Pacrim International Capital Inc. announces year end results for fiscal 2009

HONG KONG , Sept. 28 /CNW/ - PACRIM INTERNATIONAL CAPITAL INC. (PCN: TSX) (the "Company"), is pleased to report the Company's results for the year ended June 30, 2009 .

    
    FOR THE YEAR ENDED JUNE 30, 2009:
    ---------------------------------

    - FINANCIAL HIGHLIGHTS

                                                       Year ended June 30,
                                                       2009          2008
                                                         $             $

    Revenue                                            967,854     2,452,735
    Income from Operations                             227,296     1,424,128
    Net (loss)                                        (456,273)   (1,203,070)
    Funds from Operations                           (2,816,994)   (2,973,844)

    Total Assets                                    54,386,131    52,921,612
    Real Estate Facilities                          12,616,541    15,307,814
    Long-lived Assets Held for Sale                  2,228,481             -
    Mortgages                                        5,384,066     6,045,640

                               Per Common Share

    Net loss                                             (0.01)        (0.02)
    

- REVIEW OF OPERATIONS

A breakdown of the Company's revenue for the year ended June 30, 2009 compared to the year ended June 30, 2008 is as follows:

    
                                                       Year ended June 30,
                                                       2009          2008
                                                         $             $

    Rental properties                                  193,215       343,362
    Interest                                           774,639     2,053,020
    Condominium sales and other                              -        56,353
    Total                                              967,854     2,452,735
    

Revenue decreased by $1,484,881 from 2008 to 2009.

Real Estate Facilities

Revenue from rental properties decreased by $150,147 from $343,362 in 2008 to $193,215 this year mainly due to expiration of the rental leases with no renewal. Revenue was mainly generated from Greenland Garden.

Interest

Interest income reduced by $1,278,381 from $2,053,020 to $774,639 this year mainly due to retirement of various related party loans.

Condominium Sales and other

There is no such sales generated this year as all sales were completed in fiscal 2007.

    
    Income from Operations

                                                       Year ended June 30,
                                                       2009          2008
                                                         $             $

    Rental properties                                 (547,343)     (685,245)
    Interest                                           774,639     2,053,020
    Condominium sales and other                              -        56,353
    Total                                              227,296     1,424,128
    

Rental properties - Loss decreased by $137,902 from a loss of $685,245 in 2008 to a loss of $547,343 in 2009.

Rental revenue decreased by $150,147 and total expenses decreased by $288,049 .

Interest - Income decreased by $1,278,381 mainly due to retirement of various related party loans in the second quarter of 2009.

Condominium sales and other - Income decreased by $56,353 from $56,353 in 2008 to nil in 2009 due to all sales of condominium were completed in fiscal 2007.

Equity income from PICH:

During the second quarter of 2009, the Company completed the process to retire various related party loans by the transfer of 46% of the shares of Pacrim International Capital Holdings Inc. ("PICH") to the Company. The consideration for the equity investment in PICH is determined by reference to the fair values of the assets and liabilities of PICH at the date of acquisition, November 14, 2008 . The Company's equity income from PICH is $1,787,000 (including gain on disposal of partial equity interest in Wah Sang Paper Products (Shenzhen) Co. Ltd. ("Wah Sang") of $1,382,000 ) from November 14, 2008 to June 30, 2009 .

PICH holds 75.07% interest in Wah Sang, a corrugated packaging company. The corrugated packaging operations of Wah Sang are located in Shenzhen, in the Pearl River Delta of southern China which houses one of the world's largest concentrations of manufacturing of consumer electronics, office and telecommunication equipment. Wah Sang sells its high-end packaging products almost exclusively to multinational corporations which export from China . Wah Sang has annual production capacity of 63,000 tonnes of containerboard, 50,000 tonnes of flexo containers and 20,000 tonnes of off-set colour containers. The bulk of the containerboard produced is used internally for further processing into flexo containers or off-set colour containers. A detailed description of Wah Sang is contained in Schedule "A" to Pacrim's Business Acquisition Report of January 28, 2009 .

Net Loss

Net loss for this fiscal year decreased by $746,797 to a loss of $456,273 when compared to a loss of $1,203,070 last fiscal year.

Total Assets

The Company had total assets of $54,386,131 at June 30, 2009 , which consisted of cash and cash equivalents of $387,544 . As at June 30, 2009 , the Company's short-term liabilities exceeded its short term assets by approximately $10.7 million . In recognition of the circumstances, the Company is in the process of negotiating extended payment terms for its short-term liabilities and is also pursuing other financing alternatives to fund the Company's operation. Reference is made to the "Liquidity and Capital Resources" section of the Management's Discussion and Analysis for the year ended June 30, 2009 .

Pacrim has disposed 17 apartments of the Greenland Garden in Beijing subsequent to June 30, 2009 for US$3.78 million with a net gain of US$1.38 million. The Company purchased these properties 5 years ago for US$2.18 million along with 6 villas for a total purchase price of US$4.54 million. The gain from this unique disposal opportunity plus rental income provided to the Company return on equity at 340%, averaging 68% return yearly.

The full financial statements for the year end and the related Management's Discussion & Analysis are available on the System for Electronic Document Analysis and Retrieval (SEDAR) and can be accessed electronically at www.sedar.com.

About Pacrim International Capital Inc.

Pacrim International Capital Inc. ("Pacrim") is an investment holding company with its investments focused mostly in southern China . Pacrim's business strategy is to concentrate on the corrugated paper products and packaging industry in the Pearl River Delta area of southern China , the heart of the "World's Factory". The Company's head office is in Hong Kong with offices in Shenzhen, Guangzhou and Beijing . An intended strategy of Pacrim is to acquire selected small or medium size enterprises in China and to merge them for better operational efficiency. Like many industries in a developing economy, China's corrugation sector is comprised of mostly SMEs, some of which are weakened by the recent international financial crises, and may therefore be available to be taken over.

Caution concerning forward-looking statements

Statements made in this news release, other than those concerning historical financial information, should be considered forward-looking and subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend" or "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on such statements, as actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include, but are not limited to: risks associated with China including state ownership, government sector intervention, foreign investment, repatriation of profit and currency conversion, tax, the developing legal system, protection of intellectual property rights, shareholder rights and enforcement of judgments, permits and business licenses, appropriation, political stability considerations, the central planned economy, fluctuations in foreign exchange rates and Chinese accounting and auditing standards; risks in business and operations including risks associated with expansion, future capital requirements, dependence on key personnel, environmental regulation, competition, risk in purchasing abroad, risk of change in the price of raw materials, product price volatility, insurance and operating plant risk; customer risk including risk of a single market and risk depending on major customers; technical risk including risk in the advance of technology and risk of relying on technology abroad; financial risk including foreign exchange risk, credit risk, liquidity risk, cash flow and fair value interest rate risk; investment strategy risk; and short term management transition risk.

We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Risk Factors" section of Pacrim's Annual Information Form, the "Risks and Uncertainties" and other sections of our Management's Discussion and Analysis, the "Risk Factors" section of Schedule "A" to our Business Acquisition Report of January 28, 2009 and our other periodic filings with Canadian securities regulatory authorities. All forward-looking statements presented herein should be considered in conjunction with such filings. Except as required by Canadian securities law, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time-to-time by us or on our behalf; such statements speak only as of the date made.

For further information: Guy Lam, Chief Executive Officer, Pacrim International Capital Inc., Tel. [phone]