Aoxing Pharma Q2 Revenue Up 27%; Net Income $2.1 Million, Up 265%

FOSTER CITY, Calif., Feb. 8, 2016 /PRNewswire/ -- Aoxing Pharmaceutical Company, Inc. (NYSE MKT: AXN) today announced that for the second quarter of fiscal year 2016, ended December 31, 2015, the Company achieved revenue of $8,195,839, a 27% improvement on revenue of $6,430,701 recorded in the same quarter in fiscal 2015.

The Company’s net income in Q2 of fiscal year 2016 was $2,068,635, or $.03 per share, up 265% from the net income of $567,169, or $.01 per share, in the Q2 of fiscal year 2015. Gross margin for the three months ended December 31, 2015 was 79% compared to gross margin of 75% in the like year-ago quarter.

Aoxing’s cash balance as of December 31, 2015 was $6,435,362, compared to $5,371,545 as of June 30, 2015, the end of its last fiscal year.

The Company’s increase in second quarter revenue was primarily attributable to an increase in the number of customers for its lead pain management product, Zhongtong’an. Aoxing’s 265% increase in net income was primarily the result of the Company’s increased revenue, improved gross profit, and a 40% decrease in net interest expense due to a reduction in loan balances. Such earnings growth was realized despite higher R&D expenses during the recent quarter, which was mainly due to a large payment for a key raw material used in our R&D program.

Mr. Zhenjiang Yue, Chairman and CEO of Aoxing Pharma, said, “We are pleased by the continued growth of our Company, as our revenue for the first half of fiscal year 2016 increased by 54% to $16,940,661. Our Zhongtong’an product, which was recently included in the government essential drug procurement lists in four new provinces, has continued to accelerate our sales growth. We believe the growing market for Zhongtong’an, coupled with the introduction to market of our Tilidine HCL pain fighting tablets and capsules during the current quarter, should help our Company achieve its revenue target of $45 million in fiscal year 2016, along with continued earnings growth in fiscal year 2016 and beyond.”

About the Company
Aoxing Pharmaceutical Company, Inc. is a U.S. incorporated pharmaceutical company with its operations in China, specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, outside Beijing, Aoxing Pharma has the largest and most advanced manufacturing facility in China for highly regulated narcotic medicines. Its facility is one of the few GMP facilities licensed for the manufacture of narcotic medicines by the China Food and Drug Administration (“CFDA”). For more information, please visit: www.aoxingpharma.com.

Safe Harbor Statement. This press release contains certain statements that may include “forward-looking statements.” All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and so these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on the SEC’s website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume any duty to update these forward-looking statements.