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Don't know about complete scam because I went and saw them at their booth at the CPhl in Frankfurt last year, where they promised me they were in the process of refiling, and
apparently they were in Madrid this year.
Anyone contemplating Chinese and some Asian stocks MUST read the following SEC Litigation against the Big Four Auditing Firms.
http://www.sec.gov/litigation/admin/2012/34-68335.pdf
Looks like it was a complet scam
Going to sell my BFAR shares now...F*&^ China
HFGB: SEC Suspension:
http://www.sec.gov/litigation/suspensions/2012/34-68344.pdf
ORDER:
http://www.sec.gov/litigation/suspensions/2012/34-68344-o.pdf
ADMIN Proceeding:
http://www.sec.gov/litigation/admin/2012/34-68345.pdf
I sent an email to sales@xahuifeng.com with no reply so far.Did you send an email to Bing in case you know her personal email?She the only one that spoke to me in Frankfurt.
I've been trying to dig for that info for a while now.
Can't find out who it is
Who is their new Accountant?
Got this response after an email I sent to JohnZhao.
Obviously the company didn't bother filing an 8-k about it.Hugely disappointing development.
Dear Mr. xxxx,
We have resigned from Huifeng engagement.
Best regards,
?
???,???????
John Zhao, CPA/MBA
Senior Partner, SEC Practice
Honorary Professor of Tsinghua University
Honorary Professor of UIBE (Beijing)
????????
????????????
Obviously not HFGB specific. But a HUGE step in the right direction to fix the China audit mess
I believe all these little Chinese stocks that were hammered due to the uncertainty over the audit issue will get a boost at some point soon...and HFGB will move up with them.
Probably right now is THE best time to buy HFGB. It's very near it's all time low. The PCAOB news came out last night. Nobody buying any yet. I think the risk/reward here is as good as it gets
Oh, that news....I thought you meant with HFGB
I didn't
(Reuters) - U.S. officials believe they are close to an agreement to observe audit inspections in China, a first step toward better oversight to address a rash of accounting scandals at Chinese companies listed on U.S. stock exchanges.
Jim Doty, chairman of the Public Company Accounting Oversight Board (PCAOB), which oversees the audit industry, said the breakthrough came in talks between U.S. and Chinese officials in Beijing last week.
U.S. observations of audit inspections in China "will be a first step toward greater cooperation on cross-border oversight and joint inspections," Doty said in a telephone interview on Tuesday.
The plan would let PCAOB officials observe Chinese authorities when they inspect audits that are done in China of U.S.-listed companies, according to Doty.
"There's every reason to believe we could do the observations in the fall, possibly even the summer," Doty said.
However, he added, "one can never guarantee the outcome of this."
The PCAOB and U.S. Securities and Exchange Commission have been working for months with the Chinese to try to hash out a deal that would allow joint audit inspections.
U.S. investors have lost billions of dollars on China-based companies listed on U.S. exchanges after questions were raised about the companies' accounts, prompting a broad probe by the SEC.
China had been reluctant to allow audit inspections by U.S. officials because of sovereignty concerns.
Many of the Chinese firms listing in the United States are audited by the Chinese arms of the Big Four auditors - PricwaterhouseCoopers, Deloitte, KPMG and Ernst & Young - which have been beyond the reach of PCAOB inspectors in China.
Doty said he met with Chinese officials last week while he was in Beijing for annual United States-China talks aimed at strengthening ties between the two countries.
He said his talks, with the chairman of the China Securities Regulatory Commission, Guo Shuqing, and senior representatives of China's Ministry of Finance "were very constructive."
The observations will not substitute for joint inspections, but the process "builds a relationship," Doty said.
U.S. Senator Charles Schumer last year called on the PCAOB to discipline China-based audit firms that do not submit to U.S. inspections. The 2002 Sarbanes-Oxley Act, which created the PCAOB, gave it the authority to discipline auditors that do not cooperate with inspections.
Asked whether pressure to discipline firms has been relieved, Doty said, "ultimately, we must enforce the law."
However, he said the Chinese are interested in market reforms and resolving the issues on cross-border audit oversight. Once observations are completed, the next step would be creating a formal protocol to allow joint inspections, he said.
I didn't
(Reuters) - U.S. officials believe they are close to an agreement to observe audit inspections in China, a first step toward better oversight to address a rash of accounting scandals at Chinese companies listed on U.S. stock exchanges.
