Gross profit increased 18% for the three months ended June 30, 2007 to $2.2 million compared to $1.9 million for the same period in 2006. The gross profit margin for the three months ended June 30, 2007 was 25% compared to 27% for the same period in 2006.
Income from operations for the three months ended June 30, 2007 decreased 25% to $649 thousand compared to $860 thousand for the same period in 2006. The decrease is mainly attributable to high operational expenses and poor operational performance of Enshi of which financials were only partially reflected for the three months ended June 30, 2006.
The Company reported a net loss for the second quarter of 2007 of $29 thousand compared to a net income of $391 thousand for the second quarter of 2006. The net loss for the quarter was mainly attributable to the higher payment and accrued interest expenses as a result of the acquisition financing loan due to RimAsia Capital Partners for Enshi. EBITDA for the second quarter of 2007 decreased 25% to $945 thousand compared to $1.2 million for the same period in 2006.
As of June 30, 2007, total assets were $50 million and total liabilities were $36.7 million. Shareholder equity was $13.4 million or $.37 per share.
Ms. ZHANG Jian, Chairwoman of the Board, commented, "This quarter the management team and I have been focused on restructuring our balance sheet and building our core business, especially our most successful subsidiary, Erye. Recently, we signed a letter of intent with RimAsia to convert their $11.5 million of debt to equity. I can assure our shareholders that we are working diligently to ensure these negotiations become finalized in a timely fashion."
Ms. ZHANG Jian, continued, "I am also pleased to announce our intent to
acquire the remaining 49% of Erye. With the continued success of Erye this
quarter and the strong growth potential of this subsidiary, the team and I
are eager to finalize the acquisition of the remai
|SOURCE China Biopharmaceuticals Holdings, Inc.|
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