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China Sky One Medical, Inc. Announces Record Second Quarter 2009 Results
Date:8/14/2009

r the 'Yu Fu' brand and received very positive feedback," said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical, Inc.

"Over the past three months, consultants from PWC have been working closely with China Sky One Medical to examine and improve our internal controls in the fields of accounting, sales, purchasing and inventory management. We feel confident in the quality of our financial reporting," Mr. Liu added.

Second Quarter 2009 Results

Total revenues increased 35.5% year-over-year to $32.2 million for the three months ended June 30, 2009. The increase was primarily attributable to the strong performance by the Company's own sales team and its sales agents as well as contributions from several complimentary business acquisitions in 2008.

Sales of patch products rose moderately to $9.9 million in the second quarter of 2009, accounting for 30.9% of revenue, compared to 37% a year ago. Sales of ointments rose 18.1% year-over-year to $7.7 million, accounting for 23.8% of revenue, versus 28% of revenue a year ago. Sales of spray products rose 69.3% year-over-year to $4.8 million, accounting for 14.9% of revenue, versus 20.0% a year ago. The increase in spray products was mainly from the increased sales of mouth sprays due to the outbreak of the H1N1 virus. Sales of bio-engineering products, i.e. three diagnostic testing kits, rose 71.9% year-over-year to $3.7 million, accounting for 11.5% of revenue during the quarter. Sales of the Company's other 48 products reached $6.1 million for the second quarter of 2009, compared to $3.5 million for the same period last year. The higher sales in this category were mainly due to an increase in diversified products from the acquisitions of Heilongjiang Tianlong Pharmaceutical, Inc. and Peng Lai Jin Chuang Pharmaceutical Company in 2008. Contract sales of non-manufactured products were discontinued since the beginning of 2009.


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SOURCE China Sky One Medical, Inc.
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