Jim Doty, chairman of the Public Company Accounting Oversight Board (PCAOB), which oversees the audit industry, said the breakthrough came in talks between U.S. and Chinese officials in Beijing last week.
U.S. observations of audit inspections in China "will be a first step toward greater cooperation on cross-border oversight and joint inspections," Doty said in a telephone interview on Tuesday.
The plan would let PCAOB officials observe Chinese authorities when they inspect audits that are done in China of U.S.-listed companies, according to Doty.
"There's every reason to believe we could do the observations in the fall, possibly even the summer," Doty said.
However, he added, "one can never guarantee the outcome of this."
The PCAOB and U.S. Securities and Exchange Commission have been working for months with the Chinese to try to hash out a deal that would allow joint audit inspections.
U.S. investors have lost billions of dollars on China-based companies listed on U.S. exchanges after questions were raised about the companies' accounts, prompting a broad probe by the SEC.
China had been reluctant to allow audit inspections by U.S. officials because of sovereignty concerns.
Many of the Chinese firms listing in the United States are audited by the Chinese arms of the Big Four auditors - PricwaterhouseCoopers, Deloitte, KPMG and Ernst & Young - which have been beyond the reach of PCAOB inspectors in China.
Doty said he met with Chinese officials last week while he was in Beijing for annual United States-China talks aimed at strengthening ties between the two countries.
He said his talks, with the chairman of the China Securities Regulatory Commission, Guo Shuqing, and senior representatives of China's Ministry of Finance "were very constructive."
The observations will not substitute for joint inspections, but the process "builds a relationship," Doty said.
U.S. Senator Charles Schumer last year called on the PCAOB to discipline China-based audit firms that do not submit to U.S. inspections. The 2002 Sarbanes-Oxley Act, which created the PCAOB, gave it the authority to discipline auditors that do not cooperate with inspections.
Asked whether pressure to discipline firms has been relieved, Doty said, "ultimately, we must enforce the law."
However, he said the Chinese are interested in market reforms and resolving the issues on cross-border audit oversight. Once observations are completed, the next step would be creating a formal protocol to allow joint inspections, he said.
I must have missed this huge development?
U.S. oversight of Chinese audits of U.S.-listed companies didn’t make headlines during last week’s high level talks in China, led by Treasury Secretary Timothy Geithner. But progress is being made on this front, albeit quietly. It is assumed that James Doty, the Public Company Accounting Oversight Board’s chairman, didn’t leave the talks empty-handed.
U.S. oversight of Chinese audits of U.S.-listed companies didn’t make headlines during last week’s high level talks in China, led by Treasury Secretary Timothy Geithner. But progress is being made on this front, albeit quietly. It is assumed that James Doty, the Public Company Accounting Oversight Board’s chairman, didn’t leave the talks empty-handed.
Thx for posting,
do you know this one?:
By Rachel Armstrong | Reuters – Tue, Feb 28, 2012
http://news.yahoo.com/big-four-auditors-brace-big-changes-china-051526727.html
" (Reuters) - The Big Four global audit firms, which dominate the Chinese market, are negotiating with Beijing to lessen the impact of forced changes that could mean only accountants with Chinese qualifications can be partners in their audit practices.
The overhaul comes at a delicate time for an audit industry reeling from a rash of accounting scandals at Chinese companies, particularly those listed in high-profile overseas markets such as the United States.
Any reduction in the audit capacity of KPMG, Deloitte Touche Tohmatsu, Ernst & Young and PricewaterhouseCoopers (PWC) would increase foreign regulators' and investors' concerns about Chinese auditing.
"The Big Four play a critical role in the integrity of financial markets, it's essential they have the right to practice in China," said Paul Gillis, visiting professor of accounting at Peking University and author of the China Accounting Blog.
The foreign joint venture arrangements signed in China 20 years ago by KPMG, Deloitte and Ernst & Young expire later this year. PWC's joint venture expires in 2017, but it is also involved in restructuring discussions.
China's Ministry of Finance (MOF) is using the expiry milestone to force the global auditing giants to form special group partnerships, which in theory would mean all partners would need to hold notoriously tough Chinese accountancy qualifications.
But China's young accounting industry means there aren't yet enough experienced Chinese-qualified accountants to run these businesses, say people close to the Big Four, who did not want to be identified as they are not authorized to talk to the media.
