China ACM Reports First Quarter Fiscal Year 2014 Results, Provides Quarterly Guidance for the Second Quarter of Fiscal Year

China ACM Reports First Quarter Fiscal Year 2014 Results, Provides Quarterly
Guidance for the Second Quarter of Fiscal Year 2014, and Reaffirms the Full
Year Guidance for Fiscal Year 2014

NEW YORK, Nov. 13, 2013 (GLOBE NEWSWIRE) -- China Advanced Construction
Materials Group, Inc. (Nasdaq:CADC) ("China ACM" or the "Company"), a provider
of ready-mix concrete and related technical services in China, on November 13,
2013, has announced its financial results for the fiscal quarter ended
September 30, 2013.

First Quarter Fiscal Year 2014 Financial Highlights

  *Revenue decreased 67.0% year over year to $10.2 million
    
  *Gross margin at 11.2%
    
  *Net loss available to common shareholders of $5.8 million or EPS of -
    $3.92
    
  *$33.2 million in working capital at September 30, 2013

First Quarter Fiscal Year 2014 Results

Revenue. For the three months ended September 30, 2013, we generated total
revenue of approximately $10.2 million compared to approximately $30.8 million
during the three months ended September 30, 2012, a decrease of approximately
$20.6 million or 67.0%. Such decrease is due to a reduction in sales generated
from the concrete division for the three months ended September 30, 2013. Our
concrete sales revenue was approximately $9.7 million for the three months
ended September 30, 2013, a decrease of approximately $19.2 million, or 66.3%
compared to the three months ended September 30, 2012. The decrease in
revenues attributable to concrete sales was principally due to the decreased
sales in the areas in which we operate. Operations at one of our concrete
producing plants were suspended due to the China International Garden Expo and
a temporary suspension order imposed by the Beijing government for industrial
activities in the area. In addition, China's central government continues to
impose restrictions on the purchase of residential apartments in order to
regulate housing prices in China, and China's economic growth has been
decelerating since 2012, which has caused an adverse impact on the
construction industry in China.

During the three months ended September 30, 2013, we continued to supply
concrete products to three railway projects throughout China through our
portable plants, specifically our projects located in Anhui Province. These
three projects contributed approximately $0.4 million to our total revenue for
the three months ended September 30, 2013, a decrease of approximately $1.5
million, or 77.1%, compared to the three months ended September 30, 2012. The
decrease in revenues attributable to our manufacturing services segment was
principally due to the suspension of operations of a number of our portable
plants during the three months ended September 30, 2013.

Cost of Revenue. For the three months ended September 30, 2013, we generated
total cost of revenue of approximately $9.0 million compared to approximately
$23.5 million for the three months ended September 30, 2012, a decrease of
approximately $14.5 million, or 62%. The decrease in cost of revenue was
primarily due to the overall decrease in production from our fixed concrete
plants in the Beijing area and decreased production on manufacturing services
compared to the three months ended September 30, 2012.

The cost of revenue on concrete decreased by approximately $13.2 million, or
61%, for the three months ended September 30, 2013, as compared to the three
months ended September 30, 2012. Such decrease was due to a decrease in our
concrete production volume.

Cost of revenue with respect to our manufacturing services was primarily due
to our manufacturing services, which decreased by approximately $1.2 million,
or 75%, during the three months ended September 30, 2013, as compared to the
same period last year.

Gross Profit. Total gross profit was approximately $1.1 million for the three
months ended September 30, 2013, as compared to approximately $7.3 million for
the three months ended September 30, 2012. Our gross profit for sale of
concrete was approximately $1.1 million, or 11.4% of revenue, for the three
months ended September 30, 2013, compared to approximately $7.0 million, or
24.3% of revenue for the three months ended September 30, 2012, a decrease of
approximately $5.9 million. The lower gross profit from concrete sales for the
three months ended September 30, 2013, compared with the three months ended
September 30, 2012, reflects lower production volume while we were subject to
similar level of fixed costs.

Our gross profit with respect to our manufacturing services was approximately
$0.03 million, or 7.0% for the three months ended September 30, 2013, a
decrease of $0.29 million from $0.32 million during the three months ended
September 30, 2012, while the gross profit margin decreased from 16.4% for the
three months ended September 30, 2012 to 7.0% for the three months ended
September 30, 2013. Such decrease was principally due to the decrease in
revenue for manufacturing services for three months ended September 30, 2013,
as a result of the decrease in the number of portable plants and lower
production rates at our plant.

