China Resources Development releases profitable second quarter sales & earnings figures -- has guaranteed minimum gross profit margin in contract --.ORLANDO Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. , Fla.--(BUSINESS WIRE)--Sept. 8, 1995--China Resources Development Inc. (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 :CHRB CHRB California Horse Racing Board CHRB Community Housing Resource Board (Montana) CHRB Commonwealth Health Research Board ) released Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant their 10-Q quarterly report for the fiscal quarter ended June June: see month. 30, 1995. Second quarter sales were $50,707,000, with net income after minority interests of $894,000. Net income per common share was .075 with 12 million shares outstanding. These sales and earnings reflect an increase over the 1994 second quarter results of $36,828,000 with net income after minority interests of $836,000. Mr. Tam Chcuk Ho, chief financial officer said: "We are very pleased with our second quarter numbers. Our sales for the six months ended June 30 were $72,093,000, with a net income of $976,000, or .081 net income per share." China Resources China Resources (Chinese: 華潤; HKSE: 0291 ) is a group of companies in wide variety of business in Hong Kong and mainland China. Some of its companies use the name the acronym CRC. Development commenced trading on the Nasdaq Small Cap Market in August. Mr. Li Shunxing, said: "Our entry onto Nasdaq offers our US investment partners the opportunity to participate in China's attractive market. It is the largest economy in the world in terms of population, and it's the third largest in land mass. With China's strong economy expected to grow 10% this year, the demand for our natural rubber products grows accordingly. China's infrastructure needs means all our products have waiting buyers. "HARC has a guaranteed minimum gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. in its contract with the Farming Bureau. Together, we constitute the largest single source of rubber distribution in China. The future for our shareholders looks very promising." The company, through its majority-owned operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China (PRC), markets and distributes dry, natural rubber, liquid latex latex, emulsion of a polymer (e.g., rubber) in water (see colloid). Natural latexes are produced by a number of plants, are usually white in color, and often contain, in addition to rubber, various gums, oils, and waxes. and procures production materials and supplies for major customers. The company's sales increased by more than 55% from 1991 to 1994, from $133 million to $208 million. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income before minority interests increased 57%, from $2.8 million to $4.4 million. In 1994, the company distributed approx. 130,000 tons of natural rubber with a sales value of approximately $187 million. It also did approx. $20.6 million of procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. business. China Resources Development Inc. has offices in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Hainan, China, and Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. . The company, through a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , owns a 56% interest in the Hainan Agricultural Resources Co. Ltd. (HARC). The Farming Bureau, a division of the PRC Ministry of Agriculture, is a 44% partner and controls 92 farms on the island of Hainan. For more information, 10Q statements, corporate packages, or executive interviews, contact Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Tedrow at 801/972-2887 or 407/645-0207. -0-
China Resources Development Inc.
Condensed Consolidated Statements of Income
Unaudited-In thousands, except per share data
The Kenminbi (Rmb) exchange rate as of June 30, 1995
was US $1.00 = Rmb 8.2968
Three months ended
June 30,
(unaudited)
1995 1994 1995
---- ---- ----
RMB RMB US$
SALES 420,709 305,555 50,707
COST OF SALES (403,052) (289,445) (48,579)
------- ------- ------
GROSS PROFIT 17,657 16,110 2,128
DEPRECIATION OF FIXED ASSETS (616) (466) (74)
SELLING AND ADMINISTRATIVE
EXPENSES (14,203) (9,289) (1,712)
------- ------- ------
OPERATING INCOME 2,838 6,355 342
INTEREST EXPENSE (12,641) (15,028) (1,524)
OTHER INCOME 25,128 23,584 3,029
------- ------- ------
INCOME BEFORE INCOME TAXES 15,325 14,911 1,847
INCOME TAXES-CURRENT (1,941) (2,221) (234)
------- ------- ------
NET ICNOME BEFORE MINORITY
INTERESTS 13,384 12,690 1,613
MINORITY INTERESTS (5,962) (5,752) (719)
------- ------- ------
NET INCOME FOR THE PERIOD 7,422 6,938 894
------- ------- ------
NET INCOME PER COMMON SHARE 0.619 0.578 0.075
------- ------- ------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 12,000 12,000 12,000
Six months ended
June 30,
(unaudited)
1995 1994 1995
---- ---- ----
RMB RMB US$
SALES 598,139 446,040 72,093
COST OF SALES (569,741) (423,635) (68,670)
------- ------- ------
GROSS PROFIT 28,398 22,405 3,423
DEPRECIATION OF FIXED ASSETS (1,192) (852) (144)
SELLING AND ADMINISTRATIVE
EXPENSES (22,729) (15,298) (2,739)
------- ------- ------
OPERATING INCOME 4,477 6,255 540
INTEREST EXPENSE (23,668) (23,356) (2,853)
OTHER INCOME 36,707 33,284 4,424
------- ------- ------
INCOME BEFORE INCOME TAXES 17,516 16,183 2,111
INCOME TAXES-CURRENT (2,612) (2,485) (315)
------- ------- ------
NET ICNOME BEFORE MINORITY
INTERESTS 14,904 13,698 1,796
MINORITY INTERESTS (6,807) (6,196) (820)
------- ------- ------
NET INCOME FOR THE PERIOD 8,097 7,502 976
------- ------- ------
NET INCOME PER COMMON SHARE 0.675 0.625 0.081
------- ------- ------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 12,000 12,000 12,000
CONTACT: Thomas Tedrow, 801/972-2887 or 407/645-0207 |
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