SHANGHAI, April 11, 2011 /PRNewswire-Asia-FirstCall/ --
Chemspec International Limited (NYSE: CPC; "Chemspec" or the
"Company", incorporated in the Cayman
Islands), a leading China-based contract manufacturer of
highly-engineered specialty chemicals, today announced its
unaudited financial results(1) for the fourth quarter and full year
ended December 31, 2010.
Fourth Quarter 2010 Financial Highlights
- Total sales reached RMB270.4
million (US$41.0 million),
representing an increase of 52.7% from the fourth quarter of 2009
and a decrease of 16.7% from the third quarter of 2010.
- Gross profit totaled RMB98.7
million (US$15.0 million), an
increase of 56.6% from the fourth quarter of 2009 and a decrease of
20.0% from the third quarter of 2010.
- Income from operations was RMB51.6
million (US$7.8 million), an
increase of 80.4% from the fourth quarter of 2009 and a decrease of
39.9% from the third quarter of 2010.
- Net income attributable to the Company's shareholders was
RMB45.3 million (US$6.9 million), an increase of 30.3% from the
fourth quarter of 2009 and a decrease of 35.7% from the third
quarter of 2010.
- Basic and diluted earnings per ADS(2) were both RMB1.26 (US$0.19).
Basic and diluted earnings per ADS were both RMB0.96 (US$0.15)
in the fourth quarter of 2009. Basic and diluted earnings per ADS
in the third quarter of 2010 were RMB1.95 (US$0.29)
and RMB1.94 (US$0.29), respectively.
Full Year 2010 Financial Highlights
- Total sales reached RMB1,082.0
million (US$163.9 million), an
increase of 31.9% from RMB820.3
million in 2009.
- Gross profit was RMB417.2 million
(US$63.2 million), an increase of
28.5% from RMB324.7 million in
2009.
- Income from operations was RMB266.7
million (US$40.4 million), an
increase of 28.6% from RMB207.5
million in 2009.
- Net income attributable to the Company's shareholders was
RMB225.5 million (US$34.2 million), an increase of 30.8% from
RMB172.4 million in the prior
year.
- Basic and diluted earnings per ADS were both RMB6.24 (US$0.95),
as compared with both being RMB5.18
(US$0.78) in the prior year.
(1) Certain Renminbi (RMB)
amounts in this press release have been translated into U.S. dollar
(USD) solely for the convenience of the reader. The
conversion of RMB into USD in this release is based on the
noon buying rate in the City of
New York for cable transfers in RMB per U.S. dollar as certified
for customs purposes by the Federal Reserve Bank of New York
on December 30,
2010, which was RMB
6.6000 to USD1.00.
The percentages stated are calculated based on
RMB.
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(2) 1 ADS=60 ordinary
shares
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Completion of Share Repurchase Program
The Company has substantially completed its share repurchase
plan announced on September 22, 2010.
The total funds used in the share repurchase plan were RMB11.0 million (US$1.6
million).
Dr. Jianhua Yang, Chairman and
Chief Executive Officer of Chemspec, commented, "I am very pleased
to announce our fourth quarter and full year financial results. In
2010, we set a new record that our sales passed the one-billion-RMB milestone. This is a testimony of
our relentless effort in the year to expand our business
development and strengthen the relationship with our customers,
especially after the downturn of 2009. "
Dr. Yang continued, "In the fourth quarter of 2010, the total
revenue grew 52.7% year over year and became the second highest in
history for the same period of the year. With regard to the first
quarter of 2011, our management estimates that our total sales to
be between RMB205 and 210
million."
Mr. Zixin Wang, Vice President of
Finance, commented, "We came out of the trough in 2009 and achieved
record-high sales in 2010. The total revenue was in line with our
guidance announced in November 2010.
During the year, we increased our R&D expenses to meet the
higher expectations of our customers and expanded the production
facilities to meet potential demand in future. In addition, as a
result of a rise in the production and sales of more complex
products, our inventories rose to RMB 470.4
million as of December 31,
2010 from RMB271.4 million as
of December 31, 2009. We will
implement a number of inventory control measures that strive to
reduce the inventory level gradually in the near future."
