Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
DTC POSITION REMOVAL; No transfer agent for 6Y+
Quoted:
Dear ______
_______ values you as a client and is committed to providing you with important information about your account(s).
What you need to know
Our records indicate that you hold the below-referenced security, which the Depository Trust Company (DTC) has classified as non-transferable.* As a result, effective 30 days from the date of this letter, your positions will be removed from your account.
Account: XXXX
Security: EMERALD DAIRY INC
Quantity: __________
Additional information
The removal of the security will be displayed as “PREM Removal” under the Transaction History in your account statement. Please consult a tax advisor regarding any tax consequences.
Since there is no transfer agent for this security, we are unable to register and deliver a physical stock certificate to you.
((( If your account remains open and we become aware of active transfer agent services for this security in the future, we will attempt to reinstate your position. )))
If your account is closed, we will attempt to contact you at your last known address.
Please retain a copy of this notification for your records.
*Non-transferable securities are securities of issuers that ((( have not employed the services of a transfer agent for six years or longer, often due to inactivity or insolvency ))), which the DTC has deemed eligible for its Position Removal Program (PREM). As outlined in the ______ Customer Agreement, ______ reserves the right to remove shares of non-transferable securities from your account, or charge a servicing fee to carry such positions on your behalf, at its discretion.”
End quote.
ME;
Previously thought corporate SHELL HIJACKING was the only threat to REVOKED REGISTRATIONS; but now this…
If you search EMERALD DAIRY, nothing but more good & great news from a decade ago pops up!
China cautioning perspectives, indeed.
This post has very valuable info for ALL China investors!
Just another China scam unraveled Renee. Thanks for the info.
EMDY SEC Suspension:
http://www.sec.gov/litigation/suspensions/2014/34-72416.pdf
Order:
http://www.sec.gov/litigation/suspensions/2014/34-72416-o.pdf
Admin Proceeding:
http://www.sec.gov/litigation/admin/2014/34-72417.pdf
News for 'EMDY' - (Emerald Dairy Inc. Reports Record 2010 Financial Results; Revenues Increase 24% to $55 million, Adjusted EPS of $0.30 Customer base grows to 6,500 retail sales points in 20 Provinces in China)
HARBIN, China, Apr 18, 2011 (PR Newswire Europe via COMTEX) -- Emerald Dairy,
Inc. ("Emerald Dairy" or "the Company") a leading producer and distributor of
infant and children's formula products, today announced financial results for
its fourth quarter ended December 31, 2010.
Fourth Quarter 2010 Results
Q4 2010 Q4 2009 CHANGE
Net Sales $14.8 million $13.4 million 10.0%
Gross Profit $7.0 million $6.5 million 8.0%
GAAP Net Income $2.7 million $0.5 million 432%
EPS (Diluted) $0.08 $0.01 458.4%
Adjusted Net Income* $2.5 million $1.9 million 31.6%
Adjusted EPS* $0.06 $0.03 100.0%
* Adjusted Net Income' and 'Adjusted EPS' and non-GAAP calculations
and excludes the non-cash $0.2million gain
and $1.4 million loss related to extinguishment of debt in Q4 2010
and Q4 2009, respectively.
Fourth Quarter 2010 Review
Total revenue for the fourth quarter of 2010 ended December 31, 2010 was 14.8
million, up 10.0% from $13.4 million for the quarter ended December 31, 2009,
and was driven by a 207 metric ton increase in production and shipments of
Emerald Dairy's Xinganling(R) products during the quarter. Sales of the mid- and
high end price point Xinganling(R) formulas increased by24.5% over the year ago
period and represented 86.3% of fourth quarter sales. The Company has been able
maximize production output in on its first9,000 ton line in Bei'an and tap into
its new production capacity of 10,000 tons at its Hailun facility which was
operational in December of the year. Another contributor to its revenues was
higher pricing on some of the Company's subcontracting production runs, leading
to sales increasing by 63.4% to $1.1 million in that business segment during the
fourth quarter.
Gross profit for the fourth quarter of 2010 was $7.0 million, a 9.4% increase
from $6.4 million in the fourth quarter of 2009. Overall gross profit margin was
down 80 basis points to 47.2% in the fourth quarter due to large subcontracting
orders, which carries lower margins.
Xinganling(R) Milk Powders - 45%-55% margins
Rice Powders (for lactose intolerance) - 60%-68% margins
Soybean Powders (for lactose intolerance) - 20%-30% margins
Private Label Contracting - ~10%
Operating expenses for the quarter were 4.0 million, an increase of 1.7%.
Operating income totaled $3.0 million in the fourth quarter of 2010, a 17.7%
increase from $2.5million in the fourth quarter of the previous year. Adjusted
operating income excluding non-cash items was $3.0 million. The Company's
adjusted operating margin was 23.6% compared to 11.8% in the fourth quarter of
the prior year, a 1,180 basis point improvement. Operating leverage resulted
from prudent expense control coupled with ton line growth.
GAAP net income for the fourth quarter of 2010 was 2.7 million, an increase of
432% from $0.5 million in the fourth quarter of 2009. Earnings per share were
$0.04 per diluted share in the quarter. Adjusted net income excluding the
non-cash value of stock options and warrants expensed was $2.0 million, an
increase of 127.3% year over year. Adjusted earnings per share increased 100.0%
to $0.06 based on 34.5 million weighted average diluted shares outstanding on
December 31, 2010, compared to 30.8 million fully diluted shares in the year ago
period.
Full Year 2010 Results
FY 2010 FY 2009 CHANGE
Net Sales $55.3 million $44.7 million 23.6%
Gross Profit $27.1 million $20.7 million 31.0%
GAAP Net Income $3.1 million $4.2 million -26.1%
EPS (Diluted) $0.09 $0.14 -31.5%
Adjusted Net Income* $10.2 million $6.0 million 70.0%
Adjusted EPS* $0.30 $0.19 57.9%
* Adjusted Net Income' and 'Adjusted EPS' are non-GAAP calculations
and excludes $5 million in non-cash liquidating damages during the
twelve months ended December 31, 2010, as a result of the extension
of warrants previously issued by Company to satisfy certain
registration provisions. Adjusted net income and EPS also excludes
the non-cash charge of $0.6 million related to stock options
granted to employees as of December 31st, 2010; $0.3 million related
to the fair value of warrants issued to consultants amortized during
the twelve months ended December 31, 2010 and $1.2million loss
related to extinguishment of debt during the twelve months ended
December 31, 2010. Adjusted net income and EPS in FY 2010 exclude
the total amount of approximately $7 million in non-cash items.
"Our focus on our higher margin Xinganling(R)-branded products has significantly
improved our revenues, margins and earnings for the year," began Yongshan Yong,
CEO and Chairman of Emerald Dairy. "The results of the ongoing certification of
dairy companies in China and our belief that many smaller players will simply
not be recertified for operation will provide us an excellent platform to
continue our growth especially in Tier 3 and Tier 4 cities in China. Preference
for domestic infant formula brands remains strong in China and our efforts to
both enhance our product line with new products like organics and expand our
Xinganling(R) line capacity is testament to our confidence in 2011. We hope to
exceed our guidance for the year and have made a commitment to update our
investors on our sales and marketing successes on a more frequent basis
throughout the year."
Revenue for the first twelve months of 2010 was $55.3 million, up 23.6% from
$44.7 million in the prior year's period, driven by an 18.6% increase in sales
volume and a 4.2% increase in average selling prices. 2010 full year performance
was less than initial guidance of$60.0 - $65.0 million due to a four month delay
in the installation of the Company's new 10,000 production line ("Line B") at
the Hailun facility.
