Aoxing Pharmaceutical Company, Inc. Announces Financial Results for Second Quarter of 2014 Fiscal Year
19 Février 2014 - 6:15PM
Marketwired
Aoxing Pharmaceutical Company, Inc. Announces Financial Results for
Second Quarter of 2014 Fiscal Year
JERSEY CITY, NJ--(Marketwired - Feb 19, 2014) - Aoxing
Pharmaceutical Company, Inc. (NYSEMKT: AXN) ("Aoxing
Pharma"), a specialty pharmaceutical company focusing on research,
development, manufacturing, and distribution of narcotic,
pain-management, and addiction treatment pharmaceuticals, today
announced its financial and operational results for the three and
six month periods ended December 31, 2013. Complete financial
results can be found in the Quarterly Report on Form 10-Q filed by
Aoxing Pharma on February 19, 2014.
Financial Results:
Revenues for the three and six months ended December 31, 2013
were $3,466,807 and $7,043,915, respectively, representing a 5% and
a 19% increase over the revenues realized in the comparable periods
of fiscal year 2013. The increase in revenue was mainly
attributable to the increase in sales of our main product,
Zhongtongan, which is now being marketed for gynecological and
orthopaedic applications in addition to its core pediatric and
stomotological market. Sales of Zhongtongan accounted for 90%
of sales during the quarter ended December 31, 2013.
Despite the increase in revenue, gross profit fell by 27% during
the quarter and 16% during the six months ended December 31,
2013. Recent shortages in certain raw materials cause a 71%
spike in the cost of goods sold during the six month
period. The Company expects raw material prices to subside in
coming periods.
Aoxing Pharma completed a $10.2 million financing at the end of
September 2012, which it utilized to fund sharp increases in
research and development expenses and selling
expenses. Entering the fall of 2013, Aoxing Pharma cut back on
both categories of expenses, in order to stabilize its cash
flows. For that reason, operating expenses during the three
and six months ended December 31, 2013 were 51% and 16% lower,
respectively, than operating expenses in the comparable periods of
fiscal 2013. As a result, despite the reduction in gross
profit, Aoxing Pharma's loss from operations was reduced by 72%
during the quarter ended December 31, 2013 and 16% during the six
months then ended.
Net interest expense increased by 84% to $2,329,092 in the six
months ended December 31, 2013, due to the increase in bank loans
at the end of 2012. The resulting net loss recorded for the
three months ended December 31, 2013 was $1,917,469, whereas the
Company's net loss for the three months ended December 31, 2012 was
$3,135,661. The net loss of $4,268,443 for the six months
ended December 31, 2013 exceeded the net loss of $3,584,176
recorded in the comparable period of the prior year.
On December 31, 2013, Aoxing Pharma had $3.9 million in cash on
hand and a working capital deficit of $25,181,211. The working
capital deficit was swelled during the current fiscal year by the
reclassification of $10.1 million in loans payable from long-term
to current.
Zhenjiang Yue, our Chairman and CEO, commented, "The Chinese
pharmaceutical market continues to be challenging. I am pleased
with Aoxing Pharma's operating results, highlighted by continued
growth in product sales, as well as by the faith that our lenders
have shown in our business model, which allows us to continue to
develop our business despite our negative working capital."
About Aoxing Pharmaceutical Company, Inc. Aoxing Pharmaceutical
Company, Inc. is a US incorporated specialty 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 State Food and Drug Administration (SFDA). Aoxing Pharma
has a joint venture collaboration with Johnson Matthey Plc to
produce and market narcotics and neurological drugs in China. For
more information, please visit: www.aoxingpharma.com.
Safe Harbor Statement from Aoxing Pharmaceutical Company, Inc.
Certain statements made in this press release are forward-looking
and are made pursuant to the safe harbor provisions of the
Securities Litigation Reform Act of 1995. Such statements involve
risks and uncertainties that may cause actual results to differ
materially from those set forth in these statements. All
forward-looking statements included herein are based upon
information available to the Company as of the date hereof and,
except as is expressly required by the federal securities laws, the
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
changed circumstances or future events or for any other reason. To
the extent that any statements made here are not historical, these
statements are essentially forward-looking. The Company uses words
and phrases such as "guidance," "forecasted," "projects," "is
expected," "remain confident," "will" and/or similar expressions to
identify forward-looking statements in this press release. Undue
reliance should not be placed on forward-looking information. The
economic, competitive, governmental, technological and other risk
factors identified in the Company's filings with the Securities and
Exchange Commission, specifically, Item 1A, "Risk Factors," in the
Form 10-K for the year ended June 30, 2013, may cause actual
results or events to differ materially from those described in the
forward looking statements in this press release. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether because of new information,
future events, or otherwise.
CONTACT: Aoxing Pharmaceutical Company: 646-367-1747
investor.relations@aoxingpharma.com
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