Pacific Bepure Industry Inc (OTC:PBEP)

JINJIANG CITY, CHINA--(Marketwire – March 30, 2012) - Pacific Bepure Industry Inc. (OTC.BB:PBEP - News), one of China’s leading casual and sports footwear companies whose products are sold under the Baopiao (or “Bepure”) label -- which is synonymous throughout China for comfort and value -- announced today that it intends to remove its common stock from quotation on the OTC Bulletin Board as a consequence of the filing of a Form 15 with the Securities and Exchange Commission (“SEC”) on March 30, 2012. The Company also announced that because its common stock is currently held by less than 300 holders of record and was held by less than 300 holders of record as of the first day of the Company’s 2012 fiscal year, it expects to terminate the registration of its common stock under Section 12(g) and Rule 12g-4 thereunder and to suspend its reporting obligations under Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 12h-3 thereunder by filing of the Form 15 with the SEC.

The Company does not currently plan to continue to issue audited financial statements for the foreseeable future.

Effective as of January 3, 2012, the Company nominated Ruiquan Li, CEO of
Pacific Bepure Industry, Inc. (the "Company") as Chairman of the Board of
Directors(the "Board") of the Company and Yinsheng Li, CFO of the Company, as
member of the Board of the Company.

Our operating and capital requirements in connection with supporting our expanding operations and introducing our products to the expanded areas have been and will continue to be significant to us. We estimate $15 million will be needed in the fiscal 2011 to fund the foregoing activities and operations. Based on our current plans for the next 12 months, we anticipate that the revenue generated from our sales will be the primary organic source of funds for operating activities in 2011.

If we need additional cash, we may seek to raise capital either through the issuance of stock or increase our borrowing level with our lender.

Baopiao Shoes was incorporated on February 15, 2006 with an approved registered capital of 50 million Hong Kong dollars. As of this report, 16,370,478 Hong Kong dollars has been contributed to Baopiao Shoes which accounts for 32.74% of its registered capital. Pursuant to its Articles of Association, its registered capital must be contributed within three years from the date of issuance of the business license of such enterprise, otherwise, pursuant to the current PRC regulations, the business license for Baopiao footwear shall become invalid or be revoked. Although the local Industrial and Commercial Bureau renewed Baopiao Shoes' business license on March 24, 2009, the local Bureau of Commerce issued a written consent on April 8, 2009 to approve the extension of capital 15 contribution of Baopiao Shoes until December 31, 2010 and an amendment on December 7, 2010 to extend the contribution term to December 6, 2011. We cannot predict whether the business license may be held invalid by other competent PRC governmental authorities. If the business license is held invalid or revoked, it would adversely affect our business operation.

We believe our ability to generate cash from operating activities is one of our fundamental financial strengths. In addition to cash from operating activities, we also maintain loan arrangements with Agricultual bank of China for our capital requirements. Our future capital expenditures will include building new manufacturing facilities, improving and upgrading our existing production facilities, expanding product lines, research and development capabilities, and making acquisitions as we deem appropriate. If we need additional cash, we may seek to raise capital either through the issuance of stock or increase our borrowing level with our lender.

Full Year and Quarterly Financial Results

• Revenue for the full year 2010 was $36.4 million versus $25.4 million for the same period last year, an increase of 43.1 percent.
• Gross profit for the full year 2010 was $11.9 million versus $8.6 million for the full year 2009, an increase of 37.7 percent.
• Operating income for the full year 2010 was $10.3 million versus $7.2 million for the full year 2009, an increase of 42.9 percent.
• Net income for 2010 was $7.5 million, or $0.50 per basic and diluted share, versus net income of $5.3 million, or $0.46 per basic and diluted share, for 2009 based on 15,000,000 and 11,202,740 weighted average basic shares outstanding, and 15,006,915 and 11,202,740 weighted average diluted shares outstanding, respectively
• Fourth Quarter EPS was $0.22 vs. $0.15