Milk powder sales increased 22.5%and represented85.5% of revenues due to higher
demand and increased fourth quarter production from the Hailun facility. Rice
powder, soybean powder, and subcontracting accounted for approximately 3.0%,
2.6% and 8.7% of total sales in 2010.
Gross profits were $27.1 million, an increase of 31.0% for the period. Gross
profit margin increased by 280basis points to 49.0% in the first twelve months
ended December 31, 2010, with margin improvement in milk powder, soybean powder
and subcontracting.
GAAP operating expenses for 2010 was $21.1 million, including a number of
non-cash charges. Selling expenses increased by $2.6 million, or 26.2%, due to
higher advertising and promotion expenses and increased sales expenses as the
Company added sales staff. Advertising expenses were $2.2 million, a 54.3%
increase due to higher brand and marketing investments, representing 8% of
sales. Emerald Dairy estimates marketing and advertising costs of 8-10% of
revenues for print, radio and TV advertising designed to build brand recognition
and market share. The Company expanded distribution to over 6,500 retail
locations in 20provinces, up approximately 8% from December 31, 2009.
Emerald Dairy recorded four non-cash charges in the twelve months of 2010; (i)
$5.0 million in liquidated damages as a result of the extension of warrants
previously issued by the Company to satisfy certain registration rights
provisions (ii) $0.6 million in non-cash stock options for employees
(iii)$0.3million related to the fair value of warrants issued to consultants
amortized during the twelve months ended December 31, 2010 and (iv) $1.2related
to the fair value of warrants issued for loan costs amortized during the twelve
months ended December 31, 2010. Excluding these non-cash expenses of
approximately $7.0million, total operating expenses were $14.1 million in the
first twelve months of 2010 compared to $11.7 million in the twelve months of
2009.
Operating income for the first twelve months of 2010 was down 16.1%
year-over-year to $6.0 million. Adjusted operating income, excluding $7.0million
of non-cash expenses, was $13 million in the first twelve months of 2010
compared to $9 million in the first twelve months of 2009, a 44.4% increase year
over year.
GAAP net income for the twelve months of fiscal year 2010 was $3.1 million,
compared to $4.2 million in the prior year's corresponding period. Adjusted net
income for the twelve months of 2010 was $10.2 million, an increase of 70%over
2010. Adjusted earnings per share were$0.30 versus$0.19 in the year ago period,
based on 34.2 million and 31.0 million diluted shares outstanding for each
respective period.
Financial Condition
The Company generated $11.9 million of cash from operations in 2010, ending the
year with approximately $17.1 million in cash and equivalents. Working capital
was $24.4 million, up from $17.3 million as of December 31, 2009; accounts
receivable were $8.2 million, compared to $7.2 million as of December 31, 2009.
The Company had $6.4 million in short term loans as of December 31, 2010.
Shareholder's equity was $47.2 million, a 41.3% increase from $33.4 million
reported on December 31, 2009.
2011 Guidance
Emerald Dairy has a total of 19,000 tons of capacity in 2011 versus 9,000 tons
in 2010.The Company will focus its sales efforts on its high-margin,
Xinganling(R) infant formulas which include infant formula milk powder, soybean
milk powder and rice powder products. Revenue for 2011 is forecast to
approximately $70.0 million, a 27% increase over 2010. The Company expects to
produce and sell approximately 15,000 tons of products in 2011 compared to
10,050 tons in 2010. Adjusted net income is forecast to be approximately
$12.9million.
Fourth Quarter and Fiscal 2010 Conference Call
To attend the call, please use the dial-in information below. When prompted, ask
for the "Emerald Dairy" and/or be prepared to provide the conference ID.
Date: Friday, April 18, 2011
Time: 10:00 a.m. Eastern Time, US.
Conference Line Dial-
In: +1-877-941-8416
International Dial-In: +1-480-629-9808
Conference ID: 4433623 "Emerald Dairy Call"
http://viavid.net/
Webcast link: dce.aspx?sid=0000846F
Please dial in at least 10 minutes before the call to ensure timely
participation. A playback will be available through April 25, 2011. To listen,
please call + 1-877-870-5176 within the United States or + 1-858-384-5517 when
calling internationally. Utilize the pass code 4466623 for the replay.
This call is being web cast by ViaVid Broadcasting and can be accessed at
ViaVid's website at http://www.viavid.net or at the following link:
http://viavid.net/dce.aspx?sid=0000846F
About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a
producer and distributor of infant and children's formula, milk powder and
soybean products in the People's Republic of China. The Company's products are
sold under two brand names -- "Xing An Ling," designed for middle and high-end
customers, and "Yi Bai," designed for low-end customers. Emerald Dairy's
products are distributed throughout 20 provinces in mainland China and sold in
over 6,500 retail points. For further information about Emerald Dairy Inc.,
please visit the Company's website at http://www.emeralddairy.com/
About Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements, which statements
are prepared and presented in accordance with GAAP, we use the following
non-GAAP financial measures: non-GAAP adjusted net income, and non-GAAP adjusted
EPS. The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. The Company uses
these non-GAAP financial measures for financial and operational decision making
and as a means to evaluate period-to-period comparisons. Management believes
that these non-GAAP financial measures provide meaningful supplemental
information regarding the Company's performance and liquidity by excluding
certain expenses and expenditures that may not be indicative of "recurring core
business operating results", meaning operating performance excluding non-cash
amortization charges for intangibles. The Company believes that both management
and investors benefit from referring to these non-GAAP financial measures in
assessing performance and when planning, forecasting and analyzing future
periods. These non-GAAP financial measures also facilitate management's internal
comparisons to historical performance and liquidity as well as comparisons to
competitors' operating results. The Company believes these non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its financial and
operational decision-making and (2) they are used by our institutional investors
and the analyst community to help them analyze the health of the business.
Forward-Looking Statements
This press release contains certain "forward-looking statements" that involve a
number of risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and the actual results and future events
could differ materially from management's current expectations. Such factors
include, but are not limited to, the Company's ability to obtain the necessary
financing to continue and expand operations, to market its products in new
markets and to offer products at competitive pricing, to attract and retain
management, and to integrate and maintain technical information and management
information systems, political and economic factors in the PRC, compliance
requirement of laws and regulations of the PRC, the effects of currency policies
and fluctuations, general economic conditions and other factors detailed from
time to time in the Company's filings with the United States Securities and
Exchange Commission and other regulatory authorities. The Company undertakes no
obligation to publicly update or revise any forward- looking statements, whether
as a result of new information, future events or otherwise.
