Huifeng Bio-Pharmaceutical Technology, Inc. Reported Third-Quarter 2010 Financial Results and Raises its 2010 Year-End Guidance

XI'AN, China, Nov. 16, 2010 /PRNewswire-Asia-FirstCall/ -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB), specializing in developing and producing botanical extracts and other raw materials for pharmaceuticals and food additives today announced its financial results for its third-quarter 2010.

Third Quarter 2010 Highlights

  • Net Revenues grew 66.2% year over year to $7,422,334
  • Gross profit was $3,906,538, up 165.5% from the third quarter of 2009 with gross margin of 52.6%, significantly increased 19.7% from 32.9% for the third quarter of 2009.
  • Net income was $2,155,930, an increase of $1,153,925 or 115% from the third quarter 2009, and earnings per diluted share were $0.08 based on 25.9 million shares.
  • Company increases full-year guidance for net income to $5.5-$6 million from previous guidance of $4.5-$5 million.

Third Quarter 2010 Results


Q3 2010

Q3 2009

CHANGE

Revenue

$7.4 million

$4.4 million

+66.2%

Gross profit

$3.9 million

$1.4 million

+165.5%

Net Income

$2.1 million

$1.1 million

+115%

EPS (Diluted)*

$0.08

$0.05

+60%

* Weighted average shares outstanding (diluted) for Q3 2010 was 25,908,427 and for Q3 2009 was 22,354,212.




"We are pleased to announce record financial results and robust growth in both our revenue and net income," Mr. Jing'an Wang, the Company's CEO, commented. "Net Revenues grew 66.2% year over year, as we experienced increased sales in our Diosmin and Rutin product lines. Our gross margins for the third-quarter 2010 increased 165%, which is a result of higher selling prices and further economies of scale. This strong performance and growth has led us to raise our full-year net income guidance for 2010."

"We are also very excited about the construction of our new 500 ton Diosmin plant, which we expect will be completed in 2011 and the final stages of the European COS audit and certification process. We believe that with European COS certification and our new 500 ton COS Standard Diosmin, the Company is positioned to be the leading producer of Diosmin for years to come." Mr. Wang continued.

For the Three Months Ended September 30, 2010 and 2009

Revenues for the quarter ended September 30, 2010 were $7,422,334, an increase of $2,956,564, or 66.2%, from $4,465,770 for the same quarter in 2009. Our increase in sales revenues for the third quarter of 2010 was mainly due to the increase in our sales of pharmaceutical raw-material and pharmaceutical intermediates, which include our products of Rutin, Troxerutin and Quercetin. An analysis of our results in sales of our products is as follows:




For the quarter ended
September 30,


Increase



Product


2010



2009





Pharmaceutical intermediates


$

2,305,410



$

1,104,279



$

1,201,131




Pharmaceutical raw-material



4,417,384




2,696,843




1,720,541




Plant extractive and others



699,540




664,648




34,892




TOTAL


$

7,422,334



$

4,465,770



$

2,956,564







Cost of sales for the quarter ended September 30, 2010 was $3,515,796, an increase of $521,191, or 17.4%, from $2,994,605 for the quarter ended September 30, 2009. Compared to the quarter ended September 30, 2009, the increase in cost of sales for the third quarter of 2010 was caused by an increase in sales of our pharmaceutical intermediates. An analysis of our results in cost of sales of our products is as follows:




For the quarter ended

September 30,



Increase


Product


2010



2009





Pharmaceutical intermediates


$

1,108,012



$

697,933



$

410,079


Pharmaceutical raw-material



1,972,627




1,863,999




108,628


Plant extractive and others



435,157




432,673




2,484


TOTAL


$

3,515,796



$

2,994,605



$

521,191





Our gross margin for the quarter ended September 30, 2010 was $3,906,538, an increase of $2,435,373, or 165%, from $1,471,165 for the same quarter in 2009 as a result of the increase in our products sold and a significant increase in the selling price of our products, mainly due to the sales increase of pharmaceutical raw-material and pharmaceutical intermediates.

Our gross margin as a percentage of revenues for 2010 increased 19.6% from 33% for the third quarter of 2009 to 52.6% in the same quarter in 2010, mainly because of a significant increase in the selling price of our products.

For the Nine Months Ended September 30, 2010 and 2009

Revenues for the nine months ended September 30, 2010 were $18,273,172, an increase of $9,389,982, or 106%, from $8,883,190 for the same period in 2009. Our increase in revenues for the nine months ended September 30, 2010 was mainly due to the increase in our sales of pharmaceutical raw-material and pharmaceutical intermediates, which include our products of Rutin, Troxerutin, L-Rhamnose, Quercetin and Diosmin. An analysis of our results in sales of our products is as follows:




Nine Months ended

September 30,


Increase


Product


2010


2009












Pharmaceutical intermediates



$

4,611,947



$

2,002,165



$

2,609,782


Pharmaceutical raw-material




11,894,424




5,445,430




6,448,994


Plant extractive and others




1,766,801




1,435,595




331,206


TOTAL



$

18,273,172



$

8,883,190



$

9,389,982





Cost of sales for the nine months ended September 30, 2010 were $10,276,838, an increase of $4,316,373, or 72.4%, from $5,960,465 for the nine months ended September 30, 2009. The increase in the cost of sales for the nine months ended September 30, 2010 was caused by an increase in sales of pharmaceutical intermediates and pharmaceutical raw-materials, which include our produ

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