Tagged: ERN

361 Degrees Announces 2014 Interim Results

HONG KONG, Aug. 19, 2014 /PRNewswire/ — 361 Degrees International Limited (“361 Degrees” or the “Company”, together with its subsidiaries, the “Group”; HKSE stock code: 1361), one of the leading sports brand enterprises in China, announces its results for the six months ended 30 June 2014.

Financial Highlights

For the six months

ended 30 Jun

Change

2014

2013

Turnover (RMB million)

2,090.1

1,998.2

+4.6%

Operating profit (RMB million)

361.1

306.1

+18.0%

Profit before taxation

(RMB million)

368.8

280.5

+31.5%

Profit attributable to equity shareholders (RMB million)  

263.4

205.3

+28.3%

Basic EPS (RMB cents)

12.7

9.9

+28.3%

Interim dividend per share

RMB5.0 cents

(HK6.2 cents)

RMB4.0 cents

(HK5.1 cents)

+25.0%

Profitability ratios (%)

Gross margin

39.7

39.0

+0.7 p.p.

Operating margin

17.3

15.3

+2.0 p.p.

Net margin

12.6

10.3

+2.3 p.p.

Effective income tax rate

30.5

28.2

+2.3 p.p.

Costs as percentage of turnover (%)

Research and Development

2.5

2.4

+0.1 p.p.

Admin staff costs

1.5

1.5

Advertising and Promotion

8.3

9.8

-1.5 p.p.

Rack subsidies

6.0

3.9

+2.1 p.p.

Cash position (RMB million)

As at

30 Jun 2014

As at

31 Dec 2013

Change

(RMB million)

Net cash position

2,694.1

1,959.5

+734.6

Net cash generated from

operating activities

768.9

323.2

+445.7

Whilst the Chinese economy decelerated to slower growth in the first half of 2014, the sportswear industry remained poised for a recovery as the twin effects of a stock overhang and heavy discounting subsided. Although consumer sentiment remained relatively subdued in the face of uncertain economic times, there are increasing signs that retailers are starting to return to profitability even if competition remained intense.

Against such a competitive environment, 361 Degrees held its own ground, registering a turnover of RMB2.1 billion for the six months ended 30 June 2014 (first half of 2013: RMB2.0 billion), an improvement of 4.6%. This is despite having reported lower trade fair orders but delayed deliveries carried forward into this financial year helped bolster turnover. Gross profit margin showed a marginal growth of 0.7 percentage point to 39.7% as a result of lower sourcing costs which more than offset the reduction in wholesale pricing.

With the Group maintaining tight cost discipline, both selling and distribution as well as administration expenses were controlled to a lower level as compared with the same period last year, enabling an operating profit of RMB361.1 million, which is an 18.0% improvement than that achieved in the first half of 2013.

Profit before taxation, at RMB368.8 million (first half of 2013: RMB280.5 million) jumped 31.5%, primarily due to an unrealized gain on a revaluation of the outstanding convertible bonds. Taxation remained at a relatively higher rate due to losses in the non-operating offshore subsidiaries.

The improved performance arising from the above-mentioned favorable factors enabled the Group to report a net profit attributable to equity shareholders of RMB263.4 million (first half of 2013: RMB205.3 million), equivalent to basic earnings per share of RMB12.7 cents, which is 28.3% higher than that of the same period last year.

On the operation side, a number of initiatives taken by the Group over the last two years have helped to put the retail operations on a much stronger footing. Stores which have not been profitable were encouraged to be closed whilst distributors, having been given better terms, were requested to pass on some of the benefits in their pricing to retailers. In addition, the Group has spent a total of RMB125.6 million (first half of 2013: RMB78.0 million) as rack subsidies directly to the retailers in the form of custom-made racking shelves and related fixtures.

For stores which are large enough to carry the product lines of 361 Degrees Kids and Innofashion to convert into composite or “3-in-1” stores, store traffic has visibly improved. As at 30 June 2014 there are now 1,007 such composite stores, many of which are in prime pedestrian streets. This augurs well for future retail profitability especially as product education and training of these retailers have further improved customer service.

Above all, the Group’s investment in research and development has now produced a strong portfolio of products that are attractively-priced and yet highly competitive in performance. These have been well-accepted in the marketplace and there is further room for improvement in both pricing and volume.

Financially, the Group remains in an enviably sound financial position as the operations continue to generate very strong cash flows, with a net inflow of RMB 768.9 million (2013: RMB323.2 million). The net cash position of the Group as at 30 June 2014 further improved to RMB2.7 billion, an increase of 734.6 million, compared with the end of last year. Accounts receivable has been brought under better control, with the average trade and bills receivables turnover days now falling to 165 although much more work remains to be done.

On the back of the improved results and a positive outlook for the second half-year, the Board of Directors has declared an interim dividend of RMB5.0 cents (first half of 2013: RMB4.0 cents) to be paid to shareholders on 17 September 2014. The Group will endeavor to maintain its dividend policy of not less than 40% of each year’s earnings to be paid as dividends.

Looking ahead into the second half of 2014, the Group will continue to invest in product innovation and differentiation as well as strengthening the brand equity through further promotional activities. With the network shaping up as composite stores to offer all product lines of the Group, the Group is confident that retail profitability will ultimately drive further growth. This will be evident in the full year results for 2014, which should represent a significant improvement from that of last year.

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140819/8521404649-b

About 361 Degrees International Limited

361 Degrees International Limited is one of the leading sports brand enterprises in China, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group’s products include footwear, apparel, accessories and equipment for sport and leisure uses. The Group has established an extensive supply chain management system through proprietary and sub-contracted manufacturing operations; and an exclusive distribution and retail network in China through distribution via authorized distributors.

For further information, please contact:

361 Degrees International Limited

Mr. Y F Chen
Vice-President, Investor Relations
361 Degrees International Limited
Email:  yuanfeng@361sportshk.com

iPR Ogilvy & Mather

Natalie Tam / Charis Yau / Janis Lai / Candy Tam
Tel:        +852-2136 6182 / +852-2136-6183 / +852-2169-0646 / +852-3920-7626
Fax:      +852-3170-6606
Email:    361@iprogilvy.com

Wang Tai Holdings Limited Announces 2014 Interim Results

Revenue Increased by 31.5% to RMB419.8 Million

Net Profit Surged by 42.5% to RMB37.0 Million

HONG KONG, Aug. 18, 2014 /PRNewswire/ —

Financial Highlights

For the Six Months Ended 30 June (RMB MM)

2014

2013

Changes (%)

Revenue

419.8

319.3

+31.5%

Gross profit

82.9

53.3

+55.5%

Gross profit margin

19.8%

16.7%

+3.1pts

Profit attributable to owners
of the Company
(Net profit margin)

37.0
(8.8%)

26.0
(8.1%)

+42.5%
(+0.7pts)

Basic earnings per share

RMB 3.70cents

RMB 2.60cents

+42.3%

Wang Tai Holdings Limited (“Wang Tai” or the “Company” and, together with its subsidiaries, the “Group”; stock code: 1400), a fabrics and yarns manufacturer in China, reported a significant upsurge of 42.5% in its profit attributable to owners of the Company for the six months ended 30 June 2014(the “Period”) to approximately RMB 37.0 million(2013 corresponding period: approximately RMB26.0 million), with basic earnings per share increased to RMB3.70 cents (2013 corresponding period: RMB2.60 cents).

During the Period, the Group’s business growth was in line with the growth of PRC textile market in the highly competitive environment. The Group’s revenue amounted to approximately RMB419.8 million, representing an increase of 31.5% as compared to the corresponding period last year (2013 corresponding period: approximately RMB319.3 million). Gross profit increased by 55.5% to RMB82.9 million as compared to RMB53.3 million in the corresponding period last year. Gross profit margin increased by 3.1 percentage points to 19.8% (2013 corresponding period: 16.7%).

Engaged in the production and sale of fabrics and yarns in the PRC, the Group made tremendous progress during the period. Production volume from full scale production in first phase of Hubei production facilities provided the Company to enjoy advantage of economies of scale of lowering unit and overall cost of sales. Part of yarns is used for the Group’s own needs, which resulted in reducing the cost and enhancing the flexibility of the fabric of production. With highly automated production processes, the Group enjoyed a lower fixed labour costs than peers. The Group always focused on providing a large variety of tailor-made products to charge higher selling prices to customers. While the Group actively participated in trade fairs and exhibitions in China in the first half of the year and placed advertisements to increase the brand awareness.

During the period, fabrics continued to be the major products of the Group, which contributed revenue of RMB371.8 million, accounting for 88.6% of the Group’s total revenue. The increase was mainly due to the increased sales volume of fabrics upon the commencement of operations of the first phase of the Hubei production facilities with the designed annual production capacity of fabrics of 23,449 km in June 2013. Increase in gross profit margin of yarns from 16.7% for the six months ended 30 June 2013 to 19.8% for the six months ended 30 June 2014 was mainly due to increase in the average unit selling price from 19,193 per tonne to 19,435 per tonne and enjoyment of lower cost of sales from the economies of scale.

Going forward, the Group will continue to concentrate on the two existing business segments, namely fabrics and yarns, by focusing on providing tailor-made products to those customers with high quality demands and specific requirements, to charge higher selling prices resulting in higher gross profit margin of the products. The Group will continue the construction of the second and third phase of Hubei production facilities and be currently doing a feasibility study of the second phase of the Hubei production facilities. The Group will also actively carry out sales and marketing activities through sales and marketing department in Shishi and Hubei. The Group intends to establish the sales offices in Guangzhou and Changshu for promotion of its products in Guangdong and Jiangsu provinces.

Mr. Lin Qingxiong, Chairman of Wang Tai, said, “Benefiting from the favourable government policies, we will continue to maintain our competitive strengths in product innovation, research and development, enhancing the productivity and expanding market share while satisfying the diverse needs of the market to strengthen our position and expand our market presence. Meanwhile, we will also actively carry out sales and marketing activities to enhancing our brand recognition and bring greater returns for our shareholders.”

