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Huaxing Machinery Corp. Reports Consolidated Financial Results for the Year Ended December 31, 2012

May 6 2013 12:00AM



VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/06/13 -- Huaxing Machinery Corp. (TSX VENTURE: HUA) ("Huaxing" or the "Company") reports its audited consolidated financial results as at and for the year ended December 31, 2012 in accordance with International Financial Reporting Standards ("IFRS"). All dollar amounts are expressed in Canadian dollars.

The Company's audited financial results for the year ended December 31, 2012 in comparison to those of the year ended December 31, 2011 are as follows:

---------------------------------------------------------------------------- Year Ended Year Ended December 31, December 31, Changes from 2012 2011 2011 to 2012 $ $ $ %----------------------------------------------------------------------------Sales 26,740,159 26,342,834 397,325 1.51%Cost of sales 20,013,108 20,885,916 (872,808) (4.18%)Gross profit 6,727,051 5,456,918 1,270,133 23.28%Income from operations 3,069,020 1,592,883 1,476,137 92.67%Net income 3,256,514 433,368 2,823,146 651.44%Net income attributable to equity holders of the Company 2,523,661 72,166 2,451,495 3,397.02%Earnings per share - basic and diluted 0.06 0.00 0.06----------------------------------------------------------------------------

For the year ended December 31, 2012, audited consolidated income from operations and net income were $3,069,020 (2011 - $1,592,883) and $3,256,514 (2011 - $433,368), respectively.

Gross profit margin increased from 20.71% during fiscal 2011 to 25.16% during fiscal 2012, as we increased the sales of our new products during fiscal 2012.

During the year ended December 31, 2011 we recorded listing costs of $769,308 for completing the Qualifying Transaction (the "QT") with Samurai Capital Corp. ("Samurai"), a CPC. The listing costs had a substantial impact on the Company's reported net income for 2011. However, these costs were specifically for taking the Company public and non-recurring.

The Board of Directors did not declare dividend for the year ended December 31, 2012.

The foregoing reflects a selected extract of the Company's financial performance only, and must be viewed with the Company's full audited consolidated financial statements and management's discussion and analysis on SEDAR for further details at under the Company's profile.

About Huaxing Machinery Corp.

Huaxing is a manufacturer of stone processing equipment and steel structure fabrication equipment. The Company became listed on TSX.V on January 21, 2011 upon completing the QT with Samurai. Through its wholly owned subsidiary Gold Rhino Limited, Huaxing holds an 80% controlling equity interest in Shandong Gold Rhino Huaxing Machinery Corp., the operating entity that holds the manufacturing facilities located in Boxing County, Shandong Province, China. Its main products are stone sawing, cutting, polishing and processing machinery, and robotic welding system for steel structure fabrication. The processed stones and steel structures are both used in the building and infrastructure construction industry.

Forward-Looking Statements

Certain information regarding Huaxing Machinery Corp. contains herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. The Company assumes no obligation to update such forward-looking statements, except as required by applicable securities laws or exchange regulations. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The Company seeks safe harbour.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Huaxing Machinery Corp.
Xinlin Huang

Source: Marketwire

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