"The Chinese authorities have indicated for some time that the four will have to convert into the same mode of practice as local firms when the joint venture terms end," said Winnie Cheung, chief executive at the Hong Kong Institute of Certified Public Accountants (HKICPA).
The Big Four dominate China's accounting industry, having won much of the lucrative work to audit the books of the country's state-owned enterprises when they first listed.
In 2010, their audit practices, excluding their consultancy businesses, had combined revenue of more than 9.5 billion yuan ($1.5 billion), according to the Chinese Institute of CPAs (CICPA). However, their market share has slipped in recent years to around 70 percent of the revenue among the top-10 auditors, down from 85 percent in 2006.
Including consulting, the four firms say they each employ around 10,000 people in Greater China, which includes Hong Kong and Taiwan.
BIG FOUR LOBBYING
A firm dominated by Chinese-qualified partners would raise concerns at the Big Four's global headquarters as they'll have less control over their China practices. The joint ventures agreed in 1992 allowed foreign-qualified partners to dominate the practices.
The four are now pushing for many of their foreign-qualified partners to be allowed to retain their roles during a 'grandfathering' handover period.
"The Big Four will want to get enough foreign partners into a deal so they can still control it for a few more years," said Peking University's Gillis.
"Although they will be delaying the inevitable, it will at least give them a few more years control until they migrate to a completely Chinese-owned and controlled entity," he added.
Over the last five years, the firms have collectively doubled the number of Chinese-qualified CPAs they employ, according to the CICPA, but many of their partners gained their qualifications in Hong Kong, the United States or Europe.
An email circulated by management at one of the Big Four firms on February 22, seen by Reuters, said the finance ministry was demanding a break-down of all the qualifications held by the firm's China partners.
"This is a complex process and the MOF have been requesting a great deal of information to understand our practice," it said, adding the firm planned to send the data last week.
"The question for the authorities is; are the firms mature and ready enough to just have local qualified partners?" said Cheung at the HKICPA. "They should also think about diversity and expertise, the advantages of allowing a certain number of non-locally qualified partners in the transition of the joint venture to a local firm."
KPMG, Ernst & Young, Deloitte and PWC all declined to comment for this article. Partners at the firms told Reuters they could not discuss the matter publicly as the MOF had insisted the negotiations be confidential.
Neither the MOF nor CICPA responded to faxes asking for comment.
SCANDAL-TAINTED
Overseas regulators will be watching events keenly.
The U.S. Public Company Accounting Oversight Board is in negotiations with the MOF and the China Securities Regulatory Commission (CSRC) about being allowed to inspect firms that audit Chinese companies listed in the United States.
The U.S. Securities and Exchange Commission (SEC) has struggled in some of its investigations into alleged fraud at U.S-listed Chinese firms, partly due to the fact auditors in China haven't been able to provide them with key information.
Last year, several Chinese companies were de-listed in the United States after being caught up in accounting scandals, some of which were highlighted by short-sellers such as Muddy Waters.
One high-profile blow-up, Longtop Financial Technologies Ltd , showed the difficulties that auditors in China can run into.
Deloitte resigned as the software company's auditor last May, alleging Longtop tried to falsify its financial statements and bank confirmations. The auditor noted in its resignation letter that Longtop management had threatened Deloitte staff and tried to stop them leaving company premises when the discrepancies were uncovered.
But the SEC is struggling in its investigation of Longtop management as Deloitte's Shanghai office said it cannot provide U.S. authorities with its audit work papers. The SEC has gone to the courts to try and force Deloitte's hand, but the auditor says it cannot comply as this could breach China's state secrecy rules.
"If the change in the structure of audit firms loosens their ties to the U.S., the challenges for the SEC enforcement program in China will increase," said William McGovern, partner at Kobre & Kim in Hong Kong.
A report last week from the Canadian Public Accountability Board on the audits of Canadian Chinese companies found many auditors in China failed to apply procedures that would be "considered fundamental" in Canada.
While the Big Four were caught up in a number of recent Chinese accounting scandals, most were at mid-cap companies audited by smaller audit firms.
China's accounting exams are among the toughest around. The pass-rate is well below 20 percent and all papers are in mandarin, making it even tougher for non-Chinese auditors at the Big Four to try to convert.
The difficult exams and the economy's rapid growth over the past two decades means there is currently a shortage of qualified accountants in China.