About Wang Tai Holdings Limited

Wang Tai Holdings Limited is principally engaged in the production and sale of fabrics and yarns in the PRC. The Company offers a wide range of fabric products with different features to its customers, which are tailor-made according to customer specifications and principally used in the manufacturing of apparels including casual wear and business trousers, shorts, shirts and outer suit jackets. With production facilities in Fujian and Hubei Provinces, Wang Tai attracts customers located in Fujian, Zhejiang, Guangdong, Hubei, Jiangxi, Jiangsu, Shanghai and Guangxi. Leveraging on its strategic location, strong research and development capabilities, highly automated production process and quality products, Wang Tai can effectively adapt to the changes in the market and to customer needs, and capture the opportunities brought by the Twelfth Five-year Plan of the textile industry in Fujian Province and Hubei Province, respectively.

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140818/8521404619-a

Baioo Family Interactive Limited Announces 2014 Interim Results

HONG KONG, Aug. 15, 2014 /PRNewswire/ —

Highlights of the First Half of 2014:

  • Total revenues for the six months ended 30 June 2014 were RMB287.8 million, representing a 35.0% increase from RMB213.2 million for the six months ended 30 June 2013
  • Gross profit for the six months ended 30 June 2014 was RMB208.4 million, representing a 23.8% increase from RMB168.4 million for the six months ended 30 June 2013
  • Adjusted net profit for the six months ended 30 June 2014 were RMB140.6 million, representing a 20.7% increase from RMB116.5 million for the six months ended 30 June 2014
  • Adjusted EBITDA for the six months ended 30 June 2014 were RMB160.5 million, representing a 17.8% increase from RMB136.3 million for the six months ended 30 June 2013
  • Average Quarterly Active Accounts (“QAA”) reached 56.2 million, up 3.1% period-on-period
  • Average Quarterly Paying Accounts (“QPA”) were 3.3 million, up 17.9% period-on-period
  • Average Quarterly Average Revenue per Quarterly Paying Accounts (“ARQPA”) was RMB41.9, up 15.1% period-on-period

BAIOO Family Interactive Limited (“BAIOO” or the “Company”; stock code: 2100), China’s largest online entertainment destination designed for children, today released the unaudited consolidated results for the first half of 2014 ended 30 June.

The Company’s revenue for the six months ended 30 June 2014 was RMB287.8 million, representing a 35.0% increase from RMB213.2 million for the six months ended 30 June 2013. Gross profit for the six months ended 30 June 2014 was RMB208.4 million, representing a 23.8% increase from RMB168.4 million for the six months ended 30 June 2013. This was primarily benefited from revenue growth of the Company’s existing major titles such as legend of Aoqi and Aola star, contributing an increase in average quarterly ARQPA.

For the six months ended 30 June 2014, all key operation metrics grew period-on-period. The average QAA for the Company’s online virtual worlds including Aobi Island, Aola Star, Dragon Knights, Light of Aoya, Legend of Aoqi, Clashes of Aoqi, were approximately 56.2 million, up by 3.1% period-on-period. The average QPA for the Company’s online virtual worlds was approximately 3.3 million, up by 17.9% period-on-period as a result of the increasing popularity of the Company’s virtual worlds. The average quarterly ARQPA for the Company’s online virtual worlds was approximately RMB41.9, up by 15.1% period-on-period which is attributed to the increase in monetization rate of the Company’s virtual worlds as their popularity continued to increase.

In the first quarter of 2014, the Company launched the mobile version of Quanquan. In June 2014, the Company also launched Magic Fighter ahead of planned September release date to capture the summer season.

Mr. Billy Wu, the CEO of BAIOO, said “With the trust of both parents and children, we continue to deliver strong performance. Our existing virtual worlds continued to build momentum and our edutainment ecosystem continued to evolve with the progresses we made with WenTa, an online tutorial platform, as well as other products. I am also very pleased to see another new virtual world being added to our portfolio, which will bring more fun and edutainment experiences to our fans in China.”

Outlook

In the fourth quarter of 2014, the Company plans to explore into a new genre of entertainment product targeting the young teenager market characterized by higher user stickiness and revenue per user. With the characters that have a long-lasting appeal to children, the Company is partnering with a production company to produce the first animation movie. The Company signed an agreement in which it provides the intellectual property licenses and the partner picks up all production costs. This unlocks value in the IP at minimal risk.

“We strive for leading the pre-teenage children’s entertainment market as well as exploring new products into the lucrative young teenager market aged between 14-16,” Billy concluded.

– End –

About BAIOO

The Company operates the largest online entertainment destination designed for children as measured by revenue in 2013. Its web portal page, 100bt.com, is a centralized platform for interactive children’s content through which users can access all six of its virtual worlds and entertainment, e-learning and other products and services using one registered account. Representing its core brand values of “Dreams, Friendship and Development,” BAIOO’s virtual worlds and their characters have gained strong awareness among children and parents in China. As the leading provider of interactive online content for children in China, the Company has accumulated an extensive knowledge base and deep understanding of children’s behavior and needs with respect to online activity and consumption. Through BAIOO’s commitment to create a safe and fun environment with age-appropriate content and its understanding of children’s needs, the Company’s products and services have gained the trust of parents and regulators. Leveraging the Company’s competitive strengths, BAIOO plans to pursue a variety of growth strategies, including increasing its addressable market, expanding its online product offerings, strengthening its brand, and continuing to execute its mobile strategy. The Company also intends to leverage its strong brand recognition, expertise in the industry and unique product development and operating model to expand into new international markets over time and is committed to maximizing shareholder value over time.

TCL Multimedia Announces 2014 Interim Results

Profit attributable to owners of the parent was approximately HK$169 million

Gross profit margin for Q2 in the PRC Market increased to 24.0% from 18.9% of the same period last year

Speed up its transformation to become a global entertainment technology enterprise

HONG KONG, Aug. 14, 2014 /PRNewswire/ —

Highlights:

  •  For the six months ended 30 June 2014:
    • Turnover amounted to approximately HK$15,203 million, down by 15.9% year-on-year.
    • Gross profit amounted to approximately HK$2,382 million, down by 16.1% year-on-year. Operating profit was approximately HK$309 million, down by 6.6% year-on-year. 
    •  Net profit after tax from continuing operations was approximately HK$168 million, down by 13.8% year-on-year. Profit attributable to owners of the parent from continuing operations was approximately HK$169 million, down by 12.4% year-on-year.
  • For the three months ended 30 June 2014:
    • Benefited from optimization of its product mix with the launch of a series of large-sized and high-end new products, gross profit margin for the second quarter in the PRC Market increased to 24.0% (Q2 2013: 18.9%).
    • Operating loss for the Overseas Markets significantly lowered to approximately HK$12 million from approximately HK$60 million for the same period last year.
  • Continued to speed up its strategic transformation to become a global entertainment technology enterprise with the implementation of “double +” strategy:
    • Officially completed capital injection into Huizhou Kuyu Network Technology Co., Ltd. (“Kuyu”) in June 2014 and gained an immediate access to the online-to-offline (O2O) platform, which ensures rapid development of electronic commerce business by operating through Kuyu’s electronic commerce platform.
    • To achieve further breakthroughs in establishing recurring income streams and revenue-sharing model for its businesses, the Group launched game console T2 during the period, and jointly established a cross-industry “TCL Game TV Ecosystem Strategic Alliance” with dominant players in other industries to develop a double-screen integrated game platform. Meanwhile, the Group debuted its new product, 7V Box in July this year. Its ultimate premium appearance and control experience, the innovative cross-screen interactive function, as well as the vast volume of video game content raised the eyebrows of industry peers and consumers.
    •  Extended the “TCL-iQIYI TV+” (“TV+”) product line and further enriched the TV+ platform and introduced TV+ new products.

TCL Multimedia Technology Holdings Limited (“TCL Multimedia” or “the Group”, HKSE stock code: 01070) today announced its unaudited consolidated interim results for the six months ended 30 June 2014.

Performance Overview

For the six months ended 30 June 2014, the Group recorded a turnover of approximately HK$15,203 million, down by 15.9% year-on-year. Gross profit amounted to approximately HK$2,382 million, down by 16.1% year-on-year. Gross profit margin remained flat year-on-year, gross profit margin of the second quarter increased to 18.5% from 13.0%. Expense ratio remained flat year-on-year. Operating profit was approximately HK$309 million, down by 6.6% year-on-year. Net profit after tax from continuing operations was approximately HK$168 million, down by 13.8% year-on-year. Profit attributable to owners of the parent from continuing operations was approximately HK$169 million, down by 12.4% year-on-year. During the period, the Group recorded a one-off gain of approximately HK$159 million from the closure of certain subsidiaries. The Group’s basic earnings per share and basic earnings per share from continuing operations were HK12.78 cents and HK12.78 cents, respectively (Basic earnings per share and basic earnings per share from continuing operations in the same period of 2013: HK19.11 cents and HK14.51 cents, respectively).

For the first half of 2014, the Group sold a total of 7.56 million sets of LCD TVs, down by 2.0% year-on-year. The Group sold 3.56 million sets of LCD TVs in the PRC Market, down 21.7% year-on-year, and 4.00 million sets of LCD TVs in the Overseas Markets, up 26.1% year-on-year, of which the sales volume of LCD TVs in the Strategic OEM business grew by 109.1% year-on-year to 1.38 million sets. According to the latest DisplaySearch report, in the first quarter of 2014, the Group ranked No.5 in the global LCD TV market with a market share of 5.4%. Meanwhile, the Group ranked No.3 in the PRC LCD TV market with a market share of 16.0%.

The PRC Market

Due to the continuing weak market demand, delays in launches of new products in the first quarter as well as the withdrawal of energy saving home appliances subsidy policy in the end of May last year, the sales volume in the PRC Market was below expectations. Nevertheless, the Group continued to optimize its product mix with the launch of a series of large-sized and high-end new products, resulting in a significant improvement in its results for the second quarter. The gross profit margin for the second quarter in the PRC Market increased to 24.0% from 18.9% of the same period last year, up by 5.1 percentage points year-on-year.

In the first half of 2014, the Group launched a total of 26 new products in 8 series, including 13 models of 4K ultra high-definition TVs, covering medium-sized, large-sized and extra-large-sized screen products ranging from 40 inches to 65 inches. These products contributed to 50% of total number of new products launched. During the period under review, the Group extended the “TCL-iQIYI TV+” product line and completed product enrichment of the large-sized 4K ultra high-definition TVs and smart TVs. Among which, new products including “A71” series and Game TV became the top seller within a short period after launch and was highly appreciated by the market, while proportion of sales volume of large-sized products also increased gradually. The sales volume of the smart TVs increased to 1.28 million sets from 1.04 million sets for the same period of last year, contributing to 36.0% of the total LCD TV sales volume in the PRC Market.

