ENGLEWOOD CLIFFS, N.J., May 4 /PRNewswire-FirstCall/ -- JINPAN INTERNATIONAL LIMITED (AMEX:JST) today announced consolidated final results for the first quarter ended March 31, 2007. Comparison data with first quarter of last year is not available as the company has not reported its first quarter results prior to this year.
Total sales for the first quarter were RMB 126.0 million ($16 million) and Cost of Goods Sold accounted for 70.7% of sales at RMB 89 million ($11.5 million), generating a gross profit margin of 29.3% or a Gross Profit of RMB 36.9 million ($ 4.7 million). Selling and administrative expenses for the first quarter were RMB 22.9 million ($2.9 million), or approximately 18% of sales. Net Income for the same period was RMB 12.4 million ($1.6 million) or approximately 10% of sales. Basic earnings per share were RMB 1.56 ($0.20) and diluted earning per shares was RMB 1.54 ($0.20) for the first quarter.
Mr. Zhiyuan Li, chief executive officer, commented "the first quarter is usually the slowest quarter of the year because of the long Chinese new year holidays in February. Sales numbers in first quarter can not represent the sales for the rest of the three quarters." Ever since the Company received UL certification, we experienced a significant increase in sales activities and the company's US operation exceeded expectation by securing approximately US$ 8 million in purchase orders by the end of March. The management team is confident with the growth prospects in both the China and US markets as orders are continually received from customers.
Gross profit margin increase from 27.8% at the end of 2006 to 29.3% for the three months ended March 31, 2007. This was mainly attributed to the stable raw materials price and cost reducing production measurements implemented by the Company.
Mr. Li continued," We are very pleased in February the Company has completed its acquisition of 15% minority interest of Hainan Jinpan Electric Company, Ltd., the Company's main operating subsidiary, increasing its ownership in that subsidiary from 85% to 100%." Mr. Li added "the Company's balance sheet remains strong, with cash and cash equivalents of RMB 117 million ($15million) and working capital of RMB 353 million ($46 million)." Jinpan International Limited and Subsidiaries
Consolidated Balance Sheets (Unaudited) March 31
2007 2007
US$ RMB
(In thousands, except number of shares and per share data)
Assets Current assets: Cash and cash equivalents 15,176 117,204
Investment available for sale 193 1,490
Notes Receivable 1,903 14,696
Accounts receivable, net 26,077 201,396
Inventories 21,444 165,619
Prepaid expenses 8,553 66,058
Other receivables 585 4,520 Total current assets 73,931 570,983 Property, plant and equipment, net 4,272 32,991 Construction in progress 2,787 21,527 Deferred tax assets 112 865 Total assets 81,102 626,366 Liabilities and Shareholders' Equity Current liabilities: Short term bank loans 7,028 54,283
Accounts payable 5,364 41,425
Notes Payable 543 4,194
Income tax 920 7,103
Advance from customers 4,710 36,379
Other payable 9,597 74,116 Total current liabilities 28,162 217,500 Minority interest Shareholders' equity: Common stock, US$0.009 par value:
Authorized shares - 20,000,000
Issued and outstanding shares - 8,171,617
in 2007 and 2006 73 602
Convertible preferred stock, US$0.009 par
value:
Authorized shares - 1,000,000
Issued and outstanding shares - 6,111 in
2007 and 2006, 6% p.a. - 1
Additional paid-in capital 23,556 189,823
Reserves 3,595 29,132
Retained earnings 25,446 197,613
Accumulated other comprehensive income 1,088 (1,569) 53,758 415,602
Less: Treasure shares at cost, common (818) (6,736)
stock-208,470 in
2007 and 2006
Total shareholders' equity 52,940 408,866 Total liabilities and shareholders' equity 81,102 626,366 Jinpan International Limited and Subsidiaries
Consolidated Statements of Income
For the Three Months Ended March 31, 2007 (Unaudited)
2007 2007
US$ RMB
Net sales 16,233 126,067
Other income 188 1,463
16,421 127,530 Costs and expenses:
Cost of products sold (11,483) (89,187)
Selling and administrative (2,955) (22,946)
Interest expenses (58) (450)
(14,496) (112,583) Income before income taxes 1,925 14,947 Income taxes (325) (2,519) Net income after taxes 1,600 12,428 Earnings per share -Basic US$0.20 RMB1.56 -Diluted US$0.20 RMB1.54 Weighted average number of shares -Basic 7,963,147 7,963,147
-Diluted 8,092,351 8,092,351 Jinpan International Limited and Subsidiaries Consolidated Statements of Cash Flows
For the three Months Ended March 31, 2007(unaudited)
US$ RMB Operating activities
Net income 1,600 12,428
Adjustments to reconcile net income to
net cash provided by/(used in) operating activities:
Depreciation 160 1,245
Deferred income taxes (10) (76)
Provision for doubtful debts (62) (479)
Changes in operating assets and liabilities
Accounts receivable (264) (2,050)
Notes receivable (924) (7,175)
Inventories (2,635) (20,466)
Prepaid expenses (3,843) (29,843)
Other receivables 138 1,071
Accounts payable (880) (6,845)
Notes Payable (528) (4,100)
Income tax 324 2,519
Advance from customers 1,006 7,810
Other Payable 168 1,303
Net cash provided by/(used in) operating activities (5,750) (44,658)
Investing activities
Purchases of property, plant and equipment (231) (1,791)
Proceeds from sales of property,
plant and equipment - -
Payment for construction in progress (1,046) (8,122)
Net cash provided by (used in) investing activities (1,277) (9,913)
Financing activities
Proceeds from bank loan 2,100 16,309
Repayment of bank loan (1,132) (8,789)
Acquired minority interest (1,067) (84,955)
Decrease in dividend payable to
minority shareholders (10,939) (8,285)
Dividends paid (964) (7,488)
Net cash provided by/(used in) financing activities (12,002) (93,208)
Effect of exchange rate changes on cash 90 (1,410)
Net increase/(decrease) in cash and cash equivalents (18,939) (149,189)
Cash and cash equivalents at beginning of year 34,115 266,393
Cash and cash equivalents at end of year 15,176 117,204 Interest paid 271 2,150 Income taxes paid - - 1. Organization Jinpan International Limited (the "Company") was incorporated under the
laws of the British Virgin Islands on April 3, 1997.
