Welcome!

Microsoft Cloud Authors: Pat Romanski, Jnan Dash, Andreas Grabner, Lori MacVittie, Jim Kaskade

News Feed Item

China Precision Steel Announces Second Quarter Fiscal 2013 Results

SHANGHAI, Feb. 19, 2013 /PRNewswire/ -- China Precision Steel, Inc. (NASDAQ: CPSL) ("China Precision Steel" or the "Company"), a niche precision steel processing Company principally engaged in producing and selling high precision, cold-rolled steel products, announced today its fiscal year 2013 second quarter results for the period ended December 31, 2012.

Second Quarter Highlights

  • Revenue was $8.2 million
  • Gross loss was $1.3 million
  • Net loss was $10.9 million
  • Fully diluted loss per shares was $2.80
  • International sales were $0.8 million, or 10% of total sales

"During the quarter, we continued to focus on our strategy to reduce production of negative margin products including many of our low carbon steel products which resulted in a decline of revenue period-over-period, However, compared with the immediate preceding quarter ended September 30, 2012, our revenue increased 37.1% as selling prices showed signs of stabilizing during the quarter and our sales volume increased 38.1%," commented Mr. Hai Sheng Chen, CEO of China Precision Steel. "While we continue to remain cautious about the near-term as the Chinese steel industry works through its overcapacity, we believe that the Chinese economy and steel industry will continue to gradually improve throughout the calendar year 2013 as the new government implements its policies for economic growth."

Revenue for the second quarter of fiscal year 2013 was $8.2 million, down from revenue of $33.7 million in the second quarter of fiscal year 2012. The decrease in revenue was mainly attributable to the decrease in production and sales of low-carbon cold-rolled products in response to the company's strategy to reduce its loss-making products. Sequentially, revenue increased 37.1% from revenue of $6.0 million in the first quarter of fiscal year 2013. Total sales volume in the second quarter of fiscal year 2013 was 10,705 tons, down from total sales volume of 39,907 tons in the prior period and up from total sales volume of 7,753 tons in the first quarter of 2013. High carbon and low carbon sales accounted for 32.4% and 65.6% of total sales, respectively, compared to 21.2% and 77.2%, respectively, period-on-period. Exports represented 10% of total sales for the current period, compared to 14% in the same period a year ago. 

Gross loss in the second quarter was $1.3 million, compared to gross loss of $1.8 million in the same period a year ago. Gross loss margin for the current period was 15.9%, compared to a gross loss margin of 5.3% in the second quarter of fiscal 2012. The increase in gross loss margin is due to a 9.6% period-on-period decrease in average selling prices while the average cost per unit sold declined 0.9% period-on-period. Average selling price for the quarter was $763 per ton, down from $844 per ton in the second quarter of fiscal 2012, and the average cost per unit sold was $884 per ton, down slightly from $889 per ton in the same period a year ago.

Selling expenses for the second quarter of fiscal year 2013 were $25,063, compared to $40,185 in the second quarter of fiscal year 2012. The decline in selling expenses was primarily attributable to lower transportation costs and traveling expenses period-on-period. Administrative expenses were $401,797, or 4.9% of revenue, compared to $932,480, or 2.8% of revenue period-on-period. The decrease in administrative expenses was primarily due to a decrease in traveling expenses and legal and professional fees period-on-period.

Operating loss for the current quarter was $10.6 million, compared to an operating loss of $2.8 million in the second quarter of fiscal year 2012.

Net loss for the second quarter of fiscal year 2013 was $10.9 million, compared to net loss of $3.5 million for the second quarter of fiscal year 2012. Fully diluted loss per share was $2.80, compared to fully diluted loss per share of $0.91 in the same period a year ago.

Six Months Financial Results

Revenue for the first six months of fiscal year 2013 was $14.1 million compared to $75.8 million in the same period a year ago. Gross loss was $2.8 million, compared to a gross loss of $1.7 million for the six months of fiscal year 2012. Gross loss margin for the six months ended December 31, 2012 was 19.6% compared to 2.3% for the same period a year ago. Operating loss was $13.9 million compared to $3.2 million in the first six months of fiscal year 2012. Net loss was $15.1 million, compared to a net loss of $4.6 million in the same period a year ago. Fully diluted loss per share was $3.89, compared to fully diluted loss per share of $1.19 for the first six months of fiscal year 2012. 