The CICPA wants to have 250,000 members by 2015, up from around 180,000 today, and aims to boost the number of people in the accounting industry nationwide to 12 million.
A wider part of the ministry's plan for the industry is to develop 10 big domestic accounting firms, reducing their reliance on foreign auditors. The MOF wants at least three local audit firms to be among the world's top 20.
"China recognizes the expertise of the Big Four and the need for them as far as the worldwide market is concerned, but they want to expand and help the growth of local firms to the size and expertise and quality that is required to support the country's increased importance," said HKICPA's Cheung.
($1 = 6.2978 yuan)
(Reporting by Rachel Armstrong in SINGAPORE, additional reporting by Dena Aubin in NEW YORK; Editing by Ian Geoghegan)
"
ariadne
May 3 (Reuters) - The head of the main watchdog group for U.S. auditors is in Beijing participating in annual talks between the United States and China, a spokeswoman said on Thursday.
Public Company Accounting Oversight Board Chairman Jim Doty, whose group oversees U.S. auditors, is participating in U.S. Treasury meetings, PCAOB spokeswoman Colleen Brennan said.
Treasury Secretary Timothy Geithner and Secretary of State Hillary Clinton are in Beijing this week for annual talks aimed at strengthening ties between the world's two largest economies. The meetings are expected to cover a range of economic and diplomatic issues.
The PCAOB and U.S. Securities and Exchange Commission have been working for months with the Chinese to try to hash out a deal that would allow audit inspectors in China.
The two U.S. agencies have been stepping up efforts to come to an agreement after a rash of accounting scandals at China-based companies that list shares in the United States.
PCAOB and SEC officials met with their Chinese counterparts in Beijing last July and again in Washington in January to try to negotiate an agreement.
The PCAOB was created by the 2002 Sarbanes-Oxley Act to combat accounting fraud after book-cooking scandals at Enron and WorldCom. The act requires the PCAOB to register and inspect auditors of U.S.-listed companies, including overseas auditors. (Reporting By Dena Aubin; Editing by Kevin Drawbaugh and Tim Dobbyn)
.12's on the ask look slim and are slowly being taken out. The ask then goes magnitudes higher per my L2. I'd sure like to see what would happen if somebody put a few thousand into this at the ask.
Thanks for posting!!
Any news from HFGB is positive, as it is a demonstration that the company is continuing in business, and sales and profits continue.
The second paragraph here, is particularly encouraging, as it seems to indicate that the company may be preparing to file financial reports:
Our company has passed the European CEP certification for Diosmin in May 2011. We are the only company in Asia and the third in the world that has the Diosmin CEP certificate. We herein thank all the customers both old and new for their support and great kindness as always.
From the second half of the year 2011, our company has strengthened the internal control system....
In addition to discovering the dishonest employee, let's hope that financial reports are about to resume. That would be great news, and would send the price back to previous trading levels, between $1.00 and $1.50
http://www.xahuifeng.com/?ars1-t5,30c61....
Seems like one of their salespeople has set up a parallel business and worked for several company's at a time.
Certainly they will go to court to save some lost orders.
I'll take this as good news at these stock prices!
The great move upwards is to be expected when they file again.
So that was the reason of the buying yesterday!
yah, someone bought all they could under .10
shares not easy to come by...
next ask is +another 50%
I think something is definitely up here. There's a buyer looking for a shares and I'm guessing he has a good reason.
Volume still light, but certainly seems to be firming up.
If they would bring financial filings up to date--- this stock will rocket!
.10's are sold out. .15 on the ask. Something's happening...I like it.
let's hope so Roy. I could use a break in this TURD of a market for sure!
they must be getting close to updating finacials,
that will spell out what the value is and bring real vol,
hopefully, who knows in this turd of a market...
but if audited financials show the value to be closer to .70 that should get us a good distance from where we are now...
HFGB back to .50!?!?!? Way undervalued or something sinister?? I think undervalued...
Hope I'm right!
.092 x .10 slowly moving back up on very low vol.
sellers are gone and buyers not able to get much cheap without pushing up sp dramatically...
I've noticed that several times, since the trading rules for showing lot size started. After that new rule, many MMs don't show accurate quotes until 30 seconds or so into the trading day.
I've seen it on a .0000 POS with 9 billion OS. One morning a .0004 was painted. The prior trading day ended with millions of .0002s on ask, and just after the .0004 was painted, the millions of .0002s loaded back on the ask. It gives the pumpers something to pump.
