Sinobiopharma, Inc. ("Sinobiopharma" or the "Company") is pleased to report financial highlights from the audited financial results for the fiscal year ended May 31, 2009.
Financial highlights include: -- Sales revenue increased to US$3,850,278 for the 12 months ended May 31, 2009, from US$1,810,318 in the corresponding period ended May 31, 2008, a year-over-year increase of 112.69 percent. -- Gross profit increased to US$2,538,441, representing 66 percent of sales revenue, for the 12 months ended May 31, 2009, from US$580,915, representing 32 percent of revenue, in the corresponding period ended May 31, 2008. -- Net profit of the Company's wholly owned operating subsidiary, Dong Ying (Jiangsu) Pharmaceutical Co., Ltd., increased to US$1,019,507 representing 26% of sales revenue, for the 12 months ended May 31, 2009, from -US$199,306 in the corresponding period ended May 31, 2008, a year-over-year increase of more than 400 percent. However, the Company's overall net loss increased to US$2,140,237 for the 12 months ended May 31, 2009, of which one of the main expenses affecting the results of operations was the stock-based compensation charge of US$2,917,125, reflecting the vesting of stock options granted by the Company and professional fee of public company administration (audit, legal, etc.) of US$270,518. -- Increase in sales volume and the improvement in gross profit percentage are both due to growth in sales of Cisatracurium Besylate, a pre- surgical skeletal muscle relaxant. Sales of this product increased to US$3,595,031 in the 12 months ended May 31, 2009, from US$1,364,165 in the 12 months ended May 31, 2008. At the same time, as volume has increased, cost of manufacturing Cisatracurium Besylate has decreased to 29 percent of its price for the 12 months ended May 31, 2009, from 47 percent of its price for the 12 months ended May 31, 2008.
"The significant increases in sales revenue as well as gross and net profit -- achieved despite sustained economic turmoil and without any funds raised in the last fiscal year -- speak well to the growing success of Sinobiopharma's products in the marketplace and the Company's improved ability to produce and distribute them more cost-effectively," said Dr. Lequn Lee Huang, Sinobiopharma's President and CEO.