APX Apex Resources Inc

Asia Packaging Group Inc. (TSX VENTURE:APX) ("Asia Packaging" or the "Company")
announces its annual financial statements for the fiscal year ending March 31,
2013. The Company has also successfully closed the acquisition of Yuanxing
Packaging (China) Co Ltd. ("Yuanxing") as well as the purchase of the land use
right and buildings for this company's manufacturing operations in Fujian
Province. 


Annual Financial Results

Highlights



--  Company achieved revenues of $47.0 million for the year ended March 31,
    2013, representing 10.0% growth over the corresponding year ended March
    31, 2012. This improvement was largely due to a change in product mix
    towards higher price, higher margin products. 
    
--  Higher margin product sales contributed to an increase in gross profit
    margin during the year to 26.9% from 26.2% of the year ended March 31,
    2012.  
    
--  The Company achieved EBITDA before share based compensation and listing
    expenses of $11.6 million during the year ended March 31, 2013,
    representing a 10.1% improvement over the year ended March 31, 2012. 
    
--  Net income increased 36.3% for the year ended March 31, 2013 to $9.0
    million compared with $6.6 million during the year ended March 31, 2012.
    The increase was contributed by the improvement in the change in product
    mix towards higher price and higher margin products. 
    
--  As at March 31, 2013, the Company had $5.9 million in cash and no debt. 
    
--  Subsequent to the year end the Company successfully closed it's
    acquisition of Yuanxing as well as acquiring the land right use and
    buildings associated with the Yuanxing operation. 



"The closing of the Yuanxing acquisition was a significant step in expanding our
product base and growing our geographic reach in China" stated Mr. Wenge Hong,
President and CEO of Asia Packaging. "Further, the purchasing of the land use
rights and buildings for Yuanxing will help strengthen the business".


During the fiscal year ended March 31, 2013 total sales volume increased by 3.5%
with contributed to a 10.0% improvement in sales compared with the previous
year. 


The Company's increased volumes of higher value, medical packaging and metalized
polyester film products contributed to a 0.7% increase in gross margins to 26.9%
during the year.


SUMMARY FINANCIAL STATEMENTS



                                          Fiscal Year Ended March 31        
                                             2013         2012     % Change 
Sales                                  46,997,765   42,743,371         10.0%
Gross profit                           12,635,450   11,186,338         13.0%
Gross margin (% of Sales)                    26.9%        26.2%         2.7%
Operating expenses                      1,539,234    2,027,356        -24.1%
Income from operations                 11,096,216    9,158,982         21.2%
Other income (expenses)                  (256,712)  (1,225,525)       -79.1%
Income taxes                            1,816,481    1,315,257         38.1%
Net income                              9,023,023    6,618,200         36.3%
EBITDA                                 11,473,324    8,455,253         35.7%
                                                                            
Adjusted EBITDA (i)                    11,614,715   10,551,635         10.1%
                                                                            
Earnings Per Share                                                          
Basic                                        0.07         0.06              
Diluted                                      0.07         0.06              
                                                                            
Weighted average number of shares                                           
Basic                                 128,216,063  119,105,052              
Diluted                               128,817,029  119,449,540              



(i)Adjusted EBITDA is before stock-based compensation and Listing expenses

Both Adjusted EBITDA and net income improved during the year ended March 31,
2013 by 10.1% and 35.7% respectively compared to the previous year. 


The Company continues to maintain a strong balance sheet with over $15 million
in working capital and $5.9 million in cash as at March 31, 2013. The Company
continues to maintain no debt and has total equity of $46.7 million at March 31,
2013. 


Acquisition of Anhai Hongrizhong Plastic Color Printing Co. Ltd.

The previously announced acquisition of JinJiang City Anhai Hongrizhong Plastic
Color Printing Co., Ltd. was discontinued due to the delay in receipt of a
business licenses and other permits. As at March 31, 2013, $5.9 million of the
$6.4 million acquisition deposit was returned to the Company. 


About Asia Packaging Group Inc. 

Asia Packaging Group, through its wholly-owned subsidiaries in the People's
Republic of China ("PRC"), is in the business of manufacturing packaging
products and services to the food pharmaceutical and retail industries in China.
The Company operates a manufacturing plant in City, Jiangxi China where it
produces a variety of film and plastic packaging products. With the completion
of the acquisition of Yuanxing Packaging earlier this year, the Company has
added a bag manufacturing facility located in Fujian Province and sales offices
in Guangzhou and Shanghai.


This news release contains certain statements that may be deemed "forward
looking statements". Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words
"expects,", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company believes
the expectations expressed in such forward looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are made. The
Company undertakes no obligation to update these forward looking statements,
except as required by law, in the event that management's beliefs, estimates or
opinions, or other factors, should change. 


NON-IFRS MEASURES

Throughout this news release we use certain non-IFRS measures such as the term
"EBIDTA" to analyze operating performance. We define EBITDA as operating
revenues less operating expenses from continuing operations and therefore
reflect earnings before interest, income tax, depreciation and amortization,
non-controlling interest and any non-operating and non-recurring items. These
non-IFRS measures do not have a standardized meaning prescribed by IFRS and may
not be comparable to similarly titled measures presented by other companies.
These non-IFRS measures are referred to in this news release because we believe
they are indicative measures of a company's performance and are generally used
by investors to evaluate companies in the resort operations and resort
development industries. Figures used in calculation of EBITDA are in compliance
with IFRS, therefore no reconciliation is needed.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Asia Packaging Group
Jin Kuang
CFO
604-443-5041
Jin.kuang@asiapackaging.ca


Asia Packaging Group
Robert Wilson
Vice President
416-666-4005
Robert.wilson@asiapackaging.ca

Apex Resources (TSXV:APX)
Historical Stock Chart
From Apr 2024 to May 2024

Apex Resources (TSXV:APX)
Historical Stock Chart
From May 2023 to May 2024