NEW YORK AND SHISHI, China,
May 17, 2011 /PRNewswire-Asia/ --
Soon Holdings Inc.
(OTCBB: SOON), a
Fujian-based manufacturer and
distributor of synthetic polyurethane synthetic leather (PU
leather) for the shoe industry in China, today announced financial results for
2010 and the first quarter of 2011:
Full Year 2010 Highlights
- Revenues increased 55.8% to $33.1
million compared to $21.2
million for 2009
- Gross profit increased 76.3% to $8.3
million versus $4.7 million
for 2009
- Operating income increased 91.5% to $7.2
million versus $3.8 million
for 2009
- Net income for 2010 increased 90.4% to $5.8 million versus $3.0
million for 2009
First Quarter 2011 Highlights
- Revenues increased 73.4% to $7.2
million compared to $4.2
million for Q1 2010
- Gross profit increased 67.9% to $1.7
million versus $1.0 million
for Q1 2010
- Operating income increased 88.7% to $1.5
million versus $0.77 million
Q1 2010
- Net income for increased 63.8% to $0.95
million versus $0.58 million
for Q1 2010
Ang Kang Han, Chairman and
President, commented, "We are pleased to report that we experienced
strong growth in our business throughout 2010 that continued into
the first quarter of 2011. Insufficient local supply of PU leather
and the high grade characteristics of our synthetic leather are
driving demand for our products. With our headquarters in Shishi,
Fujian, we are strategically
located in close proximity to one of the largest PU leather markets
in China with over 3,000 shoe
manufacturers producing over one billion pairs of shoes annually.
In this market, local demand far outstrips supply and we believe we
are extremely well positioned with strong brand recognition and
established long-term distributor relationships."
Mr. Han continued, "We have built a very efficient and scalable
operation. We operate a 66,700 square meter factory consisting of
five PU leather production lines with capacity to annually produce
over 12 million meters of PU leather. In addition, we are
constructing a new facility in San Ming that we expect to commence
operation by the second half of 2011. This new facility will
increase our capacity by more than 80% and will enable us to
produce an additional 10 million meters of PU leather per year. We
currently operate our own resin plant, base cloth production line
and PU leather plant, which lowers our costs and enables us to
customize products to meet the needs of high-end customers. We are
also focusing heavily on R&D including development of new
formulas that exceed industry standards for peel strength, water
repellent properties and tear strength."
Mr. Han concluded, "Looking ahead, our strategy is to capture
market share as one of only a few fully integrated companies in
Fujian by the end of 2011. Our
focus is on increasing higher margin direct-to-customer sales,
entering new regional markets in China, such as Hunan and Jiangxi Provinces, and increasing
our presence in high-end overseas markets including Europe and America. While our primary focus is
generating strong free cash flow to internally fund our organic
growth, we are also considering opportunistically pursuing
strategic and accretive acquisitions within this highly fragmented
market. Overall, we are extremely encouraged by both the near-term
and long-term outlook for the business, and believe our ability to
increase net income by more than 90% in 2010 year illustrates our
ability to generate meaningful value for shareholders."
About Sooner Holdings
Inc.
Sooner Holdings Inc., located in Fujian province, is a leading producer of
synthetic polyurethane leather ("PU leather") for the shoe industry
in China. The Company's primary
business is to design, manufacture and distribute PU leather. The
Company also manufactures flip-flops and slippers for sale in
China and abroad. For its high
performance series, the Company uses high-density nonwoven fabric
as base cloth because of its superior hydrolysis resistance, peel
and tear strength, durability and air and moisture permeability.
High performance PU leather is mainly used to make high-grade
athletic shoes. The Company is located in ShiShi City, Fujian, close to Quanzhou — China's largest production base for sports
shoes, sneakers and casual shoes. In this one region alone,
there are more than 3,000 shoe manufacturers producing over 1
billion shoes annually located in close proximity.
This release contains certain "forward-looking
statements" relating to the business of the Company.
