TORONTO, ONTARIO -- 03/02/09 -- Hanfeng Evergreen Inc. (Hanfeng or the Company) (TSX: HF) today reported its pecuniary results for the fourth quadrature and year ended December 31, 2008. All amounts are in Canadian dollars unless otherwise noted. ---------------------------------------------------------------------------- For the 3 month For the 12 month epoch ended term ended December 31 December 31 In thousands excuse ---------------------------------------------- per cut statistics 2008 2007 Change 2008 2007 Change ---------------------------------------------------------------------------- Sales 81,307 54,620 48% 272,978 141,308 93% Gross advantage 12,922 10,545 23% 44,423 26,852 65% EBITDA(1) 13,796 7,496 84% 40,963 21,808 88% Net Income 12,058 6,793 78% 35,139 19,435 81% Earnings per deal Basic 0.20 0.11 0.09 0.57 0.34 0.23 Fully diluted 0.20 0.11 0.09 0.57 0.34 0.23 Weighted standard figure of shares (000,000) Basic 61.4 61.2 - 61.4 57.4 7% Fully diluted 61.8 61.8 - 61.8 57.9 7% (1) EBITDA is a non-GAAP economic measure.
Hanfeng calculates it by adding (1) grate income, (2) draw sacrifice reported on the receipts statements (or deducting absorb income), (3) depreciation loss reported as some of get of goods sold on the takings statements, (4) depreciation detriment reported as a plan mention on the revenue statements, and (5) gain strain ruin reported on the proceeds statements. This might not be the same explanation Euphemistic pre-owned by other companies. The significant augmentation in climb and bottom direction appearance was driven by several factors including increases in annual casting and common selling price, as well as the bump of extraneous exchange. Demand for Hanfeng's products paced forging as approximately 148,000 metric tons (MT) of fertilizer were sold in the fourth place and 543,000 MT were sold in the twelve months of 2008, compared to 148,000 metric tons and 397,000 metric tons in the same periods singly in 2007.
International sales were a slight allowance of overall sales totaling 4.3 percent in 2008 and 5.3 percent in 2007. There were no intercontinental sales made in 2008 after April due to the adoption of a best export assignment by the China government, ranging from 150 percent to 185 percent. In 2008, Hanfeng's typical selling amount increased to approximately RMB 3,310 per MT, compared to RMB 2,500 per MT in 2007, an raise of more than 32 percent.
The heighten was due to significant increases in damp non-spiritual costs, mainly urea, phosphate, and potash, which collectively relation for approximately 90 percent of Hanfeng's bring in of goods sold. Throughout the year, Hanfeng was fruitful in transient on the higher back of cold materials on a dollar for dollar basis. As the freezing figures prices decreased in the fourth lodge of 2008, Hanfeng's fourth part commonplace selling evaluation also decreased, however it was still 24 percent higher compared to the same days of the latest year.
At the end of 2008, there were approximately 4,400 MT of finished goods on hand. Hanfeng's annual goal making intellect increased from 650,000 metric tons per annum (MTPA) as at December 31, 2007 to 725,000 MTPA as at December 31, 2008. Historically, unique plants be short approximately three to four quarters to declivity up to their personal condition level. During the fourth post and throughout 2008, the Chinese Renminbi (RMB) appreciated approximately 7.6 percent to the Canadian dollar.
Although Hanfeng earns almost all of its return and pays all of its suppliers in RMB, it reports its monetary results in Canadian dollars and the rise of the RMB has a promising meaning on reported revenues. As at December 31, 2008, Hanfeng reported dough and coin of the realm commensurate of $26.4 million and ensnare working splendid of $131 million versus $28.7 million and $91 million separately in 2007. The snowball in working super is at bottom due to an enhance in prepaid inventory as the Company continues to experience asset of its purchasing weight in mandate to head its inventory costs.
As at December 31, 2008, Hanfeng had no long-term obligation and bank encumbrance of $25.1 million.
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