NEW YORK, Oct. 22 /PRNewswire-FirstCall/ -- China Aoxing Pharmaceutical Company, Inc. , a pharmaceutical company based in China that specializes in analgesics and pain management products, including Oxycodone, Pholcodine, Naloxone, and Tilidine, today announced that the Company’s operating subsidiary, Hebei Aoxing Pharmaceutical Group Co. Ltd. (“Hebei Aoxing”), has been approved to be eligible for preferential enterprise income tax treatments by the relevant tax bureau of People’s Republic of China (PRC).
Under the PRC Enterprise Income Taxation Law (the “EIT Law”), Hebei Aoxing is classified as a foreign-invested enterprise, or FIE, in the business of manufacturing medicines. The Company is confirmed to enjoy certain income tax treatments, including a flat tax rate of 15% for five years after it becomes a profitable company, potentially starting from year 2008 with increased sales and new product launches.
A flat tax rate of 15% for five years granted to Hebei Aoxing is significantly lower than the uniform tax rate of 25%, effective January 1, 2008 for all enterprises (including FIEs) under the PRC EIT Law, which was enacted on March 16, 2007. For FIEs established before the promulgation of the EIT Law, a five-year transition period is provided during which reduced rates will apply but gradually be phased out.
About China Aoxing Pharmaceutical Group
China Aoxing Pharmaceutical Company, Inc. is a pharmaceutical company in China specializing in research, development, manufacturing and distribution of a variety of narcotics and pain management products. It owns 60% of the equity of its operating subsidiary, Hebei Aoxing Pharmaceutical Group Co. Ltd, a corporation organized under the laws of the People’s Republic of China. Hebei Aoxing is one of only a handful of companies in China to be granted the license to manufacture drugs, including Oxycodone, Pholcodine, Naloxone, Tilidine, and is working closely with the Chinese government to assure their availability throughout China.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. You are urged to read the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the risk factors contained therein. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
CONTACT: Dr. Hui Shao, Senior Vice President of China Aoxing
Pharmaceutical, +1-201-420-1075
Web site: http://www.aoxingyaoye.com/