Odd trade this morning, eh?
....trade of 5,000 at .10, above the ask of .092?
How does a small trade go through ABOVE the ask price?
While its hard to do good technicals analysis with such light volume, the stockta site shows this one to be in bullish territory, in general.
http://www.stockta.com/cgi-bin/analysis.pl?symb=HFGB&cobrand=&mode=stock
Def not the time to sell!
Big bid, rising bid. Ask is .07. Might HFGB be ready for a big breakout???????
.30 would be fundamentally cheap if fundies are valid.
I noticed a 300K bid last week. Maybe sumbuddy know sumtin
Published: Wednesday, 11 Jan 2012 | 6:26 PM ET
Text Size
By: Reuters
The top U.S. audit watchdog said U.S. and Chinese regulators must come to an agreement by late 2012 on joint auditor inspections, as a delegation from China began talks with officials in Washington.
Sami Sarkis | Getty Images
James Doty, chairman of the Public Company Accounting Oversight Board, discussed the round of negotiations with reporters shortly after the U.S. Securities and Exchange Commission voted at a meeting on Wednesday to approve the PCAOB's 2012 budget.
The SEC and PCAOB have been working with the Chinese to try to hash out a deal in response recent accounting scandals at several Chinese companies listed on U.S. stock exchanges.
In a number of cases, auditors have resigned after discovering accounting irregularities at the companies, some of which became listed on U.S. exchanges through a back-door process known as a reverse merger.
During the question-and-answer portion of the SEC's open meeting, Doty told commissioners there are 36 China-based auditors which are issuing audit opinions and "have not performed the basic obligations."
The SEC and Justice Department are investigating the accounting problems, and the SEC has taken a number of enforcement actions in this area.
"I'm confident of only one thing... it is in their interest to get to joint inspections. We will not be in a position to go forward and do what we should without some agreement," Doty said. "If we are not inspecting in the fall in China, I am not optimistic about it."
Later, an SEC spokesman confirmed that Chinese officials had met with their SEC counterparts on Wednesday.
WASHINGTON | Mon Dec 5, 2011 2:46pm EST
(Reuters) - The chief U.S. audit industry watchdog, sounding cautiously upbeat on a simmering dispute, said on Monday that he hopes talks with Chinese authorities on joint audit inspections will resume early next year.
This company should look at the performance of CHRI, to see what can happen with regular, on-time financial reporting.... CHRI is in the same sector and has been reporting on-time for a while now. CHRI is looking like it is ready to breakout, after another great earnings report.
Better yet, maybe HFGB should look at a merger, w/ CHRI, and let CHRI's accountants and auditors take over the financial operations, and let management focus on growing sales and earnings. A win-win!
analist
ze hebben een cos certificatie - dat kost volgens mij een pak geld
en als ze éénmaal terug geauditeerde cijfers publiceren gaat het goedkomen
ze stonden op de beurs in frankfurt dus ze bestaan
maar alles draait om publiceren van cijfers
w
Welcome bababooyah,
worth a read:
http://uk.reuters.com/article/2011/12/05/us-usa-tax-doty-idUSTRE7B423520111205
U.S. audit watchdog chief hopeful on China dispute
By Nanette Byrnes
WASHINGTON | Mon Dec 5, 2011 7:46pm GMT
(Reuters) - The chief U.S. audit industry watchdog, sounding cautiously upbeat on a simmering dispute, said on Monday that he hopes talks with Chinese authorities on joint audit inspections will resume early next year.
Public Company Accounting Oversight Board (PCAOB) Chairman James Doty said some resolution to a troublesome standoff over Chinese corporate audits needs to come in 2012.
Speaking on the sidelines of an accounting conference, he highlighted recent Capitol Hill pressure for results, including a letter from Democratic Senator Charles Schumer to the PCAOB.
Doty told Reuters that he and his staff have been in touch with Guo Shuqing, the new head of the China Securities Regulatory Commission. Doty said he hopes by early 2012 a joint inspections protocol can be settled upon with the Chinese.
Financial and accounting issues at several Chinese companies listed on U.S. stock exchanges, some through reverse mergers, have led to investigations, and in some cases auditor resignations and stock de-listings, this year.
No date has been set for another round of meetings between the United States and China, nor a location determined. The last meeting took place in July in Beijing.