In March 2014, the Group, in a cross-industry move, jointly established a “TCL Game TV Ecosystem Strategic Alliance” with China Unicom Broadband, ATET, JD.com and Gameloft to develop a double-screen integrated game platform. Game TV, E5700, E6700 and TCL game console T2 were well received by the market after their launch. As an important step of entering into the game industry by the Group, the Group expects the game product series will become a new business growth driver, and will coordinate with the Group’s internet-oriented and entertainment-oriented transformation, exploring the blue ocean in the game entertainment market.

Moreover, the Group and IMAX Corporation (“IMAX”) jointly signed with Wasu in April 2014 an agreement in relation to the content distribution for premium home theatres. Wasu is authorised to distribute premium digital audio-visual contents of the PRC and Hollywood movie titles on the system platform of premium home theatres of TCL-IMAX Entertainment Co., Limited, a joint venture set up by TCL and IMAX.

The Overseas Market

The Group’s Overseas Markets achieved steady growths both in turnover and operating results. During the first half of 2014, the sales volume of LCD TVs increased by 26.1% year-on-year to 4.00 million sets, mainly due to proactive adjustment of its product mix focusing on large-sized products, 4K ultra high-definition TVs and smart TVs. During the period, turnover in the Overseas Markets increased by 8.2% year-on-year to HK$6,003 million and gross profit margin increased to 10.7% from 8.0% for the same period last year, up by 2.7 percentage points year-on-year. The overall sales volume and the contribution from middle- to large-sized products to the total sales volume fell short of expectations, resulting in a loss of approximately HK$12 million for the second quarter, significantly lower than approximately HK$60 million loss for the same period last year.

Sales volume of LCD TVs in the Emerging Markets reached 2.07 million sets during the period under review, which remained flat compared to the same period last year. The sales volume of the LCD TVs in the Strategic OEM business increased by 109.1% year-on-year, while the sales volume of LCD TVs in European and North American Markets recorded growths of 11.3% and 203.4%, respectively.

The Group hosted intensively various launching events for new products in the Emerging Markets. These, together with its global entertainment marketing activities with the movie “X-Men: Days of Future Past” and the full rollout of social media marketing initiatives, helped enhancing the TCL brand globally and proactively drove product marketing. In the European Markets, the Group actively cooperated with major retail chains comprehensively, resulting in a higher proportion of sales volume of large-sized smart TVs. Also, the Group ranked No.3 in the ultra high-definition TVs market in France, according to GfK figure with a market share of 11.6%. In the North American Market, the Group has not only reinforced its strategic cooperation with Amazon, but has also actively explored other sales channels, including leading US retailers such as Sam’s Club, etc., driving a significant increase in LCD TV sales volume in that market.

Outlook

Looking ahead to the second half of 2014, the Group will persistently enrich the product line for the PRC Market in the second half of the year, and continue to deepen sales channel and organizational reforms to flatten its enterprise structure further in order to boost its terminal sales capability and agility to changes in the market. The Group joined forces with “The Voice of China”, the hottest professional music show in the PRC, and announced TCL to be the “exclusive collaborative partner from the TV industry for The Voice of China – Season 3” in July 2014, accelerating the rapid rise of the popularity of TV+, a great step for transforming into an entertainment enterprise.

In addition, in the same month, the Group participated in the 12th China Digital Entertainment Expo & Conference (China Joy) in Shanghai, the PRC. The Group joined forces with China Unicom Broadband and ATET again and announced the establishment of the largest Game TV ecosystem in the PRC, with renowned game developers including Gameloft, JJ International Company, Rovio, Marmalade, Cyberfront Korea, J-FLOW to be enrolled to “TCL Game TV Ecosystem Strategic Alliance”, as a move to further facilitate the all-round development of the ecosystem. Meanwhile, the Group debuted its new product, 7V Box in China Joy, with its ultimate premium appearance and control experience, the innovative cross-screen interactive function, as well as the vast volume of video game content raised the eyebrows of industry peers and consumers. The Group strives to enhance its product capabilities for the new businesses, such as games and OTT etc., so as to achieve further breakthroughs in establishing recurring income streams and revenue-sharing model for its businesses.

For the Overseas Markets, the Group will seek to drive sales growth with a combination of product resources, screen strategies and pricing, achieve breakthroughs for the TCL brand in key market and proactively exploit synergies with other businesses of TCL Corporation (“TCL Corporation”). TCL branded products like mobile phones and air conditioners etc. will be introduced in markets like Southeast Asia, etc., to raise the overall TCL brand influence in overseas.

Mr. Hao Yi, Chief Executive Officer of TCL Multimedia said, “We launched the ‘double +’ strategic transformation in February this year which is the combination of ‘intelligence + internet’ and ‘products + services’, marking TCL’s new business model from the product-oriented approach to a product-and-user-oriented approach and unveils our internet-oriented road. On one hand, we will step up the establishment of an internet ecosystem by cementing our hardware business and enhancing our horizontal alliances, deepening cross-industry strategic cooperations in other areas. On the other hand, we will strengthen our business layout along the 4 smart service platforms including video platform, game platform, education platform and living platform, providing users a comprehensive entertainment solution. We will fully capitalize on TCL Corporation’s resource advantages and implement ‘double +’ strategic transformation, gradually transforming into a global entertainment technology enterprise and bringing long-term value and returns to its shareholders.”

The Group’s sales volume of TVs by regions during the period under review is as follows:

1H 2014

1H 2013

Change

(000 sets)

(000 sets)

LCD TVs

7,557

7,715

(2.0%)

of which: LED backlights LCD TVs

7,558

7,328

+3.1%

Smart TVs 

1,412

1,138

+24.1%

3D TVs

837

1,335

(37.3%)

–        PRC Market

3,557

4,542

(21.7%)

–        Overseas Market

4,000

3,173

+26.1%

~ End ~

About TCL Multimedia

Headquartered in China, TCL Multimedia Technology Holdings Limited (HKSE stock code: 01070) is one of the leading players in the global TV industry, engaged in the research and development, manufacturing and distribution of consumer electronic products. Through a new product-and-user-oriented business model that focuses primarily on a “double +” strategy which includes “intelligence + internet” and “products + services” as the main direction, striving to become a global entertainment technology enterprise that provides integrated entertainment solution to customers. According to the latest DisplaySearch report, the Group ranked No.5 in the global LCD TV market with a market share of 5.4% in the first quarter of 2014. The Group ranked No.3 in the PRC LCD TV market with a market share of 16.0%.

For more information, please visit its website: http://multimedia.tcl.com

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140814/8521404591

CIFI Holdings Announces 2014 Interim Results

Balanced Development, Sustainable Growth

Contracted Sales Increased by 42.5% YoY to RMB10.2 Billion

Core Net Profit Attributable to Equity Owners Up by 12.0% YoY to RMB646 Million

HONG KONG, Aug. 13, 2014 /PRNewswire/ —

Results Highlights and Outlook:

Strong Sales Performance in 1H2014; Outperforming Peers:

  • Contracted sales grew by 42.5% YoY to RMB10.2 billion, and achieved 46% of annual sales target. Launched 9 new projects in 1H2014, with total of 43 projects contributing sales. Contracted ASP reached RMB12,500 per sq.m., up 25% and 17% respectively compared to those for 1H2013 and FY2013.
  • Continued profit margin improvement: gross profit margin and core net profit margin improved to 26.4% and 12.9% respectively. Core net profit attributable to equity owners grew by 12% YoY to RMB646 million.

Prudent and Solid Financial Management; Debt Structure Modified:

  • Gearing ratio remained stable; net gearing ratio was 71.1%.
  • Cash-on-hand was RMB6.41 billion.
  • Proportion of onshore trust and other non-bank borrowings decreased to 9% (31 Dec 2013: 18%). Proportion of unsecured offshore debt increased to 38% (31 Dec 2013: 31%).
  • Average interest rate decreased to 8.7% (31 Dec 2013: 9.2%). Lengthen average duration of debts to 3.7 years (31 Dec 2013: 3.5 years).

Implemented “Balanced Development and Sustainable growth” Strategy; A Successful Industry Consolidator:

  • Nationwide, well-balanced and high quality land bank: more than 60 projects in 13 cities, 3 major regions. As of 30 June 2014, total GFA was 9.5 million sq.m and attributable GFA was 7.5 million sq.m.
  • Contracted sales were approximately RMB11.72 billion for the first seven months in 2014, completed approximately 53% of full year 2014 contracted sales target of RMB22 billion, and is fully confident to achieve full-year contracted sales target this year.

  Financial Highlights:

Six months ended 30 June (RMB’million)

2014 1H

2013 1H

Changes

Contracted Sales

10,200

7,156

+42.5%

Recognised Revenue

5,021

4,829

+4.0%

Gross Profit

1,323

1,220

+8.4%

Core Net Profit Attributable to Equity Owners

646

577

+12.0%

CIFI Holdings (Group) Co. Ltd. (“CIFI”, or the “Group”, HKEX Code: 884), one of the “Top 100 Real Estate Developers in China” and a company focused on the property development, property investment and property management business in the PRC, is pleased to announce its unaudited interim results for the six months ended 30 June 2014 (“the period”).

Overall Results

During the period under review, the Group outperformed the market by achieving growth both in terms of contracted sales and average selling price. Contracted sales and contracted GFA reached RMB10.2 billion and 816,000 sq.m., respectively, representing year-on-year growth of 42.5% and 14%. Over 95% of the contracted sales were derived from first- and second-tier cities. The Group launched nine new projects in the first half of 2014, with 43 projects contributing sales. Contracted ASP reached RMB12,500 per sq.m., up 25% and 17% respectively compared to those for 1H2013 and FY2013.

The Group’s recognised revenue was RMB5,021 million, representing a year-on-year increase of 4% over RMB4,829 million in the corresponding period in 2013. In the first half of 2014, contracted but unrecognised sales reached RMB16.2 billion. The Group achieved a cash collection ratio of 80% from contracted sales. Core net profit attributable to equity owners grew on year-on-year basis by 12% to RMB646 million from RMB577 million in the corresponding period in 2013. Gross profit margin and core net profit margin improved to 26.4% and 12.9% respectively.

