HARBIN, China, Aug. 19 /PRNewswire-Asia/ -- Weikang Bio-Technology Group Co., Inc. , a Chinese producer of OTC pharmaceuticals and traditional Chinese medicine (“TCM”) products, reported financial results for its second quarter ended June 30, 2009.
Second Quarter 2009 Results
Revenues were $13.20 million and $23.31 million for the three and six months ended June 30, 2009, respectively, as compared to $2.05 million and $3.20 million for the corresponding periods in 2008 due to the June 30 acquisition of Tianfang (Guizhou) Pharmaceutical Co., Ltd (“Tianfang”), an OTC pharmaceuticals developer and manufacturer. Total revenues increased by $11.15 million and $20.11 million, a 544% and 628% increase, for the three and six months ended June 30, 2009, as compared to total revenues for the three and six months ended June 30, 2008.
Sequentially, revenues were up 31% over Q1 of 2009. The overall gross profit for the Company was $7.09 million and $12.74 million, or 429% and 528%, for the three and six months ended June 30, 2009 respectively. Profit margin increased by $2.23 million to $3.33 million for the three months ended June 30, 2009.
“We are very pleased with this quarter’s strong financial performance,” said Mr. Yin Wang, President & CEO of Weikang Bio-Technology Group Co., Inc. “We entered into a stock transfer agreement with Tianfang on June 30, 2008 to acquire 100% of its equity interest. As a result of the acquisition we have expanded our operations to include OTC pharmaceuticals. Our business will continue to accelerate as we enter the second half of 2009. We are seeing strong demand for our OTC pharmaceuticals and TCM products especially in the midst of China’s new healthcare reform initiatives, which will secure our future growth.”
Six Month Results
For the six months ended June 30, 2009, total operating revenues were $23.31 million, up 628% from $3.20 million from the same period last year. Gross profit was $12.74 million, up 528% from the same period 2008. Gross margin increased by $10.71 million to $12.74 million for the six months ended June 30, 2009. Net income increased by $5.53 million (333%) to $7.19 million for the six months ended June 30, 2009, as compared to the corresponding three and six month periods in 2008.
About Weikang Bio-Technology Group Co., Inc.
Website: http://www.hljweikang.com/
Weikang Bio-Technology Group Co., Inc. is a China-based provider of OTC pharmaceuticals and TCM products. Headquartered in Harbin city of China, the Company currently has 420 employees and two production facilities in Harbin and Guiyang.
Safe Harbor Statement
This press release contains certain statements that may include “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes, expects, anticipate, optimistic, intend, will” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors 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 those discussed in the Company’s periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
SOURCE Weikang Bio-Technology Group Co., Inc.
CONTACT: Xiaodong Wang at +86-451-8835-5530 or weikang-jituan@163.com /
/Web: http://www.hljweikang.com