Asked whether Chinese concerns about sovereignty and state secrets might yet prevent an agreement, Doty cited other areas where the Chinese already permit foreign inspection, including on defense dealings, pharmaceuticals and steel.
A few audits cannot be that troubling, he said, adding that in exchange, China would get the opportunity to participate in the evolving global system of auditor oversight.
Still an open question is whether the PCAOB would continue to allow Chinese firms to remain registered and work on public company audits if the PCAOB could not inspect those audits.
Asked whether Chinese firms might be deregistered by the PCAOB, Doty said that while talks were ongoing and progress was being made, such ultimatums were not in the cards.
The PCAOB inspects in 37 jurisdictions and will soon begin in the Netherlands as well, an addition announced Monday.
Volatility in the financial markets and global economic troubles are pressuring auditors worldwide, Doty said.
In times like these, managements and companies typically and quite frequently start trying to dress up their financial performance, he told Reuters, leaving auditors to hunt down problems and force corrections.
(Reporting by Nanette Byrnes. Editing by Kevin Drawbaugh and Gerald E. McCormick)
best,
ariadne
The Public Company Accounting Oversight Board (PCAOB), responsible for authorizing firms to audit US-listed companies, has previously given clearance to 110 Chinese auditing houses, but is demanding the ability to inspect them. With the Chinese government still refusing to allow this, PCAOB is now vaguely threatening to revoke the licenses of all Chinese audit firms.
This is described as a “nuclear option” with two serious consequences: on the one hand, it would make Chinese companies give up on the US stock markets, on the other hand, it would make it impossible for American companies to have their Chinese operations audited. Such a development would have troublesome implications for Chinese investments as it would further restrict the already limited possibilities for foreigners to buy Chinese stocks. However, the final outcome not yet known as the governments are still in negotiations.
Zit eraan te denken om 50.000 stuks bij te kopen,
heb er 25.000 reeds.
Alleen je hoort vaak dat zo'n bedrijf gewoon verdwijnt
dan is 2000 usd toch zonde.
Denk er nog ff over.
Grtz
still waiting
beurswt@hotmail.com
thanks in advance
hi analist
ik heb nog niks gezien,
ik ben ook een HFGB aandeelhouder
gr
Hi Arno,
Heb je de mail nog ontvangen ?
Ik ben ook aandeelhouder in Huifeng.
Mvg,
Good day bababooyah
could you sent a copy of this mail to beurswt@hotmail.com
thanks
w
Good day bababooyah
could you sent a copy of this mail to beurswt@hotmail.com
thanks
w
Now if only we could get some type of press release from the company that says this...
For anybody that cares. I received a return email from the audit company. Nothing earth shattering. But they are in fact working hard on completing HFGB's audits. No timetable was given when it would be completed.
Pure gamble money goes toward this one. It all depends on the completion and filing of the restated numbers. If they are close to the old numbers then big money will be made. If they differ substantially then no big money will be made.
One thing that the return email helped with is clarifying that the company actually does exist as I read lots of chinese companies are ficticious.
I still think it's BS what has happened here. But I may buy some if I have spare change and doing well with other stocks.
Inching down lol
For these dispicable chinese scum not to issue a press release about what is going on tells me all I need to know.
S-C-A-M
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Huifeng Bio-Pharmaceutical Technology Inc. (“Huifeng”) develops, produces and sells plant extracts, pharmaceuticals and pharmaceutical raw materials in mainland China and internationally. Founded in 2000, the Company holds the patent for a highly efficient process to extract rutin, one of a class of plant-derived chemicals called flavonoids, with anti-inflammatory, antioxidant and anticoagulant properties. Other flavonoid or flavonoid-derived Huifeng products include troxerutin, quercetin, ginkgo biloba, diosmin and l-rhamnose. Manufacturers buy these products for use as the building blocks of drugs, dietary supplements and as additives in functional foods and beverages.
The Company’s production facilities are ISO9001:2000 certified, a necessary international qualification for export sales. The Company also holds a Chinese Good Manufacturing Practices (GMP) certification that allows it to distribute domestically. Products manufactured under GMP conditions have higher quality, consistency and potency assurances. Huifeng’s participation in PRC government biopharmaceutical industry initiatives entitles them to obtain funding to research new products.
Huifeng’s production efficiency has allowed them to become the dominant Chinese producer and exporter of rutin and to develop related products. In 2005, internal R&D efforts produced efficient methods of extracting diosmin and L-rhamnose, and they have recently expanded production facilities to manufacture these new products.