Provision for doubtful accounts. We incurred provision for doubtful accounts
of $3.0 million for the three months ended September 30, 2013, a decrease of
$6.3 million, as compared to $9.3 million for the three months ended September
30, 2012. In accordance with our allowance for doubtful accounts policy, at
the end of each quarter, we conduct an aging analysis of each customer's
arrears to determine whether the allowance for doubtful accounts is adequate.
The provision is 15% for accounts receivable past due more than 180 days but
less than one year, 60% for accounts receivable past due from one to two years
and 75% for accounts receivable past due beyond two years. The allowance for
doubtful accounts increased to approximately $39.5 million at September 30,
2013, as compared to approximately $36.5 million at June 30, 2013, as a result
of tightening monetary policy by the Chinese government causing a shortage in
cash and declining business of certain of our customers.

Selling, General and Administrative Expenses. We incurred selling, general and
administrative expenses of approximately $2.9 million for the three months
ended September 30, 2013, a decrease of approximately $0.3 million, or 8.7%,
as compared to approximately $3.2 million for the three months ended September
30, 2012. The decrease was principally due to a $0.1 million decrease in meals
and entertainment expenses, $0.1 million decrease in office expenses and a
$0.1 million decrease in rental expenses.

Research and development expenses. Research and development expenses for the
three months ended September 30, 2013 was $0.2 million, a decrease of
approximately $0.1 million, or 29.4%, as compared to approximately $0.3
million for the three months ended September 30, 2012. The Company's research
and development expenditure was maintained at a certain percentage of revenue.
The $0.1 million decrease was mainly due to lower research and development
expenditures resulting from decreased revenue.

Loss realized from disposal of property, plant and equipment. For the three
months ended September 30, 2013, we incurred a $1.4 million loss realized from
the disposal of property, plant and equipment. During the three months ended
September 30, 2012, we incurred a $0.4 million loss realized from the disposal
of property, plant and equipment. The increase of $1.0 million was due to
disposal of certain vehicles.

Net Income (loss) available to Common shareholders. We recognized a net loss
of approximately $5.8 million for the three months ended September 30, 2013,
as compared to net loss of approximately $5.4 million for the three months
ended September 30, 2012, an increase of $0.4 million. Such increase in net
loss was primarily due to the decrease in gross profits of our concrete sales
and manufacturing services, and the increase in loss realized from the
disposal of property, plant and equipment, which was offset by the decrease in
the provision for doubtful accounts and the provision for income taxes.

Balance Sheet Overview

China ACM had working capital of $33.2 million at September 30, 2013,
including $6.9 million in cash and equivalents, $13.0 million in restricted
cash, $11.1 million in short term investment, $52.6 million in accounts
receivable, $33.0 million in prepayments, $16.3 million in other receivables
and $107.8 million in total liabilities. Shareholders' equity was $51.3
million compared with $56.7 million at June 30, 2013. The total number of
shares outstanding as of November 8, 2013 was 1.5 million.

Second Quarter Fiscal Year 2014 and Fiscal Year 2014 Guidance

For the second quarter ending December 31, 2013, management expects to earn
revenue of between $9 and $11 million, and incur a net income (loss) of
between $1 million and $(1) million, resulting in EPS of between $0.67 and
$(0.67) based on weighted average shares of 1,486,871 as of November 12, 2013.

For the fiscal year ended June 30, 2014, management expects to earn revenue of
between $56 million and $58 million, net income of between $2 million and $3
million, and an EPS of between $1.35 and $ 2.02 based on weighted average
shares of 1,486,871 as of November 12, 2013.

Conference call

The Company will host a conference call with a live webcast and a full Q&A
session on Thursday, November 14, 2013 at 8:00 a.m., Eastern Time, to discuss
its financial results for the first quarter of fiscal year 2014.

Individuals interested in participating in the conference call may do so by
dialing 877-407-8031 from the United States, or + 201-689-8031 from outside
the United States and referencing conference ID number 3572849.

To pre-check system compatibility prior to the call, visit
http://www.investorcalendar.com/aboutus/HelpDesk.asp.

A webcast replay will be available until 12/14/2013.

About China ACM

China ACM is a producer of advanced, certified eco-friendly ready-mix concrete
and provider of related technical services for large scale, high-speed rail
(HSR) and other complex infrastructure projects. Leveraging its proprietary
technology and value-add engineering services model, the Company has won work
on many high profile projects including the 30,000 km China HSR expansion, the
Olympic Stadium Bird's Nest, Beijing South Railway Station, Beijing
International Airport, National Centre for Performing Arts, CCTV Headquarters,
Beijing Yintai Building and U.S. and French embassies.

