NEW YORK, Nov. 15 /PRNewswire-FirstCall/ -- China Aoxing Pharmaceutical Company, Inc. (OTC Bulletin Board: CAXG), which has the largest manufacturing facility and product pipeline for highly regulated narcotic medicines and pain medication in China, today announced financial results for the first quarter of fiscal 2008 ended September 30, 2007.
China Aoxing Pharmaceutical Company reported revenues of $1,380,294 for the first quarter of fiscal 2008, a 33% sequential increase from the fourth quarter of fiscal 2007, reflecting sales of Naloxone Hydrochloride, an analgesic used to reverse the effects of narcotic drugs used during surgery, and Shuanghuanglian, a traditional Chinese medicine treatment for cough and cold. Gross profit during this period was $754,641, a gross profit margin of 55%.
Zhenjiang Yue, Chairman and Chief Executive Officer of China Aoxing Pharmaceutical stated, "We are pleased to report strong business progress and financial results for the first quarter of fiscal 2008. Driven by continued execution of our business strategy and solid growth in our core product portfolio, sales in the fourth quarter of fiscal 2007 reached to $1.38 million. We see the continuous growth trend of our first narcotic drug, Naloxone Hydrochloride, which was launched in February 2007. We continue receiving positive feedback on our pipeline development from the China State Food & Drug Administration (SFDA) and we are very optimistic about our Company's opportunity to bring to China established narcotics and pain medicines, which are industry standards in the United States and Europe. We move aggressively into the commercialization stage of our pipeline products, most of which are expected to be launched over the next twelve to eighteen months."
Total operating costs and expenses for the first quarter of fiscal 2008 were $1.77 million, which reflected approximately $815,103 of general and administrative expense attributable to the production, sales and marketing of products. In addition, the Company amortized $519,915 of non-cash deferred interest expense, and recognized interest expense of $259,303 as well as $57,262 of research and development costs. The Company reported a net loss of $1.02 million in the first quarter of fiscal 2008.
As of September 30, 2007, the Company had $1.03 million of cash. China Aoxing Pharmaceutical had a working capital deficit of approximately $9.7 million as of September 30, 2007. The Company had total borrowings of $15.2 million as of September 30, 2007.
Zhenjiang concluded, "Our goal is to be a leading, fully integrated narcotic drug and pain medicine company in China. For the remainder of the calendar year, we will be diligently continuing our sales efforts of approved products as well as completing and integrating our LRT acquisition. In addition, as a long term growth strategy, we are actively evaluating external opportunities including pharmaceutical and biotech products or businesses offering leading technology platform, competitive products, high technical and regulatory advantages."
About China Aoxing Pharmaceutical Company, Inc.
China Aoxing Pharmaceutical Company, Inc. (OTC Bulletin Board: CAXG) is a pharmaceutical company in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain management products. Headquartered in Shijiazhuang City, the pharmaceutical capital of China, outside of Beijing, the Company has the largest product pipeline and largest manufacturing facility (1.2 million sq. ft.) for highly regulated narcotic medicines, addressing a very under-served market in China. Its facility is one of the few GMP facilities licensed for narcotics medicines. The Company has two drugs on the market and has received China SFDA licenses for seven more medications such as Oxycodone, Tilidine and Pholcodine. The Company is working closely with the Chinese government and SFDA to assure the availability of narcotic drugs and pain medicines throughout China.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. You are urged to read the Company's filings with the Securities and Exchange Commission, including, but not limited to, the risk factors contained therein. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Dr. Hui Shao
Senior Vice President
China Aoxing Pharmaceutical
China Aoxing Pharmaceutical Co., Inc. and Subsidiaries
SEPTEMBER 30, 2007
Accounts receivable 155,966
Prepaid expenses and sundry current assets 200,973
TOTAL CURRENT ASSETS 1,709,392
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION 19,324,273
DEFERRED INTEREST 9,011,856
TOTAL ASSETS $30,045,521
Short-term borrowings $266,042
Accounts payable 638,781
Loan payable - other 573,550
Due to stockholders 685,798
Accrued expenses and taxes payable 2,286,924
Current portion of long-term debt 6,983,473
TOTAL CURRENT LIABILITIES 11,434,568
LONG-TERM DEBT 4,389,699
CONVERTIBLE DEBENTURES 2,347,000
Common stock, $0.001 par value,
100,000,000 shares authorized
41,595,507 shares issued and outstanding 40,595
Preferred stock, $0.001 par value,
300,000 shares authorized
277,018 shares issued and outstanding 277
Additional paid-in capital 19,470,686
Deferred stock compensation (255,277)
Accumulated deficit (7,807,723)
Other comprehensive income 425,696
TOTAL STOCKHOLDERS' EQUITY 11,874,254
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $30,045,521
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
SALES $1,380,294 $-
COST OF SALES 625,653 -
GROSS PROFIT 754,641 -
COSTS AND EXPENSES:
Research and development 57,262 10,067
General and administrative 815,103 201,386
Interest expense 259,303 329,031
Depreciation and amortization 118,812 -
Amortization of deferred interest 519,915 56,913
TOTAL COSTS AND EXPENSES 1,770,395 597,397
NET LOSS $(1,015,754) $(597,397)
Basic and diluted earnings per
common share $(0.03) $(0.01)
Weighted average number of shares
outstanding 40,453,009 40,050,000
|SOURCE China Aoxing Pharmaceutical Company, Inc.|
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