- Financial Statements Follow -
Emerald Dairy Inc. and Subsidiaries
Consolidated Balance Sheet
December 31, 2010
2010 2009
---- ----
ASSETS
Current Assets
Cash and cash equivalents $17,131,274 $13,486,429
Trade accounts receivable, net 8,220,622 7,223,016
Inventory, net 1,052,594 1,298,488
Advances to equipment supplier 10,154,264 3,710,707
Advances to suppliers and other
receivables 2,607,069 1,221,151
Deposits 90,877 71,598
------ ------
Total current assets 39,256,700 27,011,389
---------- ----------
Property, plant and equipment
Property, plant and equipment,
net 23,039,183 5,946,330
Construction in progress 875,934 8,772,931
------- ---------
23,915,117 14,719,261
---------- ----------
Intangible assets, net 1,348,161 1,341,534
--------- ---------
$64,519,978 $43,072,184
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities
Accounts payable $5,523,712 $2,308,866
Accrued expenses 1,072,655 608,932
Notes payable, net of debt
discount of $38,116 and
$729,830 at December 31, 2010 6,358,295 5,843,472
and 2009, respectively
Taxes payable 539,332 704,056
Current portion of long-term
lease 1,171,566 -
Loan from shareholder 217,294 210,142
------- -------
Total current liabilities 14,882,854 9,675,468
---------- ---------
Long-term lease payable 2,468,984 -
Commitments and Contingencies
Stockholders' Equity
Preferred stock ($0.001 par
value, 10,000,000 shares
authorized, none issued and - -
outstanding at December 31,
2010 and 2009)
Common stock ($0.001 par value,
100,000,000 shares authorized,
35,976,575 and 35,977 34,890
34,890,267 issued and
outstanding at December 31,
2010 and 2009, respectively)
Treasury Stock (1,944,444
shares at December 31, 2010
and 2009, respectively) (1,944) (1,944)
Additional paid-in capital 26,007,743 17,003,093
Retained earnings (of which
$3,191,614 and $1,834,742 are
restricted at December 31, 17,431,350 14,318,425
2010 and 2009, respectively,
for common welfare reserves)
Accumulated other comprehensive
income 3,695,014 2,042,252
--------- ---------
Total stockholders' equity 47,168,140 33,396,716
---------- ----------
$64,519,978 $43,072,184
=========== ===========
Emerald Dairy Inc. and Subsidiaries
Consolidated Statements of Operations
For the Years Ended December 31, 2010 and 2009
2010 2009
---- ----
Sales $55,269,755 $44,729,276
Cost of Goods Sold 28,181,754 24,056,601
---------- ----------
Gross Profit 27,088,001 20,672,675
Operating Expenses
Selling expenses 12,683,225 10,047,861
Administrative expenses 3,141,843 3,271,892
Liquidated damages 5,021,669 -
Depreciation and amortization 288,267 178,281
------- -------
Total operating expenses 21,135,004 13,498,034
---------- ----------
Other Income (Expense)
Interest income 4,698 6,187
Interest expense (1,157,923) (236,226)
Loss on extinguishment of
debt - (1,405,052)
--- ----------
Total other income (expense) (1,153,225) (1,635,091)
Net Income Before Provision
for Income Tax 4,799,772 5,539,550
Provision for Income Taxes
Current 1,686,847 1,327,527
--------- ---------
1,686,847 1,327,527
--------- ---------
Net Income $3,112,925 $4,212,023
========== ==========
Basic Earnings Per Share $0.09 $0.14
===== =====
Basic Weighted Average
Shares Outstanding 33,741,628 30,661,333
========== ==========
Diluted Earnings Per Share $0.09 $0.14
===== =====
Diluted Weighted Average
Shares Outstanding 34,179,615 31,001,248
========== ==========
The Components of Other
Comprehensive Income (Loss)
Net Income $3,112,925 $4,212,023
Foreign currency translation
adjustment 2,504,185 (26,236)
Income tax related to other
comprehensive income (851,423) 8,920
-------- -----
Comprehensive Income $4,765,687 $4,194,707
========== ==========
Emerald Dairy Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2010 and 2009
2010 2009
---- ----
Cash flows from operating
activities
Net Income $3,112,925 $4,212,023
Adjustments to reconcile net
cash provided by operating
activities
Depreciation and amortization 657,508 538,626
Amortization of loan discount 734,864 102,159
Loss on extinquishment of debt - 1,405,052
Capitalized interest (1,502,391) (552,683)
Stock issued for services 34,657 66,304
Warrants modified for
liquidated damages 5,021,669 -
Warrants modified for services - 3,975
Warrants issued for services 809,379 -
Warrants issued for loan costs 79,991 302,083
Incentive stock options 637,133 265,825
Net change in assets and
liabilities
Trade accounts receivable (759,872) (1,080,391)
Inventory 288,632 (415,773)
Advances to suppliers and other
receivables (861,530) (311,638)
Deposits (16,922) 2,972
Accounts payable 3,389,053 (953,286)
Accrued expenses 443,681 920,053
Advances from employees - (248,278)
Taxes payable (187,897) 223,903
-------- -------
Net cash provided by operating
activities 11,880,880 4,480,926
---------- ---------
Cash flows from investing
activities
Deposit on equipment and
construction (6,805,621) -
Construction in progress (7,786,931) (5,739,364)
Purchases of fixed assets and
intangibles (41,509) (349,244)
------- --------
Net cash used in investing
activities (14,634,061) (6,088,608)
----------- ----------
Cash flows from financing
activities
Advances on notes payable 1,180,000 3,325,000
Repayments of notes payable (520,614) -
Advances on sale-leaseback 5,648,881 -
Repayments of sale-leaseback (1,011,458) -
Exercise of warrants 296,408 4,433,591
------- ---------
Net cash provided by financing
activities 5,593,217 7,758,591
--------- ---------
Effect of exchange rate 804,809 (8,068)
------- ------
Net increase in cash 3,644,845 6,142,841
Cash and cash equivalents at
beginning of period 13,486,429 7,343,588
---------- ---------
Cash and cash equivalents at
end of period $17,131,274 $13,486,429
=========== ===========
Supplemental disclosure of cash
flow information
Interest paid $638,819 $ -
======== === ===
Enterprise income taxes paid $ - $ -
=== === === ===
Supplemental disclosure of
noncash investing and
financing activities
Warrants issued as loan
discount $996,873 $569,100
======== ========
Warrants issued as loan
issuance costs $79,991 $302,083
======= ========
Warrants issued on
extinguishment of debt $ - $1,405,052
=== === ==========
Warrants issued for services $809,379 $ -
======== === ===
Stock issued for services $34,657 $426,304
======= ========
For more information, please contact:
COMPANY:
Mr. Shu Kaneko, CFO
Emerald Dairy Inc.
Email: shu.kaneko@amnutriadairy.com
Web: http://www.emeralddairy.com/
INVESTOR RELATIONS:
John Mattio, SVP
HC International, Inc.
Tel: US +1-212-301-7130
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net
URL: Web site: http://www.emeralddairy.com//
http://viavid.net/dce.aspx?sid=0000846F/
News for 'EMDY' - (Emerald Dairy to Host Fiscal 2010 Fourth Quarter and Year End Earnings Conference Call on Monday, April 18, 2011 at 10:00 a.m. ET)
HARBIN, China, April 13, 2011 /PRNewswire via COMTEX/ -- Emerald Dairy, Inc.
(OTC Bulletin Board: EMDY), a leading producer and distributor of infant and
children's formula today announced that it will hold its full year 2010
financial results conference call at 10:00 a.m. ET, Monday, April 18, 2011.
At the conclusion of the call, the management team will host a question and
answer session with the Company's CFO, Mr. Shu Kaneko, and Yongshan Yong,
Chairman and CEO.
To attend the call, please use the dial-in information below. When prompted, ask
for the "Emerald Dairy" and/or be prepared to provide the conference ID.
Conference Call
Date: Monday, April 18, 2011
Time: 10:00 a.m. Eastern Time, U.S.
Conference Line Dial-In (U.S.): +1-877-941-8416
International Dial-In: +1-480-629-9808
Conference ID: 4433623" Emerald Dairy Call"
Webcast link: http://viavid.net/dce.aspx?sid=0000846F
Please dial in at least 10 minutes before the call to ensure timely
participation. A playback will be available through April 25, 2011. To listen,
please call + 1-877-870-5176 within the United States or + 1-858-384-5517 when
calling internationally. Utilize the pass code 4433623 for the replay.
