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Aoxing Pharmaceutical Company, Inc. Announces Financial Results For Second Quarter Of 2013 Fiscal Year
Date:2/15/2013

,873 during the six months then ended were, in both cases, several fold higher than the selling expenses incurred during fiscal 2012.  The increase in selling expenses was attributable to the addition of 90 employees to the sales staff, increases in travel expenses, and the expenses of an expanded advertising and marketing campaign.  Recently, Aoxing Pharma signed advertising contracts totaling approximately $3.66 million with four different television stations, covering the period from January 2013 to December 2013.

Primarily as a result of these strategic expenses, Aoxing Pharma recorded losses from operations of $2,352,385 and $2,264,906 for the three and six month periods ended December 31, 2012, compared with losses from operations of $150,860 and $646,817 during the same periods a year earlier. Net losses for the three months ended December 31, 2012 were $3,135,661, and $3,584,176 for the six months ended December 31, 2012.

On December 31, 2012, Aoxing Pharma had $2.7 million in cash on hand and a working capital deficit of $1,409,215, which represented a significant improvement over its working capital deficit of $9,112,842 at June 30, 2012.  The improvement occurred because Aoxing Pharma entered into a refinancing agreement with Beijing International Trust Co., Ltd., and replaced short-term loans of approximately $7.1 million with a two-year term loan of approximately $10.2 million.

Zhenjiang Yue , our Chairman and CEO, commented, "The Chinese pharmaceutical market continues to be challenging. I am pleased with Aoxing Pharma's operating results, highlighted by continued growth in product sales, as well as by the faith that our lenders have shown in our business model, which has enabled us to significantly improve our balance sheet."

About Aoxing Pharmaceutical Company, Inc.
Aoxing Pharmaceutical Company, Inc. is a US incorporated specialty pharmaceutical company with its op
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