Mr. Lin Zhong, Chairman and Executive Director of the Company, said, “In the first half of 2014, the Group implemented its “balanced development and sustainable growth” strategy. The Group has adopted proactive measures to outperform in a more challenging operating environment. Despite a tighter and more challenging market environment in the period, the Group outperformed the market by achieving growth both in terms of contracted sales and average selling price in the first half of the year. We aim to deliver better returns to shareholders.”

Business Review

The Group’s contracted sales in the period were dispersed among 43 projects in 11 cities. During the period, the Group launched pre-sale of nine new projects, including: Shanghai CIFI U Block, Shanghai CIFI Arthur Shire, Shanghai Elite Mansion, Shanghai Greenland CIFI E World Center, Chongqing CIFI City, Changsha CIFI Dream Mansion, Jiaxing CIFI Private Mansion as well as Hangzhou Greenland CIFI Glorious City and Hangzhou Henderson CIFI Palace (which were launched in the year-end of 2013). The Group also continued to record contracted sales in other 34 projects the pre-sale of which started in previous year(s). In the first half of 2014, the total GFA of properties newly commenced construction by the Group was approximately 1.5 million sq.m.

In the first half of 2014, the Group believed that land prices in first- and second-tier cities in China had yet to reflect the correction in the physical real estate market, and thus has refrained from purchasing land with overly aggressive land costs. From January to July 2014, the Group only acquired interests in 5 land sites with one each in Beijing, Hefei and Zhenjiang and two in Suzhou with a total contracted attributable consideration of RMB1.95 billion. The Group continued utilising joint venture strategies in land acquisitions with a key objective of diversifying its financial exposure.

As at 30 June 2014, the total GFA of the Group’s land bank was approximately 9.5 million sq.m., and the attributable GFA of the Group’s land bank was approximately 7.5 million sq.m. Average acquisition cost of the Group’s overall land bank was approximately RMB3,800 per sq.m.

Continued to Strengthen Financial Management

Entering into 2014, the Group made further breakthroughs in its liability management exercise. In January 2014, the Group issued a new 5-year US dollar senior notes with a principal amount of US$200 million at a coupon rate of 8.875%. Within less than a year, the Group successfully lowered its 5-year US dollar bonds issue cost from its inaugural issue coupon of 12.25% last year to less than 9%.

As a result of better cash collection rate within the industry, cautious land acquisition strategy and continued strengthening of financial management, the Group sustained a healthy financial position with improving debt structure due to lower interest costs, longer duration, higher proportion of unsecured offshore debts and lower proportion of onshore non-bank borrowings.

Outlook

Since the end of 2013, the Group had well anticipated the current phase of correction in the physical real estate market in China. The Group’s yearly contracted sales target were conservatively set based on our abundant saleable resources comprising mostly small-to-mid sized, end-user driven products which are generally more resilient and easier to achieve sell-through in a less favourable market environment. For the seven months ended 31 July 2014, the Group completed approximately 53% of its full year 2014 contracted sales target of RMB22 billion, one of the highest completion rates of yearly target amongst industry peers. The Group is fully confident that it will achieve its full-year contracted sales target this year.

Since the beginning of 2014, in certain outperforming cities in China where the property sales volume and prices have been more resilient, the Group has been aggressive in offloading its saleable resources in these cities. On the other hand, in certain slow and bottoming cities in China where property sales volume and prices have been weak, the Group has been adopting a more patient strategy by holding back its sell-through and deferring such saleable resources to next year. Overall, the Group strives to strike an optimal balance amongst volume, price and profit margin by adopting flexible and accurate sales strategies. The Group remained cautious in land acquisition and has fine-tuned the Group’s pace of construction in order to control its capital expenditure and to preserve cash.

Mr. Lin Zhong remarked, “Under the current government policy in China, administrative intervention has been reduced and it is more likely to adopt a market-oriented policy approach to resolve the current demand and supply imbalance of the real estate market. Thus, the current phase of market correction may not be completed within a short period of time. However, given the sustained urbanization and population inflow into large cities in China, the Group believes that industry divergence and market consolidation will continue and may be regarded as opportunities rather than risks for the Group. Leveraging our renowned brand and enhanced product structure, prudent and sound financial management along with flexible and creative sales strategies, the Group is confident that it will be able to navigate through challenging times, adapt to the market cyclical changes and ultimately emerge as an industry winner and to deliver better returns to shareholders.”

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140813/8521404561-b

About CIFI Holdings (Group) Co. Ltd.

CIFI Holdings (Group) Co. Ltd., headquartered in Shanghai and one of China’s Top 50 Real Estate Developers in terms of sales revenue, is engaged in the property development, property investment and property management businesses in the PRC. CIFI is a strategy-oriented and shareholder value-focused real estate enterprise. The Company develops its business strategies in line with government policies related to the real estate sector in the PRC. In the area of residential property development, CIFI principally focuses on developing residential properties with small-to-medium unit sizes, comfortable living environments and locations with good public transportation links. In the area of commercial property development, CIFI principally focuses on developing commercial properties for sale. From 1st June, 2013, CIFI has been included in the MSCI Global Small Cap Indices.

To learn more about the Company, please visit CIFI’s website at: http://www.cifi.com.hk

SEYI (SHIEH YIH MACHINERY) Reports First-Half Results

SEYI announced an 8% increase in Net Sales and a 22% increase in Net Profits for the Six Months ended June 30, 2014. Sales of higher margin large tonnage presses and strong demand from China led the way during the first half.

TAIPEI, Aug. 13, 2014 /PRNewswire/ — SEYI (SHIEH YIH MACHINERY) (4533 TT), one of the world’s leading producers of mechanical presses, released its audited financial results for the Six Months Ended June 30, 2014.

For the first six months, SEYI reported Net Sales of TWD 2,087.6 million (US $69.6 million), an 8% increase from the TWD 1,928.7 million (US $64.3 million) recorded in the same period last year. During the first half, SEYI’s product mix shifted from C Frame presses to high tonnage Straight Side presses. Continuing the trend established in 2013, SEYI’s customer mix is also shifting from the company’s historical 3C customers to companies that are involved in the automotive industry.

On the strength of increased sales of high tonnage presses, SEYI reported increased profits and margins. SEYI’s Gross margin increased further to 26.6% during the six months ended June 30, 2014, and Net Profit was TWD 132.6 million (US $4.4 million), a 22% increase from last year’s Net Profit of TWD 108.3 million (US $3.6 million). Earnings Per Share of TWD 0.94 compared to TWD 0.77 during the same period last year.

On July 31, 2014, SEYI further improved its liquidity position when it issued 15,000,000 new ordinary shares. At a subscription price per share of TWD 13.2, proceeds from the issuance totaled TWD 198.0 million (US $6.6 million).

In order to cope with rapidly growing demand from the China market, SEYI has built a strong sales and service network in the country. SEYI now has 9 representative offices in China, which the company divides into three regions: North, Central and South.

Ms. Claire Kuo, Chairman and Chief Executive Officer said, “SEYI is benefitting from good international market demand and expanded sales of high tonnage, Straight Side presses. The sale of these higher margin presses, which now exceed 50% of our total sales, demonstrates that the company has successfully met its goal of penetrating the automotive industry.”

About SEYI

Founded in 1962, SEYI has established a global leadership position in the metal forming industry over the past 50 years. SEYI manufactures mechanical presses, ranging in size from 25 to 4000 tons, at facilities located in Taiwan and mainland China.

SEYI is expanding its Total Solution Service emphasizing peripherals such as feed mechanisms, transfer equipment and other ancillaries to maximize SEYI press productivity. SEYI’s servo presses are highly-integrated, exquisitely designed, durable, smart, energy efficient and environmentally friendly presses that feature the latest user-friendly interfaces, safe system designs and robust machine structures. The stylish exterior designs of SEYI’s presses differentiate them in the market and communicate their quality and value.

SEYI’s products are sold to customers in over 40 countries around the world and have received numerous quality and industry awards. SEYI has supplied the world’s leading car companies in the automobile industry. The auto, aviation machinery and medical equipment industries are expected to be future areas of growth.

The Company completed an initial public offering of its common stock in 2002 and is traded on the Taiwanese OTC (4533 TT) market.

– END –

For further information contact:

Fathi El-Farghali

(O): +1-909-839-1151 x207

Director of Business Development

(M): +1-626-675-9591

203 Lemon Creek Dr. Unit A

Fathi@seyiamerica.com

Walnut, California 91789 USA

www.seyi.com

Kenneth Wei

(O): +886-3-352-5466

Spokesman

kenneth@seyi.com.tw

446, Nan Shang Road,

www.seyi.com.tw

Kueisan, Taoyuan, Taiwan

Note: TWD 30.0 to US $1.00

DKSH Holding Ltd. Announces Half-Year Report 2014

Weakness in Asian Currencies Overshadows Solid Growth in Local Markets

ZURICH, Aug. 11, 2014 /PRNewswire/ —

  • Net sales growth of 6.7% at constant exchange rates
  • Depreciation of Asian currencies impact results negatively by 9.6%
  • Operating profit in a challenging market environment, at constant exchange rates, slightly above last year’s level
  • Impact from political unrest in Thailand more profound than expected at the beginning of the year
  • DKSH confirms outlook

Key figures of DKSH (in CHF millions)

At constant

exchange rates[1]

In CHF

In CHF

H1 2014

       Change in %

H1 2014

Change in %

H1 2013

Net sales

5,071.8

6.7%

4,618.4

(2.9%)

4,754.5

Operating profit (EBIT)

144.8

1.4%

131.4

(8.0%)

142.8

Profit after tax

99.8

(4.9%)

91.7

(12.6%)

104.9

Free cash flow

166.7

(2.4%)

136.7

(20.0%)

170.8

Earnings per share (in CHF)

1.41

(11.9%)

1.60

Number of employees[2]

27,159

1.7%

26,693

[1] Against the backdrop of substantial foreign exchange rate depreciations and to make operating performance comparable, DKSH has since the full-year 2013 results communicated figures as well at constant exchange rates. For constant exchange rates, the 2014 figures have been converted at 2013 exchange rates

[2] As of December 31, 2013

DKSH (SIX: DKSH), the leading Market Expansion Services provider with a focus on Asia, continued to grow in the first half-year of 2014 at constant exchange rates in a challenging market environment. All Business Units and major countries positively contributed to net sales growth.

