Huaxing Machinery Corp.
TSX VENTURE : HUA

Huaxing Machinery Corp.

September 03, 2013 19:16 ET

Huaxing Machinery Corp. Reports Consolidated Financial Results for the Three and Six Months Ended June 30, 2013 and June 30, 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 3, 2013) - Huaxing Machinery Corp. (TSX VENTURE:HUA) ("Huaxing" or the "Company") reports its unaudited consolidated financial results as at and for the three and six months ended June 30, 2013 and June 30, 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 June 30, 2013 in comparison to those of the three months ended June 30, 2012 are as follows:

Three Months Three Months Increase from
Ended June 30, Ended June 30, 2012 to 2013
(Unaudited) 2013 2012 $ %
Sales 13,167,409 8,456,772 4,710,637 55.70%
Cost of sales 10,045,777 5,862,953 4,182,824 71.34%
Gross profit 3,121,632 2,593,819 527,813 20.35%
Income from operations 1,776,905 1,614,712 162,193 10.04%
Net income 1,452,767 1,445,170 7,597 0.53%
Net income attributable to equity holders of the Company 1,142,584 1,129,521 13,063 1.16%

Basic and diluted earnings per share decreased from $0.03 for the three months ended June 30, 2012 to $0.02 for the three months ended June 30, 2013, as the Company's number of shares issued and outstanding increased from 38,883,250 in 2012 to 59,250,672 and the Company granted 2,840,000 options in 2013.

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

Six Months Ended Six Months Ended Changes from
June 30, June 30, 2012 to 2013
(Unaudited) 2013 2012 $ %
Sales 20,048,205 15,513,721 4,534,484 29.23%
Cost of sales 15,383,550 11,137,654 4,245,896 38.12%
Gross profit 4,664,655 4,376,067 288,588 6.59%
Income from operations 2,519,554 2,444,232 75,322 3.08%
Net income 2,009,348 2,074,852 (65,504) (3.16%)
Net income attributable to equity holders of the Company 1,572,346 1,607,769 (35,423) (2.20%)

During the six months ended June 30, 2013 the Company recorded stock based compensation of $57,230 for the options granted and vested during the period. During the six months ended June 30, 2012 the Company did not have such non-cash expenses.

Effective June 9, 2013 the Company's Board of Directors declared a cash dividend of one cent per share on the common shares and preferred shares of the Company payable on September 15, 2013 to shareholders of record at the close of business on August 15, 2013. Total payable to shareholders for the cash dividend declared is $591,507.

At June 30, 2013, the Company had cash balance of $6,252,154 and working capital of $10,510,630 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. 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
    CFO
    778-373-1485