This call is being web cast by ViaVid Broadcasting and can be accessed at
ViaVid's website at http://www.viavid.net or at the following link:
http://viavid.net/dce.aspx?sid=0000846F
About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a
producer and distributor of infant and children's formula products in the
People's Republic of China. The Company's products are sold under two brand
names -- "Xinganling(R)," designed for middle and high-end customers, and
"YiBai," designed for low-end customers. Emerald Dairy's products are
distributed throughout 20 provinces in mainland China and sold in over 6,500
retail points. For further information about Emerald Dairy Inc., please visit
the Company's website at www.emeralddairy.com.
News for 'EMDY' - (Emerald Dairy Obtains AQSIQ Certification on Facilities and Provides 2011 Guidance Management expects 2011 revenues to grow 27% to approximately $70 million, adjusted net income to grow 30% to approximately $10.5 million)
HARBIN, China, April 4, 2011 /PRNewswire via COMTEX/ -- Emerald Dairy, Inc.
(OTC Bulleting Board: EMDY) ("Emerald Dairy" or "the Company") a leading
producer and distributor of infant and children's formula products, the Company
received final certification by the General Administration of Quality
Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ)
for its Bei'an and Hailun production facilities. Additionally, Emerald Dairy
provided 2011 guidance for the 2011 year.
Beginning in October 2010, Emerald Dairy and including all infant milk formula
and dairy producers in China, were subject to production certification by the
General Administration of Quality Supervision, Inspection and Quarantine
("AQSIQ") of the People's Republic of China. The PRC government is conducting
these reviews to ensure high food safety standards for all infant milk formula
and dairy products in China. Per the regulation, all inspections would be
concluded by the end of 2010, with renewal permits issued no later than March
2011. Emerald Dairy's recently completed Hailun facility was approved for full
production of 10,000 tons of Xinganglig(R) and the Company's Xinganling(R)
Organic formulas. The Company's Bei'an facility, where it produces Xinganling(R)
branded formulas and Yi Bai(R) formula, was also inspected and received
operational certification on March 23, 2011.
Emerald Dairy has a total of 19,000 tons newly certified capacity in 2011 versus
10,000 tons in 2010. The Company will focus its sales efforts on its
high-margin, Xinganling(R) infant formulas which include infant formula milk
powder, soybean milk powder and rice powder products. Revenue for 2011 is
forecast to be around $70.0 million, a 27% increase over 2010. The Company
expects to produce and sell approximately 15,000 tons of products in 2011
compared to 10,050 tons in 2010. Adjusted net income is forecast to be $10.5
million.
"Our re-certification process by the AQSIQ was a critical milestone," began
Yongshan Yong, Chairman and CEO of Emerald Dairy. "As a Company that has
implemented best product processes since we began operations in 1989, we
welcomed the renewed focus on high production standards in the industry. As one
of the companies in China that experienced no production restrictions from
several scandals which have impacted our industry, we support any and all
measures by agricultural and consumer food authorities that enhance the quality
of milk based products and manufacturing methods. The industry is growing at 20%
a year and our own market research has shown demand for formulas continue to
outstrip supply. During the past few years, this imbalance has driven a number
of smaller, undercapitalized startup formula companies into the market, many
which do not meet the high safety and production standards that Emerald Dairy
and other larger manufacturers adhere to. We expect the certification process to
eliminate many of these companies which will create more sales opportunities for
us as we move into 2011. Our growing brands in the value and mid-tier
categories, combined with acceleration in the number of newborns in our target
tier 3 and 4 cities, give us confidence in our ability to sell out all existing
capacity by the end of 2011 and meet our guidance for the year."
About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a
producer and distributor of infant and children's formula, milk powder and
soybean products in the People's Republic of China. The Company's products are
sold under two brand names -- "Xing An Ling," designed for middle and high-end
customers, and "Yi Bai," designed for low-end customers. Emerald Dairy's
products are distributed throughout 20 provinces in mainland China and sold in
over 6,000 retail points. For further information about Emerald Dairy Inc.,
please visit the Company's website at http://www.emeralddairy.com/
About Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements, which statements
are prepared and presented in accordance with GAAP, we use the following
non-GAAP financial measures: non-GAAP adjusted net income, and non-GAAP adjusted
EPS. The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. The Company uses
these non-GAAP financial measures for financial and operational decision making
and as a means to evaluate period-to-period comparisons. Management believes
that these non-GAAP financial measures provide meaningful supplemental
information regarding the Company's performance and liquidity by excluding
certain expenses and expenditures that may not be indicative of "recurring core
business operating results", meaning operating performance excluding non-cash
amortization charges for intangibles. The Company believes that both management
and investors benefit from referring to these non-GAAP financial measures in
assessing performance and when planning, forecasting and analyzing future
periods. These non-GAAP financial measures also facilitate management's internal
comparisons to historical performance and liquidity as well as comparisons to
competitors' operating results. The Company believes these non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its financial and
operational decision-making and (2) they are used by our institutional investors
and the analyst community to help them analyze the health of the business.
News for 'EMDY' - (Emerald Dairy Inc. Files Extension for Fiscal 2010 Form 10-K Filing Company Provides 2010 Revenue Projections of Approximately $54.0 to $56.0 million)
HARBIN, China, Apr 01, 2011 (PR Newswire Europe via COMTEX) -- Emerald Dairy,
Inc. , a leading producer and distributor of infant and children's formula,
today announced that it will file with the United States Securities and Exchange
Commission, Form 12b-25 Notification of Late Filing for its Annual Report on
Form 10-K for the year ended December 31, 2010. The Form 12b-25 will allow the
Company an additional 15 calendar days to file the Form 10-K which is otherwise
due on March 31, 2011.
The postponement in filing is due to delays in compiling information for the
preparation of the financial statements. The Company fully expects to be able to
file well within the additional time allowed by the Form 12b-25.
Information regarding Emerald Dairy's Form 10-K filing and the rescheduling of
the Company's fiscal year end conference call date and time will be provided in
a forthcoming news release.
Additionally, the Company expects 2010 revenues between $54.0 to $56.0 for the
period ended December 31, 2010.
About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a
producer and distributor of infant and children's formula products in the
People's Republic of China. The Company's products are sold under two brand
names -- "Xinganling," designed for middle and high-end customers, and "Yi Bai,"
designed for low-end customers. Emerald Dairy's products are distributed
throughout 20 provinces in mainland China and sold in over 6,500 retail points.
For further information about Emerald Dairy Inc., please visit the Company's
website at http://www.emeralddairy.com/
http://www.chinadaily.com.cn/bizchina/2011-03/28/content_12235106.htm
Potential catalyst: Government shutting down 20% of milk producers
Notice the picture in the article. Radiation fears of Japanese milk imports will likely cause increased demand for China brands at the same time capacity dips from many being shut down.
EMDY
News for 'EMDY' - (Emerald Dairy to Host Fiscal Fourth Quarter and Year End Earnings Conference Call on Friday, April 1, 2011 at 10:00 a.m. ET)
HARBIN, China, March 28, 2011 /PRNewswire via COMTEX/ -- Emerald Dairy, Inc.
(OTC Bulletin Board: EMDY), a leading producer and distributor of infant and
children's formula today announced that it will hold its full year 2010
financial results conference call at 10:00 a.m. ET, Friday, April 1, 2011. The
Company anticipates releasing its 2010 10-K after market close on March 31,
2011.
