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$0.75+$0.012 a very small gain for the day all things considered.eom
I was looking for $0.06 to $0.08 in the 3rd & 4th qtr.
HFGB came in with $0.08 vs $0.05 last year when far fewer shares were outstanding.
For 9M eps of $0.18 vs $0.07 in 2009.
They guided for revenue of $20-$25M but are on pace to outdue the high end of revenue guidance.
Earning should also exceed the high end of guidance with latest 12 month eps now @ $).26 up from $0.15 for all of 2009 when far fewer shares were outstanding.
True with the 6.5M new shares added in eps won't be $0.26 for 2010,however with management able to deliver this kind of growth & further revenue gains of $20M expected from building the new plant its hard to 2nd guess why management found it necessary to raise cash below B.V. to get the additional plant done.
Don't forget the entry / acquisition of finished products. I am looking forward to 2012.
.77/.79 LOL this is a $2.00 stock at the least
And when they add the $20 million in revenues after the plant is built you're looking at .70 EPS.
I often hear of people getting sour on all US listed China stocks due to a negative experience or perception. My take is that the risk factors for US listed china plays are different, probably probably overdone in general...thus a wonderful amount of volatility at what I see as silly cheap valuations for most of them. Looking out a few years, China is where incredible growth will be...they have to. That said, I diversify, diversify and diversify more...so I'm at about 115 US listed china plays...lots of smaller stakes as I take "free" stock as profit in tax exempt retirement accts...then keep cycling thru more and more stocks...often going back to previously traded stocks to attempt to increase that long term core holding of "freebies".
HFGB is just one of many...I had some freebie shares and have added another new swing trade in the .50's or .60's...so I'll probably wait to go all "free" ride as HFGB is likely to be $2ish soon enough for me.
sahd3g,
What do you mean when you say...
be cautious in lumping them all together and missing what could be a top performing sector for many years to come.
Sort of off topic, but fyi, another china microcap that happens to be a favorite right now has not diluted and trades at less than half of book value, and it trades close to cash value. Again, no dilution in over two years to my knowledge, 30% yoy growth, high margins, growing cash, and earnings should come out next week. Oh, and no debt either...all organic growth...simple business.
I'm long HFGB in a small way, not really worried about productive diltution too much. But JADA is the other stock I'm referring to above...my mention of it is primarily to remind folks there are hundreds of interesting US listed china plays...be cautious in lumping them all together and missing what could be a top performing sector for many years to come.
Thanks 10 bagger, we appreciate your work! Good luck!
HFGB..$0.72
I have sold the remaining position that I had in HFGB today.. I actually bought 8888 @$0.65 on the opening this AM so I had a heads up notice of the stock price because of the dilution coming.. Dilution seems to be the way of most stocks from China and it seems that they are never related to price but just dilution when ever needed .. This and the constant give away of shares to insiders on some stocks from China has soured me on further investment in China stocks.. I had at one time over 100K of HFGB but was able to trade myself out of HFGB with a profit.. That profit was much larger before today's surprise.. GLTA that continue to hold and hopefully for the holders sake further dilutions will not be in the cards.. Because of my sale HFGB will no longer have a Mod at present.... hank
o.k. So eps won't be $0.22-$0.26 in 2010 as I projected "conservatively"before the new shares were added into that projection.
But the need for added facilities to fill increasing order backlog makes me think eps would have been at the upper end of my projection.
So 2010 eps will only be around $0.19 thats still up from $0.15 last year with like 50% more shares outstanding.
And the new plant is expected to add $20M in revenue gains on a full year basis.
On a per share basis off the top of my head this will add about $0.08 to 2011 eps & about $0.15 to 2012 eps.
With growth like that I don't think you can say this deal was dilutive to eps unless your taking a very shortsighted view.
I for one will be buying the dips as long as HFGB is doing deals that are accretive to longterm growth & can still increase eps this year while doing so..
BOC let's look at it another way.
