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China Medicine Announces Strong Second Quarter 2008 Results
Date:8/13/2008

competition from existing and new competitors, changes in technology, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Medicine Corporation undertakes no duty to revise or update any forward- looking statement to reflect events or circumstances after the date of this release.

--FINANCIAL TABLES FOLLOW--
CHINA MEDICINE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (Unaudited)

Three months ended Six months ended

June, 30 June, 30

2008 2007 2008 2007

REVENUES

Product sales $11,067,074 $7,764,535 $17,918,458 $12,647,744

Medical formula sales 570,465 499,433 780,120 709,219

Total revenues 11,637,539 8,263,968 18,698,578 13,356,963

COST OF GOOD SOLD 7,481,170 5,859,008 12,230,189 9,264,425

GROSS PROFIT 4,156,369 2,404,960 6,468,389 4,092,538

OPERATING EXPENSES

Research and

development 107,824 543 196,216 100,655

Selling, general and

administrative 1,060,082 960,924 1,872,590 1,604,770

Total operating

expenses 1,167,906 961,467 2,068,806 1,705,425

INCOME FROM OPERATIONS 2,988,463 1,443,493 4,399,583 2,387,113

OTHER INCOME (EXPENSE),

NET 32,104 (7,118) 38,087 (10,090)

INCOME BEFORE INCOME

TAXES AND MINORITY

INTEREST 3,020,567 1,436,375 4,437,670 2,377,023

PROVISION FOR INCOME


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SOURCE China Medicine Corporation
Copyright©2008 PR Newswire.
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