Fourth Quarter 2010 Financial
Results
Total Sales
For the three months ended December 31,
2010, we generated total sales of RMB270.4 million (US$41.0
million), representing an increase of 52.7% from the fourth
quarter of 2009 and a decrease of 16.7% from the third quarter of
2010. The increase from the fourth quarter of 2009 resulted from an
increase in sales for chemicals used in both electronics and
agrochemicals end-markets. The decrease in total sales compared to
the third quarter of 2010 was mainly due to seasonally weakened
sales in the electronics end-market.
Gross Profit and Gross Margin
In the fourth quarter of 2010, we generated gross profit of
RMB98.7 million (US$15.0 million), representing an increase of
56.6% from the fourth quarter of 2009 and a decrease of 20.0% from
the third quarter of 2010. We attribute the changes in the gross
profit primarily to the corresponding fluctuations in the total
sales in the corresponding quarters.
Our gross margin was 36.5% in the fourth quarter of 2010, as
compared with 35.6% in the fourth quarter of 2009 and 38.0% in the
third quarter of 2010. Compared with the fourth quarter of 2009,
our gross margin increased slightly mainly because fewer
inventories were written down in the fourth quarter of 2010.
Compared to the third quarter of 2010, the decrease in our gross
margin in the fourth quarter of 2010 was mainly due to the shift of
the overall product mix.
Operating Expenses
Selling expenses and general and administrative expenses were
RMB26.8 million (US$4.1 million), representing an increase of
13.5% from RMB23.6 million in the
fourth quarter of 2009 and an increase of 16.7% from RMB23.0 million in the third quarter of 2010. We
primarily attribute these increases in our general and
administrative expenses to the increases in depreciation expenses
for the Company's new headquarters and increased consulting fees
related to Sarbanes–Oxley (SOX) compliance.
Research and development (R&D) expenses were RMB22.1 million (US$3.4
million), representing an increase of 176.2% from
RMB8.0 million in the fourth quarter
of 2009 and an increase of 46.7% from RMB15.1 million in the third quarter of 2010. The
increases in R&D expenses were due to a greater amount of
material consumption expenses that were related to an increase in
the number of active R&D projects.
Income from Operations
and Earnings Before
Income
Taxes
As a result of factors mentioned above, income from operations
was RMB51.6 million (US$7.8 million) and earnings before income taxes
was RMB51.6 million (US$7.8 million), respectively, in the fourth
quarter of 2010, representing increases of 80.4% and 77.6%,
respectively, from the fourth quarter of 2009, and decreases of
39.9% and 39.1%, respectively, from the third quarter of 2010.
Net Income Attributable to Chemspec International Limited
Shareholders
Net income attributable to Chemspec International Limited was
RMB45.3 million (US$6.9 million), an increase of 30.3% from the
fourth quarter of 2009 and a decrease of 35.7% from the third
quarter of 2010. The changes mainly reflected the changes in the
total sales in the corresponding periods.
Basic and diluted earnings per ADS were RMB1.26 (US$0.19),
as compared to RMB0.96 (US$0.15) in the fourth quarter of 2009 and
RMB1.95 (US$0.29) and RMB1.94 (US$0.29),
respectively, in the third quarter of 2010.
Full Year 2010 Financial Results
Total Sales
For the year ended December 31,
2010, we generated total sales of RMB1,082.0 million (US$163.9 million), representing an increase of
31.9% from the year ended December 31,
2009. The increase was mainly due to the general recovery of
the global business environment, especially an increase in demand
for chemicals used in the electronics end-market.
Gross Profit and Gross Margin
Our gross profit was RMB417.2
million (US$63.2 million) for
2010, representing an increase of 28.5% from 2009. We attribute the
increase in gross profit primarily to the corresponding increase in
our total sales.
Our gross margin was 38.6% in 2010, as compared to 39.6% in
2009. We attribute the decrease in the gross margin primarily to
price adjustments for certain products.
