BiostarPharmaceuticals,Inc. Announces Its Quarterly Results for Three Months Ended September 30, 2015

Loading...
Loading...

XIANYANG, China, Nov. 23, 2015 /PRNewswire/ -Biostar Pharmaceuticals, Inc. BSPM ("Biostar" or "the Company"), a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced its financial results for the third quarter ended September 30, 2015.

During the fiscal third quarter of 2015, the Company recognized:

  • Net sales of $4.2 million, a decrease of approximately $10 million, or 71.2% as compared to the same period in 2014.
  • Gross profit decreased by approximately $6.2 million, or 88.3% for the three months ended September 30, 2015 as compared to the same period in 2014.
  • Sales of Shaanxi Weinan Products increased by approximately $0.8 million, or 204.9% as compared to the same period in 2014.
  • Net loss of $1.2 million as compared to net income of $0.2 million for the third quarter 2014.
  • R&D expenses were approximately $1million, as compared to $0.69 million for same period in 2014.

The Company experienced a material decrease in sales volume of all Aoxing Pharmaceutical Products during the three months ended September 30, 2015.  Aoxing Pharmaceutical experienced temporarily suspension in manufacturing to conduct maintenance on its production lines as part of its continued efforts to gain renewal of its GMP certification for its Aoxing Pharmaceutical production lines by January 2016, so that normal production can resume by February 2016. Net sales, and related gross profit both decreased significantly during the quarter ended September 30, 2015, as result of these maintenance efforts.

Mr. Ronghua Wang, Chairman and CEO of Biostar Pharmaceuticals, Inc. commented, "We are in the process of renewing our three GMP certifications and we currently expect the renewal process to be completed by January 2016. In the meantime, we have adopted a series of measures to help our company navigate this process by reducing operating expenses and improving cash management."

*The Company's Condensed Consolidated Balance Sheets, Statement of Operations, and Cash Flows can be found at the end of this press release. Please also refer the Company's Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission for further information regarding the Company's results of operations.

About Biostar Pharmaceuticals, Inc.

Biostar Pharmaceuticals, Inc., through its wholly owned subsidiary and controlled affiliate in China, develops, manufactures, and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The Company's most popular product is its XinAoxingOleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. For more information please visit: http://www.biostarpharmaceuticals.com.

Safe Harbor Relating to the Forward-Looking Statements

Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company uses words and phrases such as "guidance," "forecasted," "projects," "is expected," "remain confident," "will" and similar expressions to identify forward-looking statements in this press release, including forward-looking statements. Undue reliance should not be placed on forward-looking information. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Biostar and described in the forward-looking information contained in this news release. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the Company's ability to complete the certification renewal process in the timeframe currently anticipated, its ability to sustain its sales effort going forward, its ability promptly and effectively to return to the normal production levels, its ability to retain existing and retain new customers for its products, its ability to achieve the projected sales through the efforts of the call center, to complete the contemplated clinical trials and capitalize on such opportunities, the Company's ability to recover its sales and revenue following the repair and maintenance for GMP certification renewal, the state of consumer confidence and market demand or the Company's products, success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our most recent Annual Report on Form 10-K for the year ended December 31, 2014, and other subsequent filings. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.

Investor Relations Contact

Please send questions or comments to:
Biostar Pharmaceuticals, Inc.
Investor Relations Coordinator
+86-29-3368-6638
office@aoxing-group.com

http://www.biostarpharmaceuticals.com


BIOSTAR PHARMACEUTICALS, INC

CONDENSED CONSOLIDATED BALANCE SHEETS



September 30,


December 31,



2015


2014



(Unaudited)


ASSETS









Current Assets







Cash and cash equivalents


$

111,911



$

1,685,154


Accounts receivable, net



29,190,781




26,962,078


Inventories



632,086




673,989


Deposits and other receivables



2,009,399




4,471,992


Income tax recoverable



120,868




67,370


Loan receivables



9,443,168




9,772,464


Total Current Assets



41,508,213




43,633,047











Non-current Assets









Deposits



10,072,712




8,795,218


Deferred tax assets



7,390,160




7,065,523


Property and equipment, net



7,769,903




8,483,113


Intangible assets, net



11,726,635




13,270,330


Total Non-Current Assets



36,959,410




37,614,184











Total Assets


$

78,467,623



$

81,247,231











LIABILITIES AND STOCKHOLDERS' EQUITY











Current Liabilities









Accounts and other payables


$

7,502,145



$

5,001,086


Short-term bank loans



2,809,342




3,094,614


Value-added tax payable



48,515




432,885


Warrants liability



158,631




383,295


Total Current Liabilities



10,518,633




8,911,880











Commitment and contingencies


















Stockholders' Equity









Common stock, $0.001 par value, 100,000,000 shares authorized,

   15,476,113 shares issued and outstanding as of

   September 30, 2015 and December 31, 2014



15,476




15,476


Additional paid-in capital



30,303,508




30,303,508


Statutory reserve



7,354,413




7,354,413


Retained earnings



26,362,672




28,269,956


Accumulated other comprehensive income



3,912,921




6,391,998


Total Stockholders' Equity



67,948,990




72,335,351











Total Liabilities and Stockholders' Equity


$

78,467,623



$

81,247,231


 

