Lihua International Inc. (LIWA, Financial) filed Quarterly Report for the period ended 2012-06-30.
Lihua International Inc has a market cap of $132.4 million; its shares were traded at around $4.33 with a P/E ratio of 2.6 and P/S ratio of 0.2.
Total cost of sales for the three months ended June 30, 2012 was $170.3 million, reflecting an increase of 15.6% from the same period last year. As a percentage of total sales, our cost of sales increased to 89.2% of total sales for the three months ended June 30, 2012, compared to 88.2% of total sales in the same period last year. Consequently, gross margin as a percentage of total sales decreased to 10.9% in the three months ended June 30, 2012 from 11.8% for the same period last year, principally due to the additional production and sales of lower margin products including copper anode, copper rode, and fine copper wire.
Total cost of sales for the six months ended June 30, 2012 was $320.7 million, reflecting an increase of 20.0% from the same period last year. As a percentage of total sales, our cost of sales increased to 89.1% of total sales for the six months ended June 30, 2012, compared to 88.0% of total sales in the same period last year. Consequently, gross margin as a percentage of total sales decreased to 10.9% in the six months ended June 30, 2012 from 12.0% for the same period last year, principally due to the additional production and sales of lower margin products including copper anode, copper rode, and fine copper wire.
Net income for the six months ended June 30, 2012 was $24.9 million, or 6.9% of net revenue, compared to $26.9 million, or 8.8% of net revenue, down 7.2% from the same period in 2011. The net income for the six months ended June 30, 2012 was impacted by a $73,291 non-cash gain on extinguishment of warrant liabilities and a non-cash charge of $474,000 as a result of the change of the fair value of the warrants. Excluding the impact of these non-cash warrant related items, net income for the six months ended June 30, 2012 was $25.3 million.
For the six months ended June 30, 2012, cash provided by operating activities totaled $28.0 million compared to $12.7 million in the same period of 2011. This was primarily attributable to: i) $24.9 million net income; ii) a $3.9 million reduction in prepayments for raw material purchases, which resulted from advance payment for the importation of our raw material from overseas; offset by iii) a $2.3 million inventory increase, resulting from the expansion of production capacity and revenue growth; iv) a $0.9 million decrease in accounts payable.
Read the The complete Report
Lihua International Inc has a market cap of $132.4 million; its shares were traded at around $4.33 with a P/E ratio of 2.6 and P/S ratio of 0.2.
Highlight of Business Operations:
We believe that we are well positioned to continue to capture further market share in the copper and copper replacement product industry. Our refined copper products produced from recycled copper and CCA wire are increasingly being accepted as cheaper alternatives to pure copper products. As a result, our sales and net income have increased substantially during the last three years. We generated sales of $161.5 million, $370.5 million and $637.1 million for the years ended December 31, 2009, 2010 and 2011, respectively. We achieved net income of $13.7 million, $38.5 million and $53.1 million for the years ended December 31, 2009, 2010 and 2011, respectively. In 2009, we had a non-cash charge of $11.9 million, which resulted from the change in the fair value of the warrants issued to investors in conjunction with the Company’s issuance of convertible preferred stock in October 2008. Excluding the impact of this non-cash charge, net income for 2009 was $25.6 million, up 118.7%. In 2010, we had a $0.2 million non-cash gain on extinguishment of warrant liabilities and a non-cash charge of $1.4 million, which resulted from the change in the fair value of the warrants. Excluding the impact of these non-cash charges, net income for 2010 was $39.7 million, up 55.1% from 2009. In 2011, we had a $0.1 million non-cash gain on extinguishment of warrant liabilities and a non-cash gain of $3.1 million, which resulted from the change in fair value of the warrants. Excluding the impact of these non-cash warrant related items, net income for 2011 was $50.0 million, up 25.8% from 2010. For the three months ended June 30, 2012 and 2011, we recognized nil and $0.03 million, respectively, non-cash gain on extinguishment of warrant liabilities. For the three months ended June 30, 2012 and 2011, we recognized a non-cash loss of $0.04 million and a gain of $1.2 million, respectively, from the change of fair value of warrants. Excluding the impact of these non-cash items, net income for the three months ended June 30, 2012 was $13.5 million, up 2.7% from the same period last year. For the six months ended June 30, 2012 and 2011, we recognized $0.07 million and $0.09 million, respectively, non-cash gain on extinguishment of warrant liabilities. For the six months ended June 30, 2012 and 2011, we recognized a non-cash loss of $0.5 million and a gain of $2.6 million, respectively, from the change in fair value of the warrants. Excluding the impact of these non-cash items, net income for the six months ended June 30, 2012 was $25.3 million, up 4.6% from the same period last year.Total cost of sales for the three months ended June 30, 2012 was $170.3 million, reflecting an increase of 15.6% from the same period last year. As a percentage of total sales, our cost of sales increased to 89.2% of total sales for the three months ended June 30, 2012, compared to 88.2% of total sales in the same period last year. Consequently, gross margin as a percentage of total sales decreased to 10.9% in the three months ended June 30, 2012 from 11.8% for the same period last year, principally due to the additional production and sales of lower margin products including copper anode, copper rode, and fine copper wire.
Total cost of sales for the six months ended June 30, 2012 was $320.7 million, reflecting an increase of 20.0% from the same period last year. As a percentage of total sales, our cost of sales increased to 89.1% of total sales for the six months ended June 30, 2012, compared to 88.0% of total sales in the same period last year. Consequently, gross margin as a percentage of total sales decreased to 10.9% in the six months ended June 30, 2012 from 12.0% for the same period last year, principally due to the additional production and sales of lower margin products including copper anode, copper rode, and fine copper wire.
Net income for the six months ended June 30, 2012 was $24.9 million, or 6.9% of net revenue, compared to $26.9 million, or 8.8% of net revenue, down 7.2% from the same period in 2011. The net income for the six months ended June 30, 2012 was impacted by a $73,291 non-cash gain on extinguishment of warrant liabilities and a non-cash charge of $474,000 as a result of the change of the fair value of the warrants. Excluding the impact of these non-cash warrant related items, net income for the six months ended June 30, 2012 was $25.3 million.
For the six months ended June 30, 2012, cash provided by operating activities totaled $28.0 million compared to $12.7 million in the same period of 2011. This was primarily attributable to: i) $24.9 million net income; ii) a $3.9 million reduction in prepayments for raw material purchases, which resulted from advance payment for the importation of our raw material from overseas; offset by iii) a $2.3 million inventory increase, resulting from the expansion of production capacity and revenue growth; iv) a $0.9 million decrease in accounts payable.
Read the The complete Report