Operating Expenses
Selling expenses and general and administrative expenses were
RMB88.9 million (US$13.5 million) in 2010, representing an
increase of 9.6% from RMB81.1 million
in 2009. We attribute this increase primarily to the increase in
our depreciation expenses as a result of our new headquarters that
started operations in the second half of 2009 and an increase in
the amount of consulting fees related to Sarbanes-Oxley (SOX)
compliance in 2010.
Research and development (R&D) expenses were RMB65.7 million (US$10.0
million) in 2010, representing an increase of 112.5% from
RMB30.9 million in 2009. The increase
in R&D expenses was due to a greater amount of material
consumption expenses that were related to an increase in the number
of active R&D projects to meet the anticipated demand from our
customers.
Income from Operations and Earnings Before Income
Taxes
For 2010, our income from operations was RMB266.7 million (US$40.4
million), representing an increase of 28.6% from
RMB207.5 million in 2009.
Our earnings before income taxes was RMB265.2 million (US$40.2
million) in 2010, representing an increase of 28.8% from
RMB206.0 million in 2009.
Net Income Attributable to Chemspec International Limited
Shareholders
The net income attributable to Chemspec International Limited
shareholders was RMB225.5 million
(US$34.2 million), representing an
increase of 30.8% from RMB172.4
million in 2009.
Basic and diluted earnings were both RMB6.24 (US$0.95),
as compared to basic and diluted earnings of RMB5.18 (US$0.78)
in 2009.
Cash Flows
As of December 31, 2010, we had
RMB98.7 million (US$15.0 million) of cash, compared with
RMB351.1 million as of December 31, 2009. Net cash outflows for 2010
mainly included capital expenditures of RMB248.7 million (US$37.7
million) for the expansion of production facilities.
First Quarter 2011 Guidance
Our management estimates that our total sales for the first
quarter of 2011 to be between RMB205 and 210
million.
Conference Call Details
The Company will host a conference call and live webcast to
discuss its fourth quarter financial results at 8:00 am Eastern Time (8:00
pm Shanghai time) on
Monday, April 11, 2011.
The dial-in details for the live conference call are as
follows:
- U.S. Toll Free Number:
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+1-866-519-4004
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- International
Toll Free Dial-in
Number:
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+ 65-6723-9381
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- Mainland China
Domestic Number:
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800-819-0121
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- Mainland China Domestic
Mobile
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400-620-8038
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- Hong Kong Toll Free
Number:
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800-930-346
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Conference ID:
CPC
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A live and archived webcast of the conference call will be
available in the Investor Relations section of Chemspec's website
at http://www.chemspec.com.cn .
A telephone replay of the call will be available from
11:00 pm Eastern Standard Time on
April 11, 2011 through 11:59 pm Eastern Standard Time on April 17, 2011.
The dial-in details for the replay are as follows:
- U.S. Dial-in Number:
|
+1-866-214-5335
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- International Dial-in
Number:
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+61-2-8235-5000
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- China North Dial-in
Number:
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10-800-714-0386
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- China South Dial-in
Number:
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10-800-140-0386
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- Hong Kong Dial-in Number:
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800-901-596
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Conference ID:
48359124
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Statement Regarding Unaudited Financial Information
The financial information set forth above is based on the
Company's unaudited interim consolidated financial statements and
is subject to adjustments that may be identified by us and/or our
auditors during the audit of our annual consolidated financial
statements.
About Chemspec
Chemspec is a leading China-based contract manufacturer of highly
engineered specialty chemicals, especially, the fluorinated
specialty chemicals. In manufacturing specialty chemicals, Chemspec
also provides process design and process development services,
which enable efficient and rapid production of specialty chemicals
that are incorporated into the products of Chemspec's end users.
Chemspec's customers and end users include electronics,
pharmaceutical and agrochemical companies. For more information,
please visit www.chemspec.com.cn.
Safe Harbor Statements
This announcement contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
Such statements involve certain risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements. Further information regarding these and
other risks is included in Chemspec's filings with the U.S.
