Hanfeng Evergreen Inc. announced audited earnings results for the fourth quarter and year ended June 30, 2013. For the quarter, the company reported sales of CAD 73.916 million compared to CAD 84.228 million a year ago. Adjusted EBITDA was CAD 4.023 million compared to CAD 8.540 million a year ago. Net income was CAD 33.026 million or CAD 0.55 per basic and diluted share compared to net loss of CAD 2.348 million or CAD 0.04 per basic and diluted share a year ago. The decrease in sales is due primarily to reduced sales volumes from its China operations due to lower sales volumes to the company's largest customer, coupled with production issues relating to excessive snowfall during the 2012/2013 winter season, offset by a small increase in selling price per metric ton (MT). The main reason for the decrease in adjusted EBITDA was lower production and sales volumes during fourth quarter of fiscal year 2013, which generated reduced gross profit. The main reasons for the increased net income are the reversal of impairment during fourth quarter of fiscal year 2013.

For the year, the company reported sales of CAD 164.720 million compared to CAD 212.337 million a year ago. Adjusted EBITDA was CAD 8.281 million compared to CAD 24.117 million a year ago. Net loss was CAD 80.840 million or CAD 1.34 per basic and diluted share compared to net income of CAD 6.925 million or CAD 0.11 per basic and diluted share a year ago. The decrease in sales is due primarily to reduced sales in China. The main reasons for the decreased net income resulted from impairment charges recorded in the second quarter of fiscal 2013 in property and equipment and the impairment of inventory and advances to suppliers.

For the quarter, the company reported impairment loss of CAD 0.800 million compared to CAD 10.117 million a year ago.