XI'AN, China, April 20 HuifengBio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB), a leadingdeveloper and producer of plant extracts and pharmaceutical raw materials foruse in pharmaceutical, nutraceutical and food production, today announcedrecord 2009 results and provided guidance for 2010.
Revenues for the year ended December 31, 2009 were $13,764,886, anincrease of $2,807,657 or approximately 25.6% from $10,957,229 in 2008. Ourincrease in sales revenues in 2009 mainly attributed to the increase in salesof pharmaceutical raw materials. In particular, the sales volume of ourDiosmin, Rutin and Troxerutin products increased rapidly, as a result of thehigh quality of our products. An analysis of our increase in sales of ourproducts is as follows:
The increase in the sales of pharmaceutical raw materials in 2009 wasmainly due to an increase in the sales of Diosmin, Rutin and Troxerutin, threeof 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. Oursignificant revenue growth in Diosmin in international market, especially inEurope, 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 applyingCertificate 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 GoodManufacturing Practice (GMP) certified Rutin producer, we experienced rapidgrowth in both international and domestic market due to our high qualitystandards.
Our gross profit margin increased from 35% in 2008 to 37% in 2009. Ourprofit margin for pharmaceutical raw materials increased from 30% in 2008 to31% in 2009. The profit margin for Plant Extracts increased from 50% in 2008to 51% in 2009. The profit margin for pharmaceutical intermediates increasedfrom 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 of2008, in which $508,039 or 41% of gross profit was attributable to theincrease in gross margin for Diosmin; $312,611 or 25% was attributable to theincrease in gross margin for Troxerutin, and $294,259 or 24% was attributableto the increase in gross margin for Rutin.
"We are very pleased with our Fiscal Year 2009 results and robust growthin Q4 2009. Our results are attributed to our commitment to quality productsand manufacturing excellence," stated Mr. Jingan Wang, "In 2010, we expect theopportunity to be up listed on a senior exchange, which will help increaseawareness to a broader base of investors, analysts and institutions".
This release contains "forward-looking statements" for purposes of theSecurities and Exchange Commission's "safe harbor" provisions under thePrivate Securities Litigation Reform Act of 1995 and Rule 3b-6 under theSecurities Exchange Act of 1934. These forward-looking statements are subjectto various risks and uncertainties that could cause HuifengBio-Pharmaceutical Technology, Inc.'s actual results to differ materially fromthose currently anticipated, including the risk factors identified in HuifengBio-Pharmaceutical Technology, Inc.'s filings with the Securities and ExchangeCommission.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
SOURCE Huifeng Bio-Pharmaceutical Technology, Inc.