Net sales grew by 6.7% at constant exchange rates to CHF 5,071.8 million. Organic growth was 6.0%, while just 0.7 percentage points of net sales growth resulted from M&A activities. The depreciation of Asian currencies impacted net sales in total by 9.6%. Reported in Swiss francs, net sales accordingly reached CHF 4,618.4 million.

Despite the challenging political situation in our main market, Thailand, operating profit before interest and taxes (EBIT) at constant exchange rates increased by 1.4% and reached CHF 144.8 million. Reported in Swiss francs, EBIT accordingly reached CHF 131.4 million. Political unrest in Thailand was more profound and enduring than expected at the beginning of the year, resulting in negative economic growth. Over the past months, this caused a temporary lower demand for consumer goods, higher-margin luxury and lifestyle products as well as reduced industrial investments. The military takeover at the end of May, however, helped to stabilize the situation.

Profit after tax (PAT) has been impacted by profit hedging costs and accordingly reached CHF 99.8 million at constant exchange rates. Reported in Swiss francs, PAT accordingly reached CHF 91.7 million.

Although net sales grew in the first six months of 2014, free cash flow achieved, at constant exchange rates, CHF 166.7 million thanks to sound working capital management and thereby almost reached the high level of last year.

Dr. Joerg Wolle, President & CEO of DKSH, commented: “Despite the challenging market environment, DKSH again reported solid growth in numerous markets. This was achieved on the back of our robust business model and the rigorous implementation of our strategy.”

DKSH’s strategy for sustainable, profitable growth is centered on growing organically, through expanding business with existing clients, multiplying success stories from country to country and new business development, complemented by strategic bolt-on acquisitions.

DKSH continued to invest in the skills and training of its employees, its most important asset. At the end of June 2014, DKSH employed 27,159 specialists worldwide, representing an increase of 466 people or 1.7% compared to the year-end of 2013.

Confirmation of outlook

Commenting on the outlook Dr. Joerg Wolle said: “From today’s perspective, we expect to achieve a 2014 result which is above the record year 2013. This assuming constant exchange rates. The increasingly difficult political situation in our main market Thailand has temporarily resulted in lower demand for consumer goods and in reduced investment activities. While the current situation does not allow for providing an accurate forecast for the year, we are cautiously optimistic. This based on the recently improved consumer confidence index and increased growth forecasts for the Thai economy. The recent weeks can be considered as a potential trend reversal after thirteen months of continuously declining consumer confidence.

The growth outlook for our markets and the attractiveness of our business model remain very good. Because of increased uncertainty and complexity in some Asian markets, clients are increasingly outsourcing sales and distribution of their products in Asia to transparent and reliable partners like DKSH. Demand for our services therefore continues to rise. With our strongly diversified and scalable business model, DKSH is ideally positioned to benefit from the growing middle class, rising inner-Asian trade and increased outsourcing to specialist services providers like DKSH.”

Building on these firm foundations and based on current market views, as well as constant exchange rates, DKSH is confident of achieving over a three-year time frame up to 2016 net sales of around CHF 12 billion at a compound annual growth rate (CAGR) of 8%. Within the same time frame EBIT is expected to grow at a CAGR of 10% to a level of around CHF 380 million, which should translate into profit after tax of some CHF 270 million.

Analyst and investor conference/webcast

The live webcast of today’s media conference will be held at 9:30 a.m. CET (in German) and the live webcast of today’s analyst and investor conference will be held at 11 a.m. CET (in English). A recording of the webcast will be available on DKSH’s website.

Half-Year Report

The Half-Year Report 2014 is available for download at: Half-Year Report 2014

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140811/8521404509-b

About DKSH Group

DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term “Market Expansion Services” suggests, DKSH helps other companies and brands to grow their business in new or existing markets.

Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 735 business locations in 35 countries — 710 of them in Asia — and 27,200 specialized staff, DKSH generated net sales of CHF 9.6 billion in 2013.

The company offers a tailor-made, integrated portfolio of sourcing, marketing, sales, distribution, and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials, and Technology.

With strong Swiss heritage, the company has nearly a 150-year-long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.

CEVA Holdings LLC Announces Results for the Second Quarter Ended 30 June 2014

HOOFDDORP, Netherlands, Aug. 11, 2014 /PRNewswire/ —  

  • New business wins increase 31% over prior year
  • Oceanfreight volumes up 7% over prior year, exceeding industry growth
  • Senior management team strengthened with industry hires
  • Adjusted EBITDA up 40% sequentially from Q1

CEVA Holdings LLC, one of the world’s leading non-asset based supply chain management companies, today reported results for the three months ended 30 June 2014.  

Key Financials ($ millions)

Quarter

Q2 2014

Q1 2014

% Change

Revenue

1,978

1,865

6%

Adjusted EBITDA[1]

60

43

40%

[1] Excludes the impact of specific items which are significant non-recurring items such as restructuring and certain legal expenses.

Xavier Urbain, CEO of CEVA, said, “Our performance improvement coupled with the strong increase in our new business pipeline points to the company being on the right track for growth. Since joining CEVA in January, I have focused on strengthening the executive management team, expanding our current talent base with additional industry experience to drive forward our strategy, building revenue and improving operational efficiency for the benefit of our customers. The numbers show we are gaining traction and are positioned well to make further progress in the future.

“I am especially pleased with the progress made in rebuilding the leadership team, particularly the new additions. They know the industry and our customers. This allowed them to hit the ground running and make immediate contributions. Volume trends as we exited the quarter were encouraging and I am looking for even more from the entire team in the near future.”

Revenue of $1,978 million declined 4.2% in the second quarter compared to $2,064 million for the same period a year earlier, driven by the prior year’s successful recapitalization, and termination of lower margin business.  Second quarter revenues were up 6.1% sequentially compared to the first quarter. Airfreight and Oceanfreight reported export volumes up both sequentially and year-on-year.  Oceanfreight volumes were up 7% from the prior year, evidencing the company’s early success in the 2014 tender season and well above industry growth. Airfreight volumes increased 1% from the prior year, strengthening as we exited the quarter, with three week rolling volumes up 4% in June.

For the second quarter, adjusted EBITDA of $60 million was 40% ahead of the previous quarter, and adjusted EBITDA as a percentage of revenue improved from 2.3% to 3.0%, reflecting continuing strength in Contract Logistics and the termination of lower margin business. EBITDA came in 25% lower than in the same period a year earlier as Freight Management revenues were impacted by lower rates in the market.  CEVA, however, was able to maintain net revenue margins versus the prior year.

The company’s new business wins were up 31% over the prior year, increasing to $763 million, compared to $582 million[2] for the same period in 2013. CEVA’s investment in its tender management, trade lane management and field sales force each contributed to the improved level of wins in the quarter. CEVA is accelerating plans to improve productivity and on a like-for-like basis, and expects more than 5% cost reductions in the second half of the year.

[2]

New business wins based on expected annualized revenue of new contracts

CEVA – Making business flow

CEVA Logistics, one of the world’s leading non-asset based supply-chain management companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Approximately 44,000 employees in more than 170 countries are dedicated to delivering effective and robust supply-chain solutions across a variety of sectors where CEVA applies its operational expertise to provide best-in-class services across its integrated network. For more information, please visit www.cevalogistics.com

SAFE HARBOR STATEMENT:

This news release may contain forward-looking statements. These statements include, but are not limited to, discussions regarding industry outlook, the Company’s expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2014 and beyond, and the other non-historical statements. These statements can be identified by the use of words such as “believes” “anticipates,” “expects,” “intends,” “plans,” “continues,” “estimates,” “predicts,” “projects,” “forecasts,” and similar expressions. All forward-looking statements are based on management’s current expectations and beliefs only as of the date of this press release and, in addition to the assumptions specifically mentioned in the above paragraphs, there are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including the effect of local and national economic, credit and capital market conditions, a downturn in the industries in which we operate (including the automotive industry and the airfreight business), risks associated with the Company’s global operations, fluctuations and increases in fuel prices, the Company’s substantial indebtedness, restrictions contained in its debt agreements and risks that it will be unable to compete effectively. Further information concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, is contained in the Company’s annual and quarterly reports, available on the Company’s website, which investors are strongly encouraged to review. Should one or more of these risks or uncertainties materialize or the consequences of such a development worsen, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. CEVA disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Contact:

Mike Darcy
+31-622-482-604
mike.darcy@cevalogistics.com

RM Group Announces its FY2014-2015 Q1 Results

Profit attributable to owners of the Company surges 11 times

HONG KONG, Aug. 8, 2014 /PRNewswire/ —

Financial Highlights

three months ended 30 June 2014

HK$’000

2014

2013

Change

Turnover

47,802

32,410

+47.5%

Gross profit

36,631

23,858

+53.5%

Gross profit margin

76.6%

73.6%

+3.0%

Profit before taxation

4,861

563

+763.4%

Profit for the period attributable to owners of the Company

3,760

305

+1,132.8%

Earnings per share (basic) (HK cents)

0.730

0.079

+824.1%

RM Group Holdings Limited (“RM Group” or the “Company”, HKEx stock code: 8185) and its subsidiaries (the “Group”) announced its results for the three months ended 30 June 2014. During the reporting period, the Group recorded a turnover of approximately HK$47.8 million, representing an increase of approximately 47.5% as compared with the same period last year (2013: approximately HK$32.4 million). It is mainly due to the revenue attributable to health supplements increased by approximately 93.4%. The profit for the period attributable to owners of the Company is approximately HK$3.8 million (2013: approximately HK$0.3 million).

Business Review

The Group is principally engaged in the business of formulation, marketing, sales and distribution of health supplements and beauty supplements and products mainly in Hong Kong and Taiwan. The main products for the Group include (i) health supplements and (ii) beauty supplements and products. The Group’s products are sold under its proprietary brands (including “Royal Medic”) and  private label brands specifically developed for and owned by a renowned retail chain of health and beauty products in Hong Kong and Macau (the “Distribution Facilitator “).

