FOSTER CITY, CA / ACCESSWIRE / February 14, 2017 / Aoxing Pharmaceutical Company, Inc. (NYSE MKT: AXN) today announced that for the second quarter of fiscal year 2017, ended December 31, 2016, the Company reported revenues of $8,009,111, down 2.3% year-over-year from the revenue of $8,195,839 realized during the three months ended December 31, 2015. The Company's Tilidine product has not yet contributed to sales.
The net loss attributable to the shareholders of Aoxing Pharmaceutical for the three months ended December 31, 2016 was $43,453 (or $0.00 per share), compared to net income of $2,068,635 (or $0.03 per share) for the three months ended December 31, 2015.
Aoxing's cash balance as of December 31, 2016 was $6,848,691, compared to $6,912,100 as of June 30, 2016, the end of its last fiscal year.
Mr. Zhenjiang Yue, Chairman and CEO of Aoxing Pharma, said, "Although the sales are still under pressure, our key product Zhongtong'an showed some recovery during the quarter. We believe our marketing efforts for products other than Zhongtong'an, including our Tilidine tablets, will contribute more to the revenue as we increase market penetration."
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.
CONTACT:
Aoxing Pharmaceutical Company:
646-367-1747
[email protected]
CONSOLIDATED BALANCE SHEETS
|
December 31,
|
June 30,
|
|||||||
|
2016
|
2016
|
|||||||
|
ASSETS
|
(Unaudited)
|
|||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$ | 6,848,691 | 6,912,100 | |||||
|
Accounts receivable, net
|
12,845,837 | 10,435,101 | ||||||
|
Notes receivable, net
|
792,395 | 765,317 | ||||||
|
Inventories, net
|
2,043,681 | 2,841,690 | ||||||
|
Prepaid expenses and other current assets
|
8,307,919 | 5,912,555 | ||||||
|
TOTAL CURRENT ASSETS
|
30,838,523 | 26,866,763 | ||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Property and equipment, net of accumulated depreciation
|
24,065,526 | 25,603,734 | ||||||
|
Deferred income tax
|
2,002,886 | 1,878,595 | ||||||
|
Other intangible assets, net
|
1,817,553 | 1,878,299 | ||||||
|
Investment in joint venture
|
- | 4,200 | ||||||
|
TOTAL LONG-TERM ASSETS
|
27,885,965 | 29,364,828 | ||||||
|
TOTAL ASSETS
|
$ | 58,724,488 | 56,231,591 | |||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Short-term borrowings
|
$ | 10,519,951 | 11,070,966 | |||||
|
Accounts payable
|
3,759,101 | 2,709,819 | ||||||
|
Loan payable – bank
|
13,769,373 | 14,372,630 | ||||||
|
Current portion of loan payable - related parties
|
-- | 13,317 | ||||||
|
Current portion of loan payable – others
|
-- | 15,048 | ||||||
|
Accrued expenses and other current liabilities
|
12,462,633 | 9,633,750 | ||||||
|
TOTAL CURRENT LIABILITIES
|
40,511,058 | 37,815,530 | ||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Loan payable - related parties
|
12,992 | |||||||
|
Loan payable – others
|
86,382 | |||||||
|
Deferred income
|
308,563 | 340,089 | ||||||
|
TOTAL LONG-TERM LIABILITIES
|
407,937 | 340,089 | ||||||
|
Common stock, par value $0.001, 100,000,000 shares authorized, 76,209,195 shares issued and outstanding on December 31, 2016 and June 30, 2016
|
76,209 | 76,209 | ||||||
|
Additional paid in capital
|
73,642,951 | 73,629,751 | ||||||
|
Accumulated deficit
|
