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China Sky One Medical, Inc. Announces Record Fourth Quarter and Fiscal Year 2007 Results
Date:4/2/2008

We also introduced a new line of bio-chemical products and expanded into the high margin overseas markets," said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical, Inc. "We have a strong pipeline of new products, and plan to begin clinical testing of eight new kit products in 2008. We are also excited about our research and development efforts in the areas of stem cell research and our cancer treatment drug Endothelin-1. We hope to complete clinical trials of Enothelin-1 in 2013 and plan to open a cord stem cell and tissue bank at our newly established facility outside Harbin in late 2008 or 2009."

Fourth Quarter 2007 Results

China Sky One's total revenues in the fourth quarter were $12.7 million, an increase of 223% on year-over-year basis. This was primarily the result of strong performance associated with the Company's continued efforts to develop its sales distribution channels. Product sales increased 237.5% year-over- year to $9.3 million, or 73.5% of total revenues. Contract sales increased 188.2% year-over-year to $3.4 million and accounted for 26.5% of revenues in the fourth quarter of 2007.

Gross profit in the fourth quarter of 2007 was $9.9 million, an increase of 201% on year-over-year basis. Gross margin was 77.7% of total revenues, down from 83.2% of total revenues in the fourth quarter of 2006. The decline in gross margin was due to high production efficiency of core products according to the market demand, which resulted in a temporary, unusually high gross margin in the fourth quarter of 2006.

Operating expenses in the fourth quarter of 2007 were $4.9 million, up 30% from $3.8 million in the fourth quarter of 2006. This increase was much less than the increase in sales, although it was primarily the result of higher selling, general and administrative expenses associated with the Company's sales growth. Research and development expenses were $1.4 million in the fourth quarter, compared with $37,327 in the fourt
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SOURCE China Sky One Medical, Inc.
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