Click here to close now.




















Welcome!

Microsoft Cloud Authors: Liz McMillan, Greg O'Connor, Aleksei Gavrilenko, Elizabeth White, Pat Romanski

News Feed Item

Mountain China Resorts Reports First Quarter 2012 Financial and Operational Results

BEIJING, CHINA -- (Marketwire) -- 11/30/12 -- Mountain China Resorts (Holding) Limited (TSX VENTURE:MCG) ("MCR" or the "Company"), reported its financial results for the three months ended September 30, 2012. MCR reports its results in Canadian Dollars.

Financial Highlights


----------------------------------------------------------------------------
                                   For the three months For the three months
(in thousands of Canadian dollars                 ended                ended
 except for per share data)          September 30, 2012   September 30, 2011
----------------------------------------------------------------------------
Revenue                                           1,184                   39
----------------------------------------------------------------------------
Operating expenses                              (1,606)                (464)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Other income                                         83                    3
----------------------------------------------------------------------------
General and administrative                                                  
 expenses                                         (160)                (429)
----------------------------------------------------------------------------
Depreciation and amortization                   (2,813)              (2,418)
----------------------------------------------------------------------------
Impairment of PPE                                     -                    -
----------------------------------------------------------------------------
Operating loss                                  (3,312)              (3,269)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Total non-operating income and                                              
 expenses                                       (1,518)              (2,096)
----------------------------------------------------------------------------
                                                                            
Deferred income tax recovery                         33                   38
----------------------------------------------------------------------------
Net loss                                        (4,797)              (5,327)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Net loss per share (Basic and                                               
 Diluted)                                        (0.02)               (0.02)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Weighted average number of shares                                           
 outstanding(Basic and Diluted)             308,859,103          203,092,285
----------------------------------------------------------------------------

Total revenue and the net results were from the Company's resort operations with no real estate sales revenue generated during the Reporting Period. For the three months ended September 30, 2012, the Company generated revenues from resort operations of $1.18 million and a net loss of $4.80 million or $0.02 per share compared to $0.039 million and a net loss of $5.32 million or $0.02 per share. The increase in the revenue is a sharp contrast to the revenue from the same period of last year because the Company started its first summer season operation on a trial basis in the three months ended September 30, 2012.

Also because of the trial summer season operation, the Company's resort operation expenses from continuing operations increased to $1.60 million for the three months ended September 30, 2012, compared to $0.46 million for the same period in 2011, because of the Company's resort summer season operations. Operations expenses for the resort were mainly attributable to staffing, fuel and utilities.

Corporate general and administrative expenses totaled $0.16million for the three months ended September 30, 2012, compared to $0.43 million for the same period in 2011. This amount mainly comprised executive employee costs, public company maintenance costs, and corporate information technology costs.

Depreciation and amortization expense from continuing operations totaled $2.81 million for the three months ended September 30, 2012, compared to $2.41 million for the same period in 2011. The increase was mainly due to the additional amortization expenses related to the building renovation completed in later 2011.

The Company incurred interest expenses of $1.48 million for the three months ended September 30, 2012 from continuing operations compared to $1.03 million for the same period in 2011.

Cash and cash equivalents totaled $14.46 million and working capital deficiency is $56.11 million as at September 30, 2012, compared to $15.77 million in cash and cash equivalent and working capital deficiency of $62.79 million as at December 31, 2011.

Operations Sun Mountain Yabuli

The Company's 2011-2012 Sun Mountain Yabuli Resort winter season operations commenced on November 26, 2011 and closed on March 25, 2012. The Company's first trial summer operation began on July 14, 2012 and closed on September 2, 2012 for a total of 50 days at the Sun Mountain Yabuli Resort. The resort provided outdoor activities including: archery, cross country mountain bike/hiking, mountain top afternoon tea parties and so on. For the three months ended September 30, 2012, the total number of slide guests reached 3,299, the total number of hotel nights reached 12,895, and the hotel occupancy rate reached 37% for the period of time when the summer operation was open. Even though Sun Mountain Yabuli Resort was successful in generating revenues from the first trial summer operation, after taking into consideration of the corresponding operating expenses for the summer operation, the summer operation at the Yabuli Resort is not profitable enough for the Company to continue. Accordingly, the Company and Club Med decided that there will be no summer operation in 2013 at Club Med Yabuli Resort.

Revenue at the Yabuli Resort for the third quarter and the nine-month period ended September 30, 2012 was $1.18 million and $6.45 million respectively. Operating EBITDA was negative $0.42 million in the third quarter and $0.91 million in the nine-month period ended September 2012.

