•During the second quarter, lower starch prices caused a negative gross margin of 14.5% compared with a negative gross margin of 0.2% during the same period in 2013. •The Company continues to manage its capacity utilization in reaction to market conditions. During the second quarter, the Company's Changtu and Daqing plants had little operation (approximately 1% capacity utilization) while the Tieling facility remained closed pending a decision regarding its relocation. •Net loss for the second quarter was
"We are pleased to announce that we have completed the due diligence and audit process with
For the second quarter ended
During the second quarter, the Company ceased production in response to lower margins. Capacity at the Daqing and Changtu plants was 1% during the second quarter compared with 30% during the same second quarter of 2013.
SUMMARY FINANCIAL STATEMENTS
in thousands of Canadian
dollars except per share
and percentage data
Three Months Ended
Gross margin (% of Sales)
(loss) from operations
Other income (expense)
Income taxes (recoveries)
Earnings per share:
Weighted average number of shares:
Balance Sheet Highlights
During the second quarter, the Company's refinanced
Strategic Transaction Update
Further to the press release dated
Beidahuang has recently advised the Company that it intends to amend the previous letter of intent ("LOI") which would result in the purchase of a 49% interest in the operating subsidiaries of Asia Bio Chem rather than the purchase of Asia Bio-Chem shares from the major shareholders as previously contemplated. The operating subsidiaries namely;
Management is currently working through the details of the transaction and the various levels of approval.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in
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.
SOURCE Asia Bio-Chem Group Corp.