SOURCE: Pacific Bepure Industry, Inc. (Wollemi Mining Corporation)

May 17, 2010 08:00 ET

Pacific Bepure Reports 2010 First Quarter Profit Rose 48.06% on a 31.09% Increase in Sales Compared With the Prior Year Period

Company Reports That Consumer Appeal of Its Four "Travel Time" Footwear Lines, Improved Margins, and Geographic and Channel Expansion Contributed to Record Results

JINJIANG CITY, CHINA--(Marketwire - May 17, 2010) - Continuing the strong results reported in the second half of 2009, Pacific Bepure Industry Inc (OTCBB: PBEP), announced today that in its first quarter ended March 31, 2010, it achieved record sales of $4,732,415, a 31.09% increase over sales of $3,610,010 reported in the same period last year, and a 48.06% increase in net income to $885,981, or $0.059 per share, compared with $598,387 or $0.057 per share in the first quarter of 2009.

The 2010 per share figure is based on 15 million weighted average fully diluted shares outstanding, while the prior year quarterly result is based on 10 million weighted average diluted shares due to the timing of the reverse merger.

One of China's leading casual and sports footwear manufacturers, the Company attributed the record results in the quarter primarily to the strong appeal of its "Free Travel" sports and casual line with young, energetic and increasingly health conscious Chinese consumers -- primarily young women, as well as a growing number of young men. It also noted, in particular, the growing success of its international sales in South America, which accounted for approximately 30% of first quarter revenues. Additionally, the Company noted its brand building activity and increased focus on the expansion of its marketing channels. These include more outlets in major cities and Internet sales, as well as more directly operated and single store sales. It also adopted a flexible marketing strategy to adapt its products to varying consumer preferences in different regions of China.

Mr. Haiting Li, Chairman and CEO of the Company, commented, "We are extremely pleased with the growth we are achieving as awareness of our 'Baopiao' (or 'Bepure') brand, particular among young consumers, continues to increase, together with growing recognition of the high quality of our fashionable and innovative designs based on new materials and technologies combined with experienced craftsmanship. This growth is occurring not only in China, but also internationally, as reflected in the substantial growth during the quarter in our South American sales. As our top line continues to grow, we also remain focused on profitability, as reflected in the increased gross margin and net profit margin achieved in the quarter."

The Company also reported that during the quarter it saw increasing success with its decision to shape an appropriate, scalable multiple product structure. Under this concept it has created its "Four Travel" series of footwear, including "Free Travel," "Business Travel," "Outdoor Travel" and "Urban Travel" designs. While promoting these products in a variety of media as well as in various sponsored events -- assisted by Chinese celebrities -- it also updated its website and registered the Bepure "official" online shop with the Taobao Company. It noted that an increase in online activity is anticipated after a campaign being conducted during "Golden Week" commencing May 1, 2010.

During the quarter, the Company said it also broadened the use of new information management systems throughout the Company supporting such activities as supply chain management and financial and production management and decision-making in all aspects of its operations. It also reported that primary construction of its modern new production facility in Huian County has been completed, including the dormitory and workshops. Work on the project is continuing with expected completion later this year.

As a consequence of these and other management initiatives, the Company reported that its gross profit margins in the 2010 first quarter increased 4.94% from the year ago quarter from 30.62% to 35.56%, while operating margins grew 3.39% to 27.23%, and the net profit margin grew 2.14% to 18.72%. These gains occurred despite increases in both marketing and G&A expenses as a percentage of total revenues, in line with plans for the Company's continuing rapid growth.

Financial Strength

Reflecting continuing attention to financial management, the Company's inventory turnaround declined further to 19 days and it saw another reduction in accounts receivable turnover to 147 days from 168 days in the same period last year. As of March 31, 2010, cash and cash equivalents increased $534,876 to $4,860,052. Additionally, the Company had no long term loans outstanding and its gearing ratio was 53.77%.

Looking Ahead

"Our major focus in the period ahead will be on continuing to build our brand through clear market positioning," Mr. Li stated. He added, "To maintain our strong growth we also remain focused on building our sales and marketing competitiveness with management teamwork, and will continue efforts to strengthen our operations."


About Pacific Bepure Industry Inc.

The Pacific Bepure footwear label "Baopiao" or "Bepure," is one of the most well known in China, and considered a "favorite brand." The Company's four lines of "Travel Time" casual and sports shoes are aimed primarily at young women in China's smaller cities, who appreciate their comfort, style and value, as well as special features for which the brand is known, especially hidden height increasing technology. They are manufactured primarily by the Company, and sold in 22 provinces through a growing network of distributors in retail stores and other outlets, as well as on the Internet, and through a distributor to South America. Following a successful reverse merger in late 2009, Pacific Bepure is now a fully reporting company on the U.S. OTC Bulletin Board, where its shares trade with the symbol PBEP.OB. For more information, please visit the Company's website at .

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.

Pacific Bepure Industry Inc.
Condensed Consolidated Statements of Income and Comprehensive Income
For the three months ended March 31, 2010 and 2009
(Stated in US Dollars)

                                                    Three months ended
                                                         March 31,
                                                     2010         2009
                                                  (Unaudited)  (Unaudited)

Sales revenue                                    $  4,732,415 $  3,610,010
Cost of sales                                       3,049,666    2,504,454
                                                 ------------ ------------

Gross profit                                        1,682,749    1,105,556
                                                 ------------ ------------

Operating expenses
  Administrative expenses                             321,013      205,835
  Selling expenses                                     72,976       39,039
                                                 ------------ ------------

                                                      393,989      244,874
                                                 ------------ ------------

Income from operations                              1,288,760      860,682
  Other expenses                                      (26,717)      (8,538)
  Finance costs - Note 15                             (61,237)     (24,199)
                                                 ------------ ------------

Income before income taxes                          1,200,806      827,945
Income taxes - Note 16                               (314,825)    (229,558)
                                                 ------------ ------------

Net income                                       $    885,981 $    598,387
                                                 ============ ============

Other comprehensive (loss)/income :
  Foreign currency translation adjustments            (36,233)      14,099
                                                 ------------ ------------

Total comprehensive income                       $    849,748 $    612,486
                                                 ============ ============

Earnings per share:
  Basic and diluted - Note 17                    $      0.059 $      0.057
                                                 ============ ============

Weighted average number of shares outstanding :
  Basic and diluted - Note 20                      15,000,000   10,500,000
                                                 ============ ============

Contact Information

  • Contacts:

    Haiting Li
    Chairman and Chief Executive Officer
    Pacific Bepure Industry Inc.
    Tel: (86 595) 8677 0999
    Fax: (86 595) 8677 5388

    Ken Donenfeld
    DGI Investor Relations
    Tel: 212-425-5700
    Fax: 646-381-9727