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Biostar Pharmaceuticals, Inc. Second Quarter Revenue Increased 46.4% to $19.4 Million
Date:8/17/2010

perating results", meaning operating performance excluding non-cash stock-based compensation charge. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to historical performance and liquidity as well as comparisons to competitors' operating results. The Company believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of the business.

For further information, contact: Bill Chen (Deyin), CFO Tel: +86-138-161-00700 Email: bchen65@gmail.com Ted Haberfield HC International, Inc. Tel: US +1-760-755-2716 Email: thaberfield@hcinternational.net Web: http://www.hcinternational.net BIOSTAR PHARMACEUTICALS, INC. CONSOLIDATED BALANCE SHEETS June 30, December 31, 2010 2009 (Unaudited) (Audited) ASSETS Current Assets Cash and cash equivalents $9,663,639 $8,577,704 Accounts receivable 25,291,760 19,803,434 Inventories 1,863,769 340,078 Prepaid expenses and other receivables 2,269,116 1,500,327 Total Current Assets 39,088,284 30,221,543 Deposits 881,318 1,316,328 Property and equipment, net 5,150,606 4,340,917 Intangible assets, net 11,233,092 11,131,681 Total Assets $56,353,300 $47,010,469 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts and other payables $4,146,719 $3,559,281 VAT payable 925,250 1,050,051 Income tax payable 1,775,261 1,481,266 Total Current Liabilities 6,847,230 6,090,598 Commitment and contingencies Stockhol
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