Some investors (my guess traders) from IHUB selling due to the "dilution" versus a company being paid in shares for $3.9 million of work. Restricted shares. How confident do you think they are taking this deal instead of cash? Lightbulb moment here.
Short term rocky. Longer term this will be one that's trading over $5.00 and people wondering why they didnt' buy at .70 or lower.
Good luck. No more "pumping" from me. I want the cheapies to tuck away.
I knew someone wouldn't like this deal. Stock down 25% this morning.
Great analysis. I wasn't sure what i thought of this particular financing deal but I guess maybe it was the best option.
And they were expecting to spend $5-8 million on the plant but got it for $3.9 million.
Dilution is priced in. I am expecting the share count to be around 50,000,000 when they are done with all the funding. Also, I am expecting revenue to triple as a result. Remember they need to raise additional capital to fund acquisition finished product factories. None of these should be news. The management has been singing this as a song as long as I can remember. This is from their presentation last march, so expect additional dilution. EPS expansion is coming in 2012.
"Additional capital injection will significantly expedite Huifeng’s growth
Target to raise $15-20M for strategic acquisition and production expansion
$5-8M is for constructing a new COS Standard API plants for disomin
$10-12M is for acquisitions of patent medicine factories"
That would be up to you.
I see you like CHBT. It trades at 3 times revenues.
Assume HFGB adds the $20 million to the existing $20+ million in revenues for 2010. That's $40 million. Assume 30 million OS going forward. Use the 3 times sales and it comes to $4.00 per share.
Or see that CHBT does $1.28 EPS. Assume HFGB hits there .20 ESP. That's about 1/6 of CHBT's EPS. Translate to 1/6 of share price and HFGB value could be $2.14
And it looks like EPS will eventually move up much more than .20 with the added facility.
That's just the way I see it.
Still grossly undervalued and I will buy on dips.
so you both agree, buy on a dip?
BoC,
I agree that going from 23 million to 30 million shares is aggressive, but dilution is only a bad thing if sales and earnings can't match or exceed the dilution. If they go from 100 to 600 tons through this building project, as they claim, I see this as a short term bump, with outstanding long-term ramifications to sales, earnings, and pps! Just my thoughts!
6.5 million shares for an additional $20 million per year in revenues and surely much more net income. No interest expense going forward. Example 7% on $3.9 million is $273K per year interest.
Nobody likes dilution but I'm sure the extra revenue and profits will drive the share price much higher over the next couple years
Butwhat about the massive dilution? And the fact that this is the way they chose to fund the project rather than taking on some debt?
Short term neutral but long term great.
$20 million additional revenue per year. MUCH higher EPS eventually.
I'm not sure what I think of this arrangement. Does anyone have an opinion?
News for 'HFGB' - (Huifeng Bio-Pharmaceutical Technology Enters into a US$3.9 Million Financing and Construction Agreement with Xi'an Jucheng Investment & Consulting Co., Ltd.)
XI'AN, China, Nov. 10, 2010 /PRNewswire via COMTEX/ -- Huifeng
Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB) ("the Company"),
specializing in developing and producing botanical extracts and other raw
materials for pharmaceuticals and food additives, today announced it entered
into a $3.9 million USD Financing and Construction agreement with Xi'an Jucheng
Investment & Consulting Co., Ltd. ("Jucheng"), a company organized and operating
under the laws of the People's Republic of China ("PRC").
Under the agreement, Jucheng shall provide $3.9 million in financing for the
construction of a Diosmin plant with an annual production capacity of 500 tons.
The plant will be designed to meet the COS Standard for Diosmin production. In
consideration, the Company has agreed to issue to Jucheng 6,500,000 shares of
the Company's restricted common stock, of which 1,500,000 shares shall remain
restricted until Huifeng Bio-Technic approves and accepts the plant upon
completion. The Company expects the construction of the plant to be completed
within 8 months.
The addition of this plant will increase the Company's Diosmin production
capacity to 600 tons. Diosmin production lines that meet the COS Standard will
significantly improve the quality of the Company's Diosmin products, enable the
Company to attract larger customers and solidify the Company's leading position
in the Diosmin market with the ability to capture more than 50% share of China's
exports.
