Nine Month Financial Results
Revenue for the nine months ended September 30, 2007 increased 34% to $22.5 million compared to $16.8 million for the period ended September 30, 2006. The increase in revenues again was attributable to the revenue growth of the Company's subsidiary Eyre. Additionally, the Company had to restate revenues and earnings from its Enshi subsidiary as it was determined that the previous owner had booked false accounts.
Gross profit increased 44% for the nine months ended September 30, 2007 to $6 million compared to $4.18 million for the same period in 2006. The gross profit margin for the nine months ended September 30, 2007 was 26.5% compared to 25% for the same period in 2006.
Income from operations for the nine months ended September 30, 2007 was approximately the same at $1.42 million compared to $1.44 million for the same period in 2006. The slight decrease in operating profit was related to an increase in operating expenses from $4.55 million for the nine months ended September 30, 2007 versus $2.73 million a year ago. The increase in these expenses was mainly realized in the third quarter for the reasons detailed above.
The Company reported a net loss for the nine month period of 2007 of $917 thousand compared to a net income of $117 thousand for the nine months of 2006, before one-time losses on discontinued operations. 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.
As discussed above, the Company took a one-time charge of $10.8 million
related to the write-off of the Enshi subsidiary which it no longer owns.
Additionally, the Company had a
|SOURCE China Biopharmaceuticals Holdings, Inc.|
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