As of March 31, 2007, the Company had direct interests in the following
subsidiaries: Percentage of
Equity
Interest
Attributable
Date of to Paid-up Principal
Name of Entity Establishment the Company Capital Activities Hainan Jinpan June 3, 100 % RMB62,902,000 Manufacturing
Electric Co., 1997 and sale of
Ltd. cast resin
("Jinpan JV" ) transformers Jinpan February 18, 100 % US$10,000 Marketing of
International 1998 cast resin
(USA) Limited transformers
("Jinpan USA") Jinpan Electric January 100 % US$12,000,000 Manufacturing
(China ) Ltd. 2007 and sale of
cast resin
transformers The Company, Hainan Jinpan Electric Co., Ltd., Jinpan Electric (China) Ltd., Jinpan JV, and Jinpan International (USA) Limited are hereinafter collectively referred to as the "Group".
2. Basic of Presentation The consolidated financial statements include the accounts of the
Company and its subsidiaries. Significant intercompany accounts and
transactions have been eliminated in consolidation.
The consolidated financial statements were prepared in accordance with
accounting principles generally accepted in the United States of
America ("US GAAP"). This basis of accounting differs from that used in
the statutory financial statements of Jinpan JV, which were prepared in
accordance with the accounting principles and relevant financial
regulations applicable to foreign investment enterprises as established
by the Ministry of Finance of China.
The functional currency of the Company is Renminbi ("RMB"), the
national currency of China. Solely for the convenience of the reader,
the financial statements have been translated into United States
dollars ("US$") using PBOC rate of RMB7.72 to US$1, the prevailing rate
on March 31, 2007. No representation is made that the Renminbi amounts
could have been, or could be, converted into United States dollars at
this rate or any other.
3. Accounts Receivable Accounts receivables, which generally have 30-120 day terms, are
recognized and carried at original invoice amount less an allowance for
any uncollectible amounts. An estimate for doubtful debts is made when
collection of the full amount is no longer probable and a general
provision of a certain percentage is established based on the age
status of receivables. This percentage is based on a collective
assessment of historical collection, write-off experience, current
economic trends, and changes in our customer payment terms and other
factors that may affect our ability to collect.
Accounts receivable comprised (In thousands)
2007 2007
US$ RMB Accounts receivable - trade 27,300 210,839
Less: provision for doubtful debts (1,223) (9,443) Accounts receivable, net 26,077 201,396
4. Inventories Inventories are priced at the lower of cost or market value. Market
value represents the net realizable value for inventories. Cost is
determined using the weighted-average cost method.
Inventories comprised: (In thousands) 2007 2007
US$ RMB Finished products 8,007 61,849
Products in process 2,862 22,102
Raw materials 10,725 82,835
21,594 166,786
Less: provision for inventories (150) (1,167)
Inventories 21,444 165,619
5. Fixed Assets : (In thousands) 2007 2007
US$ RMB Buildings 1,806 13,949
Machinery and equipment 7,279 56,216
Motor vehicles 1,902 14,692
Furniture, fixtures and office equipment 596 4,596
11,583 89,453
Less: accumulated depreciation (7,311) (56,462)
4,272 32,991 6. Paid Dividend On January 15, 2007, the Board of Directors the Group declared a cash
dividend of US$.24 per share of common stock for the year 2007. The
Group made the first distribution of US$.12 per share on February 22,
2007, to shareholders of record on February 8, 2007. The Group will
make the second distribution of US$.12 per share during second half of
year 2007.
7. Earning Per Common and Common Equivalent Share Basic earnings per share for the three months ended March 31, 2007 was
computed by dividing net income of RMB 12,427,737 by the weighted
average number of 7,963,147 shares of common stock outstanding. Diluted
earnings per share for the three months ended March 31, 2007 was
computed by dividing net income of RMB 12,427,737 by the weighted
average number of shares of common stock outstanding. Reconciliation of
the denominator is as follows: March 31 2007
Denominator for basic earning per share-
Weighted average shares 7,963,147 Effect of dilutive securities:
Convertible preferred stock 6,111
Exercisable stock option 123,093 Denominator for diluted earnings per share-
Adjusted weighted average shares and assumed
conversions 8,092,351
Liquidity and Capital Resources
Historically, we financed our operations principally through cash generated from our operations, bank borrowings and securities offerings.
We have a credit facility of RMB48.4 million with the Nan Yan Commercial Bank. The letter of credit under this credit facility is guaranteed by Jinpan International Ltd., bearing interest at a weighted average rate of 5.92% per annum. We also have an unsecured credit facility from Bank of China for the total credit line of RMB 35 million. As of March 31, 2007, the total bank loan amount was RMB 54.3million.
On March 31, 2007, we had working capital of RMB353 million (US$46 million). We had approximately RMB117 million (US$15 million)in cash and cash equivalents. The decrease in cash and cash equivalents of RMB 149 million was primary due to acquire minority interest of RMB 85 million, cash used in operating activities of RMB 45 million and payment of capital expenditures of RMB 10 million.
STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. DATASOURCE: Jinpan International Limited CONTACT: Mr. Mark Du of Jinpan International Limited, +1-201-227-0680 Web site: http://www.jstusa.net/
|