HANGZHOU, China, Sept. 28 /PRNewswire-FirstCall/ -- Aida Pharmaceuticals, Inc. , one of mainland China's leading pharmaceutical companies, today announced the Company has acquired an additional 10.61% of shares of its subsidiary Hainan Aike Pharmaceuticals, in August, bringing its total ownership to 60.61% to date. Aida Pharmaceuticals previously owned 50% of the company, as announced in its June ending quarterly financials available at http://www.sec.gov.
Prior to August, AIDA invested RMB 5.0 million (approximately US$631,217) directly into Hainan Aike, representing a 50% ownership interest. In August 2006, AIDA increased its position through an additional direct investment of RMB 4.5 million (approximately US$568,095) into Hainan Aike. In addition, Aida increased its position further by making a RMB 0.5 million purchase (approximately US$63,122) of the interests held by a third-party institutional shareholder, Merlin Green Canada Inc. To date, AIDA has invested RMB 10 million into Hainan Aike (approximately US$1,262,434) for a total 60.61% ownership in The Company.
Aida Pharmaceuticals recently reported revenues for the three months ended June 30, 2006 of $7,284,888, an increase of $2,252,980 from $5,031,908 for the three months ended June 30, 2005. Of this amount, Hainan Aike contributed $3,692,482 in revenue for the three months ended June 30, 2006, an increase of $2,109,380 from the $1,583,102 that Hainan Aike contributed to AIDA's consolidated results for the three months ended June 30, 2005.
Mr. Jin Biao, Aida Pharmaceuticals' Chairman, stated, "Hainan Aike is one of our leading subsidiaries, with a critical focus in the production of the transfusion form of Etimicin Sulfate, our flagship antibiotic. Aike has consistently returned on our investment. Aida's management team believes it is in the best interest of Aida and its shareholders to maximize the investment opportunity by increasing its position in Aike. We strongly believe that Aike's financial performance will continue to improve, enabling the subsidiary to move forward towards financial critical mass and favorably securing our longer term position in the production and marketing of Etimicin in the Chinese marketplace. This increase in our position will also allow us to better control the production and manufacturing process and enable us to more accurately predict future profits and revenues generated and the anticipated financial benefits that these returns will provide our shareholders."
Hangzhou Aida has the ability to exercise significant influence over Aike by controlling 60.61%% of the voting rights of the subsidiary. In light of Aida's increased position, the Chairman of Aida Pharmaceuticals, Mr. Jin Biao, was elected as the Board Chairman of Hainan Aike Pharmaceutical Co. Ltd.
About Aida Pharmaceuticals:
Aida Pharmaceuticals is a product-focused pharmaceuticals company engaged in the formulation, clinical testing, registration, manufacture, sales and marketing of advanced pharmaceutical and genetic products in mainland China. The Company's mission is to discover, develop and market meaningful new therapies that improve human health. Aida Pharmaceuticals, in operation since March 1999, is headquartered in Hangzhou, China with manufacturing, distribution and sales points throughout mainland China. Aida is GMP certified in China and ISO9002 certified for quality assurance and ISO14000 certified for ecologically-friendly practices. Aida is now producing and marketing a patented prescription drug in China: Etimicin Sulfate. It is the first antibiotic developed in China and is regarded as a category "A" drug by the State Food and Drug Administration of China.
Aida Pharmaceuticals, Inc.
31 Dingjiang Road
Hangzhou, China 310016
Equity Performance Group
Safe Harbor Statement:
Under the Private Securities Litigation Reform Act of 1995: This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on Aida Pharmaceuticals, Inc.'s management's current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to Aida Pharmaceuticals, Inc. as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. These forward-looking statements may relate to, among other things, plans and timing for the introduction or enhancement of our services and products, clinical trial results, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Further information on risks or other factors that could affect Aida Pharmaceuticals, Inc.'s results of operations is detailed in its filings with the United States Securities and Exchange Commission available at http://www.sec.gov.
Aida Pharmaceuticals, Inc.