FOSTER CITY, CA--(Marketwired - May 16, 2016) - Aoxing Pharmaceutical Company, Inc. (NYSE MKT: AXN) today announced that for the third quarter of fiscal year 2016, ended March 31, 2016, the Company reported revenues of $6,563,944, a modest decline of 0.4% year-over-year from the revenues of $6,590,736 realized during the three months ended March 31, 2015. When the revenues are stated in the local currency (RMB), revenues in the fiscal third quarter increased 6.5% year-over-year. Fiscal third quarter is a relatively slow quarter, mainly due to reduced sales activities during the Chinese New Year holidays, which typically happen during January and February. Also, we noticed that there was some impact of timing on revenue, as several key orders were shifted from the fiscal third quarter to the fiscal fourth quarter. We also noted that inventories in the distribution channels were relatively low at the end of the fiscal third quarter 2016, which is usually a good predictor of increased sales activities in the following quarter.
The Company's net income in Q3 of fiscal year 2016 was $622,720, or $0.01 per share, compared to $777,976, or $0.01 per share, for the three months ended March 31, 2015.
Aoxing's cash balance as of March 31, 2016 was $6,046,327, compared to $5,371,545 as of June 30, 2015, the end of its last fiscal year.
Mr. Zhenjiang Yue, Chairman and CEO of Aoxing Pharma, said, "While fiscal third quarter is a relatively slow quarter due to Chinese New Year holidays, we do see a significant revenue growth for our products other than Zhongtong'an. We believe strong sales growth for our Zhongtong'an product will continue in the fiscal fourth quarter, and we are still trying to achieve our sales target for the fiscal year 2016 despite the slowdown in sales growth in the third quarter of fiscal year 2016. For our Tilidine tablets, we are now near the end of the preparation work. The Tilidine tablets from the API procurement and production to distribution are regulated and tracked by the relevant government agencies, and we have recently received the related documentation from the government. At this point, we expect Tilidine tablet production to start by the end of the fiscal year 2016."
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.
AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, June 30, 2016 2015 ---------------- ASSETS (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 6,046,327 $ 5,371,545 Accounts receivable, net 9,003,401 5,764,738 Notes receivable, net 16,678 89,317 Inventories, net 3,761,697 3,240,026 Prepaid expenses and other current assets 10,490,462 6,630,407 ---------------- TOTAL CURRENT ASSETS 29,318,565 21,096,033 ---------------- LONG-TERM ASSETS: Property and equipment, net of accumulated depreciation 26,589,023 28,651,717 Deferred income tax 1,087,218 2,711,610 Other intangible assets, net 1,905,169 484,857 Investment in joint venture 29,036 96,475 ---------------- TOTAL LONG-TERM ASSETS 29,610,446 31,944,659 ---------------- TOTAL ASSETS $ 58,929,011 $ 53,040,692 ================ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term borrowings $ 11,513,301 $ 12,484,356 Accounts payable 2,566,203 3,625,139 Notes payable 1,631,641 Loan payable - bank 15,035,344 16,316,408 Current portion of loan payable - related parties 13,544 5,793 Current portion of loan payable - others 15,502 - Accrued expenses and other current liabilities 8,884,490 7,176,325 ---------------- TOTAL CURRENT LIABILITIES 38,028,384 41,239,662 ---------------- LONG-TERM LIABILITIES: Loan payable - related parties - 8,158 Loan payable - others - 1,361,199 Deferred income 350,344 368,751 ---------------- TOTAL LONG-TERM LIABILITIES 350,344 1,738,108 ---------------- Common stock, par value $0.001, 100,000,000 shares authorized, 72,252,200 and 69,839,259 shares issued and outstanding on September 30, 2015 and June 30, 2015 76,209 69,839 Additional paid in capital 73,582,257 66,457,250 Accumulated deficit (54,395,676) (58,354,968) Accumulated other comprehensive income 2,257,488 3,066,026 ---------------- TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY 21,520,278 11,238,147 NONCONTROLLING INTEREST IN SUBSIDIARIES (969,994) (1,175,225) ---------------- TOTAL EQUITY 20,550,284 10,062,922 ---------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 58,929,012 $ 53,040,692 ================ AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) (Unaudited) For the three months For the nine months ended ended March 31, March 31, 2016 2015 2016 2015 ----------- ---------- ---------- SALES $ 6,563,944 6,590,736 23,504,605 17,586,519 COST OF SALES 1,630,389 1,078,200 5,115,060 4,090,586 ----------- ---------- ---------- GROSS PROFIT 4,933,555 5,512,536 18,389,545 13,495,933 ----------- ---------- ---------- OPERATING EXPENSES: Research and development expense (35,743) 73,970 1,171,668 277,117 General and administrative expenses 1,195,094 662,065 2,650,579 1,994,560 Selling expenses 2,125,771 2,548,848 6,109,982 5,527,281 Depreciation and amortization 121,723 135,973 381,379 416,049 TOTAL OPERATING EXPENSES 3,406,845 3,420,856 10,313,608 8,215,007 ----------- ---------- ---------- INCOME FROM OPERATIONS 1,526,710 2,091,680 8,075,937 5,280,926 ----------- ---------- ---------- OTHER INCOME (EXPENSE): Interest expense, net of interest income (600,572) (1,246,920) (2,509,508) (4,068,200) Gain on foreign currency transactions (83,345) Equity in loss of joint venture, net (24,286) (19,688) (63,051) (67,677) Subsidy income (2,126) 4,866 202,901 284,439 ----------- ---------- ---------- TOTAL OTHER EXPENSE (710,329) (1,261,742) 2,369,658 (3,851,438) ----------- ---------- ---------- INCOME BEFORE INCOME TAXES 816,381 829,938 5,706,279 1,429,488 Income tax expense 146,005 1,499,201 ----------- ---------- ---------- NET INCOME 670,376 829,938 4,207,078 1,429,488 Net income attributed to non-controlling interest in subsidiaries 47,656 51,962 247,785 92,213 ----------- ---------- ---------- INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY 622,720 777,976 3,959,293 1,337,275 OTHER COMPREHENSIVE INCOME (LOSS): Foreign currency translation adjustment 572,478 14,766 (851,093) 50,284 ----------- ---------- ---------- COMPREHENSIVE PROFIT 1,195,198 792,742 3,108,200 1,387,559 ----------- ---------- ---------- Other comprehensive income (loss) attributable to non-controlling interest 28,624 738 (42,555) 2,514 ----------- ---------- ---------- COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY $ 1,166,574 792,004 3,150,755 1,385,045 =========== ========== ========== EARNINGS PER SHARE =========== ========== ========== Basic $ 0.01 0.01 0.05 0.02 =========== ========== ========== Diluted $ 0.01 0.01 0.05 0.02 =========== ========== ========== WEIGHTED AVERAGE SHARES OUTSTANDING =========== ========== ========== Basic 75,670,953 67,638,657 72,863,479 60,907,137 =========== ========== ========== Diluted 75,749,890 67,676,783 72,942,416 60,951,616 =========== ========== ==========
SOURCE: Aoxing Pharmaceutical Company, Inc.