"The financing will provide us capital to construct a new COS Standard Diosmin
plant with 500 tons of production capacity, which will enable us to become the
largest Diosmin producer in Asia. Demand for our Diosmin products continues to
grow rapidly in the global market and this expansion will give us a significant
competitive advantage," said Mr. Jing'an Wang, CEO.
"The completion of this new plant will mark another key milestone in the rapid
growth of Huifeng. Our company has received many orders from European customers
for Diosmin that complies with the COS Standard. We expect to see continued
robust demand for our Diosmin products as a result of our competitive pricing
and quality compared to our competitors and we believe this plant has the
capacity to generate an additional $20 million in revenue each year for the
Company"
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/
Earnings should be VERY strong for the past quarter. Should be released this week.
smartscan chart analysis & my view
1]above 5 hour M.A.+10
2]3 day high on friday+15
3]above20 day M.A.+20
4]new 3 week high week ended Nov.6th+25
5]new 3 month high in Nov.+30
total +100% buy
The volume tapered off Thur. & Fri. keeping the pps below resistance @$0.90.
I believe that resistance could be overcome next week with another good earnings report.
Lets hope that management is correct in saying growth will continue in the traditionally strong 2nd half.
So far management has been very conservative & beat every projected revenue & earnings given.
Sounds good to me...I'll be on a free ride of shares well before that. I finally added some first time shares of WKBT today...(sounds like a radio station), but the full stochastics are in strong buy range after that last run up.
"Very nice. $4 is very possible...within 2 years!"
And if hfgb continues its current pace of growth it will still be undervalued then as well.
2011 eps around $0.35 followed by around $0.50 in 2012 if hfgb follows the current pace of growth factoring in some dilution.
Management has visions of increasing the pace of growth even more than that over the next two years so only time can judge where the pps will or should be in 2 years.
I have yet to sell one share as I have steadily averaged down since my 1st buy @$0.95.
I was luck enough to have picked the very bottom to double up so my average buy was far below the current pps.
I still consider the pps a steal below $0.95 my 1st buy point.
Very nice. $4 is very possible...within 2 years!!
Smart scan chart analysis;
1]above 5 hour M.A.=+10
2]3 day high =+15
3]above20day M.A. =+20
4]new 3week high =+25
5]new 3 month high =+30
total score +100% buy.....
This score can be updated daily however as of now it is rated a 100% buy & why not the fundamentals have improved while the pps has dropped from a high of $1.40.
Volume is the key but any increase should push the pps to next resistance around $0.90 in the nearterm.
Intermediate term resistance of $1.40 would then become the next challenge.
And with the fundamentals remaining intact $2.00 on 2011 outlook would seem possible.imo
This out this morning
BEIJING (AP) -- China's rapid growth is easing to a manageable pace and Beijing can do more to reconfigure its economy to promote domestic consumption and reduce reliance on trade, the World Bank said Wednesday.
Inflation that has risen steadily this year should level off and is unlikely to be a serious problem, the bank said in a quarterly China outlook.
The Washington-based bank raised its 2010 growth forecast from 9.5 percent to 10 percent and said the expansion should slow to 8.7 percent next year.
Growth eased to 9.6 percent in the three months ending in September, down from 10.3 percent the previous quarter, as the government imposed lending and investment curbs.
"We think that coming from this very strong growth, China should be able to ease into a more sustainable growth rate in the long term," said the report's main author, Louis Kuijs, at a news conference.
The outlook reflects China's status as the first major economy to rebound from the global crisis on the strength of a flood of stimulus spending and bank lending. While Washington and others are trying to shore up growth, Beijing faces the challenge of cooling inflation and restoring normal conditions.
Beijing needs to boost wages and consumer spending and promote growth of private and service businesses to reduce reliance on exports and energy-intensive heavy industry, the World Bank said.
"The need to rebalance to more domestic demand-led, service sector-oriented growth seems stronger now than five years ago," said Kuijs. "Internationally the environment is less favorable than it was."