At the conclusion of the call, the management team will host a question and
answer session with the Company's CFO, Mr. Shu Kaneko, and Yongshan Yong,
Chairman and CEO.
To attend the call, please use the dial-in information below. When prompted, ask
for the "Emerald Dairy" and/or be prepared to provide the conference ID.
Conference Call
Date: Friday, April 1, 2011
Time: 10:00 a.m. Eastern Time, US.
Conference Line Dial-In: 1-877-941-1427
International Dial-In: +1-480-629-9664
Conference ID: 4428653" Emerald Dairy Call"
Webcast link: http://viavid.net/dce.aspx?sid=00008381
Please dial in at least 10 minutes before the call to ensure timely
participation. A playback will be available through April 8, 2011. To listen,
please call + 1-877-870-5176 within the United States or + 1-858-384-5517 when
calling internationally. Utilize the pass code 4428653for the replay.
This call is being web cast by ViaVid Broadcasting and can be accessed at
ViaVid's website at http://www.viavid.net or at the following link:
http://viavid.net/dce.aspx?sid=00008381.
About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a
producer and distributor of infant and children's formula products in the
People's Republic of China. The Company's products are sold under two brand
names -- "Xinganling," designed for middle and high-end customers, and "Yi Bai,"
designed for low-end customers. Emerald Dairy's products are distributed
throughout 20 provinces in mainland China and sold in over 6,500 retail points.
For further information about Emerald Dairy Inc., please visit the Company's
website at http://www.emeralddairy.com/
Anyone know when earnings are going to be posted?
News for 'EMDY' - (Emerald Dairy Inc. to Present at the Rodman & Renshaw Annual China Investment Conference to be Held March 6-8)
HARBIN, China, Feb. 28, 2011 /PRNewswire via COMTEX/ -- HARBIN, China, Feb. 28,
2011 /PRNewswire-Asia-FirstCall/ Emerald Dairy, Inc. (OTC Bulletin Board: EMDY),
a leading producer and distributor of infant and children's formula, today
announced that it will present at the Rodman & Renshaw Annual China Investment
Conference, to be held March 6-8, 2011, at the Le Royal Meridien Shanghai in
Shanghai, China.
Chairman Yang Yong Shan and Mr. Shu Kaneko, CFO, will present on behalf of the
Company on Monday, March 7, 2011, at 9:50 am. The Company management will also
participate in one-on-one meetings with analysts and investors.
About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a
producer and distributor of infant and children's formula products in the
People's Republic of China. The Company's products are sold under two brand
names -- "Xinganling," designed for middle and high-end customers, and "Yi Bai,"
designed for low-end customers. Emerald Dairy's products are distributed
throughout 20 provinces in mainland China and sold in over 6,500 retail points.
For further information about Emerald Dairy Inc., please visit the Company's
website at http://www.emeralddairy.com.
For more information, please contact:
COMPANY:
Mr. Shu Kaneko, CFO
Emerald Dairy Inc.
Email: shu.kaneko@amnutriadairy.com
Web: http://www.emeralddairy.com/
I LOVE the company video. What a riot!
http://www.emeralddairy.com/companyVideo.htm
Thanks, everything I've seen looks good. Just waiting for some funds to clear and I'm a buyer
Very thinly followed stock with good financials in a steady industry...food. I like that they are also moving into organics....one of my longer term China plays, that I think has a bright future as more and more investors find it. Welcome!
Just found this one. Things looking pretty good here
News for 'EMDY' - (Emerald Dairy Inc. Secures Organic Milk Contract for 2,000 Store Pharmacy Chain in Guangdong Company is granted coveted "China Organic Product" label and production certification)
HARBIN, China, Jan. 25, 2011 /PRNewswire via COMTEX/ -- HARBIN, China, Jan. 25,
2011 -- Emerald Dairy, Inc. (OTC Bulletin Board: EMDY), a leading producer and
distributor of infant and children's formula, today announced a supplier
agreement with a Guangdong-based pharmacy chain, Si Ming Yao Ye, for Emerald
Dairy's recently-launched Xinganling(R) "Organic" infant formula.
Initial stocking orders of Xinganling(R) "Organic" shipped from Emerald
Dairy's Guangdong distributors to 230 stores of the approximate 2,000 store
pharmacy chain based in the province. Xinganling(R) "Organic" will be
positioned in the infant and baby product aisles of the chain and compete
against international and local organic brands on the shelves of the chain.
Organic infant formulas are considered a premium product category in China and
mostly marketed in tier one and two Chinese cities like Guangzhou. Xinganling(R)
"Organic" will be sold at a competitive price point of 218 Yuan ($33.00)
per 900 gram can, and through normal consumption, will last a child
approximately two weeks.
In June 2009, Emerald Dairy started to develop an organic baby formula line for
the high-end market. To meet the standards for an organic product, Emerald Dairy
was required to maintain a herd of 527 organic-fed cows that were closely
monitored by certification authorities to ensure they met the rigid organic
farming standards. After 16 months of monitoring and subsequent product testing,
Emerald Dairy's organic farming operation and production line were approved by
China's Guangdong Zhongjiang Certification Co. (GZCC). Emerald Dairy now uses
the China Organic Product seal on its organic formula packaging and in
associated marketing materials.
"Achieving the organic product certification was a rigorous process and we
are pleased our new production line in Hailun and our organic farming operations
passed inspection," began Yongshan Yang, Chairman and CEO of Emerald Dairy.
"While the organic products market in China is still a niche segment, both
locally-made and imported products are gaining market acceptance among Chinese
consumers. The China Organic Product certification and seal is a critical
component of the advertising and branding strategy of our new product line and
will help us realize gross margins on our organic formula of 60%. We anticipate
Xinganling(R) "Organic" Formula will account for a growing percentage of
revenues in 2011 which will confirm Emerald's position as a high-quality
supplier in the dairy industry."
About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a
producer and distributor of infant and children's formula products in the
People's Republic of China. The Company's products are sold under two brand
names -- "Xinganling," designed for middle and high-end customers, and
"Yi Bai," designed for low-end customers. Emerald Dairy's products are
distributed throughout 20 provinces in mainland China and sold in over 6,500
retail points. For further information about Emerald Dairy Inc., please visit
the Company's website at http://www.emeralddairy.com/
I no longer am the mod and this company is a full filing company.. Good Luck..hank
new here...gonna check this one out. Any thoughts?
EMDY.. $1.38
Emerald Dairy Inc. Reports FY 2009 Net Income Rose to $4.2 Million, Up From $2.3 million for FY 2008
RESTON, Va., April 1 /PRNewswire-Asia-FirstCall/ -- Emerald Dairy, Inc. (OTC Bulletin Board:EMDY.ob - News), a leading producer and distributor of infant and children's formula, milk powder and soybean products in China, today announced results for the fiscal year ended December 31, 2009.
Net Income for the Fiscal Year ended December 31, 2009 rose to $4,212,023, compared to $2,314,507 for the Fiscal Year ended December 31, 2008. This increase was due primarily to an increase in our gross profit and a decrease in our operating expenses.
Gross Profit rose to $20,672,675, or 46.2% of our sales for the fiscal year ended December 31, 2009, as compared to gross profit of $17,778,888, or 40.1% of sales for the fiscal year ended December 31, 2008.
