Aoxing Pharmaceutical Company, Inc. Announces Financial Results For First
Quarter Of 2013 Fiscal Year
JERSEY CITY, N.J., Nov. 14, 2012
JERSEY CITY, N.J., Nov. 14, 2012 /PRNewswire/ --Aoxing Pharmaceutical
Company, Inc. (NYSE MKT: 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 quarter ended
September 30, 2012. Complete financial results can be found in the Quarterly
Report on Form 10-Q filed by Aoxing Pharma on November 14, 2012.
Sales for the first quarter of fiscal year 2013 were $2,604,764, representing
a 70% increase over the sales realized during the first quarter of the 2012
fiscal year. The increase was primarily attributable to the 78% increase in
sales of the Company's main product, Zhongtongan, which is now being marketed
for gynecological and orthopaedic applications in addition to its core dental
market. Sales of Zhongtongan accounted for 92% of sales during the quarter
ended September 30, 2012.
Gross margin for the first quarter of fiscal 2013 was 61.1%, an increase from
the gross margin of 56.7% achieved in the first quarter of fiscal 2012. The
increase was primarily the result of a strategic decision to reduce emphasis
on sale of lower margin products. As a result of increased sales and improved
margin, Aoxing Pharma's gross profit for the first quarter of fiscal 2013
increased by 83% to $1,590,519.
General and administrative expenses in the three months ended September 30,
2012 were $610,871, a reduction of 18% from the first quarter of the prior
fiscal year. The reduction in expenses was primarily attributable to a 26%
reduction in stock compensation expenses, a reduction in staffing, and overall
efforts to contain costs. The reduction in general and administrative
expenses was more than offset, however, by a 68% increase in selling expenses,
as the Company seeks to expand its market position. As a result, total
operating expenses increased by 10% from quarter to quarter.
Primarily due to improvement in sales, Aoxing Pharma recorded a net loss of
$448,516 for the first quarter of fiscal 2013, an improvement from the net
loss of $955,163 recorded in the first quarter of fiscal 2012.
On September 30, 2012, Aoxing Pharma had $6.2 million in cash on hand and a
working capital deficit of $2,109,492, which represented a significant
improvement over its working capital deficit of $9,112,842 at June 30, 2012.
The improvement occurred because, on August 14, 2012, Aoxing Pharma entered
into a refinancing agreement with Beijing International Trust Co., Ltd., and
replaced a short-term loan of approximately $3.96 million owed to China CITIC
Bank with a two-year term loan of approximately $7.12 million.
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."
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 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). It has a joint venture
collaboration with Johnson Matthey Plc to produce and market narcotics and
neurological drugs in China. For more information, please visit:
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, 2012, 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.
Aoxing Pharmaceutical Company:
SOURCE Aoxing Pharmaceutical Company, Inc.
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