Huifeng has a diverse customer base, including distributors and manufacturers in China, Japan, Hong Kong, Russia, India, Germany, and the U.S. In the first 9 months of 2006, approximately 60% of products were sold in China and 40% were exported.
Huifeng BioPharmaceutical Technology, Inc.
FL16B, Ruixin Bldg, No.25 Gaoxin Rd., Xi'an 710075 China.
Press Release Source: Huifeng Bio-Pharmaceutical Technology, Inc. On Monday August 23, 2010, 7:30 am EDT
XI'AN, China, Aug. 23 /PRNewswire-Asia-FirstCall/ -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board:HFGB.ob -News), specializing in developing and producing botanical extracts and other raw materials for pharmaceuticals and food additives today reiterated its financial results for its second quarter ended June 30, 2010.
Second Quarter 2010 Highlights
-- Revenue was $6,698,952, up 116.7% from the same quarter of 2009.
-- Gross profit was $2,467,064, up 109.5% from the second quarter of 2009
with gross margin of 36.8%, slightly decreased 1.3% from 38.1% for the
second quarter of 2009.
-- Net income was $1,532,302, an increase of $729,108 or 90.8% from the
second quarter 2009, and earnings per diluted share were $0.06 based on
25.4 million shares.
Second Quarter 2010 Results
Q2 2010 Q2 2009 CHANGE
Revenue $6.7 million $3.1 million +116.7%
Gross profit $2.5 million $1.2 million +109.5%
Net Income $1.5 million $0.8 million +90.8%
EPS (Diluted)* $0.06 $0.04 +50%
* Weighted average shares outstanding for Q2 2010 was 25,408,941 and for
Q2 2009 was 20,466,169."We are pleased to report record revenue and operating income in the quarter," Mr. Jing'an Wang, the Company's CEO, commented. "The large increase in profitability and top line growth can be attributed to the increase in our sales of pharmaceutical raw-material and pharmaceutical intermediates. We have seen increased orders of both Rutin series products and Diosmin. We plan on focusing to fulfill the entire demand in the coming year."
For the Three Months Ended June 30, 2010 and 2009
Revenues for the quarter ended June 30, 2010 were $6,698,952, an increase of $3,607,427, or 116.7%, from$3,091,525 for the same quarter in 2009. Our increase in sales revenues for the second quarter of 2010 was mainly due to the increase in our sales of pharmaceutical raw-material and pharmaceutical intermediates, which include our products of Rutin, Troxerutin, Quercetin and Diosmin. An analysis of our results in sales of our products is as follows:
For the quarter ended June 30
Product 2010 2009 Increase
Pharmaceutical intermediates $1,477,178 $765,929 $711,249
Pharmaceutical raw-material $4,712,016 $1,907,060 $2,804,956
Plant Extractive and others $509,758 $418,536 $91,222
TOTAL $6,698,952 $3,091,525 $3,607,427Our gross profit for the quarter ended June 30, 2010 was $2,467,064, an increase of $1,289,559, or 109.5%, from $1,177,505 for the same quarter in 2009 as a result of the increase in our products sold, mainly due to the sales increase of pharmaceutical raw-material.
Our gross margin as a percentage of revenues for 2010 slightly decreased 1.3% from 38.1% for the second quarter of 2009 to 36.8% in the same quarter in 2009, due to the slight increase in raw materials' price.
Net income for the quarter was $1,532,302, an increase of $729,108 or 90.8% from the second quarter of 2009, and earnings per diluted share were $0.06 based on 25.4 million shares.
For the Six Months Ended June 30, 2010 and 2009
Revenues for the six months ended June 30, 2010 were $10,850,838, an increase of $6,433,418, or 145.6%, from $4,417,420 for the same period in 2009. Our increase in revenues for the six months ended June 30, 2010was mainly due to the increase in our sales of pharmaceutical raw-material and pharmaceutical intermediates, which include our products of Rutin, L-Rhamnose, Quercetin and Diosmin. An analysis of our results in sales of our products is as follows:
Six months ended June 30
Increase/
Product 2010 2009 (Decrease)
Pharmaceutical intermediates $2,309,996 $897,790 $1,412,206
Pharmaceutical raw-material $7,889,535 $2,635,525 $5,254,010
Plant Extractive and others $651,307 $884,105 $(232,798)
TOTAL $10,850,838 $4,417,420 $6,433,418The gross profit for the six months ended June 30, 2010 was $4,089,796, an increase of $2,638,236 or 181% from $1,451,560 for the six months period ended June 30, 2009 as a result of the increase in our products sold.
