XI'AN, China, Jan. 29 China BionanometerIndustries Corporation (Pink Sheets: CBIU), ("CBIU", "the Company"), a leadingcompany in bionanometer industry in the People's Republic of China ("PRC"),today reported record financial results for the second quarter ended June 30,2007.
"We saw strong growth in our sales as we benefited from the strongeconomic momentum and increasing awareness of self-care in recent years inChina," said Mr. Chen Min, CEO of the Company, "In addition, we made animportant progress in the execution of our strategy as we expanded ourdistribution channels."
1. Operating Conditions
(1) Main business revenue
Gross sales for the full year of 2006 reached $2,814,144, an increase of$2,064,289, a 275% increase year-over-year in 2005;
Main business revenue for the first quarter was $1,068,466 in 2007, anincrease of $394,961, a 58.64% increase year-over-year in 2006;
Main business revenue for the second quarter was $2,539,658 in 2007, anincrease of $840,410, a 133.23% increase year-over-year in 2006.
Gross profit for the full year in 2006 was $1,796,435, an increase of$1,368,577, a 320% increase year-over-year in 2005;
Gross profit for the first quarter was $675,302 in 2007, an increase of$237,604, a 54.28% increase year-over-year in 2006;
Gross profit for the second quarter was $931,199 in 2007, an increase of$517,602, a 125.15% increase year-over-year in 2006;
The main reason for the increase is driven by the growth of the mainbusiness revenue.
(3) Profit after tax
Profit after tax for the full year of 2006 reached $690,886, an increaseof $771,710, a 955% increase year-over-year in 2005. After tax profit ratereached 24.55%, or $0.01 per share.
Profit after tax for the first quarter reached $442,170 in 2007, anincrease of $383,804, a 658% increase year-over-year in 2006, or $0.01 pershare.
Profit after tax for the second quarter reached $819,971 in 2007, anincrease of $598,815 and a 271% increase year-over-year in 2006.
Meanwhile, we should also consider that the sale of profit return is notyet calculated to the operating expenses ended on June 30, 2007, plus thecosts of the $200,000, after-tax profit for the first and second quarter ofthis year, there is still a significant level of improvement.
Main business revenue for the six months ended June 30, 2007 was$2,539,658, gross profit was $1,606,501 and after-tax net profit was$1,262,141, a 351% increase year-over-year in 2006,or $0.014 per share. Thetotal net cash flow was $2,204,416; net of operating cash flow was $1,475,289.
These data came from the Discussed Draft. PLEASE refer to the finalversion.
Certain information contained in these materials are "forward-looking"information, such as projections, estimates, pro formas, or statements ofintentions, expectations or plans. All forward-looking information are subjectto known and unknown risks and uncertainties, many of which are outside of thecontrol of the company. Consequently, actual results may, and probably will,differ materially from the results contemplated in such forward-lookinginformation.
About China Bionanometer Industries Corporation
China Bionanometer Industries Corporation is a high-tech enterprisespecialized in the research, development, production and sale of nanometerlevel health food, cosmetics, biological disinfection products, andtraditional Chinese medicine, etc. The company has obtained stateauthentication for high and new technology enterprises and is also anacademician enterprise in the high-tech field. As a high and new technologyenterprise that takes scientific research as its base, profiting from the hugebenefits brought by technological innovation, the company establishes anefficient scientific research developmen