UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934
For the Month of August 2009
_______________________
Commission File No. 1-14742
JINPAN INTERNATIONAL LIMITED
(Translation of Registrant’s Name into English)
c/o Hainan Jinpan Special Transformer Works
Section D-2,
No. 100 Industry Avenue
Jinpan Development Area
Haikou, Hainan PRC
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
x
Form 20-F
o
Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
o
Note
: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
o
Note
: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is
incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on
EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
o
Yes
o
No
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-______________
Attached hereto as Exhibit 1 and incorporated by reference herein is the Registrant’s press release dated August 14, 2009.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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JINPAN INTERNATIONAL LIMITED
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By:
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/s/ Mark Du
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Name:
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Mark Du
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Title:
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Chief Financial Officer
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Dated: August 17, 2009
Exhibit No.
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Description
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1.
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Press release dated August 14, 2009.
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Exhibit
1
Jinpan International Reports Second Quarter 2009
Financial Results
-- 2Q09 Gross Margin Increases to 46.6% Compared to 34.1% 2Q08--
-- 2Q09 Operating Income Increases 46.9% to $10.0 Million Compared to 2Q08 --
-- 2Q09 Net Income increases 44.0% to $8.7 Million Compared to 2Q08 –
-- Reiterates FY09 Net Income and Diluted EPS Forecast --
Englewood Cliffs, N.J., August 14, 2009 – Jinpan International Ltd. (Nasdaq: JST),a leading designer, manufacturer and distributor of cast resin transformers for high voltage distribution equipment, today announced consolidated financial results for the second quarter ended June 30, 2009.
Net sales in the second quarter were $40.9 million, a 0.7% increase from $40.6 million in the same period last year. Net sales remained approximately the same as that of the second quarter of 2008 primarily due to downward pressure on unit sale price stemming from lower material prices. In the second quarter, net sales outside of China increased 16.0% to $5.8 million, or 14.2% of net sales, compared to $5
million, or 12.3% of net sales in the same period last year. Cast resin transformers (excluding those for wind power applications), switch gears and unit substations represented $32.6 million, or 79.7% of net sales in the second quarter, while wind energy products represented $8.3 million, or 20.3% of net sales in the second quarter.
Gross profit in the second quarter was $19.0 million, a 37.6% increase from $13.8 million, in the same period last year. Second quarter gross margin increased to 46.6% compared to 34.1% in the same period last year. The Company benefitted from a lower cost of sales on an absolute basis due to lower raw material prices compared to the same period last year and an increase in sales of customized, high-end
products resulting in gross margins during the second quarter which were above normal levels.
Selling, general and administrative expenses in the second quarter were $9.0 million, or 22.1% of net sales, a 28.6% increase compared to $7.0 million, or 17.3% of net sales in the same period last year. These expenses increased primarily due to increase in R&D expense and additional overhead costs at the Company’s Wuhan and Shanghai facilities, which were not operating during the same period
last year.
Operating income in the second quarter was $10.0 million, or 24.4% of net sales, a 46.9% increase compared to $6.8 million, or 16.8% of net sales in the same period last year.
Net income in the second quarter was $8.7 million, or $1.07 per diluted share, a 44.0% increase compared to $6.0 million, or $0.74 per diluted share, in the same period last year. Second quarter net income as a percentage of net sales was 21.2% as compared to 14.9% in the same period last year.
Mr. Zhiyuan Li, Chief Executive Officer of Jinpan made the following comments: “In such a difficult economic environment, we were pleased with our results for the second quarter. We were able to have modest revenue growth in an environment with lower prices. Also in the second quarter, we recorded favorable gross margins because of lower raw materials prices, but also because of a high level of
customized, high-end orders that the Company was able to deliver to its clients. For the second half of 2009, we believe gross margins will return to more typical levels of 33% - 34%, which is a level to be proud of in this industry.
“We were also pleased to see an increase in orders from our international business segment and believe international orders could generate a growing percentage of net sales in 2009. Our international customers are placing orders for cast resin transformers that benefit wind power applications as well as our more traditional power generation applications typically used in urban settings (such as
trains and subways, hospitals, airports and office buildings), industrial (factories) and commercial development settings (processing plants, data centers).
