Aoxing Pharmaceutical Company, Inc. Announces Financial Results for Second Quarter of 2014 Fiscal Year

Aoxing Pharmaceutical Company, Inc. Announces Financial Results for Second 
Quarter of 2014 Fiscal Year 
JERSEY CITY, NJ -- (Marketwired) -- 02/19/14 --  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 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 
 
 
Press spacebar to pause and continue. Press esc to stop.