These forward looking statements are often identified by the use of
forward-looking terminology such as
"believes," "expects"
or similar expressions. Such forward looking
statements include, but are not limited to, that
the our operations are efficient and scalable, that we will
be able to produce 10 million meters of PU leather at
our the new facility, that we will be able to find and
consummate strategic and accretive
acquisitions and that our net income will
increase by 90% this year. Further the forward looking
statements involve known and unknown risks and uncertainties
that may cause actual results to be materially different from those
described herein as anticipated, believed, estimated or expected.
Investors should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including those discussed in the
Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website
(www.sec.gov). All forward-looking statements attributable to the
Company or to persons acting on its behalf are expressly qualified
in their entirety by these factors other than as required under the
securities laws. The Company does not assume a duty to update these
forward-looking statements.
Company
Contact:
|
|
Michael Woo
|
|
Email:
Michael@China-wintop.com
|
|
IR Contact:
|
|
Crescendo Communications,
LLC
|
|
David Waldman or
Vivian Huo
|
|
Tel: (212) 671-1020
|
|
Email: soon@crescendo-ir.com
|
|
|
– financial tables follow –
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
December
31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
1,084,204
|
|
|
$
|
1,619,559
|
|
|
Restricted cash
|
|
|
137,688
|
|
|
|
486,164
|
|
|
Accounts receivable
|
|
|
6,171,639
|
|
|
|
680,991
|
|
|
Prepaid expenses and current
assets
|
|
|
555,283
|
|
|
|
275,529
|
|
|
Related party
receivable
|
|
|
1,334,545
|
|
|
|
643,882
|
|
|
Inventories
|
|
|
6,968,039
|
|
|
|
5,262,099
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
16,251,398
|
|
|
|
8,968,224
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit for construction in
progress
|
|
|
8,074,441
|
|
|
|
0
|
|
|
Plant and equipment,
net
|
|
|
11,589,924
|
|
|
|
10,757,954
|
|
|
Land use rights, net
|
|
|
1,793,496
|
|
|
|
883,442
|
|
|
Long-term investment
|
|
|
151,722
|
|
|
|
146,259
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
37,860,981
|
|
|
$
|
20,755,879
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Short-term loans and notes
payable
|
|
$
|
11,586,254
|
|
|
$
|
6,966,302
|
|
|
Related party payable
|
|
|
198,756
|
|
|
|
1,001,782
|
|
|
Accounts payable and accrued
expenses
|
|
|
2,447,151
|
|
|
|
1,251,096
|
|
|
Customer deposits
|
|
|
925,352
|
|
|
|
774,412
|
|
|
Tax payable
|
|
|
1,814,856
|
|
|
|
329,110
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
16,972,369
|
|
|
|
10,322,702
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
Owner's
capital
|
|
|
9,113,759
|
|
|
|
4,999,603
|
|
|
Capital surplus
|
|
|
27,344
|
|
|
|
27,344
|
|
|
Retained
earnings
|
|
|
10,607,267
|
|
|
|
4,804,412
|
|
|
Accumulated other
comprehensive income
|
|
|
1,140,242
|
|
|
|
601,818
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
20,888,612
|
|
|
|
10,433,177
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
37,860,981
|
|
|
$
|
20,755,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF
OPERATIONS
|
|
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
33,062,267
|
|
|
$
|
21,223,079
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
24,718,136
|
|
|
|
16,490,716
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
8,344,131
|
|
|
|
4,732,363
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
510,366
|
|
|
|
348,500
|
|
|
General and
administrative
|
|
|
617,383
|
|
|
|
614,992
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