Financial Condition

As of December 31, 2012, China Precision Steel had $0.8 million in cash and cash equivalents, $67.8 million in total liabilities and working capital of $39.1 million. Stockholders' equity stood at $106.0 million, compared to $118.9 million as of June 30, 2012. 

Business Outlook

China Precision Steel will continue to focus on improving its gross margin by being selective in accepting new orders as well as improving cash flow through reducing accounts receivables. As of December 31, 2012, China Precision Steel had a backlog of $6.4 million.

"The China Iron and Steel Association (CISA) has prioritized a strict control of steel production capacity in a move to reduce the excess capacity that has contributed to the pressure on steel prices. Furthermore, CISA has stated that it anticipates steel demand for 2013 to be better than 2012 as the industry recovers from the worst slump in the past decade," Mr. Chen continued. "As we expect market conditions will gradually improve during the calendar year, we will be focusing our efforts on improving our working capital and operating cash flow by implementing more aggressive policies to reduce our accounts receivables."

Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding The likelihood that the downturn in China's steel industry has halted and that the industry will experience a turnaround and increased demand; the significance of China's implementation of pro-growth measures and the likelihood that it will start benefitting the domestic steel industry in the fourth quarter; the Company's ability to reduce operating costs, improve working capital and increase profitability, and any other statements of non-historical information. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, such as business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which China Precision Steel is engaged; cyclicality of steel consumption including overcapacity and decline in steel prices, limited availability of raw material and energy may constrain operating levels and reduce profit margins, environmental compliance and remediation could result in increased cost of capital as well as other relevant risks not included herein. The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. 

Elite IR
Leslie J. Richardson, Partner
+852-3183 0283
[email protected]

-- Financial Tables Follow --


China Precision Steel, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)





December 31,


June 30,




2012


2012

Assets




Current assets





Cash and cash equivalents

$799,887


$1,602,805


Accounts receivable






Trade, net of allowances of $13,568,723 and $3,231,613






  at December 31, 2012 and June 30, 2012, respectively

47,789,399


59,116,931


Bills receivable

48,149


173,089


Other

1,027,119


1,117,243


Inventories

19,886,666


15,516,220


Prepaid expenses

262,943


668,867


Advances to suppliers, net of allowance of $4,715,706 and






$4,623,323 at December 31, 2012 and June 30, 2012, respectively

37,096,316


37,384,684

Total current assets

106,910,479


115,579,839

Property, plant and equipment





Property, plant and equipment, net

64,573,675


67,752,991


Construction-in-progress

243,167


233,512




64,816,842


67,986,503

Intangible assets, net

1,895,071


1,880,129

Goodwill

99,999


99,999

Total assets

$173,722,391


$185,546,470

Liabilities and Stockholders' Equity




Current liabilities





Short-term loans

$27,610,356


$27,246,477


Long-term loan - current portion

16,200,000


16,200,000


Accounts payable and accrued liabilities

6,763,808


6,772,892


Advances from customers

3,054,617


2,253,956


Other taxes payables

8,233,263


8,446,373


Current income taxes payable

5,904,112


5,756,178

Total current liabilities

67,766,156


66,675,876

Long-term loans

-


-

Stockholders' equity:





Preferred stock: $0.001 per value, 8,000,000 shares






authorized, no shares outstanding at December 31, 2012 and






June 30, 2012, respectively

-


-


Common stock: $0.001 par value, 62,000,000 shares






authorized, 3,880,866 issued and outstanding at






December 31, 2012 and June 30, 2012, respectively

3,880


3,880


Additional paid-in capital

75,685,066


75,685,066


Accumulated other comprehensive income

21,289,724


19,097,295


Retained earnings

8,977,565


24,084,353

Total stockholders' equity

105,956,235


118,870,594

 


