-- Company Invests in New Production Plant -- Company Expects to Meet Its FY2008 Net Income Make Good Of $5.6 Million,
or EPS of $.18
CHENGDU, China, July 10, 2008 /Xinhua-PRNewswire-FirstCall/ -- Tianyin Pharmaceutical, Co., Inc. (OTC Bulletin Board: TYNP), a manufacturer and supplier of modernized traditional Chinese medicine ("TCM") based in Chengdu, China, today announced that it has completed production for the earthquake relief on May 28 and resumed its normal production.
On May 12, 2008, an 8.0-magnitude earthquake struck in Wenchuan County, Sichuan province. By order of the Sichuan Government, Tianyin is one of the thirty-five pharmaceutical companies within Sichuan province designated to supply medicines for the relief. The Company dedicated its production of medicines for the relief from May 14 to May 28 and resumed its normal production on May 29. The provincial government purchased approximately $725,000 of medicines at full retail price from the Company which included Benorilate Granules (Arpu Shuangxin Oral Liquid), Azithromycin Dispersible Tablets, Yinqiao Shangfeng Capsules, Chuanxinlian Capsules, Qingre Jiedu Capsules and Yinhuang Capsules. Tianyin delivered all the ordered medicines on May 29 and has already received 50% of the payment from the Sichuan Government.
Recently, the management of Tianyin Pharmaceutical started its new production plant project which will enhance its overall production capacity by 3 times with an estimated expenditure of $5 million. The capital need for the expansion was utilized from the recent $15.2 million financing completed in January 2008. The planned GFA is about ten thousand square meters with state- of-the-art equipment which will be installed. Construction will begin in July 2008 and operations are planned to begin in January 2009. The new capacity is expected to meet increasing market demand of current products and support new product launches from the pipeline which will be the key element to maintaining and enhancing the current growth of the Company.
Dr. Jiang, CEO of Tianyin, commented, "We are pleased that our company was able to provide help during this tragic period. We stand ready to provide additional pharmaceuticals to help the relief effort if necessary." Dr. Jiang continued, "Supported by continued strong demand for our products, we are making the investment in additional production infrastructure, which will ensure we can meet our future growth objectives. This production expansion will be a key addition for our Company's strategic growth plan as we move into fiscal year 2009."
As part of the $15.2 million financing in January 2008, management agreed with the investors to achieve minimum financial results. The target for fiscal year ending June 30, 2008 is $5.6 million in net income or fully diluted EPS of $0.16 per share, and the target for fiscal year ending June 30, 2009 is $7.2 million in net income or fully diluted EPS of $0.20 per share. In the event that specified targets are not achieved, management will deliver a "make good" of as many as approximately 2.2 million common shares that they own to the investors who participated in the January 2008 financing. For the nine months ending March 31, 2008, the Company reported net income of $4,446,129 from revenues of $24,167,921 and expects to reach the required minimum financial thresholds for 2008.
For fiscal year 2009, Tianyin will pursue an acquisition strategy centered on buying profitable business lines that will complement its existing portfolio, production lines, and distribution chains, as well as provide accretive earnings growth.
"We expect the brief impact of the earthquake on fiscal year 2008 earnings to be offset by strong results of the first three quarters of fiscal year 2008. Also our broad product portfolio and targeted investments in marketing continue to drive our results and have positioned us to meet the required financial result from last financing. In addition, with a clear vision of our business plan and growth strategy, we will evaluate acquisition targets which will be complementary to our business and strengthen our competitive position in the China Pharmaceutical industry. We anticipate that fiscal year 2009 will be a key inflection point for our operation in terms of reaching critical mass in both our geographical footprint and manufacturing capabilities," Dr. Jiang concluded.
About Tianyin Pharmaceuticals
Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine ("TCM") in China. It was established in 1994 and acquired by the current management team in August 2003. It has a comprehensive product portfolio of 34 modernized TCMs in the market, 22 of which are listed in the highly selective National Medicine Catalog of the National Medical Insurance Program. Tianyin owns and operates two GMP manufacturing facilities and an R&D platform supported by leading Chinese academic institutions. The Company has a pipeline of 51 pharmaceutical products pending approval. Tianyin has an extensive nationwide distribution network throughout China with a sales force of 523 salespeople. Tianyin is headquartered in Chengdu, Sichuan Province with two manufacturing facilities and a total of 1,187 employees. Tianyin achieved revenue of $20.4 million and net income of $3.95 million in FY2007 ending June 30, 2007. For more information about Tianyin Pharmaceuticals, please visit http://www.tianyinpharma.com .
Safe Harbor Statement
The Statements which are not historical facts contained in this press
release are forward-looking statements that involve certain risks and
uncertainties including but not limited to risks associated with the
uncertainty of future financial results, additional financing requirements,
development of new products, government approval processes, the impact of
competitive products or pricing, technological changes, the effect of
economic conditions and other uncertainties detailed in the Company's
filings with the Securities and Exchange Commission.
For more information, please contact:
For the Company:
Allen Tang, Ph.D., MBA, Assistant to the CEO
Tel: +86-15821225642 (China)
HC International, Inc.
Tel: +1-914-669-0222 (US)
|SOURCE Tianyin Pharmaceutical, Co., Inc.|
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