More information about the Company is available at
http://www.ir-site.com/cadc/index.asp.

Forward-Looking Statements

This press release contains statements that are forward-looking in nature,
including statements regarding the Company's competitive position and product
and service offerings. These statements are based on current expectations on
the date of this press release and involve a number of risks and
uncertainties, which may cause actual results to differ significantly from
such estimates. The risks include, but are not limited to, the degree of
market adoption of the Company's product and service offerings; market
competition; dependence on strategic partners; and the Company's ability to
manage its business effectively in a rapidly evolving market. Certain of these
and other risks are set forth in more detail in "Item 1A. Risk Factors" in
China ACM's Annual Report on Form 10-K for the fiscal year ended June 30,
2013. China ACM does not assume any obligation to update or revise any such
forward-looking statements, whether as the result of new developments or
otherwise.

                                                             
                                                             
CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                                                             
                                                            
ASSETS                                        September 30,  June 30,
                                               2013            2013
                                                           
CURRENT ASSETS:                                             
Cash                                          $6,938,247   $3,949,939
Restricted cash                               12,967,373      6,491,175
Accounts and notes receivable, net of
allowance for doubtful accounts of $39,511,457 52,634,995      59,696,331
and $36,469,156, respectively
Inventories                                   1,009,000       1,122,380
Short term investment                         11,064,979      5,168,000
Other receivables                             6,953,222       6,298,088
Other receivable from termination of lease,    9,298,922       8,932,029
net
Prepayments and advances                      32,966,821      27,827,638
Deferred tax assets                           4,019,838       3,987,738
Total current assets                          137,853,397     123,473,318
                                                           
PROPERTY PLANT AND EQUIPMENT, net             15,407,790      14,357,349
                                                           
OTHER ASSETS:                                               
Other receivable from termination of lease,    1,887,261       3,710,455
net
Advances on equipment purchases, net          3,751,014       4,015,294
Deferred tax assets                           219,130         217,380
Total other assets                            5,857,405       7,943,129
                                                           
Total assets                                  $159,118,592 $145,773,796
                                                           
LIABILITIES AND SHAREHOLDERS' EQUITY                        
                                                           
CURRENT LIABILITIES:                                        
Short term loans, banks and bank guarantees   $59,666,200  $43,766,500
Notes payable                                 3,256,000       --
Accounts payable                              31,160,701      33,730,871
Customer deposits                             1,670,133       1,732,662
Other payables                                2,853,721       1,989,023
Other payables - shareholders                 757,328         757,328
Accrued liabilities                           890,475         988,598
Capital lease obligations - current           4,410,148       2,448,883
Taxes payable                                 26,878          107,013
Total current liabilities                     104,691,584     85,520,878
                                                           
OTHER LIABILITIES                                           
Capital lease obligations - non current       3,131,285       3,560,819
Total liabilities                             107,822,869     89,081,697
                                                           
COMMITMENTS AND CONTINGENCIES                               
                                                           
SHAREHOLDERS' EQUITY:                                       
                                                           
Preferred stock $0.001 par value, 1,000,000
shares authorized, no shares issued or         --             --
outstanding
Common stock, $0.001 par value, 74,000,000
shares authorized, 1,486,871 and 1,486,871     1,487           1,487
shares issued and outstanding as of September
30, 2013 and June 30, 2013, respectively
Additional paid-in-capital                    35,233,305      35,233,305
(Accumulated deficit) Retained earnings       (422,997)       5,412,387
Statutory reserves                            6,248,357       6,248,357
Accumulated other comprehensive income        10,235,571      9,796,563
Total shareholders' equity                    51,295,723      56,692,099
Total liabilities and shareholders' equity    $159,118,592 $145,773,796

                                                               
                                                               
CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
                                                               
                                                              
                                                 For the three months ended
                                                   September 30,
                                                 2013          2012
REVENUE                                                       
Sales of concrete                                 $9,721,117 $28,876,908
Manufacturing services                            442,303       1,933,721
Total revenue                                     10,163,420    30,810,629
                                                             
COST OF REVENUE                                               
Concrete                                          8,614,755     21,861,154
Manufacturing services                            411,143       1,616,527
Total cost of revenue                             9,025,898     23,477,681
                                                             