During the reporting period, health supplements remain the major source of income of the Group and have recorded continuous growth in turnover. For the three months ended 30 June 2014, the Group’s revenue attributable to health supplements amounted to approximately HK$38.3 million (2013: approximately HK$19.8 million); while the revenue attributable to beauty supplements and products amounted to approximately HK$9.2 million (2013: approximately HK$12.5 million).

During the reporting period, the Group’s revenue attributable to proprietary brands health supplements increased by approximately HK$14.4 million or 96.6% to approximately HK$29.3 million (2013: approximately HK$14.9 million); while the revenue attributable to proprietary brands beauty supplements and products decreased by approximately HK$0.8 million or 9.0% to approximately HK$8.1 million (2013: approximately HK$8.9 million).

Revenue attributable to private label brands health supplements increased by approximately HK$4.1 million or 83.7% to approximately HK$9.0 million for the three months ended 30 June 2014 (2013: approximately HK$4.9 million), mainly due to the expansion of the product range and increase in the number of Health Proof special designated counters, which primarily sold health supplements. The Group focused resources on marketing the Health Proof products, among the private label brands, which were primarily health supplements. As a result, revenue attributable to private label brands beauty supplements and products decreased to approximately HK$1.1 million (2013: approximately HK$3.6 million).

Prospects

Mr. Mark Chan, Chairman and Chief Executive Officer of the Group, said, “We have great confidence in the Group’s future prospects. The collaboration with CUCAMed Company Limited, a wholly owned subsidiary of The Chinese University of Hong Kong Foundation Limited, not only enhances the product portfolio of the Group but also brand recognition of Royal Medic. We will continue to develop and promote products under the brand ‘LEGEND’. On the overseas markets front, we will continue to expand our business in Taiwan and also explore opportunities in China and other markets in Southeast Asian countries.”

To see the full version of this release, including financial tables, click here:
http://photos.prnasia.com/prnk/20140808/8521404484-a

About RM Group Holdings Limited

RM Group Holdings Limited is principally engaged in the business of formulation, marketing, sales and distribution of health supplements and beauty supplements and products under its proprietary brand (including “Royal Medic”) and private label brands specifically developed for and owned by a renowned retail chain of health and beauty products in Hong Kong and Macau (the “Distribution Facilitator”). The Group outsources most of its production to its suppliers and subcontracting manufacturers and the Group distributes its products mainly through the Distribution Facilitator. According to the industry report prepared by Ipsos Hong Kong Limited, the Group ranked third as a PCM health supplements provider in Hong Kong in 2012. Its best-selling product, Royal Medic Cs-4, ranked first in terms of sales value in the Cordyceps market in Hong Kong for five consecutive years ended August 2013. 

Darling Ingredients Inc. Reports Second Quarter 2014 Financial Results

– Net income of $32.8 million or $0.20 per diluted share; Pro Forma Adjusted EBITDA of $158.0 million

– Solid performance of the new global business with sharp improvement in USA on a sequential basis

– Results include $9.2 million of Non-Cash Adjustments and Acquisition-Related Costs

IRVING, Texas, Aug. 8, 2014 /PRNewswire/ — Darling Ingredients Inc. (NYSE: DAR), a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries, today announced financial results for the second quarter ended June 28, 2014.

Net sales for the second quarter of 2014 increased to $1.0 billion, compared with $423.6 million in the same period of 2013, attributable to newly acquired operations. Operating income in the second quarter of 2014 was $75.5 million reflecting an increase of $24.7 million or 49% as compared to income for the same period of 2013. Results include a $5.0 million increase to cost of sales related to the inventory step-up associated with required purchase accounting for the VION Acquisition and $4.2 million associated with continued acquisition and integration costs of Rothsay and the VION Acquisition.

Comments on the Second Quarter

“We posted a respectable second quarter performance, which now reflects full contributions from our newly acquired operations around the world,” said Randall Stuewe, Darling Ingredients Inc. Chairman and Chief Executive Officer.

“During the second quarter, the Feed Ingredients Segment delivered a solid performance lead by North American operations. Protein and fat values remained strong around the globe. Our Bakery Feeds unit delivered a nice performance sequentially but continues to feel the pressure of eroding corn prices. Canada delivered notable earnings and Europe remained a steady contributor to operating income,” continued Mr. Stuewe. “In general, our raw material volumes were steady around the globe and margins remained healthy.”

“The Food Ingredients Segment continued to perform as anticipated. Rousselot, a global leader in gelatin, turned in a solid performance. Demand remains steady however prices were marginally lower in some geographies due to competition and tight raw material supplies. Our European edible fat business delivered lower earnings driven by compressed margins as a result of the increased supplies of raw materials primarily in Germany due to ongoing trade restrictions with Russia. CTH, our casings business, improved marginally over the first quarter of 2014.”

“Our Fuel Ingredients Segment, anchored by Diamond Green Diesel, reported a weaker performance compared to first quarter 2014 on low RIN (Renewable Identification Number) values due to the continued uncertainty of the U.S. mandated renewable fuel volume obligation (RVO) and whether there would be an extension of the existing federal alternative fuel blenders tax credit. The DGD Joint Venture operated at name plate capacity during the second quarter of 2014 and continues to be one of the lowest cost producers of biomass based renewable diesel in the world.” Mr. Stuewe added, “Our European operations within the Fuel Ingredients Segment proved to be steady contributors with Rendac and Ecoson delivering solid returns. This quarter marked the starting of operations at our new biogas facility in Son, Netherlands; built to generate green electricity and bio-phosphate fertilizer.”

“With respect to the incident at our DGD facility in Norco, LA on August 3rd, no one was injured and the firefighting teams and Valero emergency response teams responded rapidly. The fire was isolated and extinguished. Preliminary damage assessment is underway and we hope to have the facility operational within 60 days. Most notably, the downtime will allow us to perform additional maintenance and debottlenecking to increase name plate capacity by 10% when we start back up.”

“Overall to date, we are pleased with the integration success of our new global ingredients company and look forward to bringing greater value to our customers and shareholders,” concluded Mr. Stuewe.

Continued Quarter Results

Second quarter 2014 net income was $32.8 million, or $0.20 per diluted share, compared with net income of $26.4 million, or $0.22 per diluted share, in the second quarter of 2013. The Company’s second quarter 2014 results include the following after tax costs:

  • $3.5 million ($0.02 per diluted share) related to a non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition related to the portion of acquired inventory sold during the period; and
  • $2.6 million ($0.01 per diluted share) associated with the acquisition and integration of Rothsay and VION during the quarter.

Net income and diluted earnings per common share, adjusted to eliminate the one-time costs listed above, would have been $38.9 million and $0.24 per diluted share, respectively.

Reconciliation of Net Income to Adjusted EBITDA and Pro forma Adjusted EBITDA

Darling Ingredients Inc. reports Adjusted EBITDA results, which is a non-GAAP financial measure, as a complement to results provided in accordance with generally accepted accounting principles (GAAP). The Company believes that Adjusted EBITDA provides additional useful information to investors since certain financial covenants under the Company’s Senior Secured Credit Facilities and Senior Unsecured Notes that were outstanding at June 28, 2014, are also measured based on an altered version of the Company’s Adjusted EBITDA metric. As the Company uses the term, Adjusted EBITDA means:

Three Months Ended

Adjusted EBITDA

June 28,

June 29,

(U.S. dollars in thousands)

2014

2013

Net income

$ 32,757

$26,418

Depreciation and amortization

67,498

22,076

Interest expense

26,571

5,669

Income tax expense

15,503

16,335

Foreign currency gain

(11)

Other expense / (income), net

887

418

Equity in net (income)/ loss of unconsolidated subsidiaries

(2,040)

1,962

Net income attributable to noncontrolling interests

1,818

Adjusted EBITDA

$142,983

$72,878

Non-cash inventory step-up associated with VION Acquisition

4,971

Acquisition and integration-related expenses

4,165

DGD Joint Venture Adjusted EBITDA (Darling’s share) (1)

5,902

(1,962)

Pro Forma Adjusted EBITDA

$158,021

$70,916

(1) Derived from the unaudited financial statements of the DGD Joint Venture.

For the second quarter of 2014, the Company generated Adjusted EBITDA of $143.0 million, as compared to $72.9 million in the same period a year ago. The increase was primarily attributable to the inclusion of the newly acquired businesses. On a Pro Forma Adjusted EBITDA basis, the Company would have generated $158.0 million in the second quarter 2014, as compared to a Pro Forma Adjusted EBITDA of $70.9 million in the year ago period. The increase in Pro Forma Adjusted EBITDA is attributable to the inclusion of the newly acquired businesses.

Second Quarter Segment Performance

Feed Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013

Net Sales

$ 599,884

$ 421,366

Operating Income

$ 74,506

$ 58,397

  • Feed Ingredients operating income increased by $16.1 million to $74.5 million compared to the second quarter of 2013. Results reflect $1.5 million related to the non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition. Adjusted operating income for the Feed Ingredient Segment without the inventory step-up costs would have been $76.0 million or $17.6 million higher than the second quarter 2013.
  • Higher earnings were predominantly related to earnings attributable to newly acquired operations. The U.S. operations contributed $2.7 million less in Feed Ingredients operating income relative to the second quarter of 2013. This reduction was principally related to lower earnings in the bakery feeds division and higher selling, general and administrative costs, depreciation and amortization expenses. Canada operations performed better than expected, while operations in Europe and China generally performed as expected.

Food Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013

Net Sales

$ 329,541

Operating Income

$ 11,313

  • Food Ingredients operating income was $11.3 million for the second quarter of 2014 compared to no prior reporting segment or activity in the Food Ingredients business lines in the second quarter of 2013. Results reflect $3.4 million related to the non-cash inventory step-up associated with the purchase accounting for the VION Acquisition. Adjusted operating income for the Food Ingredients Segment without the inventory step-up costs would have been $14.7 million. On an adjusted sequential quarter basis, the Food Ingredients operating income decreased by $5.1 million from $19.8 million in the first quarter of 2014. This reduction from first quarter was principally related to the European edible fats business which was adversely impacted by the closure of the Russian trade border resulting in higher raw material supply and increased production that put pressure on selling prices and resulted in lower margins for the Company’s finished products.
  • Global demand for gelatin was generally steady with the exception of China, which saw a slight reduction in demand. The Company’s casing business improved marginally over the first quarter 2014 as a result of increased sales volume of sheep casings.