Our gross margin as a percentage of revenues for the six months ended June 30, 2010 was slightly increased from 32.9% to 37.7%, which compared to the same period in 2009. The increase in gross margin was mainly due to the increase of the selling price of raw-materials during the quarter ended June 30, 2010.
Net income for the first half of fiscal year 2010 was $2,396,191, compared to $410,557 in the prior year's corresponding period, a 483.6% increase year over year, and earning per diluted shares were $0.10 based on 25.1 million shares.
Financial condition
As of June 20, 2010, the Company had $1,661,815 in cash, increased from $85,105 in the prior year's corresponding period; working capital was $13,321,969. Cash provided by operating activities were $1,643,604, compared to cash used in operating activities of $106,697 for the six months ended June 30, 2009, mainly due to a decrease in accounts receivable and inventories of $171,204 and $1,173,837, respectively, as well as an increase due to a stockholder of Xi'an Runfeng Investment Ltd. of $497,117 and increase in our net income from continuing operations.
The Company reaffirms its 2010 Guidance
For the calendar year ended December 31, 2010, Huifeng reaffirms its $20.0-$25.0 million in revenue and $4.5-$5.0 in net income guidance respectively. The Company expects revenue and earnings growth to continue through the second half of the year, as it enters its most profitable selling period during the third and fourth quarter harvest and squeezing seasons.
About Huifeng Bio-Pharmaceutical Technology, Inc.
Huifeng Bio-Pharmaceutical Technology, Inc., located in Xi'an, People's Republic of China, develops and produces plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production. It is the leading Chinese producer of rutin and related plant-derived chemicals in a class called flavonoids, with medicinal and other beneficial properties. Founded in 2002, Huifeng uses proprietary patented processes to extract rutin more efficiently than traditional extraction techniques. The Company is diversifying its product lines through internal development, acquisition and cooperation with scientific research organizations. More information can be found on the Company's web site at: http://www.hfgb.cn/
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors disclosed in the Company's Annual Report on Form 10K for the year ended Dec. 31, 2009 and all of the Company's subsequent Quarterly Reports on Form 10Q, especially in the "Risk Factors" sections of these reports. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this press release.
For more information, please contact:
Investor Relations:
Capital Group Communications, Inc.
Mr. Kevin Fickle
Tel: +1-925-330-8315
Email: Kevin@capitalgc.com
Company Contact:
Huifeng Bio-Pharmaceutical Technology, Inc.
Mr. Steven Tong, IR Director
Tel: +86-135-7211-8351
Email: Steven@xahuifeng.com
Kevin M Fickle
+415 644 5253 (Direct)
+415 332 7201 (Fax)
+925 330 8315 (Mobile)
kevin@nuwagroup.com
If you would like to speak to our sales staff, please email sales@xahuifeng.com or
fax our headquarters in Xi’an, China at 0086-29-88250444.
adam@adam-friedman.com or call 212-981-2529-x 18
Website: http://www.hfgb.cn
Company Officers:
Jing An Wang, CEO
Sanding Tao, CFO
Transfer Agent
Interwest Transfer Co., Inc.,
1981 E 4800 S.
Suite 100
Salt Lake City, UT 84117
Current Share Structure: updated as of March 19, 2008
Estimated Market Cap: $13,849,625.75
Outstanding Shares: 18,466,169
Number of Shareholders: 767
Approx Float: 2,100,000
Products:
Pharm.Raw Materials
Rutin Troxerutin Quercetin L-Rhamnone
Active Pharm.Ingredients
Silymarin Hesperidin Diosmin Matrine
Oxymatrine phytosterol Stigmasterol Pueraria
Reseveratrol Naringin Baicalin Berberine Hydrochlorrde.
10-Deacetyl Baccatin ? Paclitaxol
Plant Extracts
Epimedium Extract Ginkgo Biloba Leaf P.E Grape Seed.P.E Pueraria Lobata Extract
Magnolia P.E. Hawthorn Berry P.E. Bitter Melon P.E. Red Clover P.E.
chlorogenic acid Gynostema Extract Fructucs Aurantii P.E. Rhodiola Rosea P.E
Green Tea P.E.
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