Shiner Intl (NASDAQ:BEST)

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011

(unaudited)

Fourth Quarter Financial Highlights

Revenues for the fourth quarter of fiscal 2011 increased 28.4% year-over-year to $22.9 million, up from $17.8 million in the fourth quarter of 2010.

Net income for the fourth quarter of 2011 decreased 119.9% year-over-year to $(0.3) million, compared to $1.4 million for the 2010 period.

Gross profit for the 2011 fourth quarter was $3.0 million, up 34.2% from $2.2 million in the same period last year. Gross margin for the fourth quarter of 2011 was 13.1% compared to 12.6% in 2010.

Operating income for the fourth quarter of 2011 was $(0.8) million, compared to $1.0 million for the comparable 2010 period.

Earnings per diluted share was $(0.02) for the fourth quarter of 2011, compared to earnings per diluted share of$0.04 in the same period a year ago.

Mr. Qingtao Xing, Shiner's President and CEO, stated: "We achieved total revenue of $75.3 million in 2011, which increase 29.4% compare to last year, though the net income decreased. Sales revenue for BOPP tobacco film was $38.4 million, a significant increase compare to the same period of 2010. Meanwhile, revenues of advanced film in Southeast Asia have a big breakout, especially in Vietnam market our sales volume exceed 1,000 tons. With respect to coated film, we have attracted some multinational converters such as Marubeni acting as our regional agent to explore our market share through their sales channel and sales network."

Mr. Xing continued, "Our efforts to strengthen our R&D capability over the past 12 months have enabled us to benefit from product quality and brand reputation, which at last convert to company's core competitiveness and market shares. As a result, in 2011 our R&D expense increased a lot, our patents increase to 19 including aUSA patent. We expect to generate more revenues and income through our strong R&D capability in 2012 and beyond".

Operations Outlook

Mr. Xing stated, "In 2012, we will continue to develop new market and expand our market share both in Chinaand abroad with our efforts. We have entered into Philippines Inter-tabac Exhibition to attract more tobacco manufacturers and explore new market in March 2012. With additional 10,000-ton tobacco film production capability, we can provide higher quality product and better packaging solutions to satisfy our customers.？？？

He continued, "By investing in our R&D's innovation and the high-end facility, we expect to achieve better operational performance and financial prospect in 2012."

HAIKOU, China, March 2, 2012 /PRNewswire-Asia/ -- Shiner International, Inc. (Nasdaq: BEST)products, announced today that it received a letter from the listing qualifications department staff of The NASDAQ Stock Market LLC ("NASDAQ"), granting Shiner an additional 180 days, or until August 27, 2012, to regain compliance with NASDAQ's minimum bid price requirement.

On September 1, 2011, Shiner received a letter from NASDAQ, notifying the Company that for 30 consecutive business days the bid price of its common stock had closed below $1.00 per share, the minimum closing bid price required by the continued listing requirements set forth in Listing Rule 5450(a)(1), and that, pursuant to Listing Rule 5810(c)(3)(A), Shiner has 180 calendar days, or until February 28, 2012, to regain compliance with the minimum bid price requirement. On February 29, 2012, the Company received a second letter from NASDAQ notifying the Company that it had not regained compliance during the initial 180-day grace period, but that NASDAQ was granting the Company an additional 180-day period to regain compliance with the minimum bid price requirement. NASDAQ's determination was based on the Company having met the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the NASDAQ Capital Market, with the exception of the bid price requirement, and on the Company's written notice to NASDAQ of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split if necessary. The notice has no effect at this time on the listing of Shiner's common stock, which will continue to trade under the symbol "BEST".

Third Quarter 2011 Results

First Quarter Results:

• Shiner reports revenue of $15.9 million and an operating profit of $1,205,392 for the three months ended March 31, 2011, which is an increase of 37.3% in revenue, compared to $11.6 million for the same period in 2010
• EPS of $0.04 v. $0.04 for the previous quarter.

Mr. Qingtao Xing, the CEO and President of Shiner stated, "We are excited about our promising growth in the first quarter of 2011. We believe this solid growth is the result of solid and healthy operations. We are also glad to report that the 2011 first quarter revenue from flexible packaging material has increased 53.8% compared to the first quarter of 2010."

