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 2013
_______________________
 
Commission File No. 1-14742
 
JINPAN INTERNATIONAL LIMITED
(Translation of Registrant’s Name into English)
 
c/o Hainan Jinpan Electric Company, Ltd
No. 168 Nanhai Avenue (Building No. 7),
Haikou Free Trade Zone
Haikou, Hainan, People’s Republic of China
(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 x No
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): ______________
 
 

 

Attached hereto as Exhibit 1 and incorporated by reference herein is the press release of the Registrant , dated August 14, 2013.

 
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.
   
 
JINPAN INTERNATIONAL LIMITED
   
(Registrant)
 
         
   
 
   
   
By:
/s/ Mark Du
 
   
Name:
Mark Du
 
   
Title:
Chief Financial Officer
 
Dated: August 14, 2013
 
 

 

Exhibit No .
Description
1 Press release dated August 14, 2013
 
 

 
Exhibit 1

Jinpan International Reports Second Quarter 2013 Financial Results
 
* Second quarter revenue increased 5.6% year-over-year to $58.7 million
 
* Operating margin was 9.2% in the second quarter, up from 5.3% in last year's second quarter
 
* Second quarter net income increased 85.8% year-over-year to $4.4 million, or $0.26 per share
 
* Fiscal 2013 outlook reaffirmed; Sales expected to be in the range of $231 million to $241 million with net income in the range of $14.0 million to $14.5 million, or $0.84 to $0.87 per share
 
CARLSTADT, N.J., Aug. 14, 2013 /PRNewswire/ -- Jinpan International Ltd. (Nasdaq: JST), a leading designer, manufacturer, and distributor of cast resin transformers, today reported unaudited consolidated financial results for the second quarter ending June 30, 2013.
 
Second Quarter 2013 Results
 
Net sales for the second quarter were $58.7 million, a 5.6% increase from $55.5 million in the same period last year. The increase was driven by strong growth in international sales and modest growth in the Chinese market. In the second quarter, China sales accounted for $52.6 million, or 89.6% of net sales, compared to $51.2 million, or 92.3% of net sales in the same period last year. Net sales outside of China for the quarter were $6.1 million, or 10.4% of net sales compared to $4.3 million, or 7.7% of net sales for the same period last year.
 
The sales of cast resin and VPI transformers (excluding those for wind power applications), switchgears and unit substations represented $53.3 million, or 90.8% of net sales in the second quarter, while wind energy products (cast resin transformers and VPI reactors for wind power applications) represented $5.4 million, or 9.2% of net sales during this quarter.
 
Gross profit in the second quarter increased 19.2% year over year to $20.4 million from $17.1 million in the same period last year. Second quarter 2013 gross profit margin was 34.8%, compared to 30.8% in the prior year period, and 33.3% in the first quarter of 2013. Gross margin in the second quarter increased compared to the same period last year due to a stabilized pricing environment, favorable raw material costs, and an increased mix of international sales, which typically carry higher margins.
 
Selling and administrative expenses in the second quarter were $15.0 million, or 25.5% of net sales, compared to $14.2 million, or 25.6% of net sales in the same period last year. Selling and administrative expenses increased from the same period last year due to higher sales and increased expenses associated with the newly operational Guilin facility.
 
Operating income for the second quarter increased 85.3% to $5.4 million, or 9.2% of net sales, from $2.9 million, or 5.3% of net sales, in the same period last year.
 
 
 

 

Net income for the second quarter increased 85.8% to $4.4 million, or $0.26 per diluted share, compared to $2.4 million, or $0.14 per diluted share, in the same period last year. Second quarter net income, as a percentage of net sales, was 7.5% compared to 4.2% in the same period last year.
 
Mr. Zhiyuan Li, Chief Executive Officer of Jinpan International, stated, "We are pleased with our second quarter results, which reflect a return to revenue and earnings growth as we are seeing contribution from the strategies we have implemented and investments we have made over the past several years. With this major investment phase largely complete, we now intensify our focus on the disciplined execution of our growth strategy as we ramp up our Guilin facility, develop new products, expand our international OEM business, and increase our penetration of the domestic market. At the end of June, our backlog increased to $145 million, up 26% from the prior year period and up 2% from the first quarter of 2013."
 
"The ramp-up of our Guilin facility is progressing as planned and we made our first shipments of cast resin transformers from this facility during the second quarter. Jinpan's total production capacity for cast resin transformers is now 17 million KVA, which we believe positions us as the largest manufacturer of cast resin transformers in China. We plan to expand production from this facility in a measured and efficient manner over the next several quarters."
 
