Shiner International Announces Third Quarter Fiscal 2012 Results

       Shiner International Announces Third Quarter Fiscal 2012 Results

PR Newswire

HAIKOU, China, Nov. 14, 2012

HAIKOU, China, Nov. 14, 2012 /PRNewswire/ -- Shiner International, Inc.
(OTCQB: BEST) ("Shiner" or the "Company"), an emerging global supplier of
packaging solutions for food, tobacco, and consumer products, today announced
its financial results for the quarter ended September 30, 2012.

Revenues for the three months ended September 30, 2012 decreased $1.9 million
(or 10.2%), to $16.7 million compared to $18.6 million for the corresponding
period in 2011. The decrease was primarily attributable to decreased revenues
from coated film, color printing, advanced film and water-based latex, which
was partially offset by increase in revenues generated from BOPP tobacco. For
the three months ended September 30, 2012, revenue from coated film revenue
decreased $3.2 million (or 46.4%) to $3.7 million from $6.9 million for the
corresponding period in 2011, and sales from color printing decreased $0.4
million (or 28.7%) to $1.0 million from $1.4 million for the corresponding
period in 2011. For the three months ended September 30, 2012, revenue from
BOPP tobacco increased $3.2 million (or 45.0%) to $10.3 million from $7.1
million for the corresponding period in 2011; revenue from advanced film
decreased $1.4 million (or 46.0%) to $1.6 million from $3.0 million for the
corresponding period in 2011; and revenue from water-based latex decreased
$0.1 million (or 98.6%) to $0.01 million from $0.1 million for the
corresponding period in 2011.

Shiner's gross profit for the three months ended September 30, 2012 was $1.4
million, a profit margin of 8.7%, a decrease of 2.7% from 11.4% for the
corresponding period in 2011. The decrease in profit margin was primarily a
consequence of an increase in labor costs and depreciation of new property.

Operating loss for the three months ended September 30, 2012 was $3.2 million,
compared to operating income of $0.3 million for the corresponding quarter
ended September 30, 2011. Selling, general and administrative expenses for the
three months ended September 30, 2012 increased by 40.6%, or $0.7 million, to
$2.5 million in 2012, compared to $1.8 million for the corresponding period in
2011. General and administrative expenses increased during the 2012 period due
to a $0.3 million increase in research and development expenditures and a $0.7
million increase in bad debt allowance, as compared to 2011. There was also a
$2.1 million increase in loss on sale and write off of assets during the 2012
period.

Shiner reported net loss of $3.5 million for the three months ended September
30, 2012, compared to a net income of $0.4 million in the corresponding period
of 2011. Earnings per share for the quarter were ($0.13), compared to earnings
of $0.01 per share for the corresponding period of 2011.

Nine Months Financial Results

Revenue for the first nine months of fiscal year 2012 decreased $1.9 million
(or 3.6%), to $50.5 million, compared to $52.4 million in the corresponding
period a year ago. Gross profit for the nine months ended September 30, 2012
was $4.1 million, a profit margin of 8.1%, a decrease of 5.3% from 13.4% for
the corresponding period in 2011. Operating loss was $4.8 million, down from
an operating income of $2.8 million in the first nine months of fiscal year
2011. The Company saw a net loss of $5.5 million for the nine months ended
September 30, 2012, representing a decrease of $7.7 million (or 351.4%) from a
net income of $2.2 million for the corresponding period in 2011. Fully diluted
loss per share was ($0.20), compared to fully diluted income per share of
$0.08 for the first nine months of fiscal year 2011.

Financial Condition

As of September 30, 2012, the Company had $3.6 million in cash and equivalents
on hand, $11.1 million in long-term debt, and working capital of $6.9 million.
Stockholders' equity stood at $36.5 million, compared to $41.7 million as of
December 31, 2011. Net cash used in operating activities for the nine months
ended September 30, 2012 was $1.2 million, an increase of $3.4 million,
compared to net cash flow used by operating activities of $21,869 for the
corresponding period in 2011.

