ENGLEWOOD CLIFFS, N.J., Aug. 7 /PRNewswire-FirstCall/ -- JINPAN INTERNATIONAL LIMITED today announced consolidated results for the first six months ended June 30, 2006.
FINANCIAL RESULTS FOR THE FIRST SIX MONTHS ENDED JUNE 30, 2006
Sales. Net sales increased RMB95.9 million or approximately 52.72% from RMB181.9 million for the first six months ended June 30, 2005 to RMB277.8 million for the first six months ended June 30, 2006. The increase in sales was primarily due to the continuing expansion of our customer base and raised the selling price to our customers due to higher materials cost.
Cost of goods sold. Cost of goods sold increased RMB77.5 million or approximately 63.4% from RMB122.3 million for the six months ended June 30, 2005, to RMB199.8 million for six months ended June 30, 2006. Cost of goods sold as a percentage of sales increased by 4.71%, from 67.24% for the six months ended June 30, 2005, to 71.95% for the six months ended June 30, 2006. The increase was a result of worldwide price increases of raw materials associated with steel and copper during the year 2006.
Gross Profit. Gross profit increased RMB18.3 million or approximately 30.75% to RMB77.9 million for six months ended June 30, 2006 from RMB59.6 million for the six months ended June 30, 2005. As a percentage of sales, gross profit decrease from 32.76% to 28.05% for the six months ended June 30, 2006. This decrease also resulted from the aforementioned raw material price increase.
Selling and Administrative. Selling and Administrative expenses increased RMB5.6 million or approximately 14% from RMB40.2 million for the six months ended June 30, 2005, to RMB45.8 million for the six months ended June 30, 2006. As a percentage of sales, selling and administrative expenses decrease from 22.09% to 16.50% for the six months ended June 30, 2006. This was primary the result of cost control.
Net Income. Net income increased RMB8.8 million or approximately 69.37% from RMB12.76 million for the six months ended June 30, 2005 to RMB21.6 million for the six months ended June 30, 2006. As a percentage of sales, net income increase from 7.02 % in the six months ended June 30, 2005, to 7.78% for the six months ended June 30, 2006.
Earning Per Share. Basic earning per share increased RMB1.33 or approximately 68% from RMB1.97 for the six months ended June 30, 2005 to RMB3.30 for the six months ended June 30, 2006.
The company had US$5 million in cash or cash equivalent, current liabilities of US$18.7 million and shareholders equity US34.45 million.
Jinpan International Limited and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2006
June 30,
2006 2006 2005
US$ RMB RMB
(In thousands, except number of shares and per share data)
Assets
Current assets:
Cash and cash equivalents 5,174 41,372 26,142
Accounts receivable, net 25,178 201,315 168,197
Inventories 15,009 120,002 96,658
Prepaid expenses 2,848 22,769 20,187
Other receivables 920 7,354 7,523
Total current assets 49,129 392,812 318,707
Property, plant and
equipment, net 4,182 33,437 34,904
Construction in progress 714 5,710 1,411
Deferred tax assets 104 836 707
Total assets 54,129 432,795 355,729
Liabilities and Shareholders'
Equity
Current liabilities:
Short term bank loans 2,448 19,569 22,745
Accounts payable 2,072 16,563 20,475
Income tax 356 2,850
Advance from customers 5,260 42,058 9,887
Other Payable 8,598 68,748 59,589
Total current liabilities 18,734 149,788 112,696
Minority interest 939 7,505 8,534
Commitments - -
Shareholders' equity:
Common stock, US$0.009 par
value:
Authorized shares -
20,000,000
Issued and outstanding shares -
6,791,246 in 2006
and 6,708,946 in 2005 60 510 498
Convertible preferred stock,
US$0.009 par value:
Authorized shares - 1,000,000
Issued and outstanding shares -
6,111 in 2006 and 2005, 6%
p.a. - 2 2
Additional paid-in capital 10,767 89,074 87,515
Reserves 2,647 21,870 20,222
Retained earnings 21,292 171,046 132,984
Accumulated other
comprehensive income 513 (221) 70
35,279 282,281 241,291
Less: Treasure shares at cost,
common stock-212,470 in 2005
and 184,270 in 2004 (823) (6,779) (6,792)
Total shareholders' equity 34,456 275,502 234,499
Total liabilities and
shareholders' equity 54,129 432,795 355,729
Jinpan International Limited and Subsidiaries
Consolidated Statements of Income
For the Six Months Ended June 30, 2006
Six Months Ended June 30,
2006 2006 2005
US$ RMB RMB
(In thousands, except per share data)
Net sales 34,580 277,793 181,901
Other income 9 69 474
34,589 277,862 182,375
Costs and expenses:
Cost of products sold (24,881) (199,872) (122,305)
Selling and administrative (5,705) (45,830) (40,184)
Interest expenses (156) (1,254) (883)
(30,742) (246,956) (163,372)
Income before income taxes 3,847 30,906 19,003
Income taxes (620) (4,978) (3,450)
Income before minority interest 3,227 25,928 15,553
Minority interest (536) (4,305) (2,786)
Net income 2,691 21,623 12,767
Earnings per share
-Basic US$0.41 RMB3.30 RMB1.97
-Diluted US$0.40 RMB3.25 RMB1.92
Weighted average number
of shares
-Basic 6,549,144 6,549,144 6,498,178
-Diluted 6,651,166 6,651,166 6,663,305
Jinpan International Limited, through its joint venture interest in Jinpan JV, designs, manufacturers and distributes cast coil transformers for power distribution equipment in the People's Republic of China. The Company is one of the largest manufacturers and distributor of cast coil transformers in China. Jinpan obtained International Standardizing Organization (ISO) 9001 certification of its transformers in April 1997, making it one of only a few transformer manufacturers to obtain this Standard. In February 1998, Jinpan became the first Chinese transformer manufacturer to affect a public offering of its shares in the US market.