"Jinpan had several positive developments with its OEM business. As expected, during the second quarter we resumed volume shipments to our largest OEM customer, supplying a newly designed cast resin transformer for its next generation wind turbine platform. Wind energy sales more than doubled from the first quarter of 2013 and we anticipate continued growth through the end of the year. We continued shipments to our two other OEM customers. We are also pleased to report that we have successfully passed qualification with a Europe-based wind turbine manufacturer and have received initial orders. Finally, we made progress with qualification with two additional OEMs."
 
"Within the Chinese market, the government continues to invest in infrastructure; however, the spending is more targeted and measured than in previous years. We believe our technical capabilities and the scale and improved efficiency of our Guilin facility position us to capture market share and drive productivity within this slower-growth environment."
 
Balance Sheet
 
As of June 30, 2013, the Company had $14.2 million in cash and cash equivalents, compared to $18.5 million as of December 31, 2012. The Company's accounts receivable on June 30, 2013 totaled $143.7 million, compared to $124.6 million as of December 31, 2012. Total bank loans outstanding at June 30, 2013 were $49.4 million, compared to $44.0 million at December 31, 2012.
 
Financial Outlook
 
The Company reiterates its guidance for 2013, projecting net sales of $231 million to $241 million, an increase of 10% to 15% over 2012, and net income of $14.0 million to $14.5 million, or $0.84 to $0.87 per share, which represents an increase of 0% to 3% compared to 2012.
 
 
 

 

 
Conference Call Information
 
Jinpan's management will hold a conference call on Wednesday, August 14, 2013 at 8:30 a.m. Eastern Time. Listeners may access the call by dialing 1-888-727-7615 (toll free) or 1-913-312-0655 (international). A webcast will also be available via http://public.viavid.com, with event ID: 105623. A replay of the call will be available through August 28, 2013 by dialing 1-877-870-5176, access code 8399159.
 
ABOUT JINPAN INTERNATIONAL
 
Jinpan International Ltd. (NASDAQ: JST) designs, manufactures, and markets equipment for the distribution of electricity, including cast resin transformers, VPI transformers and reactors, switchgears, and unit substations. Jinpan's cast resin transformers allow high voltage transmissions of electricity to be distributed to various locations in lower, more usable voltages. Its principal executive offices are located in Haikou, Hainan, China and its United States office is based in Carlstadt, New Jersey.
 
Safe Harbor Regarding Forward Looking Statements
 
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 are 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, 2012 and our subsequent reports on Form 6-K. 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.
 
 
 

 

Jinpan International Limited and Subsidiaries
Consolidated Statements of Comprehensive Income (unaudited)
For the Three and Six Month Periods Ended June 30, 2013

   
Three months ended
 
Six months ended
   
June 30
 
June 30
   
2013
   
2012
   
2013
   
2012
 
(In thousands, except number of shares and per share data)
 
US$
   
US$
   
US$
   
US$
 
                         
Net sales
    58,664       55,529       93,836       98,283  
Cost of Goods Sold
    (38,266 )     (38,418 )     (61,718 )     (65,410 )
Gross Margin
    20,398       17,111       32,118       32,873  
              -                  
Operating Expenses
                               
Selling and administrative
    (14,983 )     (14,188 )     (25,354 )     (25,103 )
Operating income
    5,415       2,923       6,764       7,770  
                                 
Interest Expenses
    (494 )     (627 )     (762 )     (1,086 )
Other Income
    274       364       646       579  
Income before income taxes
    5,195       2,660       6,648       7,263  
                                 
Income taxes
    (815 )     (302 )     (1,125 )     (941 )
Net income after taxes
    4,380       2,358       5,523       6,322  
                                 
Other comprehensive income (loss)
                               
Foreign currency translation adjustment
    3       16       (1 )     (55 )
Total comprehensive income
    4,383       2,374       5,522       6,267  
                                 
Earnings per share
                               
-Basic
    US $0.27       US $0.15       US $0.34       US $0.39  
                                 
-Diluted
    US $0.26       US $0.14       US $0.33       US $0.39  
                                 
Weighted average number of shares
                               
-Basic
    16,195,466       16,164,487       16,195,466       16,164,487  
                                 
-Diluted
    16,653,563       16,522,898       16,654,661       16,400,668  
 

 
 
 

 

Jinpan International Limited and Subsidiaries
Consolidated Balance Sheets

   
(Unaudited)
   
(Audited)
 
   
June 30,
   
December 31,
 
   
2013
   
2012
 
(In thousands, except number of shares and per share data)
 
US$
   
US$
 
             
Assets
           
Current assets:
           
     Cash and cash equivalents
    14,223       18,510  
     Restricted cash
    573       824  
     Short-term investment
    1,942       11,137  
     Notes receivable
    9,082       15,720  
     Accounts receivable, net
    143,730       124,608  
     Inventories, net
    41,794       29,565  
     Prepaid expenses
    8,583       2,528  
     Land use right
    367       366  
     Deferred tax assets
    1,757       1,339  
     Other receivables
    7,419       5,900  
Total current assets
    229,470       210,497  
                 