Communist leaders made raising domestic consumption a priority in their latest five-year economic plan crafted at a meeting last month. But it also was a goal in their previous plan and private sector analysts say Beijing has yet to take major steps to shift emphasis away from manufacturing and construction.
The World Bank recommended opening up more industries to private business, changing the way energy prices are set to encourage efficiency and nurturing private-sector research and development.
The bank cautioned against abrupt steps such as mandating sharp wage hikes, saying Beijing instead should look at gradual changes such as allowing more rural workers to move to cities and changing energy prices that favor heavy industry.
"We are looking for a market-oriented, market-friendly way of getting this consumption growth, consistent with continued strong growth," Kuijs said.
Inflation that hit 3.6 percent in September, well above the 3 percent government target, should level off but might stay as high as 3.3 percent next year, the bank said. Kuijs said that in developing economies such as China, inflation of 3 to 5 percent might be acceptable as industries grow rapidly and demand for resources shifts.
"We still do not think China's inflation is at a very serious risk of escalating but we also do not think China will go back to the very low rate of inflation it saw in 2005," he said.
The bank also cautioned that China's politically contentious trade surplus is likely to rebound in 2011 after narrowing temporarily this year.
The multibillion-dollar trade gap has strained relations with Washington and other trading partners and prompted some U.S. lawmakers to demand sanctions over Chinese currency controls blamed for widening the surplus.
World Bank: http://www.worldbank.org
It will be interesting to watch this over the next few weeks.
"Somebody" has been accumulating the last few weeeks. Volume is up more than average and price is inching upwards.
I can see well over $1.00 for this soon. It should have the numbers to support a price near $2.00.
We finally broke out above the $0.75 barrier today.
The rest of the week will be interesting to watch.
Not really just trying to be conservative.
They did $0.06 in the 2nd qtr & $0.04 in the 1st with 25% more shares outstanding.
If they have eps of $0.06-$0.08 in the 3rd & 4th qtr that would bring 2010 eps in at $0.22-$0.26.
In 2009 eps was only $0.14 fully diluted so with the increased share count that is still a net income gain of over 100% from last year.
That is a o.k. conservative estimate in my opinion.
I haven't heard anything new about seeking listing other than their earlier statement,,,however the pps was close to $1.40 at that time.
The reason they were seeking listing was to raise more money for ambitous expanding.
I think they can grow at a nice clip from current growth so why be in a hurry to seek listing until the pps regains a more reasonable level.
I have a small position in NFEC that did a reverse to get listed.
The pps has been making new lows in spite getting new business so uplisting hasn't worked out to well for some Chinese stocks lately.
I don't know.
Any news on their plan to uplist in 2010. Are they still planning on doing so this year? They have not said anything about that lately.
Are you assuming 0 net income from Kexin acquisition for Q3 and Q4?
Either way it's a $2.00+ stock.
I think $0.06-$0.08 in 3rd & 4th qtr is more likely since they have 25% more shares outstanding.
That would be enough to beat company estimates with 2010 eps of $0.22-$0.26 fully diluted.
2008 EPS $0.08
2009 EPS $0.15
2010 EPS Estimate $0.20 - 0.25
Considering that they are usually conservative with their estimates couple with backlog. I think they are going to beat this estimate. Remember the second half of the year is the better half. I would not be surprise if they report EPS of $0.10 this quarter. I will continue to build position. I am not selling until I see the 2011 guidance. If it is anything north of $0.35, then I would not sell this under $4.00. The company is growing sales and making effort to dominate their space. The potential sales growth in europe is huge. I had my sell target $2.00 but that was before I saw this. www.hfgb.cn/doc/Huifeng_Investor_Presentation_-_August_5_2010.ppt
After seeing what CSGH did after releasing strong numbers I'll be adding on any dip here as I expect HFGB to post similarly positive numbers.
I sure wish I bought more of this.
I should be able to add a small amount this week.
"I think HFGB could easily fetch $2.00+ per share"
Under good market conditions that would be very do able.