“JST continues to take the necessary steps to ensure we have the capacity to meet growing demand from domestic and international customers. Both our Wuhan facility now in operation and soon to be completed first phase of our Shanghai facility can deliver increased production. Our Shanghai facility will house our growing wind energy products business.
“As we evaluate our financial performance for the remainder of the year, we anticipate that order volume to grow but the dollar value of our projects will likely remain subject to the challenging global market conditions, thus impacting our original sales projections. We expect gross margins within the high end of our historic range and anticipate net income and EPS growth. We believe we will
benefit from the stimulus plans of China and the U.S and expect growth in our overall financial performance as the domestic and international markets in which we operate continue to show signs of stabilization and increased infrastructure development projects materialize. JST has a strong balance sheet, a healthy cash position, manageable debt and the right strategic plan to sustainably manage our business for growth this year and beyond. We look forward to capitalizing on our
opportunities and enhancing value for our shareholders,” concluded Mr. Li.
Balance Sheet
As of June 30, 2009, the Company had $21.3 million of cash and cash equivalents, compared to $16.7 million at December 31, 2008. The Company’s accounts receivables on June 30, 2009 totaled $60.2 million, compared to $58.8 million at December 31, 2008.
Financial Outlook
For the full year 2009, the Company currently anticipates net sales of approximately $154 million to $159 million, a 0% to 3% increase over 2008 sales of $154 million. The Company reiterates its original estimate of net income of approximately $22.5 million to $23.3 million, a 14% to 18% increase over 2008 net income of $19.8 million. The Company anticipates that diluted earnings per share for 2009 will
be between $2.75 to $2.85 per share.
Conference Call Information
Jinpan’s management will host an earnings conference call today, August 14, 2009 at 8:30 a.m. U.S. Eastern Time. Listeners may access the call by dialing #1-913-312-1450. A webcast will also be available via the Company’s website at
www.viavid.net
. A recording of the call will be available through August 28, 2009. Listeners may access it by
dialing #1-719-457-0820, access code: 9513647.
About Jinpan International Ltd
Jinpan International Ltd. (Nasdaq: JST) designs, manufactures and distributes cast resin transformers for high voltage distribution equipment in China and other countries around the world. Jinpan’s cast resin transformers allow high voltage transmissions of electricity to be distributed to various locations at lower, more usable voltage levels. The Company has obtained ISO9001 and ISO1401
certification of its cast resin transformers. Its principal executive offices are located in Hainan, China and its U.S. headquarters is based in Englewood Cliffs, New Jersey.
Safe Harbor Provision
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and observations and involve known and unknown risks, and uncertainties or other factors not under the Company’s control, which may cause actual results,
performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, the following:
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•
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our ability to successfully implement our business strategy;
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•
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the impact of existing and new competitors in the markets in which we compete, including competitors that may offer less expensive products and services, more desirable or innovative products or technological substitutes, or have more extensive resources or better financing;
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the effects of rapid technological changes and vigorous competition in the markets in which we operate;
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•
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uncertainties about the future growth in electricity consumption and infrastructure development in the markets in which we operate;
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other factors or trends affecting the industry generally and our financial condition in particular;
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•
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the effects of the higher degree of regulation in the markets in which we operate;
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•
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general economic and political conditions in the countries in which we operate or other countries which have an impact on our business activities or investments;
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•
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the monetary and interest rate policies of the countries in which we operate;
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changes in competition and the pricing environments in the countries in which we operate;
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•
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exchange rates; and
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other factors listed from time-to-time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 20-F for the period ended December 31, 2007 and our subsequent reports on Form 6-K.
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Except as required by law, we are not under any obligation, and expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contact Information
:
At Jinpan International Ltd.
Mark Du
Chief Financial Officer
(201) 227-0680
At ICR, Inc.:
In China:
Yuening Jiang
+86 10 6599 7965
In U.S.
