Selling, general and administrative expenses for the six months ended June 30, 2009 were $7.1 million, a decrease of 14.3% compared to $8.3 million in the same period in 2008. For the six months ended June 30, 2009, selling, general and administrative expenses as a percentage of sales was 18.4%, compared to 25.7% for the same period in 2008. This decrease was mainly due to the decrease in salary and insurance expenses as a result of salary reductions.
In China, Tiens sells its products to Tianjin Tianshi Biological Engineering Co., Ltd. ("Tianshi Engineering").
To qualify for a direct selling license in China, Tianshi Engineering is required to produce a part of the products that it sells in China. As a result, in 2006, Tiens began to sell semi-finished products to Tianshi Engineering, which jointly shares licenses with Tiens to produce, manufacture and sell the products. The semi-finished products, which Tiens is now exclusively selling in China, have lower sales prices than the finished products Tiens had previously sold to Tianshi Engineering. The application of Tianshi Engineering for a direct selling license in China is still pending.
Tiens continues to strive to expand its market share in China through the
branches, chain stores, and Chinese affiliated companies of Tianshi
Engineering. To enhance its position in this competitive market, Tianshi
Engineering continues to increase its marketing activities in China, including
opening additional branches across China, developing a nation-wide advertising
|SOURCE Tiens Biotech Group (|
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