NANTONG CITY,
Q3 2010 Highlights -- Total revenue increased 145% year-over-year to approximately $2.0 million from $0.8 million in the comparable period of 2009. -- Gross margin increased 172% year-over-year to approximately $1.6 million, or 81% of sales from $0.6 million, or 73% of sales for the same period of 2009. -- Operating income increased $1.8 million to approximately $1.0 million from a loss of $0.8 million for the same period of 2009. -- Income before income tax expense increased $1.8 million to approximately $1.0 million from a loss of $0.7 million for the same period of 2009. -- Industry leading operating margins of 52%. Net income increased $1.7 million to approximately $0.9 million from a net loss of approximately $0.7 million in the third quarter of 2009. -- EPS of $0.01 compare to $(0.01) for the same period 2009. The EPS for the nine month period ended February 28, 2010 is $0.03 compare to $($0.02) for the same period 2009 -- Revenue from Cisatracurium Besylate (marketed as "KuTai" in China) increased 164% to approximately $2.0 million, or 98.5% of sales from $0.7 million, or 91.5% of sales in the same period of 2009. -- First quarter of positive working capital and $8.7 million in Shareholder's equity. -- Net worth increased dramatically from $776,831 at May 31, 2009 to $8,998,121 at February 28, 2010. Total assets increased by $5,458,792, from $5,956,443 at May 31, 2009 to $11,415,235 at February 28, 2010.
Dr.
Third Quarter 2010 Results
Sales increased 145% to
Gross margin increased 172% to
The increase in sales was due to the continuing growth in sales of
Cisatracurium Besylate. Sales of this product increased to
Operating expenses for the three months ended
Income before income tax increased by
Income tax expense was
Net income increased
Earning Per Share was
Results for the nine months that ended
Sales increased 100% to
Gross margin increased 137% to
The increase in sales was due to the continuing growth in sales of
Cisatracurium Besylate. Sales of this product increased to
Operating expenses for the nine months ended
Net income increased
Earning Per Share was
Financial Position
As of
Business Outlook
Dr. Huang expressed the Company's satisfaction with its third quarter results. "The numbers show the growing strength of our financial performance and position," he said. "They also show the soundness of our strategy as we prepare to take the Company to the next level."
About Sinobiopharma
Sinobiopharma Inc. is a fully integrated and highly innovative specialty
pharmaceutical company engaged in the research and development, manufacture
and marketing of biopharmaceutical products in
FORWARD LOOKING STATEMENTS This news release may include "forward-looking statements" regarding Sinobiopharma, Inc., and its subsidiaries, business and project plans. Such forward looking statements are within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created by such sections. Where Sinobiopharma, Inc. expresses or implies an expectation or belief as to future events or results, such expectation or belief is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Sinobiopharma, Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
-- FINANCIAL TABLES FOLLOW - SINOBIOPHARMA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS February 28, May 31, 2010 2009 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $790,142 $891,132 Accounts receivable, net 1,131,625 208,673 Notes receivable -- 5,505 Inventories 835,901 547,317 Advance payments 210,730 39,825 Other receivables 298,904 -- Total Current Assets 3,267,302 1,692,452 Advance payment for intangible assets to a shareholder 987,780 253,760 Property, plant and equipment, net 2,772,304 2,691,258 Intangible assets, net 4,387,849 1,318,973 $11,415,235 $5,956,443 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $369,391 $655,064 Short-term bank loans 220,050 732,000 Loans from government 1,420,569 1,844,193 Amounts due to shareholder 256,725 1,169,032 Advances from customers 102,946 136,755 Amounts due to Related party -- 256,200 Income taxes payable 97,136 -- Other payables 290,297 386,368 Total Current Liabilities 2,757,114 