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Huifeng Bio-Pharmaceutical Technology Reports 26% Quarterly Revenue Increase
Date:11/24/2009

se in product sales.

The gross profit margin for 2009 decreased from 38% in the third quarter of 2008 to 33% for the third quarter ended Sept. 30, 2009. The decrease was a result of the higher unit cost of products over the three month period despite an increase in the cost of raw material during the third quarter of 2009.

General and Administrative expenses totaled $67,967 for the three months ended Sept. 30, 2009, a decrease of $193,760, or 74%, from $261,727 for the prior year's quarter. The decrease in general and administrative expenses was mainly due to a decrease in legal and professional fees of $6,710, a decrease in allowance for doubtful accounts of $69,819 and a decrease in exchange losses from foreign currency fluctuations of $106,366.

Selling and distribution expenses totaled $87,072 for the three months ended Sept. 30, 2009, an increase of $30,367, or 53%, from $56,705 for the three months ended Sept. 30, 2008. The increase in selling and distribution expenses was mainly due to an increase in freight charges of $50,932.

Cost of revenues for the nine months ended Sept. 30, 2009, was $5,960,465, an increase of $244,311, or 4%, from $5,716,154 for the nine months ended Sept. 30, 2008.

The gross margin for the nine months ended Sept. 30, 2009 was $2,922,725, a decrease of $247,186, or 8%, from $3,169,911 for the period ended Sept. 30, 2008 as a result of the increase in cost of revenues.

Gross profit margin for the nine months ended Sept. 30, 2009 had a slight decrease from 36% to 33% compared to the same period in 2008. The decrease was a result of the higher unit cost of products over the nine-month period despite an increase in cost of raw material during the third quarter of 2009.

General and Administrative expenses totaled $509,373 for the nine months ended Sept. 30, 2009, a decrease of $382,115, or 43%, from $891,488 for the nine months end
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