Fuel Ingredients

Three Months Ended

($ thousands)

June 28, 2014

June 29, 2013

Net Sales

$ 77,534

$ 2,227

Operating Income

$ 5,439

$ 422

  • Fuel Ingredients operating income increased by $5.0 million to $5.4 million, exclusive of the DGD Joint Venture, compared to second quarter 2013. Including the DGD Joint Venture, the Fuel Ingredients Segment income was $6.9 million in second quarter 2014. On an adjusted sequential quarter basis, the Fuel Ingredients operating income inclusive of the DGD Joint Venture decreased by $0.3 million, which was principally related to a reduction in the equity in net income inclusion from the DGD Joint Venture, which was substantially off-set by improved earnings in the European green energy and bio-phosphate operations.
  • Results for North America continue to be negatively impacted by lower RIN values, resulting from an uncertain regulatory environment with respect to the U.S. mandated RVO requirements for 2014 and uncertainty related to the possible extension of the blenders tax credit. For the quarter, the DGD Joint Venture operated at name plate capacity.

Subsequent Event

On August 3, 2014, a fire occurred at the Diamond Green Diesel facility in Norco, LA. The fire was isolated and extinguished and no one was injured. The preliminary assessment of the incident appears to indicate that no major damage occurred to any of the vessels. Damage appears to be relatively isolated and will require some piping, mechanical and electrical replacements. The cause of the fire remains unknown at this time. The facility is currently shut down and while it is early in the preliminary assessment phase, we believe that the facility may be operational within 60 days. The DGD Joint Venture is in the process of reviewing its insurance policies, including property damage and business interruption, for available coverage under such policies. Any claims made under such policies will be subject to the terms and conditions of the underlying policy, including applicable deductibles and waiting periods.

Additionally, a decision has been made to move forward with a limited turnaround during this downtime to replace some catalyst in the Eco-finer unit along with several debottlenecking and metallurgical upgrades that should result in approximately a 10% name plate capacity increase for winter production.

Six Months Ended June 28, 2014 Performance

For the six months ended June 28, 2014, the Company reported net sales of $1.9 billion, as compared to $869.0 million for the 2013 comparable period. The $1.1 billion increase in sales resulted primarily to the inclusion of the newly acquired businesses.

For the six months ended June 28, 2014, the Company reported a net loss of ($20.0) million, or ($0.12) per diluted share, as compared to net income of $58.8 million, or $0.50 per diluted share, for the 2013 comparable period. The results for the six months period include the following after-tax costs:

  • $34.8 million ($0.21 per diluted share) related to a non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition related to the portion of acquired inventory sold during the period;
  • $20.2 million ($0.12 per diluted share) related to the redemption premium and write-off of deferred loan cost associated with the retirement of the Company’s 8.5% Senior Notes on January 7, 2014;
  • $14.6 million ($0.09 per diluted share) associated with the acquisition and integration of Rothsay and VION Ingredients during the period;
  • $8.0 million ($0.05 per diluted share) related to certain euro forward contracts entered into to hedge against foreign exchange risks related to the closing of the VION Acquisition: and
  • $5.2 million ($0.03 per diluted share) associated with discrete tax items principally associated with the VION Acquisition.

Net income and diluted earnings per common share, adjusted to eliminate the one-time costs listed above, would have been $63.4 million and $0.38 per diluted share, respectively. As compared to the six months ended June 29, 2013, this would have resulted in a $4.6 million increase in net income and a 24% decline in diluted earnings per common share.

Operating income for the six months ended June 28, 2014 was $74.9 million, which reflects a decline of $34.5 million or 32% as compared to the six months ended June 29, 2013. The results for the six months include an increase to cost of sales of $49.8 million related to the inventory step-up associated with the required purchase accounting for the VION Acquisition. Without these costs, operating income would have been $124.7 million or 14% higher than 2013. Including the Company’s share of net income of unconsolidated subsidiaries, primarily the DGD Joint Venture, operating income for the six months ended June 28, 2014, would have been $131.8 million or $22.4 million (20.5%) higher than 2013. The DGD Joint Venture has not yet distributed any earnings to its venture partners.

Reconciliation of Net Income to Adjusted EBITDA and Pro forma Adjusted EBITDA – Six Months Ended

Six Months Ended

Adjusted EBITDA

June 28,

June 29,

(U.S. dollars in thousands)

2014

2013

Net income/ (loss) allocable to Darling

$ (20,046)

$ 58,823

Depreciation and amortization

133,167

43,943

Interest expense

85,428

11,294

Income tax expense/ (benefit)

(2,787)

36,753

Foreign currency loss

13,803

Other expense/ (income), net

2,025

(649)

Equity in net (income)/ loss of unconsolidated subsidiaries

(7,117)

3,157

Net loss/ (income) attributable to noncontrolling interests

3,615

Adjusted EBITDA

$208,088

$153,321

Non-cash inventory step-up associated with VION Acquisition

49,803

Acquisition and integration-related expenses

20,113

DGD Joint Venture Adjusted EBITDA (Darling’s share) (1)

14,975

(3,157)

Darling Ingredients International – 13th week (2)

4,100

Pro Forma Adjusted EBITDA

$297,079

$150,164

(1)

Derived from the unaudited financial statements of the DGD Joint Venture.

(2)

January 7, 2014 closed on VION Ingredients, thus the 13th week would be revenue adjusted for January 1, 2014 through January 7, 2014.

For the six months ended June 28, 2014, the Company generated Adjusted EBITDA of $208.1 million, as compared to $153.3 million in the same period a year ago. The increase was primarily attributable to the newly acquired businesses. On a Pro forma Adjusted EBITDA basis, the Company would have generated $297.1 million in the second quarter 2014, as compared to a Pro forma Adjusted EBITDA of $150.2 million in the year ago period. The increase in Pro forma Adjusted EBITDA is attributable to the inclusion of the newly acquired businesses.

About Darling

Darling Ingredients Inc. is the world’s largest publicly-traded developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy and fertilizer industries. With operations on five continents, the Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The Company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. In addition, the Company provides grease trap services to food service establishments, environmental services to food processors and sells restaurant cooking oil delivery and collection equipment. For additional information, visit the Company’s website at http://ir.darlingii.com.

Darling Ingredients Inc. will host a conference call to discuss the Company’s second quarter 2014 financial results at 8:30 am Eastern Time (7:30 am Central Time) on Friday, August 8, 2014. To listen to the conference call, participants calling from within North America should dial 877-270-2148; international participants should dial 412-902-6510. Please refer to access code 10050348. Please call approximately ten minutes before the start of the call to ensure that you are connected.

The call will also be available as a live audio webcast that can be accessed on the Company website at http://ir.darlingii.com beginning two hours after its completion, a replay of the call can be accessed through August 14, 2014, by dialing 877-344-7529 domestically, or +1-412-317-0088 if outside North America. The access code for the replay is 10050348. The conference call will also be archived on the Company’s website.

Cautionary Statements Regarding Forward-Looking Information:

{This media release contains “forward-looking” statements regarding the business operations and prospects of Darling Ingredients Inc. and industry factors affecting it. These statements are identified by words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “could,” “may,” “will,” “should,” “planned,” “potential,” “continue,” “momentum,” and other words referring to events that may occur in the future. These statements reflect Darling Ingredient’s current view of future events and are based on its assessment of, and are subject to, a variety of risks and uncertainties beyond its control, each of which could cause actual results to differ materially from those indicated in the forward-looking statements. These factors include, among others, existing and unknown future limitations on the ability of the Company’s direct and indirect subsidiaries to upstream their profits to the Company for payments on the Company’s indebtedness or other purposes; general performance of the U.S. and global economies; disturbances in world financial, credit, commodities and stock markets; any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets; volatile prices for natural gas and diesel fuel; climate conditions; unanticipated costs or operating problems related to the acquisition and integration of Rothsay and Darling Ingredients International (including transactional costs and integration of the new enterprise resource planning (ERP) system); global demands for bio-fuels and grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, reduced demand for animal feed, or otherwise; reduced finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the National Renewable Fuel Standard Program (RFS2) and tax credits for biofuels both in the U.S. and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of Bird Flu including, but not limited to H1N1 flu, bovine spongiform encephalopathy (or “BSE”), porcine epidemic diarrhea (“PED”) or other diseases associated with animal origin in the U.S. or elsewhere; unanticipated costs and/or reductions in raw material volumes related to the Company’s compliance with the existing or unforeseen new U.S. or foreign regulations (including, without limitation, China) affecting the industries in which the Company operates or its value added products (including new or modified animal feed, Bird Flu, PED or BSE or similar or unanticipated regulations); risks associated with the renewable diesel plant in Norco, Louisiana owned and operated by a joint venture between Darling Ingredients and Valero Energy Corporation, including possible unanticipated operating disruptions; risks relating to possible third party claims of intellectual property infringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; and/or unfavorable export or import markets. Other risks and uncertainties regarding Darling Ingredients Inc., its business and the industries in which it operates are referenced from time to time in the Company’s filings with the Securities and Exchange Commission. Darling Ingredients Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.}

 

Darling Ingredients Inc.

Consolidated Operating Results

For the Periods Ended June 28, 2014 and June 29, 2013

(Dollars in thousands, except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

$ Change

$ Change

June 28,

June 29,

Favorable

June 28,

June 29,

Favorable

2014

2013

(Unfavorable)

2014

2013

(Unfavorable)

Net sales

$1,006,959

$423,593

$ 583,366

$1,938,394

$869,015

$ 1,069,379

Costs and expenses:

Cost of sales and

operating expenses

$ 747,966

$309,922

(438,044)

$1,492,945

$632,608

(860,337)

Selling, general and

administrative expenses

111,845

40,793

(71,052)

217,248

83,086

(134,162)

Depreciation and amortization

67,498

22,076

(45,422)

133,167

43,943

(89,224)

Acquisition and Integration costs

4,165

(4,165)

20,113

(20,113)

Total costs and expenses

931,474

372,791

(558,683)

1,863,473

759,637

(1,103,836)

Operating income

75,485

50,802

24,683

74,921

109,378

(34,457)

Other expense:

Interest expense

(26,571)

(5,669)

(20,902)

(85,428)

(11,294)

(74,134)

Foreign currency gain/(loss)

11

11

(13,803)

(13,803)

Other income/(expense), net

(887)

(418)

(469)

(2,025)

649

(2,674)

Total other expense

(27,447)

(6,087)

(21,360)

(101,256)

(10,645)

(90,611)

Equity in net income/(loss) of unconsolidated subsidiaries

2,040

(1,962)

4,002

7,117

(3,157)

10,274

Income/(loss) before income taxes

50,078

42,753

7,325

(19,218)

95,576

(114,794)

Income taxes expense/(benefit)

15,503

16,335

832

(2,787)

36,753

39,540

Net income/(loss)

$ 34,575

$ 26,418

$ 8,157

$ (16,431)

$ 58,823

$ (75,254)

Net (income)/loss attributable to noncontrolling interests

$ (1,818)

$ (1,818)

$ (3,615)

$ (3,615)

Net income/(loss) attributable to Darling

$ 32,757

$ 26,418

$ 6,339

$ (20,046)

$ 58,823

$ (78,869)

Basic income/(loss) per share:

$ 0.20

$ 0.22

$ (0.02)

$ (0.12)

$ 0.50

$ (0.62)

Diluted income/(loss) per share:

$ 0.20

$ 0.22

$ (0.02)

$ (0.12)

$ 0.50

$ (0.62)

 

Darling Ingredients Inc.

