posted
HQSM Reports Revenues Increased by 92% for Eight Month Period Ended December 31st, 2004 Wednesday April 13, 9:55 am ET 333% Increase of Net Income Attributable to Shareholders
NEW YORK, NY--(MARKET WIRE)--Apr 13, 2005 -- HQ Sustainable Maritime Industries, Inc. (HQ) (OTC BB:HQSM.OB - News), a Delaware corporation engaged in integrated aquaculture and aquatic product processing, announced today its financial results for the eight month period ended December 31st, as reported in its Form 10-KSB filed with the Securities and Exchange Commission on April 11th, 2004. Due to the reverse merger in 2004, the company changed year-end and the income statement is for an eight-month period. ADVERTISEMENT
Revenues for the quarter increased by $10,001,816, or 92%, to $20,782,264 from $10,780,448 in the corresponding period of 2003. The increase was attributed to HQSM's acquisition of Sealink, the sole owner of Hainan Jiahua Marine Bio-Products Co., Ltd. ("Jiahua Marine"), in August 2004 and the resulting inclusion of Sealink's revenues as part of the current reporting period results. Also contributing to the rise in revenue was the increase in HQ's production activity following the re-opening of its reconstructed and expanded processing plant. Net income attributable to shareholders increased 333% to $2,130,047 for the period from $490,522, for the comparative period for 2003.
Revenues for the eight-month period of $20,782,264 generated gross profit and net income of $5,144,508 and $2,130,047 respectively.
The full text of Form 10-K for the eight-month period ended December 31st, 2004, can be reviewed at www.sec.gov.
Said Norbert Sporns, CEO of HQ, "We are pleased with the results for the period. In fact, out of the 8 months reported, only 6 reflect full operations as the plant was shut down for extensive expansion prior to June 2004. The period covered was one of transition including the important acquisitions of Jiahua Marine, as well as the minority interest in HQ's aquatic products processing operations and the expanded production capacity of our new plant. We believe HQ is well positioned for continued growth in the coming months and year as the company continues to expand into its natural niche as the leading producer of the highest quality aquatic products in accordance with the Chairman's roadmap published earlier this year."
About HQ Sustainable Maritime Industries, Inc.
HQ Sustainable Maritime Industries, Inc. is an integrated aquaculture and aquatic product processing company, with operations based in the environmentally pristine island province of Hainan, in the South China Sea. HQ's activities include using renewable ocean resources, practicing cooperative sustainable aquaculture, using nutraceutically enriched feeds and conducting fish processing and sales. Its variety of farmed and ocean-harvested products -- ranging from tilapia and shrimp to squid and red snapper -- are sold around the world. The Company holds HACCP certification from the U.S. FDA and the EU Code assignment of quality, permitting its products to be sold in these international markets; the Government of China has also certified it as a leading agricultural enterprise. It has recently acquired a nutraceuticals and health products company, which is HACCP certified, and produces and sells products subject to stringent laboratory tests certified by the China Ministry of Health. This plant produces nutraceuticals, which enrich feed used by HQ's cooperative aquaculture operations. In addition to operational offices based in Haikou, Hainan, HQ has offices in Montreal, Hong Kong, New York City, Beijing, and Shanghai. (http://www.hqfish.com)
HQ SUSTAINABLE MARITIME INDUSTRIES, INC. AND SUBSIDIARIES (INCORPORATED IN THE STATE OF DELAWARE WITH LIMITED LIABILITY) STATEMENTS OF INCOME FOR THE EIGHT MONTHS ENDED DECEMBER 31, 2004 AND 2003
May 1, 2004 to May 1, 2003 to Dec. 31, 2004 Dec. 31, 2003 ------------ ------------
GENERAL AND ADMINISTRATIVE EXPENSES 1,871,275 672,681
DEPRECIATION 509,300 210,411
PROVISION FOR DOUBTFUL DEBTS - 800,264
------------ ------------ INCOME/(LOSS) FROM OPERATIONS 757,566 1,166,816
FINANCE COSTS 400,064 304,344
OTHER INCOME (2,340,895) (94,984)
OTHER EXPENSES 139,525 188,296 ------------ ------------
INCOME/(LOSS) BEFORE INCOME TAXES 2,558,872 769,160
INCOME TAXES CURRENT - - DEFERRED 193,819 120,511
------------ ------------ NET INCOME/(LOSS) BEFORE MINORITY INTEREST 2,365,053 648,649
MINORITY INTEREST (235,006) (158,127)
NET INCOME/(LOSS) ATTRIBUTABLE ------------ ------------ TO SHAREHOLDERS $ 2,130,047 $ 490,522 ============ ============
NET INCOME/(LOSS) PER SHARE BASIC AND DILUTED $ 0.03 $ N/A ============ ============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 69,770,366 N/A ============ ============ Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of HQ Sustainable Maritime Industries, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
posted
HQSM have been watching for awhile, waiting to see if they could duplicate last Q. but - i would suggest reading the 10K carefully if you are interested in HQSM. in short, they could not duplicate in Q4, the previous promising Q3.
i like HQSM, did some swings on it awhile ago, and wanted the Q4 to be good, but - honestly, Q4 results were disappointing. i am still keeping an eye on this one, but - imho, read the 10K, if you are seriously considering investing in them.
i would also consider reading this article, about frozen tilapia price trends:
posted
i was perhaps too negative in my last post, in re-reading it now.
i still sort of like HQSM and they may well do well down the road. but, in looking at the short-term, there is no question that their latest Q was not a good one.
many other companies i like have also had bad Q's and i have continued to hold, hoping that it was an aberration (CLSI is an example, they had a bad Q4 as well, imho). HQSM may well be similar. however, i am willing to cut a company like CLSI more slack, because they have a long history of profitability. HQSM, i give less slack to, because the consistency is not there, at least yet.
Posts: 1698 | Registered: Mar 2004
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