Sales. The increased gross profit was due to an increase in the average selling price of our products, of $339 per metric ton, as compared to the fiscal year ended December 31, 2008, as we increased production in our high-end product line. As a result, while overall sales volume decreased by 500 metric tons or 5.6%, sales revenues increased by $404,097, or 0.9%, to $44,729,276 for the fiscal year ended December 31, 2009, up from $44,325,179 in the fiscal year ended December 31, 2008.
Cost of goods sold decreased by $2,489,690, or 9.4%, from $26,546,291 in the fiscal year ended December 31, 2008, to $24,056,601 for the fiscal year ended December 31, 2009. This decrease was directly related to a change in our sales mix during fiscal year 2009 to a mix with a lower cost per metric ton. Overall our cost per metric ton decreased by $119, or 4.0%, to $2,838 per metric ton in the fiscal year ended December 31, 2009, as compared to $2,515 per metric ton in fiscal year ended December 31, 2008.
Total Operating Expenses declined by almost $1 million, from $14,210,578 in FY 2008 to $13,498,034 in FY 2009. Selling expenses overall decreased by $554,324 or 5.2%. Advertising and promotion decreased by $871,184 or 17.8%, as the company continued to benefit from aggressive campaigns in fiscal 2008. These decreases were partially offset by an increase in selling salaries by $257,947 or 12.8% due to increased commissions to the sales staff. Rather than using a wholesaler, Emerald Diary sales people deal directly with the retail outlets. This business model has higher sales expenses compared to the traditional business model, but creates better profit margins for the company. Administrative expenses decreased by $222,841, or approximately 6.4%, from $3,494,733 in fiscal year ended December 31, 2008, to $3,271,892 for the fiscal year ended December 31, 2009.
Cash and cash equivalents at December 31, 2009 increased by approximately 83.8% to $13,496,429, from $7,343,588 at December 31, 2008. Working capital increased from approximately $10.5 million at December 31, 2008, to approximately $17.6 million at December 31, 2009, including cash generated from operations, as well as funds raised from private offerings of promissory notes and warrants we consummated in fiscal 2009. Based upon its short term liabilities, the company believes its cash and cash equivalents are adequate to satisfy working capital needs and sustain ongoing operations for the next 12 months.
Shu Kaneko, Chief Financial Officer for Emerald Dairy, said, "We are pleased with the results of this year. We have substantially increased net income and reduced operating expenses. In fiscal 2009, we raised approximately $3.3 million through the sale of promissory notes payable and warrants, and approximately $4.4 million from the exercise of warrants, which we are using for the construction and equipping of our second and larger production facility. We expect this new facility to be ready for production by mid 2010, provided we are able to raise the additional $2 million we believe will be required to complete the first production line. The Chinese dairy market today is over $13 billion and is expected to grow at a rate of 15% per year for the foreseeable future. Emerald Dairy is one of the most productive and respected businesses in the industry. Our goal is to expand production to meet the existing demand for our products."
About Emerald Dairy, Inc.:
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a producer and distributor of infant and children's formula, milk powder and soybean products in the People's Republic of China. The Company's products are sold under two brand names -- "Xing An Ling," designed for low-end customers, and "Yi Bai," designed for middle and high-end customers. They are distributed throughout 20 provinces in mainland China and sold in over 5,800 retail outlets.
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward- looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.
For more information, please contact: Stanley Wunderlich Consulting for Strategic Growth 1 Tel: +1-800-625-2236 Fax: +1-646-205-7771 Email: swunderlich@cfsg1.com CONSOLIDATED STATEMENTS OF OPERATIONS FOR FISCAL YEARS ENDED DECEMBER 31, 2009 AND 2008 FOLLOW. Emerald Dairy Inc. and Subsidiaries Consolidated Statements of Operations For the Years Ended December 31, 2009 and 2008 2009 2008 Sales $44,729,276 $44,325,179 Cost of Goods Sold 24,056,601 26,546,291 Gross Profit 20,672,675 17,778,888 Operating Expenses Selling expenses 10,047,861 10,602,185 Administrative expenses 3,271,892 3,494,733 Depreciation and amortization 178,281 113,660 Total operating expenses 13,498,034 14,210,578 Other Income (Expense) Interest income 6,187 13,041 Interest expense (236,226) (426,646) Loss on extinguishment of debt (1,405,052) -- Total other income (expense) (1,635,091) (413,605) Net Income Before Provision for Income Tax 5,539,550 3,154,705 Provision for Income Taxes Current 1,327,527 840,198 1,327,527 840,198 Net Income $4,212,023 $2,314,507 Basic Earnings Per Share $0.14 $0.08 Basic Weighted Average Shares Outstanding 30,661,333 29,299,332 Diluted Earnings Per Share $0.14 $0.08 Diluted Weighted Average Shares Outstanding 31,001,248 29,518,067 The Components of Other Comprehensive Income Net Income $4,212,023 $2,314,507 Foreign currency translation adjustment (26,236) 1,767,982 Income tax related to other comprehensive income 8,920 (601,114) Comprehensive Income $4,194,707 $3,481,375
EMDY.. $1.30..
Emerald Dairy, Inc. Limited Retains HC International, Inc. as Corporate Communications Advisor
Apr 7, 2010 09:00:00 (ET)
HARBIN, China, April 7, 2010 /PRNewswire via COMTEX/ -- Emerald Dairy, Inc. (EMDY, Trade ), a leading producer and distributor of infant and children's formula, milk powder and soybean products in China, announced today that it has retained HC International, Inc. ("HC International") as its strategic investor relations advisor. HC International will assist the Company in broadening its presence in the financial markets while helping investors gain a better understanding of Emerald Dairy's core business and financial attributes. Matthew Hayden, John Mattio, and the rest of the HC International team will be advising the Company in all facets of corporate and financial communications.
"As a rapidly growing China-based and US-listed company, we have selected HC International to provide us with strategic investor relations services to enhance our corporate communications," said Mr. Shu Kaneko, Chief Financial Office. "The team at HC International is well-respected and has a proven track record of representing successful Chinese companies listed on US exchanges. We are confident that HC International will help us proactively convey our business model, growth strategy, competitive advantages, and value proposition to shareholders and the investment community at large," Mr. Kaneko concluded.
"The dairy market in China is estimated at $13 billion in sales and is growing at double digit pace," began Matthew Hayden, President of HC International Inc. "Emerald Dairy is a leading company in the sector, and its brands of infant formula, Xing An Ling(R) and Yi Bai(R), are gaining shelf space in China's fast-growing baby and infant nutrition markets. China is a net importer of infant formula products, and thus the costs to consumers are often times out of reach. Local production, pricing, marketing and branding is what Emerald offers Chinese families who look to infant formula and Emerald Dairy as a trusted supplier to market demand, particularly from 'tier' two, three and four cities throughout China. We look forward to working with the experienced management team at Emerald Dairy, and to developing a comprehensive investor communications and marketing strategy to further expand the Company's investor audience in each segment of the financial community," Mr. Hayden concluded.
About Emerald Dairy, Inc.:
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a producer and distributor of infant and children's formula, milk powder and soybean products in the People's Republic of China. The Company's products are sold under two brand names -- "Xing An Ling(R)," designed for low-end customers, and "Yi Bai(R)," designed for middle and high-end customers. They are distributed throughout 20 provinces in mainland China and sold in over 5,800 retail outlets.
Forward Looking Statements
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward- looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.