About Shiner International, Inc.,

Shiner International, Inc. is engaged in the research and development,
manufacture and sale of flexible packaging material and advanced film. Its
products include coated packaging film, shrink-wrap film, common packaging
film, anti-counterfeit laser holographic film and color-printed packaging
materials. The Company's products are used by manufacturers in the food and
consumer products industry to preserve the texture, flavor, hygiene, and
convenience and safety of their products. The Company was founded in 1990 and
is headquartered in Haikou, China. Approximately 80% of Shiner's current
customers are located in China, with the remainder spanning Southeast Asia,
Europe, the Middle East and North America. Shiner holds 20 patents on products
and production equipment, and has an additional 9 patent applications pending.
The Company's flexible packaging meets U.S. FDA requirements, as well as the
requirements for food packaging sold in the EU. Shiner's product manufacturing
process is certified under ISO 9001:2000. Additional information on Shiner is
available at http://www.shinerinc.com.

Safe Harbor Statement

All statements in this press release that are not historical are forward-
looking statements made pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. You are cautioned not to
place undue reliance on any forward-looking statements in this press release
as they reflect Shiner International, Inc.'s current expectations with respect
to future events and are subject to risks and uncertainties that may cause
actual results to differ materially from those contemplated. Potential risks
and uncertainties include, but are not limited to, the risks described in
Shiner's filings with the Securities and Exchange Commission. The information
contained in this press release is made as of the date of the press release,
even if subsequently made available by Shiner on its website or otherwise

Contact: Cindy Gong
Tel: 86-898-6858 1104
Fax: 86-898-6858 1513
Email: ir@shinerinc.com
Web: http://www.shinerinc.com



- Financial Tables Follow -

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                                                  September 30,   December 31,
                                                  2012            2011
                                                  (unaudited)
ASSETS
CURRENT ASSETS:
     Cash & equivalents                        $ 3,592,817     $ 2,831,808
     Restricted cash                             641,475         57,613
     Accounts receivable, net of allowance for
     doubtful
      accounts of $792,893 and $121,017 at      6,229,266       7,744,377
     2012 and 2011
     Advances to suppliers                       10,852,070      10,042,214
     Notes receivable                            249,023         7,865
     Inventory, net                              11,172,322      10,252,955
     Prepaid expenses & other current assets     550,315         1,072,326
               Total current assets              33,287,288      32,009,158
     Property and equipment, net                 31,187,080      27,836,253
     Construction in progress                    5,302,166       12,037,154
     Advance for the purchase of equipment       788,971         763,427
     Intangible assets, net                      2,902,230       3,063,646
     Goodwill                                    2,033,633       2,023,342
     TOTAL ASSETS                              $ 75,501,368    $ 77,732,980
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
     Accounts payable                          $ 4,621,683     $ 5,133,835
     Other payables                              7,156,681       7,021,179
     Unearned revenue                            1,064,424       1,313,320
     Accrued payroll                             142,944         193,884
     Short-term loans                            13,366,416      10,684,625
               Total current liabilities         26,352,148      24,346,843
     Long-term loans                             11,067,000      9,957,090
               Total Liabilities                 37,419,148      34,303,933
     Commitments and contingencies
EQUITY:
 Shiner stockholders' equity:
     Common stock, par value $0.001;
     75,000,000 shares authorized,
      27,603,336 shares issued and             27,603          27,603
     27,541,491 shares outstanding
     Additional paid-in capital                  14,335,440      14,332,392
     Treasury stock (61,845 shares)              (58,036)        (58,036)
     Other comprehensive income                  5,648,859       5,426,393
     Statutory reserve                           3,301,653       3,523,273
     Retained earnings                           13,200,131      18,478,618
               Total Shiner stockholders'        36,455,650      41,730,243
               equity
 Noncontrolling interest                       1,626,570       1,698,804
               Total equity                     38,082,220      43,429,047
     TOTAL LIABILITIES AND EQUITY              $ 75,501,368    $ 77,732,980



SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
(unaudited)
                       Three Months Ended September   Nine Months Ended
                       30,                            September 30,
                       2012              2011         2012          2011
Net Revenue          $ 16,706,608     $  18,611,849 $ 50,478,117  $ 52,385,921
Cost of goods sold     15,257,456        16,490,987   46,370,015    45,378,458
Gross profit           1,449,152         2,120,862    4,108,102     7,007,463
Operating expenses
Selling                619,959           688,448      1,851,990     1,682,076
General and            1,899,924         1,103,239    4,933,369     2,486,638
administrative
Loss on sale and       2,106,379         -            2,106,379     -
write off of assets
Total operating       4,626,262         1,791,687    8,891,738     4,168,714
Income (loss) from     (3,177,110)       329,175      (4,783,636)   2,838,749
operations
Non-operating
income(expense):
Other income, net      86,140            545,417      279,669       617,250
Interest income        16,842            2,453        35,236        10,917
Interest expense       (470,722)         (275,395)    (1,082,587)   (689,675)
Exchange (loss)        (12,435)          1,283        (22,083)      61,996
Total non-operating    (380,175)         273,758      (789,765)     488
income (expense)
Income (loss)          (3,557,285)       602,933      (5,573,401)   2,839,237
before income tax
Income tax expense     (8,038)           219,894      7,683         653,132
(benefit)
Net income (loss)      (3,549,247)       383,039      (5,581,084)   2,186,105
Net loss
attributed to          (17,950)          (27)         (80,977)      (1,336)
noncontrolling
interest
Net income (loss)
attributed to        $ (3,531,297)    $  383,066    $ (5,500,107) $ 2,187,441
Shiner
Comprehensive
income (loss)
 Net income      $ (3,549,247)    $  383,039    $ (5,581,084) $ 2,186,105
(loss)
 Foreign
currency               (84,620)          440,458      222,466       1,143,003
translation gain
(loss)
Comprehensive        $ (3,633,867)  $    823,497    $ (5,358,618) $ 3,329,108
income (loss)
Weighted average
shares outstanding
:
           Basic       27,541,491        27,541,491   27,541,491    27,541,491
           Diluted     27,541,491        27,541,491   27,541,491    27,541,491
Earnings (loss) per share attributed
to Shiner common stockholders
           Basic     $ (0.13)         $  0.01       $ (0.20)      $ 0.08
           Diluted   $ (0.13)         $  0.01       $ (0.20)      $ 0.08

SHINER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
                                                   Nine Months Ended

                                                   September 30,
                                                   2012           2011
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                             $ (5,581,084)  $ 2,186,105
   Adjustments to reconcile net income (loss) to
   net cash
   provided by (used in) operating activities:
         Depreciation                              2,374,995      1,721,406
         Amortization                              177,221        54,460
         Stock compensation expense                3,048          2,085
         Loss on sale and write off of assets      2,106,379      -
         Change in working capital components:
                Accounts receivable                1,556,464      3,669,116
                Inventory                          (868,319)      (2,372,742)
                Advances to suppliers              (759,743)      (7,106,058)
                Other assets                       522,937        (267,767)
                VAT receivable                                    -
                Accounts payable and accrued       (538,765)      726,024
                expenses
                Unearned revenue                   (253,282)      1,206,913
                Other payables                     101,551        206,121
                Accrued payroll                    (51,992)       (3,794)
   Net cash provided by (used in) operating        (1,210,590)    21,869
   activities
CASH FLOWS FROM INVESTING ACTIVITIES
         Purchase of Shimmer Sun Ltd               -              (3,200,000)
         Cash acquired in acquisition of Shimmer   -              248,743
         Sun Ltd
         Cash from the sale of assets              1,226,825      -
         Issuance of notes receivable              (249,348)      -
         Payment on note receivable                7,925          34,594
         Payments for property and equipment       (2,138,400)    (9,034,984)
         Payments for construction in progress     -              (5,040,177)
         Increase in restricted cash               (584,308)      -
   Net cash used in investing activities           (1,737,306)    (16,991,824)
CASH FLOWS FROM FINANCING ACTIVITIES:
         Repayment of short-term loans             (20,432,635)   (7,020,000)
         Proceeds from short-term loans            23,063,410     7,800,000
         Proceeds from long-term loans             1,060,610      9,219,600
   Net cash provided by financing activities       3,691,385      9,999,600
Effect of exchange rate changes on cash and cash   17,520         135,841
equivalents
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS    761,009        (6,834,514)
CASH AND EQUIVALENTS, BEGINNING BALANCE            2,831,808      8,622,035
CASH AND EQUIVALENTS, ENDING BALANCE             $ 3,592,817    $ 1,787,521
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
       Interest paid                             $ 897,520      $ 623,826
       Income taxes paid                         $ 7,604        $ 621,980
The accompanying notes are an integral part of these consolidated financial
statements.



SOURCE Shiner International, Inc.

Website: http://www.shinerinc.com