HARBIN, China, April 21 /PRNewswire-Asia/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (Nasdaq: CSKI), a leading fully integrated pharmaceutical company producing over-the-counter drugs in the People's Republic of China ("PRC"), today responded to comments made by certain stock analysts, including short selling advisors, regarding the quality of its financial statements and corporate governance. These individuals never had any contact with the management of China Sky One Medical, Inc.
The reports issued by certain short selling advisors specifically called into question the Company's full year basic earnings per share (EPS) figures in its earnings press release dated April 15, 2009. The Company stands by its full year basic earnings per share figures as represented on its April 15, 2009, earnings press release and filed in its Form 10-K. In addition, the reports question the Company's ability to generate consistent gross margin, especially in light of volatile selling prices for certain products. This reports failed to note that overall average selling prices did not exhibit the same level of volatility, due to changes in the Company's diverse mix of 97 products, the growing contribution of new biochemical products and the discontinuation of lower priced contract products.
Finally, the reports issued by the short selling advisors cast doubt on the quality of the Company's corporate governance. The Company meets all corporate governance standards required by the NASDAQ stock market, including a board with a majority of independent directors and the establishment of audit, compensation and corporate governance and nominating committees.
"We have noticed that short selling advisors are disseminating information disparaging the quality of our corporate governance and financial data, and we take this matter very seriously," said Mr. Yan-Qing Liu, Chairman and Chief Executive Officer of China Sky One Medical, Inc. "We stand by the quality of our financial statements and governance, and would like to reiterate that management has not had any contact with the individuals circulating this information. In addition, we encourage all investors to contact us directly, or through CCG Investor Relations, our investor relations firm, for any further clarifications, questions, or concerns, which we will provide in a timely manner."
About China Sky One Medical, Inc.
China Sky One Medical, Inc., a Nevada corporation, is a holding company. The Company engages in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company ("TDR"), Harbin First Bio- Engineering Company Limited ("First"), Heilongjiang Tianlong Pharmaceutical, Inc. ("Tianlong") and Peng Lai Jin Chuang Pharmaceutical Company ("Jin Chuang") the Company manufactures and distributes over-the-counter pharmaceutical products, which make up its major revenue source. For more information, visit http://www.skyonemedical.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the CEO's remarks. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact:
Company Contact:
China Sky One Medical, Inc.
Mr. Yu-Bo Hao, CFO
Tel: +86-451-5399-4069
Email: china_sky_one@yahoo.cn
Investor Relations Contact:
CCG Investor Relations
Mr. Crocker Coulson, President
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