HAIKOU, China, May 2, 2011 /PRNewswire-Asia/ -- Shiner International, Inc. today announced that it has acquired 100% of the stock of Shimmer Sun Ltd. ("Shimmer") for $3.2 million in cash. The acquisition gives Shiner a 65% controlling interest in Shimmer's subsidiary company, Ningbo Neisuoer Latex Co., Ltd. ("Ningbo Neisuoer"). Ningbo Neisuoer is a recognized leader in the field of specialty water-based coatings, which are used to produce advanced coated films.

Based in Ningbo, the capital of Zhejiang Province, Ningbo Neisuoer was founded in 2007 and employs approximately 35 staff. Its R&D team was issued the only patent for polyvinylidene chloride, a coating polymer widely used in food packaging, in China. Ningbo Neisuoer expects 2011 sales to be approximately 35 million RMB ($5.3 million USD) with a 35% gross margin.

Water-based coatings are more environmentally friendly than oil-based coatings and offer superior moisture-barrier properties for packaging dry foods and other moisture-sensitive products without compromising the efficiency of the packaging production line.

"Ningbo Neisuoer has a solid reputation for producing advanced, high-quality coatings. The synergies between the Company and Ningbo Neisuoer will bring real benefits to our valued customers and demonstrate our continued commitment to technological excellence," stated Qingtao Xing, President and CEO of Shiner. "This acquisition will enable us to lower our raw material costs and further expand our production capacity. Shiner is seeking vertical integration opportunities that help us deliver new and innovative packaging products to better serve our customers worldwide. This acquisition is an important step in that regard."

We intend to meet our liquidity requirements, including capital expenditures related to the purchase of equipment, purchase of raw materials, and the expansion of our business, through cash flow provided by operations, the forgoing credit facility, and funds raised through private placement offerings of our securities.

We anticipate we will have adequate working capital to fund our operations and growth in the foreseeable future.

HAIKOU, China, Dec. 29, 2010 /PRNewswire-Asia/ -- Shiner International, Inc. today announced the completion of a $3.13 million private placement equity financing. Under the terms of the transaction, a total of 2,608,334 shares of common stock, as well as warrants priced 25% above the current market price. Further details of the financing will be available in a current report on Form 8-K that the Company expects to file with the SEC shortly.

The proceeds of the private placement are expected to be used to effectuate strategic acquisitions, as well as for general corporate and working capital purposes. Investment bank Roth Capital Partners LLC provided financial advisory services to Shiner in conjunction with the financing.

Qingtao Xing, the Chief Executive Officer of Shiner, commented: "We are pleased to receive this vote of confidence from new investors and current investors, many of whom have demonstrated strong support for our Company throughout the years. We believe that the improving financial results that we have delivered over the past few quarters are justification of their support and confirmation of the market's growing demand for our packaging solutions. The financing is intended to help us maintain a greater amount of working capital and allow us to further our strategic growth initiative of seeking out acquisitions that enhance Shiner's leadership position in the food safety packaging industry. We are looking for acquisition opportunities that give us the ability to use or own advanced technologies, to control key raw materials, or to access large customers."

On February 17, 2011, at 8:45 a.m., Eastern Time, Qingtao Xing, the Chief Executive Officer of Shiner International, Inc. ("Shiner") will hold a virtual conference presentation for investors. See Exhibit 99.1 for presentation.

Third Quarter Fiscal 2010 Financial Highlights

• Revenues for the third quarter of fiscal year 2010 increased by 79.2% year-over-year to $15.5 million, up from $8.7 million in the third quarter of 2009.
  
• Net income for the third quarter increased 338.7% year-over-year to $1.3 million, compared to $0.3 million for the third quarter of 2009.
  
• Gross margin for the third quarter was 22.1% based on gross profit of $3.4 million, compared to a 17.3% margin in the same period last year.
  
• Operating income and operating margin for the third quarter were $1.6 million and 10.5%, respectively, compared to $0.27 million and 3.1%, respectively, in the third quarter of 2009.
  
