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PACRIM INTERNATIONAL CAPITAL INC. ANNOUNCES FIRST QUARTER RESULTS FOR DECEMBER 31, 2010

^{Published on 2011-02-11 05:50:52 - Market Wire}
 

HONG KONG, Feb. 11 /CNW/ - PACRIM INTERNATIONAL CAPITAL INC. (PCN: TSX) ("Pacrim" or the "Company"), is pleased to report the Company's results for the first quarter ended December 31, 2010.

FOR THE FIRST QUARTER ENDED DECEMBER 31, 2010:

FINANCIAL HIGHLIGHTS

REVENUE:

Revenue for the first quarter increased by $48,925 to $68,773 when compared to the same period last year.

Rental Revenue:

The first quarter of the fiscal year income from rental properties was $50,105, increased by $34,814 compared to the same period last year. The increase was mainly due to purchase of new rental properties during fiscal 2010.

Interest and Other:

Interest and other income for the first quarter ended December 31, 2010 increased by $14,111 to $18,668 when compared to the same period last year. The increase was mainly from the dividend and other income generated by the available-for-sale financial assets.

Equity Income from PICH:

The equity income from PICH is $575,000 for the first quarter of fiscal 2011. The equity investment in PICH is based on the fair values of the assets and liabilities of PICH at the date of acquisition, November 14, 2008.

NET INCOME:

Net income for the first quarter increased by $20,607 from $336,094 to $356,701 when compared to the same period last year. The increase was mainly due to a net effect of the decrease in operating income and the increase of foreign exchange.

Outlook

The Company has chosen to change its strategic direction from being a firm focused on Canadian real estate to one that is focused on one of the fastest growing economies in the world - China.

Using the same formula as in the past, management believes the company will successfully transit into the Chinese marketplace and continue to grow through a well-defined internal growth and external acquisition program.  Management intends to seek out and take advantage of opportunities in the Asian market and will not restrict itself to the real estate or hospitality industries.

The full financial statements for the 15 months ended September 30, 2010 and the first quarter 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.

The Company is an investment holding company with its investments focused to date mostly in the southern part of the People's Republic of China ("China").  The Company's business includes participation in the corrugated paper products and packaging industry in the Pearl River Delta area of southern China, the heart of the "World's Factory".  An intended strategy of the Company is to acquire selected small or medium size enterprises in China and to merge them for better operational efficiency. The Company also intends to enter the diabetes treatment field in China and the assisted living residence business (including diabetes clinics) in the United States.  The Company's head office is in Hong Kong with offices in Shenzhen, Guangzhou and Beijing.  The Company had previously held a portfolio of commercial real estate assets and hotels in Canada.

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.