Operational Highlights

Construction of the new manufacturing facility in Quanzhou, Fujian Province began in 2008 and cost approximately RMB 100 million (US$ 15.2 million). The facility is located in the Huinan Industrial Zone, Quanzhou, Fujian Province and has a total area of approximately 60,000 square meters (646,000 sq. feet) and floorage of approximately 30,000 square meters (323,000 sq. feet). To date, the physical plant and worker dormitories have been completed, and two new production lines have been constructed and assembled into the new facility. The new manufacturing facility, which commenced operations on February 10, 2011, expands the Company's annual production capacity by more than 70%, or 1.5 million additional pairs of footwear. The company previously outsourced a portion of its production to keep up with demand.

In this year's third quarter, the Company reported

• sales revenue increased 33.61% to $10,870,624 from $8,135,883 in the same period last year.

• net income grew 28.18% to $2,529,038 or $0.17 per share, from $1,973,067 or $0.13 per share, in the same quarter last year, utilizing weighted average shares of 15,000,000 in each period.

"The outstanding appeal of our Four Travel series, especially our "Free Travel" shoes for fashionable young women, was at the heart of our success," stated Mr. Haiting Li, Chairman and CEO of the Company. He added, "During the quarter we also achieved continuing success with sales of our products in South America and improved sales in selected domestic markets we focused on, including Fujian, Zhejiang and Jiansu provinces, where our results in prior periods have not matched our success elsewhere. Additionally, the innovation for which our Baopaio brand is known translated into additional success with a popular new shoe that insulates the wearer against warmer temperatures."

Mr. Li stated further, "I'm particularly pleased that in the third quarter we improved margins over results achieved in the prior quarter with tighter production controls, despite the increases in wages we implemented in the second quarter. We also moved to the final stages of progress in construction of our new manufacturing facility in nearby Huian County, which is expected to be completed by year end. Ultimately, it will expand our capacity by 50% with four additional production lines."

Outlook:

 Mr. Li commented, "We remain very optimistic about continuing growth, as we further strengthen our domestic marketing efforts and also focus on international expansion. Our greatest asset is the growing recognition of our brand name that increasingly is synonymous with high fashion as well as comfort. One indicator of the success we see ahead is the excellent response to our seasonal new products fair for spring and summer of 2011 attended by distributors from throughout China, which generated a 30% increase in purchase agreements over what we achieved in the prior year."

In addition to cash from operating activities, we also maintain loan arrangements with Agricultual bank of China for our capital requirements. Our future capital expenditures will include building new manufacturing facilities, improving and upgrading our existing production facilities, expanding product lines, research and development capabilities, and making acquisitions as we deem appropriate. If we need additional cash, we may seek to raise capital either through the issuance of stock or increase our borrowing level with our lender.

"The outlook for consumer spending in 2010 remains very good," Mr. Li said, "and we will continue to focus our sales efforts in those areas of China where we think the greatest opportunity for continuing rapid growth exists, such as our Southern market, as well as second and third tier cities around the country."

"In addition," he said, "we have initiated online sales and see further expansion opportunities in the export market, which so far have been quite successful. We also will continue to bring more cohesiveness to our marketing and sales efforts, with activities such as updating and unifying the appearance of stores selling our products to make for a more exciting shopping experience. We also intend to expand our footwear sales to men with new products and fresh new promotions."

"The most significant event this year," Mr. Li added, "should be the opening of our dramatically expanded and modernized production facility, which will provide numerous benefits and help us achieve our goal of continuous high level growth on our top and bottom lines by keeping Baopiao shoes among the favorite purchases by Chinese consumers -- as well as a favorite of new customers around the world."

