JILIN, China, April 3 /Xinhua-PRNewswire/ -- Global Pharmatech, Inc. today reports its financial results for the fiscal year ended on December 31, 2005, announcing a substantial revenue increase in 2005. Global Pharmatech develops, manufactures and markets proprietary drugs and nutritional supplements that are based on modernized Chinese medicine and bio- pharmacy. Through its subsidiaries, Global Pharmatech combines R&D of botanical drug products, manufacturing, and sales and marketing for the Over- the-Counter (OTC) and prescription drug markets.
Fiscal Year 2005 Financial Highlights -- Fiscal year 2005 revenue increased to US$3.09 million, reflecting a 98% year-over-year growth; -- Fiscal year 2005 gross profit increased to US$ 1.69 million, reflecting a 65% year-over-year growth; and -- Fiscal year 2005 diluted earnings per share was US$0.01 as compared with US$0.02 in 2004
Dr. Xiaobo Sun, President and CEO of Global Pharmatech, stated: “We continue to execute our strategy by growing our top line, while our strong R&D strength enables us to stay competitive in the marketplace. We are pleased to have received three new drug approvals from the State Food and Drug Administration (SFDA) of China. During 2005, we have also successfully completed an anti-cancer technology transfer. Going forward, we will continue to co-develop new products with other pharmaceutical manufacturers and file regulatory applications with the SFDA.”
Revenue for fiscal year 2005 was US$3.09 million, a 98% increase as compared to US$1.56 million for fiscal year 2004. These revenues were derived as follows: revenue from goods sold was $1,694,000, contract revenue earned from the transfer of technology was $1,150,000, and revenue from experiments, research and related ancillary services was $241,000. Gross profit for fiscal year 2005 was US$ 1.69 million, a 65% increase as compared with US$ 0.53 million for the fiscal year 2004.
Net income for fiscal year 2005 was US$ 200,695 or US$ 0.01 earnings per share, as compared to US$ 310,085 or US$ 0.02 for fiscal year 2004.
About Global Pharmatech
Global Pharmatech, through its subsidiaries, develops, manufactures and markets proprietary drugs that are based on Traditional Chinese Medicine and using modern facilities and advanced R&D technologies. The company offers a full range of “start to finish” biotech services, from research and testing to manufacture and sale of liquid and solid dose products employing unique proprietary extraction methods, and also licenses patents and technologies for botanical/biological drug products. Global Pharmatech’s operations are currently based in the People’s Republic of China with sales distribution in China, Malaysia, Singapore and Indonesia. For more information, please visit http://www.global-pharmatech.com .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including our ability to successfully develop and commercialize products, competitive products in our key markets, changes in consumer demand for our products, legislative, regulatory and competitive developments and general economic conditions. Our SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
GLOBAL PHARMATECH, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004 2005 2004 Sales $ 3,085,175 $ 1,555,670 Cost of Sales 1,400,014 533,770 Gross Profit 1,685,161 1,021,900 Operating Expenses Advertising 173,828 17,802 Research and Development 508,405 507,578 Selling Expenses 91,980 40,832 General and Administrative 1,290,053 886,528 2,064,266 1,452,740 (Loss) from Operations (379,105) (430,840) Other Income (Expenses) Government Grants 695,160 892,845 Interest Expense (187,530) (129,609) 507,630 763,236 Income before Income Taxes and Minority Interest 128,525 332,396 Provision for Income Taxes Current 1,162 17,776 Deferred 0 0 Income Before Minority Interest 127,363 314,620 Minority Interest 73,332 (4,535) Net Income $ 200,695 $ 310,085 Earnings Per Common Share Basic and Diluted $ 0.01 $ 0.02 Weighted Average Common Shares Outstanding 17,658,543 17,118,752 For more information, please contact: Zhuojun Li Investor Relations Global Pharmatech, Inc. Tel: +1-905-787-8225 Fax: +1-905-787-9711 Email: zhuojunli@global-pharmatech.com
Global Pharmatech, Inc.
CONTACT: Zhuojun Li, Investor Relations of Global Pharmatech, Inc.,+1-905-787-8225, or fax, +1-905-787-9711, orzhuojunli@global-pharmatech.com
Web site: http://www.global-pharmatech.com/