Brian M. Prenoveau, CFA
(203) 682-8200
(Financial tables on the following page)
Jinpan International Limited and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
For the Three and Six Month Periods Ended June 30, 2009
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|
Three
months
ended
June 30
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Three
months
ended
June 30
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Six
months
ended
June 30
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Six
months
ended
June 30
|
|
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2009
|
2008
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2009
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2008
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(In
thousands,
except
per
share
data)
|
|
US$
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US$
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US$
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US$
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|
|
|
|
|
|
|
|
|
|
|
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Net sales
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|
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40,903
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40,604
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73,290
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64,402
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Cost of Goods Sold
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|
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(21,859
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)
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(26,767
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)
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(42,530
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)
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|
(43,106
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)
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Gross Margin
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|
|
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19,044
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13,837
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30,760
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21,296
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|
|
|
|
|
|
|
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Operating Expenses
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|
|
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Selling and administrative
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( 9,047
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)
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( 7,033
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)
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(15,277
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)
|
|
(11,503
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)
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Operating income
|
|
|
|
|
9,997
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|
|
6,804
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|
|
15,483
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|
9,793
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Interest Expenses
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|
|
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|
(248
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)
|
|
(291
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)
|
|
(352
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)
|
|
(470
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)
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Other Income
|
|
|
|
|
72
|
|
|
187
|
|
|
122
|
|
|
371
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|
Income before income taxes
|
|
|
|
|
9,821
|
|
|
6,700
|
|
|
15,253
|
|
|
9,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
( 1,133
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)
|
|
( 667
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)
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|
(1,886
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)
|
|
(1,261
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)
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Net income
|
|
|
|
|
8,688
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|
|
6,033
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|
13,367
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8,433
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|
|
|
|
|
|
|
|
|
|
|
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Earnings per share
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|
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-Basic
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$1.09
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|
$0.76
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|
|
$1.67
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|
|
$1.06
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|
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|
|
|
|
|
|
|
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|
|
|
|
|
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-Diluted
|
|
|
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|
$1.07
|
|
|
$0.74
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|
|
$1.65
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|
|
$1.03
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Weighted average number of shares
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|
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|
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|
|
|
|
|
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|
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|
|
|
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|
|
-Basic
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|
|
|
|
8,002,794
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|
7,984,147
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|
|
8,002,794
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|
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7,984,147
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
-Diluted
|
|
|
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8,086,090
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8,152,304
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8,086,090
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|
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8,152,304
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
|