The Company's 2012-2013 Sun Mountain Yabuli Resort winter season commenced on November 24, 2012 and is anticipated to continue until sometime in March of 2012. The Club Med portion of the Yabuli Resort will commence on November 30, 2012 and is anticipated to continue until sometime in March 2012. Advance hotel bookings received by the Company this year suggest that the winter operating income is expected to grow by 30%.

Sun Mountain Yabuli - Real Estate Development

As at the end of Fiscal 2010, the Company had completely finished working on the exterior decoration of 55 villas, including roofs, windows, painting and tiles. Three of the 55 villas were completed with interior finishing, including wall paint, carpets, wood floors, kitchen cabinets, countertops and other necessary furniture. 20 villas were left in its foundation stage (a total of 75 villas have been built) until the sales of the decorated villas begin. Flattened dirt roads were also constructed to connect each of the villas and the main street. As of the date of this MD&A, 55 villas are ready for sale and subject to internal decoration pursuant to the specifications of buyers. Generally, buyers in China are accustomed to have their interior decoration plan personalized, therefore, majority of homes sold in China are not decorated interiorly at the time when they are sold, but rather completely remained in cement.

A combination of temporary Chinese government policies aimed at cooling down the rapidly rising housing prices in mainland China from 2011 to now have depressed the market for resort properties like the Company's villas. Therefore, the Company temporary suspended sales efforts for its villas. When the policies of Chinese government changes and the market for resort properties warms up, the Company plans to resume its sales efforts for the villas.


Balance Sheet Key Indicators                                                
(in thousands of Canadian dollars except for ratios)                        
                                     September 30, 2012    December 31, 2011
----------------------------------------------------------------------------
Current Ratio(1)                                 0.41:1               0.41:1
Free Cash                                         9,460                  772
Working Capital(2)                             (56,111)             (62,787)
Total Assets                                    170,840              187,728
Total Debt(3)                                   115,764              118,152
Total Equity(4)                                  55,076               69,576
Total Debt to Total Equity Ratio                 2.10:1               1.70:1
(1) Current ratio is defined as total current assets divided by total       
current liabilities                                                         
(2) Working capital is defined as total current assets less total current   
liabilities                                                                 
(3) Total debt is defined as total current liabilities plus total non-      
current liabilities                                                         
(4) Total equity is equal to the total shareholders' equity                 

The Company has an accumulated deficit, a working capital deficiency and has defaulted on a bank loan, which all cast a substantial doubt on the Company's ability to continue as a going concern. The Company's ability to meet its obligations as they become due and to continue to operate as a going concern is dependent on further financing and ultimately, the attainment of profitable operations. These consolidated financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. Management of the Company plans to fund its future operation by obtaining additional financing through loans and private placements of its securities and through the sale of the properties held for sale. However, there is no assurance that the Company will be able to obtain additional financing or sell the properties held for sale.


                                           September 30,        December 31,
                                                    2012                2011
(in thousands of Canadian dollars)                                          
                                                                            
Accumulated deficit                            $ 266,134           $ 253,985
Working capital (deficiency)                    (56,111)            (62,787)

Fiscal 2012 Major Corporate Developments

Debt Settlement Agreement with Melco

On July 10, 2012, during the Company's Annual General Meeting, the Company obtained the necessary shareholder approval for the Debt Settlement Agreement with Melco. However, the Company is still waiting for the final approval from the Exchange, which has asked the Company to provide an independent real estate appraisal for each of the villas at Club Med Sun Mountain Yabuli Resort proposed to be transferred for partial repayment of the debts. The Company is in the process of obtaining such appraisals.

New bank loan for the amount of RMB 140 million

On February 14, 2012, the Company secured a new bank loan for the amount of RMB 140 million with the Harbin Bank (the "New Bank Loan"). The New Bank Loan carries a three year term with a maturity date of February 15, 2015 and a fixed annual interest rate of 7.315%, which interest to be paid on a monthly basis commencing February 16, 2012. The principal of the New Bank Loan is repayable in four installments of RMB 35 million each, starting with the first installment repayment due on August 15, 2013 and each subsequent installment repayment due every six month thereafter. The original RMB 150 million bank loan with the same bank was repaid with advance from a short term bridge loan guaranteed by an independent third party trust company when it was due in on February 9, 2012. The Company then used the advance from the New Bank Loan and RMB 10 million of its own funds to repay bridge loan guaranteed by the third party trust company.

