posted
HQSM Net Income of $3.25 Million for FY 2005 Friday March 31, 12:14 pm ET
Gross Profit More Than Doubles, Compared With 2004
SEATTLE, WA--(MARKET WIRE)--Mar 31, 2006 -- HQ Sustainable Maritime Industries, Inc. (HQ) (OTC BB:HQSM.OB - News), a leader in zero-toxin integrated aquaculture and aquatic product processing, today filed the Company's Form 10KSB, reporting net income of $3,254,098 for the year ended December 31, 2005, a significant improvement over a net loss of $(383,943) for the year ended December 31, 2004. Gross Profits for 2005 were $11,550,119 compared with $5,108,500 for the same period of 2004. ADVERTISEMENT
The Company attributed the improvement to higher profitability from the aquatic product segment and higher sales and related margins in 2005 from its bio-products subsidiary Jiahua Marine.
"We are extremely pleased with these results," declared Norbert Sporns, CEO of HQSM. "They affirm the success of our business strategy for the past two years. We expect this growth to continue in the coming year, and we anticipate further development from our current investments in adding a 76,000-ton feed mill to our operations in Hainan, China, and our branding, marketing, and distribution initiatives targeting retail markets in the United States and Europe. We expect to continue to meet each of our business milestones, as we have in the past."
Mr. Sporns added, "We are very pleased with the confidence we are receiving from the financial community. In addition to the private placement of $5.225 million raised in January 2006, we are now studying several exceptional opportunities for additional financing that have been proposed. Tilapia is now one of the top five seafood imports in the U.S., and the American Tilapia Association projects that by 2010 total sales of tilapia will be in excess of $4 billion. Our goals are to take a leadership position in this expanding market, to become the world leader in zero-toxin aquaculture products, and to enhance the value of our company for our shareholders in the coming year and the foreseeable future."
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 practices cooperative sustainable aquaculture, using nutraceutically enriched feeds and conducting fish processing and sales. The Company is dedicated to sustainable zero-toxin methods giving its customers the purest products possible. 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. 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 headquarters in Seattle and operational offices based in Haikou, Hainan, HQ has offices in Hong Kong, Beijing, and Shanghai. (http://www.hqfish.com).
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 of 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."
Consulting For Strategic Growth I, Ltd. ("CFSG") provides HQ Sustainable Maritime Industries, Inc.(HQ) with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG receives a fixed monthly fee for the duration of the agreement. Independent of CFSG's receipt of cash compensation from HQ, CFSG may choose to purchase the common stock of the company and thereafter sell those shares at any time it deems appropriate to do so.
SUMMARY OF STATEMENTS OF OPERATIONS OF HQSM
Year Ended December 31, 2005 and 2004
December 31, 2005 December 31, 2004 ----------------- ----------------- Sales $ 27,553,030 $ 21,191,492 Gross Profit $ 11,550,119 $ 5,108,500 Net Income/(Loss) $ 3,254,098 $ (383,943) Net Income Per Share $ 0.03 $ (0.01)
Summary of Balance Sheets of HQSM as at December 31, 2005 and 2004
December 31, 2005 December 31, 2004 ----------------- ----------------- Working Capital $ 8,434,344 $ 1,471,961 Total Assets $ 24,416,680 $ 20,925,662 Stockholders' Equity $ 17,861,470 $ 11,611,424
HQ SUSTAINABLE MARITIME INDUSTRIES, INC. AND SUBSIDIARIES (INCORPORATED IN THE STATE OF DELAWARE WITH LIMITED LIABILITY)
CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
2005 2004 -------------- -------------
SALES $ 27,553,030 $ 21,191,492
COST OF SALES 16,002,911 16,082,992 -------------- -------------
GROSS PROFIT 11,550,119 5,108,500
SELLING AND DISTRIBUTION EXPENSES 301,630 384,102 ADVERTISING 3,623,107 1,674,988 GENERAL AND ADMINISTRATIVE EXPENSES 2,421,781 3,031,941 DEPRECIATION 961,295 615,120 PROVISION FOR DOUBTFUL ACCOUNTS (RECOVERY) (340,627) (1,057,130) -------------- ------------- INCOME FROM CONTINUING OPERATIONS 4,582,933 459,479
FINANCE COSTS 360,782 406,840 OTHER EXPENSES 327,059 282,229 -------------- -------------
INCOME/(LOSS) BEFORE INCOME TAXES 3,895,092 (229,590)
INCOME TAXES CURRENT 333,092 - DEFERRED 307,902 216,544 -------------- -------------
INCOME/(LOSS) BEFORE MINORITY INTEREST 3,254,098 (446,134)
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