Securities and Exchange Commission, including its registration
statement on Form F-1, as amended from time to time. Chemspec does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For further information,
please contact:
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Chemspec International
Ltd.
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In Shanghai
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Carol Fang
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Manager, Investor
Relations
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Tel:
+86-21-63638108
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Email:
ir@chemspec.com.cn
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Chemspec
International Limited
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|
Unaudited
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
|
2009
|
|
2010
|
|
2010
|
|
|
|
RMB’000
|
|
RMB’000
|
|
USD’000
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash
|
|
351,097
|
|
98,719
|
|
14,957
|
|
Pledged bank deposits
|
|
37,919
|
|
56,746
|
|
8,598
|
|
Accounts receivable,
net
|
|
94,154
|
|
137,873
|
|
20,890
|
|
Bills receivable
|
|
1,327
|
|
1,200
|
|
182
|
|
Inventories
|
|
271,434
|
|
470,432
|
|
71,278
|
|
Prepayment and other
receivables
|
|
38,738
|
|
73,449
|
|
11,128
|
|
Amounts due from related
parties
|
|
64
|
|
-
|
|
-
|
|
Deferred income tax
assets
|
|
3,424
|
|
6,369
|
|
965
|
|
Total current
assets
|
|
798,157
|
|
844,788
|
|
127,998
|
|
Property, plant and equipment,
net
|
|
699,181
|
|
871,398
|
|
132,030
|
|
Land use rights
|
|
56,064
|
|
59,201
|
|
8,970
|
|
Intangible assets
|
|
839
|
|
730
|
|
111
|
|
Goodwill
|
|
7,446
|
|
7,446
|
|
1,128
|
|
Investment in an
affiliate
|
|
13,296
|
|
12,793
|
|
1,938
|
|
Deferred income tax
assets
|
|
300
|
|
-
|
|
-
|
|
Total assets
|
|
1,575,283
|
|
1,796,356
|
|
272,175
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Bank borrowings
|
|
-
|
|
25,000
|
|
3,788
|
|
Accounts payable
|
|
81,870
|
|
142,319
|
|
21,564
|
|
Bills payable
|
|
49,738
|
|
64,340
|
|
9,748
|
|
Accrued expenses and other
payables
|
|
183,266
|
|
148,238
|
|
22,461
|
|
Amounts due to related
parties
|
|
23,659
|
|
5,559
|
|
842
|
|
Deferred income
|
|
-
|
|
14,215
|
|
2,154
|
|
Income taxes payable
|
|
1,298
|
|
5,408
|
|
819
|
|
Total current
liabilities
|
|
339,831
|
|
405,079
|
|
61,376
|
|
Bank borrowings
|
|
10,000
|
|
-
|
|
-
|
|
Deferred income tax
liabilities
|
|
18,056
|
|
21,517
|
|
3,260
|
|
Deferred income
|
|
15,136
|
|
3,280
|
|
497
|
|
Total liabilities
|
|
383,023
|
|
429,876
|
|
65,133
|
|
Equity
|
|
|
|
|
|
|
|
Chemspec International Limited
shareholders' equity
|
|
|
|
|
|
|
|
Ordinary shares:
Par value: HK$
0.01;
Authorized:
20,000,000,000 shares
as of December 31,
2009 and December 31,
2010;
Issued and
outstanding:
2,167,620,000
shares
as of
December 31, 2009 and
2,163,190,740
shares
as of December 31,
2010
|
|
21,686
|
|
21,649
|
|
3,280
|
|
Additional paid-in
capital
|
|
323,916
|
|
319,048
|
|
48,341
|
|
Statutory reserves
|
|
63,422
|
|
85,820
|
|
13,003
|
|
Accumulated other comprehensive
income
|
|
6,803
|