Non-Brokered Private Placement

On February 22, 2012, the Company announced that it has closed the non-brokered private placement of 105,700,000 common shares (the "Shares") initiated in September 16, 2011, priced at $0.18 per Share for gross proceeds of $19 million (the "Offering"). The proceeds from the Offering are being used for the Company's general working capital and for the repayment of certain debentures. On March 9, 2012, the Shares were issued to the corresponding shareholders.

Loan Default

On March 2, 2012, one of the Company's subsidiaries, Heilongjiang Yabuli On Snow Asian Game Village Hotel Co. Ltd. ("Yabuli Resort"), missed the second installment principal repayment in the amount of RMB 30 million under its RMB 250 million loan agreement with the China Construction Bank (the "Bank"). According to the Loan Agreement between Yabuli Resort and the Bank, the Bank has the right to accelerate Yabuli Resort's obligation to repay the entire unpaid principal plus interest immediately and to take legal actions to enforce on the security. During the Company's initial negotiation with the Bank, representatives of the Bank have advised the Company that the Bank will not take immediate actions against Yabuli Resort or the Company. However, the likelihood that the Bank will take legal actions and execute on its security over the collaterals increases significantly if Yabuli Resort still cannot repay the loan in the coming year. The Company is still trying to seek an extension of the repayment period from the Bank.

Corporate Restructuring

In order to better allocated and manage the Company's primary operations and assets, the Company completed the process of separating its real estate operation and its resort and ski related operations into different entities in the three months ended September 30, 2012.

The Company incorporated a subsidiary called Asia Snow Investment Limited ("Asia Snow"), in Hong Kong on March 21, 2012. Asia Snow is 100% owned by the Company's direct wholly-owned Cayman Island subsidiary, Mountain China Resorts Investment Limited. Asia Snow in turn holds 100% of the issued share capital Mountain China Resort Travel Consultancy (Beijing) Co. Ltd. ("MCR Beijing"), which was transferred from Mountain China Resorts Limited ("MCR HK") to Asia Snow. Also all of the issued share capital of Heilongjiang Yabuluoni Zhiye Co. Ltd. ("Zhiye") was transferred to MCR Beijing from MCR HK. By completing the corporate restructuring transaction, the resort business and real estate business of the Company will be operated and held by two separate operating subsidiaries. The Company believes that it will be more efficient for classifications and management purposes.

About MCR

MCR is the premier developer of four season destination ski resorts in China. MCR is transforming existing China ski properties into world-class, four seasons luxury mountain resorts with excellent real estate investment opportunities for discerning buyers. In February 2009, the Company's Sun Mountain Yabuli Resort was awarded Best Resort Makeover in Asia by TIME Magazine. Yabuli is also the permanent home of the China Entrepreneur's Forum the leading and most influential community of China's most distinguished and successful entrepreneurs and business leaders with over 5,000 members from across a variety of key industries.

FORWARD LOOKING INFORMATION

Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, and actual results may vary from the forward-looking information. Implicit in this information are assumptions regarding future operations, plans, expectations, anticipations, estimates and intentions, such as the plans to develop the ski resorts in China. These assumptions, although considered reasonable by MCR at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operating results and economic performance of MCR are subject to a number of risks and uncertainties, including general economic, market and business conditions, uncertainty relating to land use rights in China, adverse industry events for the ski and real estate industries, real estate prices in general in China, MCR's ability to make and integrate acquisitions, the requirements of recent Chinese regulations relating to cross-border mergers and acquisitions, the inability to obtain required approvals or approvals may be subject to conditions that are unacceptable to the parties, changing industry and government regulation, as well as MCR's ability to implement its business strategies, dispose of assets or raise sufficient capital, MCR's ability to obtain additional financial resources and sufficient working capital, MCR's ability to complete the announced non-brokered private placement, seasonality, weather conditions, competition, currency fluctuations and other risks, and could differ materially from what is currently expected as set out above.

Forward-looking information contained in this press release is based on current estimates, expectations and projections, which MCR believes are reasonable as of the date of this press release. MCR uses forward-looking statements because it believes such statements provide useful information with respect to the operation and financial performance of MCR, and cautions readers that the information may not be appropriate for other purposes. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While MCR may elect to, it does not undertake to update this information at any particular time except as required by applicable law.

The TSX Venture Exchange nor its Regulation Services Provider has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange nor its Regulation Services Provider does not accept responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.