FOSTER CITY, CA / ACCESSWIRE / November 14, 2016 / Aoxing Pharmaceutical Company, Inc. (NYSE MKT: AXN) today announced that for the first quarter of fiscal year 2017, ended September 30, 2016, the Company reported revenues of $7,569,296, down 13% year-over-year from the revenue of $8,744,822 realized during the three months ended September 30, 2015. The year-over-year revenue decline was mainly due to lower sales for Zhongtong'an product, which represented 92.8% of total sales during the first quarter of fiscal 2017. Sales of Zhongtong'an product have been under pressure as inventories in the pipeline remain low. Our Tilidine product has not yet contributed to sales.
The Company's net income in Q1 of fiscal year 2017 was $346,080 (or $0.00 per share), compared to $1,267,936 (or $0.02 per share) for the three months ended September 30, 2015.
Aoxing's cash balance as of September 30, 2016 was $7,055,974, 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 currently under pressure, we believe the pipeline inventory is low and the revenue growth could recover going forward. We believe our marketing efforts for products other than Zhongtong'an, including our Tilidine tablets, could contribute more to the revenue with our 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.
CONSOLIDATED BALANCE SHEETS
|
September 30,
|
June 30,
|
|||||||
|
2016
|
2016
|
|||||||
|
ASSETS
|
(Unaudited)
|
|||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$ | 7,055,974 | 6,912,100 | |||||
|
Accounts receivable, net
|
12,767,133 | 10,435,101 | ||||||
|
Notes receivable, net
|
1,227,593 | 765,317 | ||||||
|
Inventories, net
|
2,433,301 | 2,841,690 | ||||||
|
Prepaid expenses and other current assets
|
6,619,058 | 5,912,555 | ||||||
|
TOTAL CURRENT ASSETS
|
30,103,059 | 26,866,763 | ||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Property and equipment, net of accumulated depreciation
|
25,277,267 | 25,603,734 | ||||||
|
Deferred income tax
|
1,532,500 | 1,878,595 | ||||||
|
Other intangible assets, net
|
1,862,139 | 1,878,299 | ||||||
|
Investment in joint venture
|
- | 4,200 | ||||||
|
TOTAL LONG-TERM ASSETS
|
28,671,906 | 29,364,828 | ||||||
|
TOTAL ASSETS
|
$ | 58,774,965 | 56,231,591 | |||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Short-term borrowings
|
$ | 8,544,369 | 11,070,966 | |||||
|
Accounts payable
|
3,137,060 | 2,709,819 | ||||||
|
Loan payable - bank
|
14,336,552 | 14,372,630 | ||||||
|
Current portion of loan payable - related parties
|
5,793 | 13,317 | ||||||
|
Current portion of loan payable - others
|
2,408,912 | 15,048 | ||||||
|
Accrued expenses and other current liabilities
|
11,406,652 | 9,633,750 | ||||||
|
TOTAL CURRENT LIABILITIES
|
39,839,338 | 37,815,530 | ||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Loan payable - related parties
|
7,495 | |||||||
|
Loan payable - others
|
89,941 | |||||||
|
Deferred income
|
322,967 | 340,089 | ||||||
|
TOTAL LONG-TERM LIABILITIES
|
420,403 | 340,089 | ||||||
|
Common stock, par value $0.001, 100,000,000 shares authorized, 76,209,195 shares issued and outstanding on September 30, 2016 and June 30, 2016
|
76,209 | 76,209 | ||||||
|
Additional paid in capital
|
73,638,151 | 73,629,751 | ||||||
|
Accumulated deficit
|
(55,947,665 | ) | (56,293,745 | ) | ||||
|
Accumulated other comprehensive income
|
1,764,235 | 1,723,740 | ||||||
|
TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY
|
19,530,930 | 19,135,955 | ||||||
|
NONCONTROLLING INTEREST IN SUBSIDIARIES
|
(1,015,706 | ) | (1,059,983 | ) | ||||
|
TOTAL EQUITY
|
18,515,224 | 18,075,972 | ||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 58,774,965 | 56,231,591 | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
|
For the Three Months Ended
|
||||||||
|
September 30,
|
||||||||
|
2016
|
2015
|
|||||||
|
SALES
|
$
|
$7,569,296
|
$
|
$8,744,822
|
||||
|
COST OF SALES
|
1,514,932
|
1,758,079
|
||||||
|
GROSS PROFIT
|
6,054,364
|
6,986,743
|
||||||
|
OPERATING EXPENSES:
|
||||||||
|
Research and development expense
|
377,287
|
377,306
|
||||||
|
General and administrative expenses
|
1,276,720
|
944,358
|
||||||
|
Selling expenses
|
2,577,366
|
2,394,346
|
||||||
|
Depreciation and amortization
|
119,485
|
131,530
|
||||||
|
TOTAL OPERATING EXPENSES
|
4,350,858
|
3,847,540
|
||||||
|
INCOME FROM OPERATIONS
|
1,703,506
|
3,139,203
|
||||||
|
OTHER INCOME/(EXPENSE):
|
||||||||
|
Interest expense, net of interest income
|
(656,486)
|
(929,029)
|
||||||
|
Gain on foreign currency transactions
|
-
|
58,593
|
||||||
|
Equity in loss of joint venture, net of tax
|
(4,186)
|
(24,291)
|
||||||
|
Subsidy income
|
-
|
47,760
|
||||||
|
TOTAL OTHER (EXPENSE)
|
(660,672)
|
(846,967)
|
||||||
|
INCOME BEFORE INCOME TAX
|
1,042,834
|
2,292,236
|
||||||
|
Income tax
|
651,077
|
943,803
|
||||||
|
NET INCOME
|
391,757
|
1,348,433
|
||||||
|
Net income attributed to non-controlling interest in subsidiaries
|
45,677
|
80,497
|
||||||
|
INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY
|
346,080
|
1,267,936
|
||||||
|
OTHER COMPREHENSIVE LOSS:
|
||||||||
|
Foreign currency translation adjustment
|
(28,020)
|
(669,991)
|
||||||
|
COMPREHENSIVE INCOME
|
318,060
|
597,945
|
||||||
|
Other comprehensive income attributable to non-controlling interest
|
(1,401)
|
(33,500)
|
||||||
|
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY
|
$
|
$319,461
|
$
|
$631,445
|
||||
|
BASIC AND DILUTED LOSS PER COMMON SHARE
|
$
|
$0.00
|
$
|
$0.02
|
||||
|
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
76,209,195
|
69,852,302
|
||||||
CONTACT:
Aoxing Pharmaceutical Company:
646-367-1747
investor.relations@aoxingpharma.com
SOURCE: Aoxing Pharmaceutical Company, Inc.
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