• Earnings per diluted share were $0.05 for the quarter, compared to earnings per diluted share of $0.01 in the same period a year ago.
  
• The Company continues to project revenues of $53 million and net income of $4 million, or $0.17 per diluted share, for 2010.

Operations Outlook

Mr. Qingtao Xing, Shiner's President and CEO, stated: "We are excited to announce such strong results for the third quarter as we build on our success in the first half of the year. Our top and bottom lines have continued to improve, including nearly 340% net income growth since the third quarter of last year. Sales of our three main product lines all showed significant improvement over the same period last year, with particularly robust growth in our coated film and anti-counterfeit film segments, which grew 155% and 104%, respectively, from the third quarter of 2009.

"As we look forward to the end of the year," Mr. Xing said, "We expect earnings to be in line with our previous forecasts and currently estimate fiscal 2010 revenue of $53 million and net income of $4 million. A key driver of our overall growth continues to be stronger demand for advanced packaging under new food safety regulation in China and also constant demand for cost efficient packaging solution internationally. We anticipate opening six sales offices in China and eight more overseas in 2011 to take advantage of emerging opportunities both in China and internationally. Overall, we are encouraged by our strong performance in a difficult macroeconomic environment. Longer-term, we will continue to drive aggressive, international expansion."

Update:

On October 5, 2010, The Nasdaq Stock Market notified Shiner International, Inc. (“Shiner”) that it had regained compliance with Nasdaq Listing Rule 5550(a)(2) because the closing bid price for Shiner’s common stock reached $1.00 or more for 10 consecutive business days. Shiner regained compliance substantially before the March 7, 2011 expiration of the grace period it was given to regain compliance. Shiner previously disclosed its non-compliance with this Nasdaq Listing Rule on a Form 8-K Current Report filed on September 14, 2010.

• Shiner's revenue for the three months ended June 30, 2010 increased 14% on a sequential basis from the quarter ended March 31, 2010, and increased 65% when compared to the same period in 2009. The year to year increase in revenue related directly to increases in sales across Shiner's main business lines, which included:
  
  • 136% increase in coated film sales from $2.2 millionfor the second quarter of 2009 to $5.1 million for the second quarter of 2010.
    
  •  Anti-counterfeit film sales increased 63% to $3.0 million from $1.9 million for the comparable period in 2009.
    
  • Revenue from BOPP tobacco film sales was $4.0 million for the quarter ended June 30, 2010, an increase of 25% from the same period in 2009.
    
  • Revenue from color printing increased 39% to $1.0 million in the second quarter in 2010 from $0.8 million during the comparable period in 2009.
    
• Net income of $0.9 million compared to a net loss of $0.3 million in the same period of the prior year. Earnings per share were $0.04 for the second quarter of fiscal 2010 compared to a net loss of $0.01 per share for the second quarter of fiscal 2009. The improvement reflects significantly higher sales volume, increased manufacturing capacity utilization, higher selling prices, and lower raw material costs. Shiner's productivity and cost-cutting actions are essentially tracking according to its business plan.

Operations Outlook

Mr. Xing stated: "We are glad to see the continued positive results throughout the first and second quarter. The strong growth in all business product lines validates our business progress and our effort to improve shareholder value. Our coated film sales increased 136% this quarter compared to the second quarter of 2009, along with a 63% increase in the anti counterfeit film, which contributed to the $1.22 million net income growth for the quarter.

"The primary industries we serve appear to be recovering, led by increased demand for consumer media products, tobacco and cigarettes, and food spending by consumers. We believe the growth for our core business will be driven by the growth in the standard of living and higher wages across Asia, the new food laws that have been passed in China, and the growing need for media companies to protect their products from counterfeiting in China and Southeast Asia.

While there is still uncertainty about the sustainability of the global economic recovery, given our current cost structure and the prospect of improvement in the markets we serve, we believe that we will be well positioned to continue to generate improved earnings performance as sales increase. "Looking ahead to the third quarter," Mr. Xing said. "We expect earnings to be in line with our previous forecasts and currently estimate our third quarter earnings at about $0.04 per share."