GROSS PROFIT                                      1,137,522     7,332,948
                                                             
PROVISION FOR DOUBTFUL ACCOUNTS                   (3,049,421)   (9,341,595)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES      (2,910,625)   (3,189,614)
RESEARCH AND DEVELOPMENT EXPENSES                 (203,999)     (288,880)
LOSS REALIZED FROM DISPOSAL OF PROPERTY, PLANT AND (1,369,461)   (344,425)
EQUIPMENT
                                                             
LOSS FROM OPERATIONS                              (6,395,984)   (5,831,566)
                                                             
OTHER (EXPENSE) INCOME, NET                                   
Subsidy income                                    609,805       1,827,526
Non-operating (expense) income, net               132,246       (231,310)
Change in fair value of warrant liability         --           123,097
Interest income                                   346,253       27,434
Interest expense                                  (527,704)     (500,837)
TOTAL OTHER INCOME, NET                           560,600       1,245,910
                                                             
LOSS BEFORE PROVISION FOR INCOME TAXES            (5,835,384)   (4,585,656)
                                                             
PROVISION FOR INCOME TAXES                        --           799,167
                                                             
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS         $(5,835,384) $(5,384,823)
                                                             
COMPREHENSIVE INCOME (LOSS):                                  
Net loss                                          (5,835,384)   (5,384,823)
Foreign currency translation adjustment           439,008       (160,273)
                                                             
COMPREHENSIVE LOSS                                $(5,396,376) $(5,545,096)
                                                             
LOSS PER COMMON SHARE ALLOCATED TO COMMON                      
SHAREHOLDERS
Weighted average number of shares (*):                        
Basic and diluted                                 1,486,871     1,486,538
                                                             
Loss per share:                                               
Basic and diluted (*)                            $(3.92)      $(3.92)
                                                               
                                                               
(*) Retrospectively restated shares for a 1-for-12 reverse split.

                                                                 
                                                                 
CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                                                                 
                                                                
                                                  For the three months ended
                                                    September 30,
                                                  2013           2012
                                                               
CASH FLOWS FROM OPERATING ACTIVITIES:                           
Net loss                                           $(5,835,384)  (5,384,823)
Adjustments to reconcile net loss to cash used in                
operating activities
Depreciation                                       485,839        909,044
Stock-based compensation expense                   --            18,386
Provision for doubtful accounts                    3,049,421      9,341,595
Change in fair value of warrant liabilities         --            (123,097)
Loss realized from disposal of property, plant and  1,369,461      344,425
equipment
Imputed interest on other receivable from           (199,273)      --
termination of lease
Interest expense on capital lease                  132,963        --
Changes in operating assets and liabilities                      
Accounts and notes receivable                      4,775,458      (8,912,188)
Inventories                                        121,963        886,088
Other receivables                                  198,959        446,235
Other receivable from termination of lease         1,459,800      --
Prepayments                                        (6,056,971)    (1,510,448)
Long term prepayments                              --            637,352
Accounts payable                                   (2,859,788)    3,740,746
Customer deposits                                  (76,194)       64,903
Other payables                                     846,094        (1,529,864)
Accrued liabilities                                (104,676)      (432,979)
Taxes payable                                      (80,697)       339,938
Net cash used in operating activities              (2,773,025)    (1,164,687)
                                                               
CASH FLOWS FROM INVESTING ACTIVITIES:                           
Acquisition of short-term investments, net         (5,833,799)    --
Purchase of property, plant and equipment           (57,684)       (52,813)
Net cash used in investing activities               (5,891,483)    (52,813)
                                                               
CASH FLOWS FROM FINANCING ACTIVITIES:                           
Proceeds from short term loans and bank guarantees 22,789,100     10,671,750
Payments of short term loans and bank guarantees   (7,299,000)    (5,927,500)
Proceeds from notes payable                        3,244,000      --
Principal payments on capital lease obligation     (720,457)      --
Restricted cash                                    (6,400,271)    (1,758,884)
Net cash provided by financing activities          11,613,372     2,985,366
                                                               
EFFECTS OF EXCHANGE RATE CHANGE IN CASH            39,444         (13,852)
                                                               
NET INCREASE IN CASH                               2,988,308      1,754,014
                                                               
CASH, beginning of period                          3,949,939      2,409,914
                                                               
CASH, end of period                                $6,938,247   4,163,928

CONTACT: China ACM Investor Relations
         Phone: +86-10-82525361
         E-mail: IR@china-acm.com
 
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