(55,991,118 | ) | (56,293,745 | ) | ||||
|
Accumulated other comprehensive income
|
1,116,743 | 1,723,740 | ||||||
|
TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY
|
18,844,785 | 19,135,955 | ||||||
|
NONCONTROLLING INTEREST IN SUBSIDIARIES
|
(1,039,292 | ) | (1,059,983 | ) | ||||
|
TOTAL EQUITY
|
17,805,493 | 18,075,972 | ||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 58,724,488 | 56,231,591 | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
(Unaudited)
|
For the three months ended
|
For the six months ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||||
|
SALES
|
$
|
8,009,111
|
$
|
8,195,839
|
$
|
15,578,407
|
$
|
16,940,661
|
||||||||
|
COST OF SALES
|
1,712,635
|
1,726,592
|
3,227,567
|
3,484,671
|
||||||||||||
|
GROSS PROFIT
|
6,296,476
|
6,469,246
|
12,350,840
|
13,455,990
|
||||||||||||
|
OPERATING EXPENSES:
|
||||||||||||||||
|
Research and development expense
|
76,403
|
830,105
|
453,690
|
1,207,411
|
||||||||||||
|
General and administrative expenses
|
2,924,210
|
511,127
|
4,200,930
|
1,455,485
|
||||||||||||
|
Selling expenses
|
2,943,455
|
1,589,866
|
5,520,821
|
3,984,212
|
||||||||||||
|
Depreciation and amortization
|
119,212
|
128,126
|
238,697
|
259,656
|
||||||||||||
|
TOTAL OPERATING EXPENSES
|
6,063,280
|
3,059,224
|
10,414,138
|
6,906,764
|
||||||||||||
|
INCOME FROM OPERATIONS
|
233,196
|
3,410,023
|
1,936,702
|
6,549,225
|
||||||||||||
|
OTHER INCOME (EXPENSE):
|
||||||||||||||||
|
Interest expense, net of interest income
|
(640,399)
|
(979,906)
|
(1,296,885)
|
(1,908,936)
|
||||||||||||
|
Gain on foreign currency transactions
|
0
|
24,753
|
0
|
83,345
|
||||||||||||
|
Equity in loss of joint venture, net
|
52
|
(14,474)
|
(4,134)
|
(38,765)
|
||||||||||||
|
Subsidy income
|
17,294
|
157,266
|
17,294
|
205,027
|
||||||||||||
|
TOTAL OTHER EXPENSE
|
(623,053)
|
(812,362)
|
(1,283,725)
|
(1,659,329)
|
||||||||||||
|
INCOME BEFORE INCOME TAXES
|
(389,857)
|
2,597,661
|
652,977
|
4,889,897
|
||||||||||||
|
Income tax expense (benefit)
|
(356,897)
|
409,393
|
294,180
|
1,353,196
|
||||||||||||
|
NET INCOME (LOSS)
|
(32,960)
|
2,188,268
|
358,797
|
3,536,700
|
||||||||||||
|
Net income attributed to non-controlling interest in subsidiaries
|
10,493
|
119,633
|
56,170
|
200,129
|
||||||||||||
|
INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY
|
(43,453)
|
2,068,635
|
302,627
|
3,336,571
|
||||||||||||
|
OTHER COMPREHENSIVE LOSS:
|
||||||||||||||||
|
Foreign currency translation adjustment
|
(681,570)
|
(753,581)
|
(709,591)
|
(1,423,572)
|
||||||||||||
|
COMPREHENSIVE INCOME (LOSS)
|
(714,530)
|
1,315,054
|
(350,793)
|
1,912,999
|
||||||||||||
|
Other comprehensive loss attributable to non-controlling interest
|
(34,078)
|
(37,679)
|
(35,480)
|
(71,179)
|
||||||||||||
|
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY
|
$
|
(680,452)
|
$
|
1,352,733
|
$
|
(315,313)
|
$
|
1,984,178
|
||||||||
|
EARNINGS PER SHARE
|
||||||||||||||||
|
Basic and Diluted
|
$
|
(0.00)
|
$
|
0.03
|
$
|
0.00
|
$
|
0.05
|
||||||||
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
|
Basic
|
76,209,195
|
73,097,698
|
76,209,195
|
71,475,000
|
||||||||||||
|
Diluted
|
76,209,195
|
73,177,698
|
76,209,195
|
71,555,000
|
||||||||||||
SOURCE: Aoxing Pharmaceutical Company, Inc.