Sinobiopharma, Inc. (OCT Bulletin Board: SNBP) ("Sinobiopharma" or, the "Company") is pleased to present the following highlights from the unaudited financial results for the first quarter ended August 31, 2009.
The highlights feature record revenues and increases in both gross margin and net profit, and a Company milestone of posting its first overall net profitable quarter since the second quarter 2008, according to Dr. Lequn Lee Huang, Sinobiopharma President and CEO.
-- Revenue increased to US $1,293,764 for the three months ended August 31, 2009 from US $931,203 in the corresponding period ended August 31, 2008, an increase of 39%. -- Gross profit increased 57% to US $962,923, reflecting a 74% gross margin for the three months ended August 31, 2009. This compares to US $612,428, and a 66% gross margin, reported for the corresponding period ended August 31, 2008. -- Net profit of the Company's wholly owned operating subsidiary, Dong Ying (Jiangsu) Pharmaceutical Co., Ltd., increased to US $561,292, representing 43% of sales revenue, for the three months ended August 31, 2009 from US $218,031 in the corresponding period ended August 31, 2008, a year-over-year increase of more than 154%. -- With a net profit overall of US $237,167 for the three months ended August 31, 2009, the quarter marks the first time Sinobiopharma has moved from loss to net profitability. During the quarter, the main expense affecting the net result was a stock-based compensation charge of US $324,125. The charge has been fully amortized in this quarter, reflecting the vesting of stock options granted by the Company. -- Growth in sales and the improvement in gross margin were both due to continued strong demand for of Cisatracurium Besylate, which contributed US $1,240,405, or 96% of revenue for the quarter, up from $865,407 for the first quarter in 2008.
"Sinobiopharma has reached two important milestones," said Dr. Huang. "First, its wholly owned operating subsidiary, Dong Ying (Jiangsu) has recorded more than one half million USD net income in a quarter; and second, the Company has posted an overall net profitable result in its consolidated financial statement for the first time since the second quarter 2008."
"The increases in sales revenue, as well as those in gross and net profit, are clear indicators that more hospitals are choosing our products over those of our competitors, that our continuing efforts to control costs are succeeding, and that our sales and marketing efforts are bearing fruit. We will continue executing on our plan to improve production efficiencies while expanding sales and marketing to ensure that more patients benefit from our products," said Dr. Huang.
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