China Container Holdings announces record results for the second quarter and first six months of 1996.YANGZHOU CITY, China--(BUSINESS WIRE)--Sept. 10, 1996-- Net income up by 8 fold; revenues rise 37 percent for six month period China Container Holdings Limited (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : CCHL CCHL Canadian Cyber Hockey League ) announced today its financial results for the second quarter ended June 30, 1996. The financial results are reported in U.S. dollars, the company's reporting currency Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. , and presented in accordance with U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Total consolidated revenues for the company increased 30 percent to $42,219,000 in comparison to $29,671,000 during the second quarter of 1995. CCHL reported second quarter net income of $2,692,000 compared to a loss of $897,000 for the second quarter of 1995. Earnings per share increased to $0.11 as compared to a loss of $0.03 per share for the second quarter 1995. Pre-tax margins for 2Q96 were 11 percent whereas 2Q95 reported pretax margins of (0.1 percent). Results for the 1995 second quarter included a non-recurring charge of $2.05 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's reorganization as a public company. For the six months ended June 30, 1996, total consolidated revenues increased 37 percent to $66,412,000 as compared to $48,453,000 the 1995 six month period. Net income rose by 933 percent to $4,379,000 for the six month period ended June 30, 1996 as compared to $423,000 a year ago. Earnings per share were $0.18 for the six month period ended June 30, 1996 as compared to $0.02 for the same period a year ago. It should be noted that the comparison between the 1996 and 1995 reporting periods is influenced by the 100 percent consolidation of revenues of CCHL's Tonglee manufacturing facility, the first refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. container "reefer reef·er n. Marijuana, especially a marijuana cigarette. " plant in operation in China that became fully operational in late 1995. Commenting on the first half results, Mr. Cheung Sau Yung, CCHL's president and chief executive officer, said: "We are very pleased with the Company's growth in revenues and margin improvement despite the first quarter being the seasonally weakest quarter. CCHL's increase in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight is attributable to strong demand for refrigerated containers which, due to a more sophisticated manufacturing process, have a higher profit margin than dry containers." Added Cheung, "We believe that we will have a very prosperous year ahead of us due to interest rates having been lowered by the People's Bank of China The People's Bank of China (PBC or PBOC) (Simplified Chinese: 中国人民银行; Traditional Chinese: . This should have a positive impact on the country's economy and its export industries. In addition, the government's commitment to expanding China's railway transportation infrastructure should open up new markets for CCHL." The company is also actively considering listing either on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market System or AMEX AMEX See: American Stock Exchange , and has filed a Form 10 registration statement with the Securities and Exchange Commission (SEC). China Container Holdings Limited is one of China's leading manufacturers of dry freight and refrigerated "reefer" containers. As a U.S. holding company, CCHL is the majority owner of three container manufacturing facilities: Yangzhou Tongyun Container Co. Ltd., Yangzhou Tongsheng Container Co. Ltd. and Yangzhou Tonglee Reefer Container Co. Ltd. These three operating container ventures serve the nearby ports of Shanghai, Nanjing, Zhenjiang, Zhangjiagang, Ningbo and Lianyungang, the largest delivery ports for goods exported from China. The combined container manufacturing capacity of CCHL's majority-owned container companies is approximately 85,000 TEUs annually. CCHL exports nearly all of its production to container leasing and shipping companies located outside of China, with approximately 75 percent of sales to U.S.-based companies. The company also has minority interests in container-components production and container transportation companies. -0-
China Container Holdings Ltd.
Consolidated Statements of Income (100 percent)
(Amounts in thousands, except for per share data, unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Net sales $42,219 $29,671 $66,412 $48,453
Cost of sales 35,853 26,519 55,609 41,708
Selling and
administrative expenses 933 1,223 2,154 2,111
______ _____ ______ ______
5,433 1,929 8,649 4,634
Financial expenses, net 860 425 1,334 1,159
Other income (expenses,
net) (5) 415 11 357
Reorganization expenses --- 2,050 --- 2,050
Income before income
taxes 4,568 (131) 7,326 1,782
Income taxes 316 159 562 389
4,252 (290) 6,764 1,393
Minority interests of Tonglee 930 --- 1,275 --- Share of net losses of associated companies (43) 319 15 352 Income before minority interest 3,365 (609) 5,474 1,041 Less minority interests 673 (288) 1,095 618 Net income 2,692 (897) 4,379 423 Net income per share $ 0.11 $ (0.03) $ 0.18 $ 0.02 Note: Tonglee's revenues have been 100 percent consolidated. China Container Holdings Limited Balance Sheets As of June 30, 1996 (Amounts in Thousands) As of June 30, 1996 Dec. 31, 1995 (unaudited) (audited) Assets Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. Cash and cash equivalents $ 991 $ 7,430 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying 31,258 7,641 Deposits and other receivables 5,582 1,203 Inventories 31,452 21,605 Deferred income taxes 84 84 Amount due from associated companies 903 1,244 Amount due from related companies 6,047 3,757 Total Current Assets $ 76,317 $ 51,748 Consolidated Intangible Assets 1,639 499 Fixed Assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → 14,819 6,335 Construction in progress 10,139 5,325 Interests in associated companies 2,869 5,826 Amounts due from related companies 310 670 Other 300 901 Total Assets $106,393 $ 71,305 Liabilities and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. Bank loans and overdrafts $ 70,831 $ 48,175 Accounts payable 4,612 3,705 Accrued liabilities and other payables 2,907 1,803 Income taxes payable 311 274 Amount due to an associated company 103 -- Amount due to a related company 3,315 2,630 Dividends payable Dividends payable The declared dividend dollar amount that a company is obligated to pay. -- -- Total current Liabilities $ 82,079 $ 56,587 Minority Interests 8,369 3,060 Shareholders' Equity Share Capital 25 25 Contributed surplus 7,820 4,590 Reserves 4,245 5,891 Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. 3,855 1,152 15,945 11,658 Total Liabilities and Shareholders' Equity $106,393 $ 71,305 CONTACT: China Container Holdings Limited Tim Ma, 201/497-2043 or GCI GCI Ground Circuit Interrupter GCI Getty Conservation Institute GCI Global Commerce Initiative GCI Green Cross International (non-profit international environmental organization) GCI Growth Competitiveness Index GCI Great Cities Institute Group Rick Anderson/Magda Bodnar 212/546-2562/ 212/546-1386 |
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