CHENGDU, China, Sept. 8 TianyinPharmaceutical, Co., Inc., (OTC Bulletin Board: TYNP), a manufacturer andsupplier of modernized traditional Chinese medicine ("TCM") based in Chengdu,China, today announced its un-audited preliminary financial results for thefiscal year ended June 30, 2008 and fiscal 2009 financial guidance. TheCompany plans to announce the final results and to hold a conference call atthe end of September.
Fiscal Year 2008 Financial Highlights
Based on preliminary financial data, Tianyin expects total fiscal year2008 revenues for the period ending June 30, 2008, to be at least $33 million,which would be a record for the company and a substantial increase from $20million for fiscal year 2007. Un-audited preliminary net income for fiscalyear 2008 is expected to increase 50% to approximately $5.9 million, or $0.33per share on a fully diluted basis, compared to $4 million for fiscal year2007. This data is subject to normal audit adjustments and therefore may bechanged when reported in Tianyin's Form 10-K for the fiscal year ended June 30,2008. However, based on preliminary communications with its auditors, Tianyinfeels that it is unlikely that any material adjustments will be made to thefinancial data as disclosed herein.
"We are very pleased with these results, which were supported by targetedsales promotion of new and existing products, and the further expansion of oursales team," Dr. Jiang, Chairman and CEO of Tianyin commented. "During the2008 fiscal year, our sales team increased from 523 to 720 employees, whileadvertising expense increased from 0.2 million to 1.6 million."
"Fiscal 2008 has been a key inflection point in the Company's evolution aswe completed our formal listing in the United States and an equity raise toprovide working capital for our growth initiatives, including the expansion ofour production facilities. We performed very well both in terms of financialperformance and execution of our key business strategies. We won officialgovernment tenders for our proprietary Ginkgo Mihuan Oral Liquid in Liaoning,Guangxi, Yunnan, and Shanxi province in China and signed over 60 newdistribution agreements with a total of 15 regional distributors, includingboth new and previously contracted distributors in May 2008. During the 2008fiscal year, we received approvals from the Chinese State Food and DrugAdministration (SFDA) to produce Azithromycin Dispersible Tablets andSimvastatin Tablets. We believe we have put in place the operating foundationand growth strategies which will enable us to sustain our growth and maintainour position as a leading TCM company in China," Dr. Jiang, Chairman and CEOof Tianyin concluded.
Fiscal Year 2009 Financial Guidance
Tianyin is forecasting robust growth in fiscal year 2009 and anticipatesthat revenues for fiscal year 2009 will exceed $46 million with net income atleast $7.5 million. Growth will be supported by the following initiatives:First, deploy sales and marketing strategies to promote sales of products withhigher gross-profit-margin while increasing the associated market share;Second, establish OTC sales teams in the major cities to increase the sales ofthese products; Third, recruit more sales people overall; Fourth, develop andcommercialize four to six new products and last, utilize our new productionplant to ensure necessary quantities of both new and existing products areavailable to meet customer demand. This guidance does not include potentialfuture acquisitions and management will continue to evaluate its businessoutlook as necessary and communicate any changes on a quarterly basis or whenappropriate.
About Tianyin Pharmaceuticals
Tianyin is a manufacturer and supplier of modernized Traditional ChineseMedicine ("TCM") in China. It was established in 1994 and acquired by thecurrent management team in August 2003. It has a co