Huaxing Machinery Corp.

TSX VENTURE : HUA


Huaxing Machinery Corp.

December 05, 2013 16:17 ET

Huaxing Machinery Corp. Reports Consolidated Financial Results for the Three and Nine Months Ended September 30, 2013

Vancouver, British Columbia - Huaxing Machinery Corp. (TSX VENTURE:HUA) ("Huaxing" or the "Company") reports its unaudited consolidated financial results as at and for the three and nine months ended September 30, 2013 and 2012 in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"). All dollar amounts are expressed in Canadian dollars.

Three Months Ended September 30

The Company's unaudited financial results for the three months ended September 30, 2013 in comparison to those of the three months ended September 30, 2012 are as follows:

Three Months Three Months
Ended Ended Increase from
September 30, September 30, 2012 to 2013
(Unaudited) 2013 2012 $ %
Sales 7,577,566 5,876,381 1,701,185 28.95 %
Cost of sales 5,382,458 4,209,072 1,173,386 27.88 %
Gross profit 2,195,108 1,667,309 527,799 31.66 %
Income from operations 712,791 480,507 232,284 48.34 %
Net income 614,505 390,057 224,448 57.54 %
Net income attributable to equity
holders of the Company 471,330 299,148 172,182 57.56 %

Basic and diluted earnings per share were $0.01 for the three months ended September 30, 2013 and 2012, as basic weighted average number of shares increased from 38,883,250 in 2012 to 59,250,672 in 2013 and diluted weighted average number of shares increased from 38,883,250 in 2012 to 62,090,672 in 2013.

The Company's sales of its stone processing equipment for the three months ended September 30 increased by $1,367,566 or 35.43% from 2012 to 2013 and sales of its new product steel structure fabrication equipment increased by $333,619 or 16.55% from 2012 to 2013.

Nine Months Ended September 30

The Company's unaudited financial results for the nine months ended September 30, 2013 in comparison to those of the nine months ended September 30, 2012 are as follows:

Nine Months Nine Months Increase from
Ended Ended 2012 to 2013
(Unaudited) September 30, 2013 September 30, 2012 $ %
Sales 27,625,771 21,390,102 6,235,669 29.15 %
Cost of sales 20,766,008 15,346,726 5,419,282 35.31 %
Gross profit 6,859,763 6,043,376 816,387 13.51 %
Income from operations 3,232,345 2,924,739 307,606 10.52 %
Net income 2,623,853 2,464,909 158,944 6.45 %
Net income attributable to equity
holders of the Company 2,043,676 1,906,917 136,759 7.17 %

The Company's sales of its traditional stone processing equipment increased by $3,626,846 or 22.48% from 2012 to 2013 and sales of its new product steel structure fabrication equipment increased by $2,608,823 or 49.64% from 2012 to 2013.

Basic and diluted earnings per share decreased from $0.05 for the nine months ended September 30, 2012 to $0.03 for the nine months ended September 30, 2012, as basic weighted average number of shares increased from 38,883,250 in 2012 to 59,250,672 in 2013 and diluted weighted average number of shares increased from 39,060,098 in 2012 to 61,684,372 in 2013.

At September 30, 2013, the Company had cash balance of $781,118 and working capital of $10,348,606 compared to cash balance of $2,425,082 and working capital of $7,717,030 at December 31, 2012.

About Huaxing Machinery Corp.

Huaxing is a manufacturer of stone processing equipment and steel structure fabrication equipment. 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
    CFO
    778-373-1485