FOSTER CITY, Calif.,
Feb. 8, 2016 /PRNewswire/ -- Aoxing Pharmaceutical
Company, Inc. (NYSE MKT: AXN) today announced that for the
second quarter of fiscal year 2016, ended December 31, 2015, the Company achieved revenue
of $8,195,839, a 27% improvement on
revenue of $6,430,701 recorded in the
same quarter in fiscal 2015.
The Company's net income in Q2 of fiscal year 2016 was
$2,068,635, or $.03 per share, up 265% from the net income of
$567,169, or $.01 per share, in the Q2 of fiscal year 2015.
Gross margin for the three months ended December 31, 2015 was 79% compared to gross
margin of 75% in the like year-ago quarter.
Aoxing's cash balance as of December 31,
2015 was $6,435,362, compared
to $5,371,545 as of June 30, 2015, the end of its last fiscal
year.
The Company's increase in second quarter revenue was primarily
attributable to an increase in the number of customers for its lead
pain management product, Zhongtong'an. Aoxing's 265% increase
in net income was primarily the result of the Company's increased
revenue, improved gross profit, and a 40% decrease in net interest
expense due to a reduction in loan balances. Such earnings growth
was realized despite higher R&D expenses during the recent
quarter, which was mainly due to a large payment for a key raw
material used in our R&D program.
Mr. Zhenjiang Yue, Chairman and
CEO of Aoxing Pharma, said, "We are pleased by the continued growth
of our Company, as our revenue for the first half of fiscal year
2016 increased by 54% to $16,940,661. Our Zhongtong'an product, which was
recently included in the government essential drug procurement
lists in four new provinces, has continued to accelerate our sales
growth. We believe the growing market for Zhongtong'an,
coupled with the introduction to market of our Tilidine HCL pain
fighting tablets and capsules during the current quarter, should
help our Company achieve its revenue target of $45 million in fiscal year 2016, along with
continued earnings growth in fiscal year 2016 and beyond."
About the Company
Aoxing Pharmaceutical Company, Inc.
is a U.S. incorporated pharmaceutical company with its
operations in China, specializing
in research, development, manufacturing and distribution of a
variety of narcotics and pain-management products. Headquartered in
Shijiazhuang City, outside
Beijing, Aoxing Pharma has the
largest and most advanced manufacturing facility in China for highly regulated narcotic medicines.
Its facility is one of the few GMP facilities licensed for the
manufacture of narcotic medicines by the China Food and Drug
Administration ("CFDA"). For more information, please visit:
www.aoxingpharma.com.
Safe Harbor Statement. This press release contains
certain statements that may include "forward-looking statements."
All statements other than statements of historical fact included
herein are "forward-looking statements." These forward-looking
statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions,
involving known and unknown risks and uncertainties. Although the
Company believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and so these expectations may
prove to be incorrect. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including the risk factors
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on the SEC's
website (http://www.sec.gov). All forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these risk factors. Other
than as required under the securities laws, the Company does not
assume any duty to update these forward-looking statements.
|
AOXING
PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
June
30,
|
|
|
|
2015
|
|
|
|
2015
|
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
6,435,362
|
|
|
$
|
5,371,545
|
|
|
Accounts receivable,
net
|
|
6,578,492
|
|
|
|
5,764,738
|
|
|
Notes receivable,
net
|
|
23,103
|
|
|
|
89,317
|
|
|
Inventories,
net
|
|
3,900,849
|
|
|
|
3,240,026
|
|
|
Prepaid expenses and
other current assets
|
|
8,193,479
|
|
|
|
6,630,407
|
|
|
TOTAL CURRENT
ASSETS
|
|
25,131,285
|
|
|
|
21,096,033
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation
|
|
26,647,887
|
|
|
|
28,651,717
|
|
|
Deferred income
tax
|
|
1,319,524
|
|
|
|
2,711,610
|
|
|
Other intangible
assets, net
|
|
427,554
|
|
|
|
484,857
|
|
|
Investment in joint
venture
|
|
53,210
|
|
|
|
96,475
|
|
|
TOTAL LONG-TERM
ASSETS
|
|
28,448,175
|
|
|
|
31,944,659
|
|
|
TOTAL
ASSETS
|
$
|
53,579,460
|
|
|
$
|
53,040,692
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
$
|
11,038,551
|
|
|
$
|
12,484,356
|
|
|
Accounts
payable
|
|
2,348,225
|
|
|
|
3,625,139
|
|
|
Notes
payable
|
|
-
|
|
|
|
1,631,641
|
|
|
Loan payable –
bank
|
|
14,939,856
|
|
|
|
16,316,408
|
|
|
Current portion of
loan payable - related parties
|
|
13,494
|
|