Source: Market Wire (March 31, 2010)

Reverse merger details follow up:

• Post reverse merger shares outstanding: 15.0 million
• No dilutive instruments were issued in connection with the Exchange Transaction
  
• 2008 Sales: $20,131,118
• 2008 EPS:  $0.34
  
• 6 Months 2008 Sales: $7,061,013
• 6 Months 2008 EPS: $0.10

Business Review:

Our Baopiao brand was first introduced to the market in 2003 and we intend to position our brand as a high quality sports and casual footwear brand targeting consumer groups between the ages of 18 and 48. Substantially all of our revenues were generated from sales of our products to our distributors, which in turn sell our products to consumers in the PRC through retail outlets operated by them, .

We have grown rapidly over the last few years. Our sales increased by 49.25% from $13,488,136 in 2007 to $20,131,118 in 2008. The number of product types we sold increased from approximately 80 in 2007 to approximately 120 in early 2009. We intend to continue to expand the volume and variety of products we offer, as well as the geographical scope of our sales and production facilities in the PRC.

However, we are now facing challenges due to the recent global financial crisis. The location of our Chinese Subsidiaries, Jinjiang, a small city in Fujian, China, has a total of 3,112 footwear companies with 380,000 stuffs. In the year of 2008, 950 million pairs of sports shoes are manufactured, which accounted for one-fifth of the world's total pairs of sports shoes. However, in the year of 2009, Jinjiang reported double-digit decreases in exports of footwear. The financial condition of the company in the first half year of 2009 is also affected and met a downturn. The local government believes that the financial crisis is a serious blow to local companies not only engaging in OEM or ODM for overseas markets, but also on the domestic market.

The global financial crisis has adversely affected our financial position, results of operations or cash flows, and we have difficulty to work on the full capacity like the early years. On the other hand, we believe there is still a huge potential in the Chinese domestic shoe market, especially in the second- and third-tier cities. Since 2009, the Company has started to advance the distributors to expand their sales networks in the second- and third-tier cities. The Company believes that the Beijing 2008 Olympic Games played a key role to boost the sports and casual industry in the PRC and sports and casual footwear market in China is expected to be expanded.

Source: SEC form 8K (November 12, 2009)

Commenting on the future outlook for the Company, Mr. Li stated, "While we operate in a highly competitive market, the opportunity for continuing strong future growth is quite substantial. Domestically, while China is now the world's largest shoe market, shoe purchases represent approximately only .02% of GDP, whereas in the U.S., it is about 2%, leaving lots of room for continuing growth as the middle class in China continues to expand. Further, we have the good fortune of a brand that not only is well known, but also is recognized as being one of the favorite products purchased by consumers. With our continuing flow of market sensitive new products, expanded production capacity and the improved control we are developing in distribution with our own stores, I'm confident of continuing success in an improving economy."

He added, "We also see a very bright future in the foreign markets we have entered. In South America, in particular, we are reaching a growing middle class female population eager to expand their wardrobes and to own shoes that permit them to enjoy leisure activities just as is the case in China. We see similar opportunities ahead in Eastern Europe, in particular, but also are continuing to explore opportunities in North America, where we believe our reputation for fashionable, comfortable, moderately priced footwear should prove attractive to consumers there as well."

Source: Marketwire (November 12, 2009)

On November 12, 2009 Wollemi Mining Corp. announced the completion of a reverse merger with the sole shareholder of Peakway Worldwide Limited, whose operating subsidiaries design, manufacture and sell their own branded and moderately priced casual sports, athletic, outdoor, business and travelling series footwear -- primarily for women -- throughout China and South America. Domestic sales are largely under the widely known brand name "Baopaio" (or "Bepure").

These operating subsidiaries -- with nearly 600 employees and three production lines -- produced more than 2.2 million pairs of shoes and approximately $20 million in sales in 2008, and now constitute the primary operations of Wollemi Mining Corp. ("Wollemi Mining," "Wollemi," or the "Company") which, pending required approvals, plans to change its name to Pacific Bepure Industry Inc. The Company is now headquartered in Jinjiang City, often referred to as the "footwear capital" of China, which has emerged as the world's largest consumer and exporter of shoes.

Source: Marketwire (November 12, 2009)