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Huifeng Bio-Pharmaceutical Reported Second Quarter 2010 Financial Results and Reaffirms its 2010 Guidance
Date:8/23/2010

es increase of pharmaceutical raw-material.

Our gross margin as a percentage of revenues for 2010 slightly decreased 1.3% from 38.1% for the second quarter of 2009 to 36.8% in the same quarter in 2009, due to the slight increase in raw materials' price.

Net income for the quarter was $1,532,302, an increase of $729,108 or 90.8% from the second quarter of 2009, and earnings per diluted share were $0.06 based on 25.4 million shares.

For the Six Months Ended June 30, 2010 and 2009

Revenues for the six months ended June 30, 2010 were $10,850,838, an increase of $6,433,418, or 145.6%, from $4,417,420 for the same period in 2009. Our increase in revenues for the six months ended June 30, 2010 was mainly due to the increase in our sales of pharmaceutical raw-material and pharmaceutical intermediates, which include our products of Rutin, L-Rhamnose, Quercetin and Diosmin. An analysis of our results in sales of our products is as follows:

Six months ended June 30 Increase/ Product 2010 2009 (Decrease) Pharmaceutical intermediates $2,309,996 $897,790 $1,412,206 Pharmaceutical raw-material $7,889,535 $2,635,525 $5,254,010 Plant Extractive and others $651,307 $884,105 $(232,798) TOTAL $10,850,838 $4,417,420 $6,433,418

The gross profit for the six months ended June 30, 2010 was $4,089,796, an increase of $2,638,236 or 181% from $1,451,560 for the six months period ended June 30, 2009 as a result of the increase in our products sold.

Our gross margin as a percentage of revenues for the six months ended June 30, 2010 was slightly increased from 32.9% to 37.7%, which compared to the same period in 2009. The increase in gross margin was mainly due to the increase of the selling price of raw-materials during the quarter ended June 30, 2010.

Net income for the first half of fiscal year 2010 was $2,396,191, compared to $410,557 in the prior year's corresponding
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SOURCE Huifeng Bio-Pharmaceutical Technology, Inc.
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