China Pharmaceuticals, Inc. (OTC Bulletin Board: CFMI) ("China
Pharmaceuticals Inc." or the "Company"), one of China’s leading
manufacturers and distributors of prescription and over-the-counter
pharmaceuticals, today announced record financial results for its
second quarter ended June 30, 2010. The Company's annual report on
Form 10-Q was filed on August 23, 2010 with the United States
Securities and Exchange Commission.
"We are extremely delighted to report a strong second quarter of
2010, with revenues and Net income significantly exceeding our
expectations. We continue to believe that the factors that
contributed to this performance were strong sales from our new
products and the highly effective restructuring of our sales and
marketing network. With $10,447,588 in Net sales for the quarter
ended June 30, 2010, representing a 105% increase over the same
quarter last year, along with a particularly robust $5,371,366 in
recorded Net income, representing a 208% increase over the same
quarter last year, we continue to be extremely pleased with the
company’s performance to date and its growth prospects for the
future,” stated Mr. Guozhu Wang, Chairman and Chief Executive
Officer of China Pharmaceuticals, Inc. "We are focused on
continuing to expand our portfolio of high margin products and
aggressively expanding our sales and marketing network that will
allow us to continue to build sustainable growth in revenues and
profits."
Second Quarter 2010 Highlights versus second quarter
2009:
- Total revenue for the quarter
increased 105% over the same period last year.
- Gross profit increased by
89%.
- Operating income rose 204%.
- Net income grew 208%.
- Diluted earnings per share of
$0.16.
Total revenue for the quarter ended June 30, 2010 increased 105%
to $10,447,588 from $5,084,112 for the second quarter ended June
30, 2009. Gross profit rose 89% to $6,080,998, as compared to
$3,217,017 for the second quarter last year. Operating income grew
204% to $6,355,754 from $2,089,349 for the second quarter ended
June 30, 2009. Net income increased 208% to $5,371,366, producing
diluted earnings per share of $0.16, as compared to the second
quarter ended June 30, 2009, which produced $1,743,935 in Net
income and diluted earnings per share of $0.06.
Six months ended June 30, 2010 versus six months ended June
30, 2009:
- Total revenue increased 79% over
the same period last year.
- Gross profit increased by
72%.
- Operating income rose 77%.
- Net income grew 69%.
- Diluted earnings per share of
$0.19.
Total revenue for the six months period ended June 30, 2010
increased 79% to $17,500,787 from $9,777,545 for the six months
period ended June 30, 2010. Gross profit rose 72% to $10,314,019,
as compared to $5,981,156 for the six months period ended last
year. Operating income grew 77% to $7,571,000 from $4,278,503 for
the six months period ended June 30, 2009. Net income increased 69%
to $6,015,553, producing diluted earnings per share of $0.19, as
compared to the six months period ended June 30, 2009, which
produced $3,546,704 in Net income and diluted earnings per share of
$0.13.
Financial Condition as at June 30, 2010:
As of June 30, 2010, the Company had $6,739,263 in cash. Working
capital was $17,942,308, up from $9,243,121 as at December 31,
2009, representing an increase of 94%. Long term debt remains at
Nil. Shareholders' equity as at June 30, 2010 was $36,883,263, as
compared to $28,624,514 at the end of December 31, 2009. Total
assets as at June 30, 2010 amounted to $40,135,508.
Outlook for 2010:
"Fiscal 2010 continues to be a transitional year for China
Pharmaceuticals, Inc. as we prepare for the introduction of new
drugs, and pursue additional opportunities for both organic growth
and potential strategic acquisitions. Our current outlook reflects
only the drugs that we have in hand today and will be subject to
update as we execute strategic initiatives to expand our market
position and profitability in the future. Based on our performance
to date, we continue to remain extremely optimistic regarding our
future growth prospects and look forward to sharing further details
with our shareholders as we proceed with our expansion plans,"
concluded Mr. Guozhu Wang.
About China Pharmaceuticals, Inc.:
China Pharmaceuticals, Inc., www.chinapharmaceuticalsinc.com,
has its headquarters based in the industrial city of Xi’an, Shaanxi
Province, China. The Company identifies, discovers, develops,
manufactures, and distributes both prescription and over-the
counter pharmaceutical products, including both conventional and
traditional Chinese medicines, for the treatment of some of the
most common ailments and diseases. China Pharmaceuticals Inc.
currently manufactures 132 pharmaceutical products in 11 dosage
forms including capsules, oral solutions, tablets, granules,
syrups, medicinal teas, tincture and solutions for injection. The
company currently markets and distributes 111 prescription drugs
representing 84% of sales distributed via 31 sales offices
(including 2 company-owned distribution and logistics centers) to a
network of hospitals and clinics nation-wide. The Company operates
2 modern hi-tech manufacturing facilities, with 486 employees,
based in Hanzhong and the Xi’an Jinghe Industrial Zone, both in
Shaanxi Province.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including but not limited to, the company's ability to
raise additional capital to finance the company's activities; the
effectiveness, profitability, and the marketability of its
products; legal and regulatory risks associated with the share
exchange; the future trading of the common stock of the company;
the ability of the company to operate as a public company; the
period of time for which its current liquidity will enable the
company to fund its operations; the company's ability to protect
its proprietary information; general economic and business
conditions; the volatility of the company's operating results and
financial condition; the company's ability to attract or retain
qualified senior management personnel and research and development
staff; and other risks detailed in the company's filings with the
Securities and Exchange Commission and available on its website at
http://www.sec.gov. These forward-looking statements involve known
and unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the
companies and the industry. The company undertakes no obligation to
update forward-looking statements to reflect subsequent occurring
events or circumstances, or to changes in its expectations, except
as may be required by law. Although the company believes that the
expectations expressed in these forward-looking statements are
reasonable, they cannot assure you that their expectations will
turn out to be correct, and investors are cautioned that actual
results may differ materially from the anticipated results.