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Aoxing Pharmaceutical Company, Inc. Announces Financial Results For Third Quarter Of 2013 Fiscal Year
Date:5/15/2013

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 $2,300,366 and $4,565,272 for the three and nine month periods ended March 31, 2013, compared with losses from operations of $436,953 and $1,083,770 during the same periods a year earlier. Net losses for the three months ended March 31, 2013 were $2,729,350, and $6,313,526 for the nine months ended March 31, 2013.

On March 31, 2013, Aoxing Pharma had $2.7 million in cash on hand and a working capital deficit of $4,083,825, 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 operations in China, specializing in research, development, manufacturing and di
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