XI'AN, China, April 20 /PRNewswire-Asia-FirstCall/ -- Huifeng
Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB), a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production, today announced record 2009 results and provided guidance for 2010.
Financial Highlights:
-- FY 2009 revenues increased 25.6% to $13.7 million, from $10.9 million
for FY2008
-- Our gross profit margin increased from 35% FY2008 to 37% FY2009
-- Working Capital amounted to $10 million at December 31, 2009, an
increase of $5.3 million or %114 compared with $4.7 million of 2008
-- FY2009 net income increased 94.8% to $3.04 million, or diluted EPS of
$0.15, from $1.56 million for FY2008, or diluted EPS of $0.08
Summary:
Fiscal 2009 Results FY 2009 FY 2008 CHANGE
Net Sales $13.7 million $10.9 million +25.6%
GAAP Net Income $3.04 million $1.56 million +94.8%
GAAP EPS (Fully Diluted) $0.15 $0.08 +87.5%
Re-affirmed Fiscal Year ending 2010 Guidance:
Fiscal Year Revenue Net Income
2010 E $20-$25M $4.5-5.0M
2009 A $13.7M $3.0M
2008 A $10.95M $1.55M
Revenues for the year ended December 31, 2009 were $13,764,886, an increase of $2,807,657 or approximately 25.6% from $10,957,229 in 2008. Our increase in sales revenues in 2009 mainly attributed to the increase in sales of pharmaceutical raw materials. In particular, the sales volume of our Diosmin, Rutin and Troxerutin products increased rapidly, as a result of the high quality of our products. An analysis of our increase in sales of our products is as follows:
For the year ended
December 31,
Increase/
Product 2009 2008 (Decrease)
Pharmaceutical raw materials $8,015,822 $5,852,440 $2,163,382
Plant extracts 1,995,907 1,818,924 176,983
Pharmaceutical intermediates 3,753,157 3,285,865 467,292
TOTAL $13,764,886 $10,957,229 $2,807,657
The increase in the sales of pharmaceutical raw materials in 2009 was mainly due to an increase in the sales of Diosmin, Rutin and Troxerutin, three of our major products in this category. Revenue for Diosmin in 2009 was $3,397,698, an increase of $1,142,372 or 51% from the $2,255,326 of 2008. Our significant revenue growth in Diosmin in international market, especially in Europe, was driven by our higher quality levels compared with the competitors. In China, we are the only Disomin producer that is in the process of applying Certificate of Suitability (COS). The Revenue for Rutin in 2009 was $2,343,218, an increase of $465,910 or 25% from the $1,877,308 of 2008. As the Good Manufacturing Practice (GMP) certified Rutin producer, we experienced rapid growth in both international and domestic market due to our high quality standards.
Our gross profit margin increased from 35% in 2008 to 37% in 2009. Our profit margin for pharmaceutical raw materials increased from 30% in 2008 to 31% in 2009. The profit margin for Plant Extracts increased from 50% in 2008 to 51% in 2009. The profit margin for pharmaceutical intermediates increased from 36% in 2008 to 42% in 2009. Gross profit for the year ended December 31, 2009 was $5,050,038, an increase of $1,229,301 or 32% from the $3,820,737 of 2008, in which $508,039 or 41% of gross profit was attributable to the increase in gross margin for Diosmin; $312,611 or 25% was attributable to the increase in gross margin for Troxerutin, and $294,259 or 24% was attributable to the increase in gross margin for Rutin.
"We are very pleased with our Fiscal Year 2009 results and robust growth in Q4 2009. Our results are attributed to our commitment to quality products and manufacturing excellence," stated Mr. Jingan Wang, "In 2010, we expect the opportunity to be up listed on a senior exchange, which will help increase awareness to a broader base of investors, analysts and institutions".
FORWARD-LOOKING STATEMENTS:
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Huifeng
Bio-Pharmaceutical Technology, Inc.'s actual results to differ materially from those currently anticipated, including the risk factors identified in Huifeng Bio-Pharmaceutical Technology, Inc.'s filings with the Securities and Exchange Commission.
For more information, please contact:
Investor Relations:
Capital Group Communications, Inc.
Mr. Kevin Fickle (English)
Tel: +1-925-330-8315
Email: Kevin@capitalgc.com
Company Contact:
Huifeng Bio-Pharmaceutical Technology, Inc.
Bing He
Tel: +86-139-9195-4170 (Chinese)
Email: expo8@xahuifeng.com