Property, plant and equipment, net
    60,784       41,361  
Construction-in-progress
    15,050       29,196  
Land use right
    14,835       14,760  
Goodwill
    13,635       13,403  
Other assets
    126       32  
Deferred tax assets
    34       34  
                 
Total assets
    333,934       309,283  
                 
Liabilities and shareholders' equity
               
                 
Current liabilities:
               
                 
     Short-term bank loans
    17,598       17,644  
     Accounts payable
    33,561       25,029  
     Notes Payable
    5,285       6,008  
     Income tax payable
    2,142       1,880  
     Advances from customers
    15,212       13,624  
     Other liabilities
    23,166       22,844  
Total current liabilities
    96,964       87,029  
                 
     Deferred Income
    4,184       3,080  
     Long Term bank loans
    31,767       26,315  
Total Liabilities
    132,915       116,424  
                 
Shareholders' equity:
               
Convertible preferred stock, US$0.0045 par value:
               
     Authorized shares - 2,000,000
               
     Issued and outstanding shares – none in 2013 and 2012
    -       -  
Common stock, US$0.0045 par value:
               
     Authorized shares – 40,000,000
               
     Issued and outstanding shares –16,415,456 in 2013 and 16,395,456 in 2012
    74       74  
Common stock-warrants
    -       -  
Additional paid-in capital
    37,506       37,374  
Reserves
    12,023       12,023  
Retained earnings
    127,615       123,065  
Accumulated other comprehensive income
    24,151       20,781  
      201,369       193,317  
Less: Treasury shares at cost,
Common stock –154,306 in 2013 and 215,306 in 2012
    (350 )     (458 )
Total shareholders' equity
    201,019       192,859  
                 
Total liabilities and shareholders' equity
    333,934       309,283  


 
 

 

Jinpan International Limited and Subsidiaries
Consolidated Statement of Cash Flows
For the Six Months Ended June 30, 2013 (Unaudited)

       
   
For the Six Months Ended
   
June 30
   
2013
   
2012
 
(In thousands)
 
US$
   
US$
 
             
Operating Activities
           
     Net Income
    5,523       6,322  
     Adjustments to reconcile net income to
               
       Net Cash provided by (used in) operating activities:
               
       Depreciation
    2,944       2,080  
       Amortization of prepaid lease
    185       182  
       Deferred Income Tax
    (391 )     (114 )
       Provision for doubtful debts
    1,868       973  
       Loss/(gain) on disposal of fixed assets
    -       (4 )
       Stock-based compensation Cost
    59       111  
     Changes in operating assets and liabilities
               
       Restricted Cash
    263       301  
       Accounts Receivable
    (18,690 )     (12,747 )
       Notes Receivable
    6,851       7,910  
       Inventories
    (11,618 )     (8,390 )
       Prepaid Expenses
    (4,967 )     3,024  
       Other Receivable
    (1,498 )     (2,501 )
       Accounts Payable
    8,029       1,509  
       Notes Payable
    (819 )     (7,618 )
       Income Tax
    227       (812 )
       Advance From customers
    1,340       1,808  
       Other liabilities
    (39 )     (5,105 )
Net Cash provided by (used in) operating activities
    (10,733 )     (13,071 )
Investing activities
               
     Purchases of property, plant and equipment
    (4,731 )     (5,272 )
     Proceeds from sales of property, plant and equipment
    -       29  
     Payment for construction in progress
    (3,228 )     (3,783 )
     Sell of short term investment
    11,232       -  
     Increase in short term investment
    (1,926 )     -  
     Receipt of government grant for new plant construction
    1,038       2,649  
Net Cash provided by (used in) investing activities
    2,385       (6,377 )
Financing activities
               
     Proceeds from bank loan
    16,307       37,412  
     Repayment of bank loan
    (11,702 )     (14,982 )
     Proceeds from exercised stock option
    181       21  
     Dividend paid
    (973 )     (1,129 )
Net Cash provided by (used in) financing activities
    3,813       21,322  
Effect of exchange rate changes on cash
    248       (87 )
Net increase/(decrease) in cash and cash equivalents
    (4,287 )     1,787  
Cash and Cash equivalents at beginning of year
    18,510       24,218  
Cash and Cash equivalents at end of year
    14,223       26,005  
                 
Interest paid
    1,274       1,087  
Income Tax paid
    1,260       1,959  
   
SOURCE Jinpan International Ltd.
 
Investor Contact Information :
 
At Jinpan International Ltd.:
Mark Du
Chief Financial Officer
(201) 460-8778
 
At Tobin Tao & Company, Inc.:
Mark Tobin
(949) 870-9778
jinpan@tobintao.com

 
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