XI’AN, China, Nov. 24 /PRNewswire-Asia/ -- Huifeng Bio-Pharmaceutical Technology, Inc. , a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production in Xi’an, China, today reported that in its third quarter, the company realized a 26% increase in revenues.
Revenues for the quarter ended Sept. 30, 2009 were $4,465,770, an increase of $931,147, or 26%, from $3,534,623 for the same quarter in 2008. Net income amounted to 1,002,005, or $0.05 per share for the quarter, compared with $768,206, or $0.04 in the same period last year. “The increase in revenues for the quarter was due to an increase in the company’s sales of pharmaceutical raw-material and Plant Extractive, and other products, including Rutin, Quercetin, injectable Troxerutin and Diosmin,” said the company’s CEO Jing’An Wang. “The increase in revenue reflected both a gain in new customers, as well as an increase in the number of orders from our existing customers.”
Revenues for the nine months ended September 30, 2009 were $8,883,190, a slight decrease of $2,875, or under 1%, from $8,886,065 for the same period in 2008. Net income for the first nine months of 2009 totaled $1,412,562, or $0.07 per share, compared with $1,466,279, or $0.07 in the first nine months of 2008.
Cost of revenues for the quarter ended Sept. 30, 2009 were $2,994,605, an increase of $790,766, or 36%, from $2,203,839 for the quarter ended Sept. 30, 2008. Compared to the quarter ended Sept. 30, 2008, the increase in the cost of revenues for the 2009 third quarter was caused by the significant increase in sales of our pharmaceutical raw-material and Plant Extractive and other products.
Gross margin for the quarter was $1,471,165, an increase of $140,381, or 10.5%, from $1,330,784 for the same period ended Sept. 30, 2008, as a result of the increase in product sales.
The gross profit margin for 2009 decreased from 38% in the third quarter of 2008 to 33% for the third quarter ended Sept. 30, 2009. The decrease was a result of the higher unit cost of products over the three month period despite an increase in the cost of raw material during the third quarter of 2009.
General and Administrative expenses totaled $67,967 for the three months ended Sept. 30, 2009, a decrease of $193,760, or 74%, from $261,727 for the prior year’s quarter. The decrease in general and administrative expenses was mainly due to a decrease in legal and professional fees of $6,710, a decrease in allowance for doubtful accounts of $69,819 and a decrease in exchange losses from foreign currency fluctuations of $106,366.
Selling and distribution expenses totaled $87,072 for the three months ended Sept. 30, 2009, an increase of $30,367, or 53%, from $56,705 for the three months ended Sept. 30, 2008. The increase in selling and distribution expenses was mainly due to an increase in freight charges of $50,932.
Cost of revenues for the nine months ended Sept. 30, 2009, was $5,960,465, an increase of $244,311, or 4%, from $5,716,154 for the nine months ended Sept. 30, 2008.
The gross margin for the nine months ended Sept. 30, 2009 was $2,922,725, a decrease of $247,186, or 8%, from $3,169,911 for the period ended Sept. 30, 2008 as a result of the increase in cost of revenues.
Gross profit margin for the nine months ended Sept. 30, 2009 had a slight decrease from 36% to 33% compared to the same period in 2008. The decrease was a result of the higher unit cost of products over the nine-month period despite an increase in cost of raw material during the third quarter of 2009.
General and Administrative expenses totaled $509,373 for the nine months ended Sept. 30, 2009, a decrease of $382,115, or 43%, from $891,488 for the nine months ended Sept. 30, 2008. The decrease in general and administrative expenses was mainly due to a decrease in legal and professional fees of $242,381, and a decrease in exchange losses from foreign currency fluctuations of $247,735.
Selling and distribution expenses totaled $174,001 for the nine months ended Sept. 30, 2009, an increase of $25,398 or 17%, from $148,603 for the nine months ended Sept. 30, 2008. The increase in selling and distribution expenses was mainly due to the increase in freight expenses of $33,166.
Cash balance amounted to $284,886 at Sept. 30, 2009. In the nine months ended Sept. 30, 2009, cash provided by operating activities totaled $169,785, mainly due to net income for the period of $1,429,523 and an increase in accounts receivable of $1,592,376. In the nine months ended Sept. 30, 2009, cash used in investing activities totaled $194,238, mainly for the purchase of property and equipment. Cash provided by financing activities in the nine months ended Sept. 30, 2009 of $263,062 was a bank loan from a PRC bank. Working capital amounted to $6,645,414 at Sept. 30, 2009.
About Huifeng Bio-Pharmaceutical Technology, Inc. (HFGB)
Huifeng Bio-Pharmaceutical Technology, Inc., located in Xi’an, People’s Republic of China, develops and produces plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production. It is the leading Chinese producer of rutin and related plant-derived chemicals in a class called flavonoids, with medicinal and other beneficial properties in Xi’an China. Founded in 2002, Huifeng uses proprietary patented processes to extract rutin more efficiently than traditional extraction techniques. The Company is diversifying its product lines through internal development, acquisition and cooperation with scientific research organizations. Additional information is available at the Company’s website: http://www.hfgb.cn/
Safe Harbor Statement
This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of the Company’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward- looking statements, including but not limited to the fluctuation of prices of raw materials, the market demand for our products, changes in governmental regulations and/or economic policies and our ability to penetrate new markets.
CONTACT: Investor Relations Network, Tom Gavin, +1-951-845-1112,
irnetwork@earthlink.net, for Huifeng Bio-Pharmaceutical Technology, Inc.
Web site: http://www.hfgb.cn/
