Salsaga Blog

TAI’AN, Shandong, China, April 16 /Xinhua-PRNewswire-FirstCall/ — China RuiTai International Holdings Co., Ltd. (BULLETIN BOARD: CRUI) (”China RuiTai” or ”the Company”), a leading producer and distributor of cellulose ether products in the People’s Republic of China (”PRC”), today announced its financial results for the fiscal year ended December 31, 2007. Fiscal Year 2007 Highlights — Sales increased 36.7ACIORFIPROCENTE to $38.4 million — Gross profit increased 33.4ACIORFIPROCENTE to $11.9 million — Gross profit margin was 31.0ACIORFIPROCENTE — Operating income increased 52.3ACIORFIPROCENTE to $8.1 million — Operating margin improved 216 basis points to 21.1ACIORFIPROCENTE — Net income increased 62.2ACIORFIPROCENTE to $4.9 million, or $0.23 per basic and fully diluted share — Completed a production line to increase production capacity to 10,000 metric ton per year — Became a public company through a share exchange transaction in August 2007”We are pleased to see continuous strong growth as our cellulose ether products continue to receive wide acceptance while meeting the worldwide expanding demand,” commented Dianmin Ma, Chief Executive Officer and Chairman of China RuiTai. ”In 2007, we exported about 2,400 metric tons of cellulose ether products to foreign markets in the United States, Europe, India, the Middle East, and South East Asia. Our sales in the domestic market were about twice that of our international market. We expect further growth in the domestic and international markets in 2008 and beyond.”Full Year 2007 ResultsDuring the year ended December 31, 2007, sales were $38.4 million, an increase of 36.7ACIORFIPROCENTE from $28.2 million for 2006. This was primarily due to increased order volumes from the Company’s existing customers. Hydroxypropyl Methyl Cellulose (HPMC) remained the Company’s top-selling product, accounting for 68.4ACIORFIPROCENTE in 2007, compared to 66.0ACIORFIPROCENTE in 2006.Gross profit in 2007 was $11.9 million, an increase of 33.4ACIORFIPROCENTE from $8.9 million in 2006. Gross margin was 31.0ACIORFIPROCENTE in 2007, down slightly from 31.8ACIORFIPROCENTE in 2006 due to slight increase in raw material cost, which management expects to be stable or experience a potential decrease in 2008.Operating expenses were $3.8 million, up 9.9ACIORFIPROCENTE from $3.6 million a year ago. This increase was primarily due to higher selling expenses and general and administrative expenses resulting from growth and expansion. As a percentage of sales, operating expenses were 4.2ACIORFIPROCENTE in 2007, compared to 5.3ACIORFIPROCENTE in 2006.Operating income increased 52.3ACIORFIPROCENTE to $8.1 million in 2007 from $5.3 million in 2006. Operating margin during 2007 was 21.1ACIORFIPROCENTE, up from 18.9ACIORFIPROCENTE a year ago.Net income for 2007 was $4.9 million, or $0.23 per basic and fully diluted share, up 62.2ACIORFIPROCENTE from $3.1 million, or $0.14 per basic and fully diluted share in 2006.Financial ConditionAs of December 31, 2007, the Company had cash and cash equivalents of $4.2 million, accounts receivable were $3.1 million and total assets of $28.4 million. At December 31, 2007, the Company had short-term debt of $19.2 million, bank checks payable of $22.1 million and shareholders’ equity of $9.7 million. For the full year 2007, the Company generated $8.5 million in cash flow from operating activities. The Company had capital expenditures of $4.6 million, due to an additional production line introduced in May of 2007, which increased capacity by 1,500 metric tons for a total annual capacity of 10,000 metric tons.Business Outlook”In 2008, we plan to further increase our production volume to meet the growing international demand for cellulose ether products in both the domestic and international market. We intend to increase production at our existing facility, which is currently operating at about 70ACIORFIPROCENTE capacity, and plan to expand our total production capacity to 