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

2,191,230 2,191,230

Retained earnings 17,650,624 14,008,587

Accumulated other comprehensive

income 4,194,619 2,122,795

Total shareholders' equity 37,012,858 30,884,183

Total liabilities and

shareholders' equity $38,422,201 $32,640,238

CHINA MEDICINE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007

(Unaudited)

2008 2007

CASH FLOWS FROM OPERATING

ACTIVITIES:

Net income $3,642,037 $1,890,855

Adjustments to reconcile net income

to cash used in operating activities:

Minority interest (45,310) (52,117)

Depreciation and amortization 193,572 130,330

Bad debt expense -- 876

Stock issued for services -- 134,550

Amortization of stock option and

warrant compensation 52,314 50,258

Amortization of deferred expenses 175,421 --

Loss on currency exchange -- 19,620

Change in operating assets

Accounts receivable, trade (657,089) 521,256

Notes receivables (1,670,875) --

Inventories (804,759) (2,500,265)

Advances to suppliers (3,473,818) (3,356,149)

Other current assets
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SOURCE China Medicine Corporation
Copyright©2008 PR Newswire.
All rights reserved

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