For additional information contact:
Shu Kaneko, CFO
Emerald Dairy, Inc. - US Office
11990 Market Street, Suite 205
Reston, VA 20190 USA
Web:
http://www.emeralddairy.com
Phone: +1-703-867-9247
Fax: +1-678-868-0633
Email: shu.kaneko@amnutriadairy.com
or
John Mattio, Senior Vice President
HC International, Inc.
420 Lexington Avenue
New York, New York
Web:
http://www.hcinternational.net
Phone: +1-203-616-5144
Email: john.mattio@hcinternational.net
Followers
|
2
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
22
|
Created
|
04/07/10
|
Type
|
Free
|
Moderators |
About Emerald Dairy, Inc.:
Company
Emerald Dairy conducts operations through its wholly-owned subsidiaries, Heilongjiang Xing An Ling Dairy and Heilongjiang Beian Nongken Changxing Lvbao Dairy. Founded in 1980, Emerald Dairy is one of the leading producers of infant formula, milk powder, soybean and rice powders products in China. The Company is headquartered in Beian City, Heilongjiang, one of China’s largest milk production bases.
With the access to quality resources and the Company’s commitment to quality control, Emerald Dairy provides consumers best quality products at a competitive price. In 2005, “Xing An Ling,” the Company’s principle brand, was named one of the leading brands by the Government of Heilongjiang. In addition to being ISO 90001 certified, the Company‘s products are certified by the national government as organic products.
Today, the Company’s products are distributed under brands “Xing An Ling” and “Yi Bai” throughout 20 provinces in China, servicing second- and third-tier city consumers. Going into 2008 and onward, Emerald Dairy will continue to pursue growth opportunities through capacity expansion, continued commitment to best quality and increasing popularity of its brands.
Our Company
Emerald Dairy conducts operations through its wholly-owned subsidiaries, Heilongjiang Xing An Ling Dairy and Heilongjiang Beian Nongken Changxing Lvbao Dairy. Founded in 1980, Emerald Dairy is one of the leading producers of infant formula, milk powder, soybean and rice powders products in China. The Company is headquartered in Beian City, Heilongjiang, one of China’s largest milk production bases.
With the access to quality resources and the Company’s commitment to quality control, Emerald Dairy provides consumers best quality products at a competitive price. In 2005, “Xing An Ling,” the Company’s principle brand, was named one of the leading brands by the Government of Heilongjiang. In addition to being ISO 90001 certified, the Company‘s products are certified by the national government as organic products.
Today, the Company’s products are distributed under brands “Xing An Ling” and “Yi Bai” throughout 20 provinces in China, servicing second- and third-tier city consumers. Going into 2008 and onward, Emerald Dairy will continue to pursue growth opportunities through capacity expansion, continued commitment to best quality and increasing popularity of its brands.
Our Company
Emerald Dairy conducts operations through its wholly-owned subsidiaries, Heilongjiang Xing An Ling Dairy and Heilongjiang Beian Nongken Changxing Lvbao Dairy. Founded in 1980, Emerald Dairy is one of the leading producers of infant formula, milk powder, soybean and rice powders products in China. The Company is headquartered in Beian City, Heilongjiang, one of China’s largest milk production bases.
With the access to quality resources and the Company’s commitment to quality control, Emerald Dairy provides consumers best quality products at a competitive price. In 2005, “Xing An Ling,” the Company’s principle brand, was named one of the leading brands by the Government of Heilongjiang. In addition to being ISO 90001 certified, the Company‘s products are certified by the national government as organic products.
Today, the Company’s products are distributed under brands “Xing An Ling” and “Yi Bai” throughout 20 provinces in China, servicing second- and third-tier city consumers. Going into 2008 and onward, Emerald Dairy will continue to pursue growth opportunities through capacity expansion, continued commitment to best quality and increasing popularity of its brands.
Our Company
Emerald Dairy conducts operations through its wholly-owned subsidiaries, Heilongjiang Xing An Ling Dairy and Heilongjiang Beian Nongken Changxing Lvbao Dairy. Founded in 1980, Emerald Dairy is one of the leading producers of infant formula, milk powder, soybean and rice powders products in China. The Company is headquartered in Beian City, Heilongjiang, one of China’s largest milk production bases.
With the access to quality resources and the Company’s commitment to quality control, Emerald Dairy provides consumers best quality products at a competitive price. In 2005, “Xing An Ling,” the Company’s principle brand, was named one of the leading brands by the Government of Heilongjiang. In addition to being ISO 90001 certified, the Company‘s products are certified by the national government as organic products.
Today, the Company’s products are distributed under brands “Xing An Ling” and “Yi Bai” throughout 20 provinces in China, servicing second- and third-tier city consumers. Going into 2008 and onward, Emerald Dairy will continue to pursue growth opportunities through capacity expansion, continued commitment to best quality and increasing popularity of its brands.
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 13,486,429 | $ | 7,343,588 | ||||
Trade accounts receivable,net | 7,223,016 | 6,146,228 | ||||||
Inventory, net | 1,298,488 | 883,233 | ||||||
Advances to equipment supplier | 3,710,707 | 3,712,883 | ||||||
Advances to suppliers and other receivables | 1,221,151 | 549,835 | ||||||
Deposits | 71,598 | 74,614 | ||||||
Total current assets | 27,011,389 | 18,710,381 | ||||||
Property, plant and equipment | ||||||||
Property, plant and equipment, net | 5,946,330 | 6,101,566 | ||||||
Contruction in progress | 8,772,931 | 2,482,339 | ||||||
14,719,261 | 8,583,905 | |||||||
Intangible assets, net | 1,341,534 | 1,380,089 | ||||||
$ | 43,072,184 | $ | 28,674,375 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 2,308,866 | $ | 3,264,066 | ||||
Accrued expenses | 608,932 | 1,387,881 | ||||||
Notes payable, net of debt discount of $729,830 and $87,888 at December 31, 2009 and 2008, respectively | 5,843,472 | 2,662,112 | ||||||
Advances from employees | - | 248,424 | ||||||
Taxes payable | 704,056 | 480,435 | ||||||
Loan from shareholder | 210,142 | 210,265 | ||||||
Total current liabilities | 9,675,468 | 8,253,183 | ||||||
Commitments and Contingencies (Note 21) | ||||||||
Stockholders' Equity | ||||||||
Preferred stock ($0.001 par value, 10,000,000 shares authorized, none issued and outstanding at December 31, 2009 and 2008) | - | - | ||||||
Common stock ($0.001 par value, 100,000,000 shares authorized, 34,890,267 and 31,243,776 issued and outstanding at December 31, 2009 and 2008, respectively) | 34,890 | 31,244 | ||||||