China Precision Steel, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

For the Three and Six Months Ended December 31, 2012 and 2011

(Unaudited)




Three Months Ended


Six Months Ended



2012


2011


2012


2011

Sales revenues

$8,164,267


$33,662,335


$14,121,027


$75,829,178

Cost of goods sold

9,466,225


35,461,052


16,889,934


77,566,125

Gross (loss)

(1,301,958)


(1,798,717)


(2,768,907)


(1,736,947)

Operating expenses









Selling expenses

25,063


40,185


54,336


108,489


Administrative expenses

401,797


932,480


844,412


1,226,556


Allowance for bad and doubtful debts

8,786,214


-


10,159,214


-


Depreciation and amortization expense

52,050


53,993


104,011


108,437


Total operating expenses

9,265,124


1,026,658


11,161,973


1,443,482

(Loss) from operations

(10,567,082)


(2,825,375)


(13,930,880)


(3,180,429)

Other income/(expense)









Other revenues

607,654


68,872


607,757


69,071


Interest and finance costs

(925,077)


(808,650)


(1,783,665)


(1,478,578)


Total other (expense)

(317,423)


(739,778)


(1,175,908)


(1,409,507)

(Loss) from operations before income tax

(10,884,505)


(3,565,153)


(15,106,788)


(4,589,936)

Provision for income tax









Current

-


-27,231


-


27,081


Total income tax (benefit)/expense

-


-27,231


-


27,081

Net (loss)

(10,884,505)


(3,537,922)


(15,106,788)


(4,617,017)

Basic (loss) per share

($2.80)


($0.91)


($3.89)


($1.19)

Basic weighted average shares outstanding

3,880,866


3,880,866


3,880,866


3,880,866

Diluted (loss) per share

($2.80)


($0.91)


($3.89)


($1.19)

Diluted weighted average shares outstanding

3,880,866


3,880,866


3,880,866


3,880,866

 

China Precision Steel, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

For the Six Months Ended December 31, 2012 and 2011

(Unaudited)




2012


2011

Cash flows from operating activities





Net (loss)

(15,106,788)


(4,617,017)


Adjustments to reconcile net income to net cash provided by operating activities





  Depreciation and amortization

4,561,331


4,457,774


  Gain on disposal of property, plant and equipment

-


(16,575)


  Allowance for bad and doubtful debts

10,159,214


-


  Inventory provision

-


442,383


Net changes in assets and liabilities:





  Accounts receivable, net

2,477,594


(4,945,225)


  Inventories

(4,060,401)


(1,104,504)


  Prepaid expenses

412,031


(299,326)


  Advances to suppliers

1,086,749


3,046,345


  Accounts payable and accrued expenses

(139,640)


1,400,057


  Advances from customers

755,623


3,601,384


  Other taxes payable

(381,886)


587,656


  Current income taxes

32,914


-

Net cash (used in)/provided by operating activities

(203,259)


2,552,952

Cash flows from investing activities





  Purchase of property, plant and equipment, including construction in progress

(111,583)


(298,802)


  Proceeds from disposal of property, plant and equipment

-


16,575

Net cash (used in) investing activities

(111,583)


(282,227)

Cash flows from financing activities





  Repayments of short-term loans

(504,269)


-


  Repayments of long-term loan

-


(2,845,699)

Net cash (used in) financing activities

(504,269)


(2,845,699)

Effect of exchange rate

16,193


63,865

Net (decrease) in cash

(802,918)


(511,109)

Cash and cash equivalents, beginning of period

1,602,805


2,707,754

Cash and cash equivalents, end of period

$799,887


$2,196,645

SOURCE China Precision Steel Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Providing secure, mobile access to sensitive data sets is a critical element in realizing the full potential of cloud computing. However, large data caches remain inaccessible to edge devices for reasons of security, size, format or limited viewing capabilities. Medical imaging, computer aided design and seismic interpretation are just a few examples of industries facing this challenge. Rather than fighting for incremental gains by pulling these datasets to edge devices, we need to embrace the i...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walked through how Octob...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...