|
|
5,793
|
|
|
Current portion of
loan payable – others
|
|
15,402
|
|
|
|
-
|
|
|
Accrued expenses and
other current liabilities
|
|
7,154,105
|
|
|
|
7,176,325
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
35,509,633
|
|
|
|
41,239,662
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
|
|
Loan payable -
related parties
|
|
-
|
|
|
|
8,158
|
|
|
Loan payable –
others
|
|
-
|
|
|
|
1,361,199
|
|
|
Deferred
income
|
|
348,083
|
|
|
|
368,751
|
|
|
TOTAL LONG-TERM
LIABILITIES
|
|
348,083
|
|
|
|
1,738,108
|
|
|
|
|
|
|
|
|
|
|
Common stock, par
value $0.001, 100,000,000 shares authorized, 72,252,200 and
69,839,259 shares issued and outstanding on September 30, 2015 and
June 30, 2015
|
|
74,299
|
|
|
|
69,839
|
|
|
Additional paid in
capital
|
|
71,998,484
|
|
|
|
66,457,250
|
|
|
Accumulated
deficit
|
|
(55,018,398)
|
|
|
|
(58,354,968)
|
|
|
Accumulated other
comprehensive income
|
|
1,713,633
|
|
|
|
3,066,026
|
|
|
TOTAL
SHAREHOLDERS' EQUITY OF THE COMPANY
|
|
18,768,018
|
|
|
|
11,238,147
|
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTEREST IN SUBSIDIARIES
|
|
(1,046,274)
|
|
|
|
(1,175,225)
|
|
|
TOTAL
EQUITY
|
|
17,721,744
|
|
|
|
10,062,922
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
|
53,579,460
|
|
|
$
|
53,040,692
|
|
See accompanying notes to the consolidated
financial statements
|
AOXING
PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE
INCOME
(LOSS)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
For the six months
ended
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
8,195,839
|
|
|
$
|
6,430,701
|
|
|
$
|
16,940,661
|
|
|
$
|
10,955,783
|
|
|
|
COST OF
SALES
|
|
|
1,726,592
|
|
|
|
1,624,853
|
|
|
|
3,484,671
|
|
|
|
3,012,386
|
|
|
|
GROSS
PROFIT
|
|
|
6,469,246
|
|
|
|
4,805,849
|
|
|
|
13,455,990
|
|
|
|
7,983,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development expense
|
|
|
830,105
|
|
|
|
95,597
|
|
|
|
1,207,411
|
|
|
|
203,147
|
|
|
|
General
and administrative expenses
|
|
|
511,127
|
|
|
|
821,008
|
|
|
|
1,455,485
|
|
|
|
1,332,495
|
|
|
|
Selling
expenses
|
|
|
1,589,866
|
|
|
|
1,775,924
|
|
|
|
3,984,212
|
|
|
|
2,978,433
|
|
|
|
Depreciation and amortization
|
|
|
128,126
|
|
|
|
140,801
|
|
|
|
259,656
|
|
|
|
280,076
|
|
|
|
TOTAL
OPERATING EXPENSES
|
|
|
3,059,224
|
|
|
|
2,833,331
|
|
|
|
6,906,764
|
|
|
|
4,794,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
3,410,023
|
|
|
|
1,972,518
|
|
|
|
6,549,225
|
|
|
|
3,189,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of interest income
|
|
|
(979,906)
|
|
|
|
(1,628,120)
|
|
|
|
(1,908,936)
|
|
|
|
(2,821,280)
|
|
|
|
Gain on
foreign currency transactions
|
|
|
24,753
|
|
|
|
0
|
|
|
|
83,345
|
|
|
|
|
|
|
|
Equity in
loss of joint venture, net
|
|
|
(14,474)
|
|
|
|
(22,018)
|
|
|
|
(38,765)
|
|
|
|
(47,989)
|
|
|
|
Subsidy
income
|
|
|
157,266
|
|
|
|
279,573
|
|
|
|
205,027
|
|
|
|
279,573
|
|
|
|
TOTAL OTHER
EXPENSE
|
|
|
(812,362)
|
|
|
|
(1,370,565)
|
|
|
|
(1,659,329)
|
|
|
|
(2,589,696)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES
|
|
|
2,597,661
|
|
|
|
601,952
|
|
|
|
4,889,897
|
|
|
|
599,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
409,393
|
|
|
|
-
|
|
|
|
1,353,196
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
|
2,188,268
|
|
|
|
601,952
|
|
|
|
3,536,700
|
|
|
|
599,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributed
to non-controlling interest in subsidiaries
|
|
|
119,633
|
|
|
|
34,784
|
|
|
|
200,129
|
|
|
|
40,251
|
|
|
|
INCOME
ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY
|
|
|
2,068,635
|
|
|
|
567,169
|
|
|
|
3,336,571
|
|
|
|
559,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment
|
|
|
(753,581)
|
|
|
|
7,900
|
|
|
|
(1,423,572)
|
|
|
|
21,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
PROFIT
|
|
|
1,315,054
|
|
|
|
575,068
|
|
|
|
1,912,999
|
|
|
|
581,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) attributable to non-controlling interest
|
|
|
(37,679)
|
|
|
|
395
|
|
|
|
(71,179)
|
|
|
|
1,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME ATTRIBUTABLE TO THE COMPANY
|
|
$
|
1,352,733
|
|
|
$
|
574,673
|
|
|
$
|
1,984,178
|
|
|
$
|
579,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.03
|
|
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
|
Diluted
|
|
$
|
0.03
|
|
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
73,097,698
|
|
|
|
57,614,546
|
|
|
|
71,475,000
|
|
|
|
57,614,546
|
|
|
|
Diluted
|
|
|
73,177,698
|
|
|
|
57,674,546
|
|
|
|
71,555,000
|
|
|
|
57,674,546
|
|
|
|
See accompanying
notes to the consolidated financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aoxing-pharmaceuticals-q2-revenue-up-27-net-income-21-million-up-265-300216418.html
SOURCE Aoxing Pharmaceutical Company, Inc.