Treasury Stock (1,944,444 shares at December 31, 2009 and 2008, respectively) | (1,944 | ) | (1,944 | ) | ||||
Additional paid-in capital | 17,003,093 | 8,225,922 | ||||||
Retained earnings (of which $1,834,742 and $1,314,861 are restricted at December 31, 2009 and 2008, respectively, for common welfare reserves) | 14,318,425 | 10,106,402 | ||||||
Accumulated other comprehensive income | 2,042,252 | 2,059,568 | ||||||
Total stockholders' equity | 33,396,716 | 20,421,192 | ||||||
$ | 43,072,184 | $ | 28,674,375 |
2009 | 2008 | |||||||
Sales | $ | 44,729,276 | $ | 44,325,179 | ||||
Cost of Goods Sold | 24,056,601 | 26,546,291 | ||||||
Gross Profit | 20,672,675 | 17,778,888 | ||||||
Operating Expenses | ||||||||
Selling expenses | 10,047,861 | 10,602,185 | ||||||
Administrative expenses | 3,271,892 | 3,494,733 | ||||||
Depreciation and amortization | 178,281 | 113,660 | ||||||
Total operating expenses | 13,498,034 | 14,210,578 | ||||||
Other Income (Expense) | ||||||||
Interest income | 6,187 | 13,041 | ||||||
Interest expense | (236,226 | ) | (426,646 | ) | ||||
Loss on extinguishment of debt | (1,405,052 | ) | - | |||||
Total other income (expense) | (1,635,091 | ) | (413,605 | ) | ||||
Net Income Before Provision for Income Tax | 5,539,550 | 3,154,705 | ||||||
Provision for Income Taxes | ||||||||
Current | 1,327,527 | 840,198 | ||||||
1,327,527 | 840,198 | |||||||
Net Income | $ | 4,212,023 | $ | 2,314,507 | ||||
Basic Earnings Per Share | $ | 0.14 | $ | 0.08 | ||||
Basic Weighted Average Shares Outstanding | 30,661,333 | 29,299,332 | ||||||
Diluted Earnings Per Share | $ | 0.14 | $ | 0.08 | ||||
Diluted Weighted Average Shares Outstanding | 31,001,248 | 29,518,067 | ||||||
The Components of Other Comprehensive Income | ||||||||
Net Income | $ | 4,212,023 | $ | 2,314,507 | ||||
Foreign currency translation adjustment | (26,236 | ) | 1,767,982 | |||||
Income tax related to other comprehensive income | 8,920 | (601,114 | ) | |||||
Comprehensive Income | $ | 4,194,707 | $ | 3,481,375 |
Common Stock | Accumulated | |||||||||||||||||||||||||||
Number | Additional | Other | Total | |||||||||||||||||||||||||
of | Par | Treasury | Paid-In | Retained | Comprehensive | Stockholders' | ||||||||||||||||||||||
Shares | Value | Stock | Capital | Earnings | Income | Equity | ||||||||||||||||||||||
Balance at December 31, 2007 | 31,241,276 | $ | 31,241 | $ | (1,944 | ) | $ | 4,666,244 | $ | 7,791,895 | $ | 892,700 | $ | 13,380,136 | ||||||||||||||
Transfer agent correction of shares | 2,500 | 3 | - | (3 | ) | - | - | - | ||||||||||||||||||||
Warrants issued as loan discount | - | - | - | 305,163 | - | - | 305,163 | |||||||||||||||||||||
Warrants issued for issuance costs | - | - | - | 85,074 | - | - | 85,074 | |||||||||||||||||||||
Termination of Put/Call agreement | 3,169,444 | 3,169,444 | ||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | - | - | - | - | - | 1,166,868 | 1,166,868 | |||||||||||||||||||||
Net income for the year ended December 31, 2008 | - | - | - | - | 2,314,507 | - | 2,314,507 | |||||||||||||||||||||
Balance at December 31, 2008 | 31,243,776 | 31,244 | (1,944 | ) | 8,225,922 | 10,106,402 | 2,059,568 | 20,421,192 | ||||||||||||||||||||
Warrants exercised | 2,614,222 | 2,614 | - | 4,430,977 | - | - | 4,433,591 | |||||||||||||||||||||
Stock option expense | - | - | - | 265,825 | - | - | 265,825 | |||||||||||||||||||||
Stock issued for services | 256,436 | 256 | - | 426,048 | - | - | 426,304 | |||||||||||||||||||||
Stock issued for liquidated damages | 775,833 | 776 | - | 1,374,111 | - | - | 1,374,887 | |||||||||||||||||||||
Warrants issued for services | - | - | - | 302,083 | - | - | 302,083 | |||||||||||||||||||||
Warrants issued as loan discount | - | - | - | 1,974,152 | - | - | 1,974,152 | |||||||||||||||||||||
Modifcation of warrants | - | - | - | 3,975 | - | - | 3,975 | |||||||||||||||||||||
Foreign currency translation adjustment, net of tax | - | - | - | - | - | (17,316 | ) | (17,316 | ) | |||||||||||||||||||
Net income for the Year ended | - | - | ||||||||||||||||||||||||||
December 31, 2009 | - | - | - | - | 4,212,023 | - | 4,212,023 | |||||||||||||||||||||
Balance at December 31, 2009 | 34,890,267 | $ | 34,890 | $ | (1,944 | ) | $ | 17,003,093 | $ | 14,318,425 | $ | 2,042,252 | $ | 33,396,716 |
2009 | 2008 | |||||||
Cash flows from operating activities | ||||||||
Net Income | $ | 4,212,023 | $ | 2,314,507 | ||||
Adjustments to reconcile net cash provided by operating activities | ||||||||
Depreciation and amortization | 538,626 | 438,521 | ||||||
Amortization of loan discount | 102,159 | 217,275 | ||||||
Loss on extinquishment of debt | 1,405,052 | - | ||||||
Capitalized interest | (552,683 | ) | (89,868 | ) | ||||
Stock issued for services | 66,304 | - | ||||||
Warrants modified for services | 3,975 | - | ||||||
Warrants issued for loan costs | 302,083 | - | ||||||
Incentive stock options | 265,825 | - | ||||||
Net change in assets and liabilities | ||||||||
Trade accounts receivable | (1,080,391 | ) | (716,373 | ) | ||||
Inventory | (415,773 | ) | 182,562 | |||||
Advances to suppliers and other receivables | (311,638 | ) | 346,398 | |||||
Deposits | 2,972 | 1,459,633 | ||||||
Accounts payable | (953,286 | ) | 998,946 | |||||
Accrued expenses | 920,053 | 1,101,309 | ||||||
Advances from employees | (248,278 | ) | (72,929 | ) | ||||
Taxes payable | 223,903 | 146,629 | ||||||
Net cash provided by operating activities | 4,480,926 | 6,326,610 | ||||||
Cash flows from investing activities | ||||||||
Deposit on equipment purchase | - | (3,712,883 | ) | |||||
Construction in progress | (5,739,364 | ) | (2,392,471 | ) | ||||
Purchases of fixed assets and intangibles | (349,244 | ) | (2,411,832 | ) | ||||
Net cash used in investing activities | (6,088,608 | ) | (8,517,186 | ) | ||||
Cash flows from financing activities | ||||||||
- | - | |||||||
Exercise of warrants | 4,433,591 | - | ||||||
Repayments of notes payable | - | (291,874 | ) | |||||
Advances on notes payable | 3,325,000 | 2,750,000 | ||||||
Net cash provided by (used in) financing activities | 7,758,591 | 2,458,126 | ||||||
Effect of exchange rate | (8,068 | ) | 515,107 | |||||
Net increase in cash | 6,142,841 | 782,657 | ||||||
Cash and cash equivalents at beginning of period | 7,343,588 | 6,560,931 | ||||||
Cash and cash equivalents at end of period | $ | 13,486,429 | $ | 7,343,588 | ||||
Supplemental disclosure of cash flow information | ||||||||
Interest paid | $ | - | $ | 1,295 | ||||
Enterprise incomes taxes paid | $ | - | $ | 629,515 | ||||
Supplemental disclosure of noncash investing and financing activities | ||||||||
Warrants issued as loan discount | $ | 569,100 | $ | 305,163 | ||||
Warrants issued as loan issuance costs | $ | 302,083 | $ | 85,074 | ||||
Warrants issued on extinguishment of debt | $ | 1,405,052 | $ | - | ||||
Stock issued for services | $ | 426,304 | $ | - |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |