Huaxing Machinery Corp. Reports Consolidated Financial Results for the Three and Nine Months Ended September 30, 2014
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 2, 2014) - Huaxing Machinery Corp. (TSX VENTURE:HUA) ("Huaxing" or the "Company") reports its unaudited consolidated financial results as at and for the three and nine months ended September 30, 2014 in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"). All dollar amounts are expressed in Canadian dollars.
The Company's unaudited financial results for the three months ended September 30, 2014 in comparison to those of the three months ended September 30, 2013 are as follows:
| Three Months Ended September 30 | |||||||
| 2014 | 2013 | Increase (decrease) from 2013 to 2014 | |||||
| $ | $ | $ | % | ||||
| Sales | 5,666,423 | 7,577,566 | (1,911,143 | ) | (25 | %) | |
| Cost of sales | 4,114,969 | 5,382,458 | (1,267,489 | ) | (24 | %) | |
| Gross profit | 1,551,454 | 2,195,108 | (643,654 | ) | (29 | %) | |
| Income from operations | 1,540,278 | 712,791 | 827,487 | 116 | % | ||
| Net income before income taxes | 1,554,054 | 763,214 | 790,840 | 104 | % | ||
| Net income | 1,240,591 | 614,505 | 626,086 | 102 | % | ||
| Net income attributable to: | |||||||
| Equity holders of the Company | 977,387 | 471,330 | 506,057 | 107 | % | ||
| Earnings per share - basic | 0.02 | 0.01 | |||||
The Company's total sales decreased from 2013 to 2014 due to decrease in sales of our traditional stone processing machines from $5,605,600 in 2013 to $3,536,628 in 2014; recorded sales of higher profit margin robotic welding system increased from $1,971,966 in 2013 to $2,129,795 in 2014. Gross profit margin decreased from 28.97% in 2013 to 27.38% in 2014 due to decreased margin in the traditional stone processing machines.
The Company's unaudited financial results for the nine months ended September 30, 2014 in comparison to those for the same period in 2013 are as follows:
| Nine Months Ended September 30 | |||||||
| 2014 | 2013 | Increase (decrease) from 2013 to 2014 | |||||
| $ | $ | $ | % | ||||
| Sales | 25,560,321 | 27,625,771 | (2,065,450 | ) | (7 | %) | |
| Cost of sales | 18,840,117 | 20,766,008 | (1,925,891 | ) | (9 | %) | |
| Gross profit | 6,720,204 | 6,859,763 | (139,559 | ) | (2 | %) | |
| Income from operations | 3,680,628 | 3,232,345 | 448,283 | 14 | % | ||
| Net income before income taxes | 3,758,602 | 3,370,122 | 388,480 | 12 | % | ||
| Net income | 3,184,132 | 2,623,853 | 560,279 | 21 | % | ||
| Net income attributable to: | |||||||
| Equity holders of the Company | 2,506,151 | 2,043,676 | 462,475 | 23 | % | ||
| Earnings per share - basic | 0.04 | 0.03 | |||||
The Company's total sales decreased by $2,065,450 or 7% from 2013 to 2014. Sales of the higher profit margin robotic welding system in 2014 increased by 62.86% from 2013, and sales of lower profit margin traditional stone processing machinery decreased by 35.38% from 2013 to 2014. As a result, gross profit margin increased from 24.83% in 2013 to 26.29% in 2014.