|
5,197
|
|
787
|
|
Retained earnings
|
|
770,425
|
|
929,108
|
|
140,774
|
|
|
|
|
|
|
|
|
|
Total Chemspec International
Limited
shareholders'
equity
|
|
1,186,252
|
|
1,360,822
|
|
206,185
|
|
Noncontrolling
interests
|
|
6,008
|
|
5,658
|
|
857
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
1,192,260
|
|
1,366,480
|
|
207,042
|
|
Total liabilities and
equity
|
|
1,575,283
|
|
1,796,356
|
|
272,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemspec
International Limited
|
|
Unaudited
Quarterly Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-month
periods ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
|
|
|
2009
|
|
2010
|
|
2010
|
|
2010
|
|
|
|
RMB’000
|
|
RMB’000
|
|
RMB’000
|
|
USD’000
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
177,050
|
|
324,692
|
|
270,357
|
|
40,963
|
|
Cost of sales
|
|
(114,022)
|
|
(201,248)
|
|
(171,629)
|
|
(26,004)
|
|
Gross profit
|
|
63,028
|
|
123,444
|
|
98,728
|
|
14,959
|
|
Selling expenses
|
|
(2,817)
|
|
(3,203)
|
|
(3,083)
|
|
(467)
|
|
General and administrative
expenses
|
|
(20,792)
|
|
(19,767)
|
|
(23,719)
|
|
(3,594)
|
|
Research and development
expenses
|
|
(8,012)
|
|
(15,080)
|
|
(22,129)
|
|
(3,353)
|
|
Other operating
expenses
|
|
(3,380)
|
|
(121)
|
|
(1,205)
|
|
(183)
|
|
Other operating
income
|
|
236
|
|
242
|
|
351
|
|
53
|
|
Government grants
|
|
362
|
|
400
|
|
2,684
|
|
407
|
|
Income from
operations
|
|
28,625
|
|
85,915
|
|
51,627
|
|
7,822
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
482
|
|
532
|
|
525
|
|
80
|
|
Interest expense
|
|
(309)
|
|
-
|
|
-
|
|
-
|
|
Foreign currency exchange gain
(loss), net
|
|
230
|
|
(1,625)
|
|
(583)
|
|
(88)
|
|
Equity in loss of an
affiliate
|
|
(91)
|
|
(134)
|
|
(150)
|
|
(23)
|
|
Other income
|
|
91
|
|
45
|
|
142
|
|
22
|
|
Earnings before income
taxes
|
|
29,028
|
|
84,733
|
|
51,561
|
|
7,813
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
6,169
|
|
(14,210)
|
|
(6,408)
|
|
(971)
|
|
Net income
|
|
35,197
|
|
70,523
|
|
45,153
|
|
6,842
|
|
Net (income) loss attributable
to
noncontrolling
interests
|
|
(433)
|
|
(122)
|
|
141
|
|
21
|
|
Net income
attributable to Chemspec
International Limited
shareholders
|
|
34,764
|
|
70,401
|
|
45,294
|
|
6,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
RMB
0.02
|
|
RMB
0.03
|
|
RMB
0.02
|
|
USD
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
RMB
0.02
|
|
RMB
0.03
|
|
RMB
0.02
|
|
USD
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
ADS
|
|
RMB
0.96
|
|
RMB
1.95
|
|
RMB
1.26
|
|
USD
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ADS
|
|
RMB
0.96
|
|
RMB
1.94
|
|
RMB
1.26
|
|
USD
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years
ended
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
|
2009
|
|
2010
|
|
2010
|
|
|
|
RMB’000
|
|
RMB’000
|
|
USD’000
|
|
|
|
|
|
|
|
|
|
Sales
|
|
820,295
|
|
1,082,031
|
|
163,944
|
|
Cost of sales
|
|
(495,584)
|
|
(664,791)
|
|
(100,726)
|
|
Gross profit
|
|
324,711
|
|
417,240
|
|
63,218
|
|
Selling expenses
|
|
(11,245)
|
|
(11,130)
|
|
(1,686)
|
|
General and administrative
expenses
|
|
(69,871)
|
|
(77,768)
|
|
(11,783)
|
|
Research and development
expenses
|
|
(30,913)
|
|
(65,679)
|
|
(9,951)
|
|
Other operating
expenses
|
|
(7,145)
|
|
(2,736)
|
|
(415)
|
|
Other operating
income
|
|
953
|
|
1,624
|
|
246
|
|
Government grants
|
|
971
|
|
5,152
|
|
781
|
|
Income from
operations
|
|
207,461
|
|
266,703
|
|
40,410
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
Interest income
|
|
2,296
|
|
1,954
|
|
295
|
|
Interest expense
|
|
(2,149)
|
|
(80)
|
|
(12)
|
|
Foreign currency exchange loss,
net
|
|
(1,961)
|
|
(3,249)
|
|
(492)
|
|
Equity in loss of an
affiliate
|
|
(176)
|
|
(503)
|
|
(76)
|
|
Other income
|
|
519
|
|
400
|
|
61
|
|
Earnings before income
taxes
|
|
205,990
|
|
265,225
|
|
40,186
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
(28,838)
|
|
(38,999)
|
|
(5,909)
|
|
Net income
|
|
177,152
|
|
226,226
|
|
34,277
|
|
|
|
|
|
|
|
|
|
Net income attributable
to
noncontrolling
interests
|
|
(4,721)
|
|
(685)
|
|
(104)
|
|
|
|
|
|
|
|
|
|
Net income attributable to
Chemspec
International Limited
shareholders
|
|
172,431
|
|
225,541
|
|
34,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
RMB
0.09
|
|
RMB
0.10
|
|
USD
0.02
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
RMB
0.09
|
|
RMB
0.10
|
|
USD
0.02
|
|
|
|
|
|
|
|
|
|
Basic earnings per
ADS
|
|
RMB
5.18
|
|
RMB
6.24
|
|
USD
0.95
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ADS
|
|
RMB
5.18
|
|
RMB
6.24
|
|
USD
0.95
|
|
|
|
|
|
|
|
|
Chemspec
International Limited
|
|
Unaudited
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2009
|
|
2010
|
|
2010
|
|
|
RMB’000
|
|
RMB’000
|
|
USD
'000
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities
|
|
|
|
|
|
|
Net income
|
177,152
|
|
226,226
|
|
34,277
|
|
Adjustments to
reconcile net income to net
cash
provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
of property, plant and
equipment
|
37,204
|
|
70,760
|
|
10,721
|
|
Land use rights
expenses
|
1,132
|
|
1,315
|
|
199
|
|
Loss on disposal of property,
plant and equipment
|
6,505
|
|
8,661
|
|
1,312
|
|
Amortization of intangible
assets
|
108
|
|
109
|
|
17
|
|
Bad debt expense
|
64
|
|
(81)
|
|
(12)
|
|
Write-downs of
inventories
|
14,696
|
|
7,296
|
|
1,105
|
|
Equity in loss of an
affiliate
|
176
|
|
503
|
|
76
|
|
Gain on transfer of land use
right to an affiliate
|
(290)
|
|
-
|
|
-
|
|
Unrealized foreign exchange
loss, net
|
92
|
|
255
|
|
39
|
|
Share-based
compensation
|
15,443
|
|
1,499
|
|
227
|
|
Deferred income tax (benefit)
expense
|
(644)
|
|
816
|
|
124
|
|
Changes in operating assets and
liabilities, net of
effect of an
acquisition
|
|
|
|
|
|
|
Pledged bank deposits related to
purchase of inventories
|
994
|
|
(17,235)
|
|
(2,611)
|
|
Inventories
|
(67,867)
|
|
(206,294)
|
|
(31,256)
|
|
Accounts receivable
|
42,354
|
|
(44,199)
|
|
(6,697)
|
|
Bills receivable
|
(1,327)
|
|
127
|
|
19
|
|
Prepayment and other
receivables
|
(14,141)
|
|
(34,575)
|
|
(5,239)
|
|
Accounts payable
|
488
|
|
60,449
|
|
9,159
|
|
Bills payable related to
purchase of inventories
|
(5,158)
|
|
22,810
|
|
3,456
|
|
Accrued expenses and other
payables
|
(2,202)
|
|
(8,749)
|
|
(1,326)
|
|
Deferred income
|
9,570
|
|
2,359
|
|
357
|
|
Income taxes payable
|
(5,097)
|
|
4,110
|
|
623
|
|
Net cash
provided by operating activities
|
209,252
|
|
96,162
|
|
14,570
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
Capital expenditures, including
interest capitalized
|
(227,749)
|
|
(248,697)
|
|
(37,681)
|
|
Pledged bank deposits related to
purchase of property,
plant and
equipment
|
(17,377)
|
|
(1,592)
|
|
(241)
|
|
Investment in an
affiliate
|
(11,225)
|
|
-
|
|
-
|
|
Non-interest bearing advances to
related parties
|
(64)
|
|
-
|
|
-
|
|
Non-interest bearing advances
repaid by related parties
|
2,500
|
|
64
|
|
10
|
|
Payments for land use
rights
|
(3,978)
|
|
(4,452)
|
|
(675)
|
|
Net cash used in investing
activities
|
(257,893)
|
|
(254,677)
|
|
(38,587)
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
Capital contributions to a
subsidiary by
noncontrolling
shareholders
|
1,600
|
|
-
|
|
-
|
|
Cash distribution by a
subsidiary to
noncontrolling
shareholders
|
(2,500)
|
|
-
|
|
-
|
|
Dividends paid
|
-
|
|
(44,460)
|
|
(6,735)
|
|
Proceeds from issuance of
ordinary shares upon IPO
|
389,022
|
|
-
|
|
-
|
|
Proceeds from exercise of share
options
|
-
|
|
6,178
|
|
936
|
|
Issuance costs of ordinary
shares upon IPO
|
(46,719)
|
|
(3,028)
|
|
(459)
|
|
Acquisition of additional equity
interest in subsidiaries
from
noncontrolling interests
|
(17,500)
|
|
(51,300)
|
|
(7,773)
|
|
Proceeds from short-term bank
borrowings
|
15,000
|
|
20,000
|
|
3,030
|
|
Repayments of short-term bank
borrowings
|
(80,000)
|
|
-
|
|
-
|
|
Proceeds from long-term bank
borrowings
|
10,000
|
|
-
|
|
-
|
|
Repayment of long-term
bank borrowings
|
-
|
|
(5,000)
|
|
(758)
|
|
Repurchase of ordinary
shares
|
(8,134)
|
|
(10,953)
|
|
(1,660)
|
|
Proceeds from non-interest
bearing borrowings
from related
parties
|
6,000
|
|
-
|
|
-
|
|
Repayment of non-interest
bearing borrowings
from related
parties
|
(47,687)
|
|
(4,000)
|
|
(606)
|
|
Net cash provided by (used in)
financing activities
|
219,082
|
|
(92,563)
|
|
(14,025)
|
|
Effect of foreign currency
exchange rate changes
on
cash
|
54
|
|
(1,300)
|
|
(197)
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash
|
170,495
|
|
(252,378)
|
|
(38,239)
|
|
Cash at beginning of
year
|
180,602
|
|
351,097
|
|
53,196
|
|
Cash at end of
year
|
351,097
|
|
98,719
|
|
14,957
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash
flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid
|
34,579
|
|
34,073
|
|
5,163
|
|
Interest paid, net of amounts
capitalized
|
2,149
|
|
80
|
|
12
|
|
|
|
|
|
|
|
|
Noncash investing and financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued IPO cost
|
3,028
|
|
-
|
|
-
|
|
Payable for purchase of
property, plant and equipment
|
118,174
|
|
129,323
|
|
19,594
|
|
Payable for
acquisition of noncontrolling
interest in
Jiangsu Wei
Er
|
23,500
|
|
-
|
|
-
|
|
Payable for acquisition of
Kangpeng Nong Hua
|
25,000
|
|
-
|
|
-
|
|
Bills payable for purchase of
property, plant and equipment
|
28,105
|
|
19,897
|
|
3,015
|
|
Land use right contributed to an
affiliate
|
1,957
|
|
-
|
|
-
|
|
|
|
|
|
|
|
SOURCE Chemspec International Limited