BIOSTAR PHARMACEUTICALS, INC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)




Three months ended

September 30,



Nine months ended

September 30,




2015



2014



2015



2014















Sales, net


$

4,206,550



$

14,651,054



$

25,291,531



$

47,031,072


Cost of sales



3,390,439




7,674,053




14,955,491




23,533,445


Gross profit



816,111




6,977,001




10,336,040




23,497,627



















Operating expenses:

















Advertising expenses



-




2,290,277




3,838,912




6,397,644


Selling expenses



835,412




2,161,641




4,445,443




6,633,651


General and administrative expenses



682,972




1,651,457




2,672,351




6,360,681


Impairment loss on accounts receivables



-




-




-




2,155,357


Research and development expenses



998,746




690,189




3,043,535




2,074,621


Total operating expenses



2,517,130




6,793,564




14,000,241




23,621,954



















(Loss) income from operations



(1,701,019)




183,437




(3,664,201)




(124,327)



















Other income (expense)

















Interest income



311,569




309,634




954,594




1,043,387


Interest expense



-




-




(62,290)




(82,855)


Fair value adjustment on warrants



144,210




(51,612)




224,664




341,550


Additional compensation received for the disposal of land use rights



-








-




1,099,292


Other income (expense)



546




45,469




2,065




(5,363)





456,325




303,491




1,119,033




2,396,011



















(Loss) income before income taxes



(1,244,694)




486,928




(2,545,168)




2,271,684



















Provision for income tax (recovery)



10,059




247,361




(637,884)




79,953



















Net (loss) Income


$

(1,254,753)



$

239,567



$

(1,907,284)



$

2,191,731



















Foreign currency translation adjustment



(3,140,062)




58,895




(2,479,077)




(376,135)



















Comprehensive (loss) income


$

(4,394,815)



$

298,462



$

(4,386,361)



$

1,815,596



















Net (loss) income per share

















Basic


$

(0.08)



$

0.02



$

(0.12)



$

0.15


Diluted



(0.08)




0.02




(0.12)




0.15



















Weighted average number of common shares outstanding

















Basic



15,476,113




15,288,613




15,476,113




14,221,351


Diluted



15,476,113




15,288,613




15,476,113




14,223,014


 

BIOSTAR PHARMACEUTICALS, INC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Nine Months Ended September 30,




2015



2014


CASH FLOWS FROM OPERATING ACTIVITIES







Net (loss) income


$

(1,907,284)



$

2,191,731


Adjustments to reconcile net income to net cash used in operating activities:









Accrued interest income



(949,582)




(373,978)


Deferred tax benefit



(580,367)




(455,838)


Depreciation and amortization



1,005,498




2,468,737


Impairment loss on accounts receivable



-




2,155,357


Loss on disposal on property and equipment



-




3,274


Recognition of deferred research and development expenses



1,014,512




1,383,081


Stock-based compensation



-




1,954,650


Fair value adjustment on warrants



(224,664)




(341,550)


Provision for sales discount



1,478,124




-


Changes in operating assets and liabilities:









Accounts receivable



(4,696,508)




(12,064,808)


Inventories



19,794




85,394


Deposits and other receivables



2,319,480




1,671,704


Accounts payable and accrued expenses



2,753,073




1,249,789


Value-added tax payable



(381,380)




(342,315)


Income tax payable/recoverable



(57,517)




(129,671)


Net cash used in operating activities



(206,821)




(544,443)











CASH FLOWS FROM INVESTING ACTIVITIES









Purchase of property, plant and equipment



(30,522)




(484,778)


Sales proceed of property, plant and equipment



-




2,929


Settlement of outstanding receivable from disposal of land use right



-




1,561,223


Deposit paid for intended acquisition



(1,623,219)




-


Net cash (used in) provided by investing activities



(1,653,741)




1,079,374











CASH FLOWS FROM FINANCING ACTIVITIES









(Repayment) Proceeds of bank loans



(186,670)




3,254,308


 

Advance from a related party



-




70,165


Proceeds from stock issuance and warrants



-




3,862,533


Net cash (used in) provided by financing activities



(186,670)




7,187,006











Effect of exchange rate changes on cash and cash equivalents



473,989




(2,821)











Net (decrease) increase in cash and cash equivalents



(1,573,243)




7,719,116











Cash and cash equivalents, beginning balance



1,685,154




80,072


Cash and cash equivalents, ending balance


$

111,911



$

7,799,188











SUPPLEMENTAL DISCLOSURES:









Interest received


$

5,012



$

669,409


Interest payments


$

(59,406)



$

(82,855)


Income tax (payments)


$

-



$

(665,463)


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/biostarpharmaceuticalsinc-announces-its-quarterly-results-for-three-months-ended-september-30-2015-300183175.html

SOURCE Biostar Pharmaceuticals, Inc.

Loading...
Loading...
Posted In: Press Releases
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...