing abroad, risk of change in the price of raw materials, product price volatility, insurance and operating plant risk; customer risk including risk of a single market and risk depending on major customers; technical risk including risk in the advance of technology and risk of relying on technology abroad; financial risk including foreign exchange risk, credit risk, liquidity risk, cash flow and fair value interest rate risk; investment strategy risk; and short term management transition risk.
We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of Pacrim's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis, the "Risk Factors" section of Schedule "A" to our Business Acquisition Report of January 28, 2009 and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time-to-time by us or on our behalf; such statements speak only as of the date made.
SOURCE PACRIM INTERNATIONAL CAPITAL INC.
For further information: For further information: Guy Lam, Chief Executive Officer, Pacrim International Capital Inc., Tel. 852-2526-1554