15,000 metric tons with our new facility. We believe by increasing our capacity 150ACIORFIPROCENTE, the increased production volume will further reduce our cost per metric ton which in turn will improve gross profit margin.”The outlook for our cellulose ether demand is excellent. Our close and strong alliances with research institutes enable us to offer products based on the most advanced technology and to enhance the many applications of our existing products. We look forward to leveraging our advantages in raw material sourcing, and local labor cost competitiveness to continue to capture the expanding business opportunities available to us,” Mr. Ma concluded.About China RuiTai International Holdings Co., Ltd.China RuiTai International Holdings Co., Ltd. (OTC BB: CRUI), through its operating subsidiary, is engaged in the production, sales, and exportation of deeply processed chemicals, with a primary focus on non-ionic cellulose ether products. Cellulose ether is an organic chemical that acts as a thickener and dissolves in water and other organic solvents. The Company is one of the largest non-ionic cellulose ether producers in China delivering products for the pharmaceutical, PVC manufacturing, construction industry, the personal care market and oil field exploration and recovery industries. China RuiTai exports to United States, Europe, India, the Middle East, and South East Asia.Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain “forward-looking statements,” as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management’s current expectations. Such factors include, but are not limited to the company’s ability to complete product orders, coordinate product design with its customers, ability to expand and grow its distribution channels, political and economic factors in the People’s Republic of China, the company’s ability to find attractive acquisition candidates, dependence on a limited number of larger customers and other factors detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission and other regulatory authorities. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. — Financial Tables to Follow — CHINA RUITAI INTERNATIONAL HOLDINGS CO., LTD. AND SUBSIDIARIES F/K/A SHANDONG RUITAI CHEMICAL CO., LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (AUDITED) For the Year Ended December 31, 2007 2006 REVENUE $ 38,407,800 $ 28,090,238 COST OF SALES 26,489,964 19,153,553 GROSS PROFIT 11,917,836 8,936,685 EXPENSES Selling expenses Sales commission 670,364 738,526 Freight-out 893,530 856,850 Adverting 188,761 30,093 Travel and entertainment 250,230 385,360 Other selling expenses 186,603 117,270 TOTAL SALES EXPENSE 2,189,488 2,128,099 General and administrative expenses Payroll and employees benefits 267,673 209,242 Insurance 151,437 139,989 Professional fees 86,303 105,206 Consultant fees 134,011 — Bad debt expenses — 88,176 Office expenses 364,906 195,843 Repair and maintenance 167,014 525,176 Travel and entertainment 206,675 148,569 Other general and administrative 249,486 78,917 TOTAL OPERATING EXPENSE 1,627,505 1,491,118 TOTAL EXPENSE 3,816,993 3,619,217 OPERATING INCOME (LOSS) 8,100,843 5,317,468 OTHER INCOME Interest income 267,989 331,259 Interest expense (1,996,479) (1,159,076) Government subsidy 556,627 — Other income (expense) 106,855 (151,992) TOTAL OTHER INCOME (1,065,008) (979,809) INCOME TAX AND MINORITY INTEREST 7,035,835 4,337,659 PROVISION FOR TAXATION 2,110,750 1,301,297 INCOME BEFORE MINORITY INTEREST 4,925,085 3,036,362 MINORITY INTEREST (49,251) (30,364) NET INCOME 4,875,834 3,005,998 OTHER COMPREHENSIVE INCOME (LOSS) Effects of Foreign Currency Conversion 490,336 104,608 COMPREHENSIVE INCOME (LOSS) $ 5,366,170 $ 3,110,606 BASIC AND FULLY DILUTED EARNINGS PER SHARE $ 0.23 $ 0.14 WEIGHTED AVERAGE SHARES OUTSTANDING 23,204,457 22,645,348 CHINA RUITAI INTERNATIONAL HOLDINGS CO., LTD. AND SUBSIDIARIES F/K/A SHANDONG RUITAI CHEMICAL CO., LTD. CONSOLIDATED BALANCE SHEETS (AUDITED) December