1,127,749
|
|
|
|
963,492
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
7,216,382
|
|
|
|
3,768,871
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest expense and bank
fees
|
|
|
(582,447)
|
|
|
|
(383,238)
|
|
|
Foreign exchange transaction
loss
|
|
|
(21,509)
|
|
|
|
(5,801)
|
|
|
Other income (expense),
net
|
|
|
20,676
|
|
|
|
121,120
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income
(expense)
|
|
|
(583,280)
|
|
|
|
(267,919)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision
for income taxes
|
|
|
6,633,102
|
|
|
|
3,500,952
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
830,247
|
|
|
|
453,703
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
5,802,855
|
|
|
$
|
3,047,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED
BALANCE
SHEETS
|
|
(Unaudited)
|
|
____________
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash
|
$
403,813
|
|
$ 1,084,204
|
|
Restricted cash
|
212,974
|
|
137,688
|
|
Accounts
receivable
|
5,112,034
|
|
6,171,639
|
|
Prepaid expenses and other
current assets
|
1,733,733
|
|
555,283
|
|
Related party
receivable
|
-
|
|
1,334,545
|
|
Inventories
|
6,959,520
|
|
6,968,039
|
|
|
|
|
|
|
Total current
assets
|
14,422,074
|
|
16,251,398
|
|
|
|
|
|
|
Deposit for construction in
progress
|
13,343,084
|
|
8,074,441
|
|
Plant and equipment,
net
|
12,721,385
|
|
11,589,924
|
|
Land use rights, net
|
1,794,032
|
|
1,793,496
|
|
Long-term investment
|
152,669
|
|
151,722
|
|
|
|
|
|
|
Total assets
|
$ 42,433,244
|
|
$ 37,860,981
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Short-term loans and notes
payable
|
$ 12,570,800
|
|
$ 11,586,254
|
|
Related party
payable
|
1,035,099
|
|
198,756
|
|
Accounts payable and other
liabilities
|
3,117,155
|
|
2,447,151
|
|
Customer
deposits
|
1,042,961
|
|
925,352
|
|
Tax payable
|
2,241,135
|
|
1,814,856
|
|
|
|
|
|
|
Total
liabilities
|
20,007,150
|
|
16,972,369
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock, Series A,
$0.0001 par value; 10,000,000 shares
|
|
|
|
|
authorized; 19,200 shares
issued and outstanding
|
2
|
|
-
|
|
Common stock, $0.001 par
value; 100,000,000 shares
|
|
|
|
|
authorized; 14,632,553 and
12,688,016 shares issued and outstanding
|
|
|
|
|
March 31, 2011 and
December 31, 2010, respectively.
|
14,633
|
|
12,688
|
|
Additional paid-in
capital
|
9,576,438
|
|
9,128,415
|
|
Retained
earnings
|
11,559,855
|
|
10,607,267
|
|
Accumulated other
comprehensive income
|
1,275,166
|
|
1,140,242
|
|
|
|
|
|
|
Total
stockholders' equity
|
22,426,094
|
|
20,888,612
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 42,433,244
|
|
$ 37,860,981
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED
STATEMENTS
OF OPERATIONS
|
|
(Unaudited)
|
|
____________
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
Revenues
|
$ 7,209,831
|
|
$ 4,159,115
|
|
|
|
|
|
|
Cost of revenues
|
5,532,814
|
|
3,160,520
|
|
|
|
|
|
|
Gross profit
|
1,677,017
|
|
998,595
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Selling
|
85,400
|
|
120,169
|
|
General and
administrative
|
139,962
|
|
109,077
|
|
|
|
|
|
|
Total operating
expenses
|
225,362
|
|
229,246
|
|
|
|
|
|
|
Income from
operations
|
1,451,655
|
|
769,349
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest expense and bank
fees, net
|
(184,892)
|
|
(106,100)
|
|
Foreign exchange
transaction loss
|
(4,044)
|
|
-
|
|
Subsidy income
|
38,044
|
|
-
|
|
Other income (expense),
net
|
(44)
|
|
1,213
|
|
|
|
|
|
|
Total other income
(expense), net
|
(150,936)
|
|
(104,887)
|
|
|
|
|
|
|
Income before provision
for income taxes
|
1,300,719
|
|
664,462
|
|
|
|
|
|
|
Provision for income
taxes
|
348,131
|
|
83,058
|
|
|
|
|
|
|
Net income
|
$
952,588
|
|
$
581,404
|
|
|
|
|
|
|
|
SOURCE Sooner Holdings Inc.