Condensed Consolidated Balance Sheets – Assets

For the Periods Ended June 28, 2014 and December 28, 2013

(Dollars in thousands)

June 28,

December 28,

2014

2013

Current assets:

(unaudited)

Cash and cash equivalents

$ 143,785

$ 870,857

Restricted cash

350

354

Accounts Receivable, net

467,392

112,844

Inventories

431,529

65,133

Prepaid expenses

26,296

14,223

Income taxes refundable

26,448

14,512

Other current assets

33,022

32,290

Deferred income taxes

18,955

17,289

Total current assets

1,147,777

1,127,502

Property, plant and equipment

less accumulated depreciation, net

1,697,058

666,573

Intangible assets

less accumulated amortization, net

1,037,479

588,664

Other assets:

Goodwill

1,442,299

701,637

Investment in unconsolidated subsidiaries

147,662

115,114

Other

76,077

44,643

Deferred income taxes

6,443

Total assets

$5,554,795

$3,244,133

 

Darling Ingredients Inc.

Condensed Consolidated Balance Sheets

Liabilities and Stockholders’ Equity

For the Periods Ended June 28, 2014 and December 28, 2013

(Dollars in thousands)

June 28,

December 28,

2014

2013

Current liabilities:

(unaudited)

Current portion of long-term debt

$ 68,616

$ 19,888

Accounts payable, principally trade

313,171

43,742

Income taxes payable

7,830

Accrued expenses

167,552

113,174

Total current liabilities

557,169

176,804

Long-term debt, net of current portion

2,302,655

866,947

Other non-current liabilities

98,241

40,671

Deferred income taxes

472,863

138,759

Total liabilities

3,430,928

1,223,181

Commitments and contingencies

Total Darling’s Stockholders’ equity:

2,025,380

2,020,952

Noncontrolling interests

98,487

Total stockholders’ equity

$2,123,867

$2,020,952

$5,554,795

$3,244,133

 

For More Information, contact:

Melissa A. Gaither, Director of Investor Relations

Email: mgaither@darlingii.com

251 O’Connor Ridge Blvd., Suite 300

Phone: +1-972-717-0300

Irving, Texas 75038

 

Far East Energy Announces Second Quarter Results And Increased Revenue for First Half of 2014

HOUSTON, Aug. 7, 2014 /PRNewswire/ — Far East Energy Corporation (OTCBB:FEEC), the U.S. listed company that operates the Shouyang Coalbed Methane (CBM) Production Sharing Contract (PSC) in Shanxi Province, People’s Republic of China, is pleased to announce the filing of its Form 10-Q, for the period ended June 30, 2014. 

For the first six months of 2014, revenues rose 209% compared to the same period in 2013, reaching $2.2 million for the first half of the year.  This performance reflects (1) the strong increase in gas production and gas sales resulting from the 2013 drilling and fracing program and (2) the significant increase in gas prices being received in 2014 compared to 2013.  Compared to a relatively weak 2nd quarter in 2013, revenues for the three-months ended June 30, 2014 increased 324% to $1.1 million.

Gas sales volumes for the six months ending June 30, 2014 averaged 1.35 MMcf/d, up 126% from the same period in 2013, resulting from the newly drilled and fraced wells.  As previously announced, 29 wells in the core Area A production zone were shut-in during the second quarter as being wells located outside the main production area, wells not tied-in to the gas gathering system or wells having ineffective fracs.  Production and sales have remained constant since the beginning of May, despite shutting in these 29 wells in Area A.  A number of these wells are candidates for future recompletions, and should meaningfully enhance production of water and/or gas upon successful recompletion.

Following the previously announced increase in the sales gas price, the average price received for gas sales, inclusive of subsidies and refunds, was $8.87/Mcf in the first half of 2014, up 37% over the same period in 2013.

The company continued to focus on costs during the first half of 2014, and, although direct operating costs rose with the higher production levels, they were down 23% on a per Mcf sold basis, and general and administrative costs were down in total compared to same period in 2013.  The announced well shut-ins will contribute to further cost reductions into the third quarter of 2014, without affecting current production levels.

Commenting, CFO Jennifer Whitley said, “These results show the impact of our 2013 drilling and fracing program, combined with the higher gas price that we are now receiving for our contracted gas sales.  As we continue our ongoing strategic discussions, management is also maintaining its focus on cost controls into the second half of the year.”

ODP
The draft ODP report, which covers Area A, was submitted to the National Energy Administration (“NEA”) of the National Development and Reform Commission (“NDRC”) on June 16, 2014. The NEA is in the process of reviewing the ODP report, and the Company is now awaiting the award of its “Road Pass”.  Area A will exit the exploration period and commence the development period when the ODP receives final regulatory approvals. Final regulatory approval is expected during 2015. Receipt of the “Road Pass” will allow the Company to proceed with the development of Area A while awaiting final regulatory approvals; however, continuing further development and exploration activities does require conclusion of the strategic process currently underway, and on which management is diligently working, in order to provide funding for those activities.

Far East Energy Corporation
Based in Houston, Texas, with offices in Beijing, China, Far East Energy Corporation is focused on coalbed methane exploration and development in China.

Statements contained in this press release that state the intentions, hopes, estimates, beliefs, anticipations, expectations or predictions of the future of Far East Energy Corporation and its management are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. It is important to note that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, including that the amendment to the PSC may not be entered into or if entered into may not be on the same terms as originally agreed upon by the parties. Actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: the preliminary nature of well data, including permeability and gas content; there can be no assurance as to the volume of gas that is ultimately produced or sold from our wells; the fracture stimulation and drilling programs may not be successful in increasing gas volumes; due to limitations under Chinese law, we may have only limited rights to enforce the gas sales agreement between Shanxi Province Guoxin Energy Development Group Limited and China United Coalbed Methane Corporation, to which we are an express beneficiary; additional wells may not be drilled, or if drilled may not be timely; additional pipelines and gathering systems needed to transport our gas may not be constructed, or if constructed may not be timely, or their routes may differ from those anticipated; the pipeline and local distribution/compressed natural gas companies may decline to purchase or take our gas, or we may not be able to enforce our rights under definitive agreements with pipelines; conflicts with coal mining operations or coordination of our exploration and production activities with mining activities could adversely impact or add significant costs to our operations; our lack of operating history; limited and potentially inadequate management of our cash resources; risk and uncertainties associated with exploration, development and production of coalbed methane; our inability to extract or sell all or a substantial portion of our reserves and other resources; we may not satisfy requirements for listing our securities on a securities exchange; expropriation and other risks associated with foreign operations; disruptions in capital markets affecting fundraising; matters affecting the energy industry generally; lack of availability of oil and gas field goods and services; environmental risks; drilling and production risks; changes in laws or regulations affecting our operations, as well as other risks described in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission.

Solid Performance in Asia Contributes to Ageas’ Growth

HONG KONG, Aug. 7, 2014 /PRNewswire/ — Ageas Announces 6 month results 2014 (Note 1)  Asia Financial Highlights

Ageas posts solid first half insurance results

  • Net profit of insurance operations was EUR 340 million
  •  Group inflows (at 100%) up 10% to EUR 13.8 billion, largely driven by Life inflows in Asia (+15%) and Continental Europe (+24%)
  • Group net profit of EUR 31 million
  • Insurance solvency ratio at 208%; Group solvency ratio at 203%.   General Account net cash position at EUR 1.6 billion (vs. EUR 1.9 billion at the end of 2013)

Strong Life new business growth while delivering good profit in Asia

  • Ageas Asia’s net profit at EUR 78 million vs. EUR 66 million (+19%) of which EUR 16 million originated from its Hong Kong operations
  • Asia’s inflows at EUR 6.7 billion vs. EUR 5.9 billion (+14%)
    • Mainland China’s inflows increased 20% to EUR 4.8 billion, with new business premiums up 19% to EUR 2.7 billion. The bank channel and the agency channel both contributed to this growth.
    • Thailand’s Life inflows were up 15% to EUR 884 million. Life new business premiums were up 24% to EUR 434 million. Non-Life inflows were up 5% to EUR 110 million across all lines of business.
    • Malaysia’s life inflows amounted to EUR 274 million. Non-Life premiums were EUR 301 million.
    • Hong Kong’s inflows increased 5% to EUR 227 million.
    • India’s inflows were EUR 50 million.
  • Strong solvency in Asia (including non-consolidated operations) at 244%

Announcing the 6 month results 2014, Gary Crist, Chief Executive Officer of Ageas Asia commented:

“We have solid contributions from all countries within the region especially from Mainland China. Inflows were up 15% to EUR 6.3 billion, with non-consolidated partnerships taken at 100%. While the second quarter showed good growth, Ageas benefited from an especially strong first quarter. Higher new business sales mostly originated from Mainland China and Thailand resulting from successful sales campaigns and continued channel development, including a strong increase in the number of agents. Renewal premiums were again up significantly (+17%) to EUR 2.8 billion benefiting from strong sales last year and continued good persistency across all entities.”

Please visit http://www.ageas.com for full details of the press release.  

Note:

1. All 6 month 2014 data are compared to the 6 month 2013 figures unless otherwise stated.