Last time China stocks were in favor HFGB had eps of $0.15 & reached a pps of $1.40.
I have a conservative target of HFGB again reaching a pps of $1.40 with 2010 eps @$0.20+.
If the volume increase continues a forward p/e ratio of 9 would seem a fair target considering the outstanding organic growth of HFGB.
That would put a possible pps of $2.00 & up to $3.00+ on 2011 eps numbers.
Look how the pps has reacted in the last couple of weeks as our space has been in rally mode.
If this continues HFGB could have its pps north of a buck by November.
If you are doing comparison, you will find this useful.
www.hfgb.cn/doc/Huifeng_Investor_Presentation_-_August_5_2010.ppt
Compared HFGB with CHBT and I think HFGB could easily fetch $2.00+ per share
Pulled this from yahoo messages
in the Monthly Rotation by Institutions. The total value added was $2.77M. You can not beat 100% purchases and 0% sales. No other stock on any exchange can beat and probably none can equal HFGB.
HFGB.OB : OTC Bulletin Board Market
Industry: Commodity Chemicals
HOLDINGS SUMMARY
Shareholders
Top ShareholdersLarge Block Owners 5
Total Number of Shares Held --
% Change in Ownership 0%
% Shares Owned 0%
Monthly Rotation Number
of Shares Value of
Change (MM) % of Shrs.
Outstanding
Buyers 10/8/10 3,800,000 $2.77 16.1%
Sellers 10/8/10 -- -- --
Institutions:
0 Holder
-- Value
0.0% Owned of O/S
Mutual Funds:
0 Holder
-- Value
-- Owned of O/S
Other Major Holders:
5 Holders
$8,581,850 Value
49.6% Owned of O/S Institutions 0 Holder
Mutual Funds 0 Holder
Other Major Holders 5 Holders
SHAREHOLDERS CONCENTRATION
46.9% 2.8%
Top Institutional HoldersConcentration of Current % Held
Top 10 Institutions: Top 20 Institutions: Top 50 Institutions: All:
Low
Avg. Turnover Rating Name Shares Held Position Value
Percentage of
Total Holdings
since 10/8/10
% Owned
of Shares
Outstanding Turnover
Rating
Wang (Jing’an) 7.3M $5,332,704 +62% 30.8% Low
Xi’an Jucheng ... 2.6M $1,898,000 +22% 11.0% --
Yingwei (Xu) 1.2M $876,000 +10% 5.1% --
Hou (Xinwen) 325.4K $237,573 +3% 1.4% Low
Tao (Sanding) 325.4K $237,573 +3% 1.4% Low
Top Mutual Fund HoldersNo data available.
HFGB.. $0.6138..
I stood firm and bought a few today @$0.6128...
Todays volume was still above average at 48,347 shares but the stock finished down at $0.635 -$0.0138 or 2.13%.
I believe the stock is still consolidating its recent rise off the yearly lows & will probably find a bottom & hold in the upper $0.50's or low $0.60's as the expected strong 3rd qtr numbers are not that far away.
IMO with the stock well below current B.V. of $0.77 & a p/e ratio of under 3 presently a strong yearend rally seems a logical expectation.
HFGB has already visited $1.40 in the TTM period when eps came in @ $0.15 for 2009 & now with TTM eps @$0.23 the pps is much lower.
I think for a couple of reasons.
1] The stock has had trouble digesting the 25% increase in shares outstanding in 2010 since Chinese stocks have all had a inbalance of buyers to accomadate the stocks.
This seems to be changing with the increase in volume lately.
2] The company plans to triple revenue by becoming a full service RX & to seek exchange listing.
Buyer preceive this as meaning more share dilution at a time when exchange listing hasn't added to company values.
HFGB has a strong & growing backlog & really has no need to be in a hurry to grow thru added share count as cashflow is enough to fund current growth.
At some point HFGB will be forced to raise cash for their ambitous future growth plans but I believe 30% revenue growth can be attained using only present cashflow.
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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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