December 2007 2006 ASSETS Current Assets: Cash and cash equivalents $ 4,166,713 $ 6,286,289 Bank checks and commercial paper 621,204 1,191,451 Accounts receivable, net 3,053,295 3,364,632 Due from unaffiliated suppliers 1,112,948 930,213 Prepaid expenses 2,876,820 2,360,481 Inventory 6,656,028 5,209,747 Advance to employees 113,297 56,735 Total current assets 18,600,305 19,399,548 Property and Equipment, net 11,306,271 6,592,796 Land use right, net 4,859,620 4,650,814 Long-term investment 830,984 779,200 Due from a related party 14,829,593 8,804,112 Restricted cash 14,738,564 12,244,750 Total Assets $ 65,165,337 $ 52,471,220 LIABILITIES AND OWNERS’ EQUITY Current Liabilities: Bank loan $ 19,269,317 $ 16,209,608 Bank checks payable 22,059,772 22,050,400 Accounts payable and accrued expenses 7,657,437 5,542,712 Taxes payable 3,560,918 2,221,970 Deferred revenue 737,027 493,807 Due to employees 1,265,898 890,984 Employee security deposit 810,802 677,949 Total Current Liabilities 55,361,171 48,087,430 Minority Interest 98,053 43,847 Owners’ Equity: Preferred stock, par value $0.001, 10,000,000 shares authorized, authorized, no shares outstanding — — Common stock, par value $0.001, 50,000,000 shares authorized, 22,645,348 shares issued and outstanding as of December 31, 2006 26,000,000 shares issued and outstanding as of December 31, 2007 26,000 22,745 Additional paid-in capital 2,366,171 2,369,426 Statutory Reserves 1,042,355 272,979 Retained earnings 5,700,875 1,594,417 Accumulated other comprehensive income 570,712 80,376 Owners’ Equity 9,706,113 4,339,943 Total Liabilities and Owners’ Equity $ 65,165,337 $ 52,471,220 CHINA RUITAI INTERNATIONAL HOLDINGS CO., LTD. AND SUBSIDIARIES F/K/A SHANDONG RUITAI CHEMICAL CO., LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (AUDITED) For the Year Ended December 31, 2007 2006 Operating Activities Net income (loss) $ 4,875,834 $ 3,005,998 Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: Minority interest 49,251 30,364 Depreciation 726,969 584,801 Amortization 95,940 27,673 Changes in operating assets and liabilities: (Increase)/Decrease in bank checks and commercial paper 623,589 335,215 (Increase)/Decrease in accounts receivable 513,661 (1,437,788) (Increase)/Decrease in prepaid expenses (345,162) (1,271,877) (Increase)/Decrease in inventory (1,056,278) (21,340) (Increase)/Decrease in advance to employees (50,691) 64,672 Increase/(Decrease) in accounts payable and accrued expenses 1,676,877 (416,997) Increase/(Decrease) in taxes payable 1,143,879 1,293,536 Increase/(Decrease) in deferred revenue 202,030 69,992 Increase/(Decrease) in employee security deposit 84,304 152,471 Net cash provided (used) by operating activities 8,540,203 2,416,720 Investing Activities Purchase of fixed assets (4,649,895) (1,698,011) Purchase of land use rights — (3,376,077) Loans to unaffiliated suppliers (116,103) (414,451) Loans to a related party (5,223,903) (3,381,395) Net cash (used) by investing activities (9,989,901) (8,869,934) Financing Activities Bank loans 1,903,560 4,623,048 Proceeds from banks checks and commercial paper — 9,055,200 Payback of banks checks commercial paper (1,398,132) — Decrease (Increase) in restricted cash to secure bank checks (1,613,196) (5,114,130) Loans from employees 303,139 16,763 Net cash provided (used) by financing activities (804,629) 8,580,881 Increase (decrease) in cash (2,254,327) 2,127,667 Effects of exchange rates on cash 134,751 128,352 Cash at beginning of period 6,286,289 4,030,270 Cash at end of period $ 4,166,713 $ 6,286,289 Supplemental Disclosures of Cash Flow Information: Cash paid (received) during year for: Interest $ 1,996,479 $ 824,897 Income taxes $ 1,004,871 $ 503,447 For more information, please contact: China RuiTai International Holdings Co., Ltd. Mr. Gang Ma, CFO Tel: 86-538-385-0703 Email: CCG Elite Investor Relations Crocker Coulson, President Tel: 1-646-213-1915 Email: China RuiTai International Holdings Co., Ltd.

Filed under: Chemical |