Huaxing Machinery Corp.

June 04, 2013 16:15 ET

Huaxing Machinery Corp. Reports Consolidated Financial Results for the Three Months Ended March 31, 2013 and March 31, 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 4, 2013) - Huaxing Machinery Corp. (TSX VENTURE:HUA) ("Huaxing" or the "Company") reports its unaudited consolidated financial results as at and for the three months ended March 31, 2013 and March 31, 2012 in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"). All dollar amounts are expressed in Canadian dollars.

The Company's unaudited financial results for the three months ended March 31, 2013 in comparison to those of the three months ended March 31, 2012 are as follows:

Three Three
Months Months
Ended Ended
March 31, March 31, Change from
2013 2012 2012 to 2013
(Unaudited) $ $ $ %
Sales 6,880,796 7,056,949 (176,153) (2.50%)
Cost of sales 5,337,773 5,274,701 63,072 1.20%
Gross profit 1,543,023 1,782,248 (239,225) (13.42%)
Income from operations 742,649 829,520 (86,871) (10.47%)
Net income 556,581 629,682 (73,101) (11.61%)
Net income attributable to equity holders of the Company 429,762 478,248 (48,486) (10.14%)
Earnings per share - basic and diluted 0.01 0.01 0.00 0.00%

For the three months ended March 31, 2013, unaudited consolidated income from operations and net income were $742,649 (2012 - $829,520) and $556,581 (2012 - $629,682), respectively.

During the three months ended March 31, 2013 we recorded stock based compensation of $50,563 for the options granted and vested during the period. During the three months ended March 31, 2012 we did not have such non-cash expenses.

The Board of Directors did not declare dividend for the three months ended March 31, 2013.

About Huaxing Machinery Corp.

Huaxing is a manufacturer of stone processing equipment and steel structure fabrication equipment. The Company became listed on TSX.V on January 21, 2011 upon completing the Qualifying Transaction with Samurai. Through its wholly owned subsidiary Gold Rhino Limited, Huaxing holds an 80% controlling equity interest in Shandong Gold Rhino Huaxing Machinery Corp., the operating entity that holds the manufacturing facilities located in Boxing County, Shandong Province, China. Its main products are stone sawing, cutting, polishing and processing machinery, and robotic welding system for steel structure fabrication. The processed stones and steel structures are both used in the building and infrastructure construction industry.

Forward-Looking Statements

Certain information regarding Huaxing Machinery Corp. contains herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward- looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. The Company assumes no obligation to update such forward- looking statements, except as required by applicable securities laws or exchange regulations. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The Company seeks safe harbour.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Huaxing Machinery Corp.
    Xinlin Huang