5,179,612 Commitments and Contingencies STOCKHOLDERS' EQUITY Common stock; $0.0001 par value; 2,500,000,000 shares authorized; 117,587,608 shares issued and outstanding at February 28, 2010 and 79,920,000 shares at May 31, 2009 11,759 7,992 Additional paid-in capital 13,853,827 8,254,991 Accumulated deficit (5,459,339) (7,711,278) Accumulated other comprehensive income 251,874 225,126 Total Stockholders' Equity 8,658,121 776,831 $11,415,235 $5,956,443 SINOBIOPHARMA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended Nine Months Ended February 28, February 28, 2010 2009 2010 2009 SALES $1,993,412 $813,326 $5,424,647 $2,715,702 COST OF GOODS SOLD 380,799 221,015 1,128,803 900,211 GROSS MARGIN 1,612,613 592,311 4,295,844 1,815,491 OPERATING EXPENSES Selling expenses 144,956 116,148 394,309 283,483 Research and development 30,683 27,352 317,396 157,771 Depreciation and amortization 59,241 22,591 209,798 126,564 General and administrative expenses 358,165 1,199,268 938,483 2,786,331 593,045 1,365,359 1,859,986 3,354,149 INCOME/(LOSS) FROM OPERATIONS 1,019,568 (773,048) 2,435,858 (1,538,658) OTHER INCOME/(EXPENSES) Interest income 1,896 363 7,070 1,059 Interest expense (38,193) (53,544) (148,278) (181,017) Other expenses 55,048 100,913 54,386 95,924 18,751 47,732 (86,822) (84,034) INCOME/(LOSS) BEFORE INCOME TAX EXPENSE 1,038,319 (725,316) 2,349,036 (1,622,692) INCOME TAX EXPENSE (97,096) -- (97,096) -- NET INCOME/(LOSS) 941,223 (725,316) 2,251,940 (1,622,692) OTHER COMPREHENSIVE INCOME/(LOSS) Foreign Currency Translation Adjustment 5,209 4,438 26,748 12,279 COMPREHENSIVE INCOME /(LOSS) $946,432 $(720,878) $2,278,688 (1,610,413) Earnings/ (loss) per share: Basic and diluted $0.01 $(0.01) $0.03 $(0.02) Weighted average shares Used in computation: Basic and diluted 104,117,920 79,900,000 87,950,083 79,900,000 SINOBIOPHARMA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended Feb 28, 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES Net income/(loss) $2,251,940 $(1,622,692) Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operation activities Depreciation and amortization 318,412 226,739 Loss on disposition of property and equipment -- 426 Stock-based compensation 324,125 1,944,750 Imputed interest expense on shareholders' loans 15,864 56,722 Amortization of discount in interest expenses 68,235 105,311 Common shares issued for consulting services 33,000 -- Gain from discount of no-interest loans (55,694) (96,364) Changes in assets and liabilities: Notes receivable 5,600 -- Accounts receivable, net (920,879) (135,538) Inventories (264,843) 12,992 Advance payments (170,993) -- Other receivables (297,856) (194,091) Accounts payable (286,315) (206,796) Advance from customers (34,120) (206,828) Income taxes payable 97,096 -- Other payables (96,856) 146,138 Net Cash Provided by Operating Activities 986,716 30,769 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment (323,472) (138,320) Advance payments for purchase of intangible assets (731,317) -- Net Cash Used in Investing Activities (1,054,789) (138,320) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans 2,194,608 731,000 Subscription received for issuing stock -- 20,000 (Repayment) proceeds from shareholder loans (651,694) 162,694 Repayment of bank loans (3,148,381) (576,800) Repayments of loans by related parties -- 5,712 Proceeds from common stock issued 1,600,000 -- Payment for common stock issuance costs (15,000) -- Net Cash (Used in)/Provided by Financing Activities (20,467) 342,606 EFFECT OF FOREIGN CURRENCY FLUCTUATION ON CASH (12,450) (1,171) NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (100,990) 233,884 CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 891,132 267,327 CASH AND CASH EQUIVALENTS - ENDING OF PERIOD $790,142 $501,211 Supplemental cash flow information: Cash paid for interest expense $54,896 $-- Non-cash investing and financing Activities 100,000 common shares issued in exchange of consulting service received $33,000 $-- 17,500,000 common shares issued in exchange of intangible assets $3,136,500 $-- 4,234,275 common shares issued to settle debts $508,113 $--
SOURCE Sinobiopharma, Inc.