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Jinpan International Limited and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
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|
|
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June 30,
2009
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December 31,
2008
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(In thousands)
|
|
|
|
US$
|
|
|
US$
|
Assets
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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Current assets:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cash and cash equivalents
|
|
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|
21,331
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|
|
|
16,739
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Accounts receivable, net
|
|
|
|
60,196
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|
|
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58,793
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Inventories
|
|
|
|
28,508
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|
|
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31,868
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Prepaid expenses
|
|
|
|
27,934
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|
|
|
4,713
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|
Other receivables
|
|
|
|
6,915
|
|
|
|
7,317
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|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
144,884
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|
|
|
119,430
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|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
18,045
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|
|
|
18,213
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|
|
|
|
|
|
|
|
|
|
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Construction in progress
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|
|
|
6,693
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|
|
|
6,055
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|
|
|
|
|
|
|
|
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Land use right
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|
|
|
6,130
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|
|
|
6,098
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|
Intangible asset-Goodwill
|
|
|
|
12,333
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|
|
|
12,348
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|
Deferred tax assets
|
|
|
|
257
|
|
|
|
301
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
188,342
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|
|
|
162,445
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|
|
|
|
|
|
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|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short term bank loans
|
|
|
|
4,392
|
|
|
|
11,726
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|
Accounts payable
|
|
|
|
9,758
|
|
|
|
11,300
|
|
Notes Payable
|
|
|
|
26,352
|
|
|
|
-
|
|
Tax Payable
|
|
|
|
1,640
|
|
|
|
3,671
|
|
Advances from customers
|
|
|
|
6,419
|
|
|
|
7,828
|
|
Other Payable
|
|
|
|
19,544
|
|
|
|
20,733
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
68,105
|
|
|
|
55,258
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, US$0.009 par value:
|
|
|
|
|
|
|
|
|
|
Authorized shares - 20,000,000
|
|
|
|
|
|
|
|
|
|
Issued and outstanding shares - 8,209,684 in 2009
and 8,189,684 in 2008
|
|
|
|
74
|
|
|
|
73
|
|
Common Stock, Warrants
|
|
|
|
854
|
|
|
|
854
|
|
Convertible preferred stock, US$0.009 par value:
|
|
|
|
|
|
|
|
|
|
Authorized shares - 1,000,000
|
|
|
|
|
|
|
|
|
|
Issued and outstanding shares – 3,044 in 2008
and 2009
|
|
|
|
-
|
|
|
|
-
|
|
Additional paid-in capital
|
|
|
|
34,266
|
|
|
|
34,035
|
|
Reserves
|
|
|
|
3,906
|
|
|
|
3,906
|
|
Retained earnings
|
|
|
|
72,692
|
|
|
|
60,296
|
|
Accumulated other comprehensive income
|
|
|
|
9,192
|
|
|
|
8,812
|
|
|
|
|
|
120,984
|
|
|
|
107,976
|
|
Less: Treasury shares at cost, common stock-192,470 in
2009 and 202,470 in 2008
|
|
|
|
(747
|
)
|
|
|
(789
|
)
|
Total shareholders’ equity
|
|
|
|
120,237
|
|
|
|
107,187
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity
|
|
|
|
188,342
|
|
|
|
162,445
|
|
Jinpan International Limited and Subsidiaries
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2009 (Unaudited)
|
|
Six
months
ended
June 30,
|
|
Six
months
ended
June 30,
|
|
|
2009
|
|
2008
|
(In thousands)
|
|
US$
|
|
US$
|
Operating activities
|
|
|
|
|
|
|
Net income
|
|
13,367
|
|
|
8,433
|
|
Adjustments to reconcile net income to
|
|
|
|
|
|
|
net cash provided by/(used in) operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
1,454
|
|
|
632
|
|
Provision for doubtful debt
|
|
(286
|
)
|
|
(282
|
)
|
Loss on disposal of fixed assets
|
|
-
|
|
|
1
|
|
Deferred income tax
|
|
43
|
|
|
277
|
|
Stock-based compensation cost
|
|
205
|
|
|
184
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
Accounts receivable
|
|
(1,188
|
)
|
|
(10,639
|
)
|
Inventories
|
|
3,324
|
|
|
(5,662
|
)
|
Prepaid expenses
|
|
(23,241
|
)
|
|
(4,209
|
)
|
Other receivables
|
|
394
|
|
|
207
|
|
Accounts payable
|
|
(1,529
|
)
|
|
3,003
|
|
Notes payable
|
|
26,367
|
|
|
-
|
|
Tax payable
|
|
(2,028
|
)
|
|
(463
|
)
|
Advance from customers
|
|
(1,401
|
)
|
|
888
|
|
Other payable
|
|
(1,164
|
)
|
|
2,706
|
|
Net cash provided by/(used in) operating activities
|
|
14,317
|
|
|
(4,924
|
)
|
Investing activities
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(1,348
|
)
|
|
(1,055
|
)
|
Proceeds from sales of property, plant and equipment
|
|
-
|
|
|
2
|
|
Payment for construction in progress
|
|
(645
|
)
|
|
(10,952
|
)
|
Purchase of available-for sale securities
|
|
-
|
|
|
(1,180
|
)
|
Net cash used in investing activities
|
|
(1,993
|
)
|
|
(13,185
|
)
|
Financing activities
|
|
|
|
|
|
|
Proceeds from bank loan
|
|
4,850
|
|
|
17,436
|
|
Repayment of bank loan
|
|
(12,175
|
)
|
|
(4,580
|
)
|
Proceeds from exercise of stock options
|
|
70
|
|
|
-
|
|
Dividends paid
|
|
(970
|
)
|
|
(967
|
)
|
Net cash provided by/(used in) financing activities
|
|
(8,225
|
)
|
|
11,889
|
|
Effect of exchange rate changes on cash
|
|
493
|
|
|
464
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
4,592
|
|
|
(5,756
|
)
|
Cash and cash equivalents at beginning of year
|
|
16,739
|
|
|
17,122
|
|
Cash and cash equivalents at end of the period
|
|
21,331
|
|
|
11,366
|
|
|
|
|
|
|
|
|
Interest paid
|
|
364
|
|
|
544
|
|
Income taxes paid
|
|
2,971
|
|
|
1,715
|
|
Jinpan International Limited (NASDAQ:JST)
Historical Stock Chart
From Sep 2024 to Oct 2024
Jinpan International Limited (NASDAQ:JST)
Historical Stock Chart
From Oct 2023 to Oct 2024