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Bought @$0.499 & will buy more @$0.45.
In my opinion this is the cheapest & best value of any Chinese growth stock I have so I will try to triple my position ahead of earnings.
wow $0.51,,,
Just when I thought the market may let this one go sideways for a while it drops even lower.
Now selling well below BV of $0.70 & a current p/e ratio just over 2.5 & according to a company that has traditionally given conservative guidance forward p/e is just over "2".
Does anyone see this one dropping below $.50 as well?
Even if Chinas growth slows & the rest of the world double dips into recession some stocks mostly Chinese like hfgb will continue to grow so when are investors going to get their head out of their *ss & think rationally about some of the unrealistic values out there in this space.
I still have a ample supply of cash,now at 40% & even though I have plenty of hfgb in my basket approach to these Chinese stocks I can't help but think at some point hfgb should become my largest position.
Any thoughts on capital needed for
"$5-8M is for constructing a new COS Standard API plants for disomin
$10-12M is for acquisitions of patent medicine factories"
they stated in the investor presentation on their website that they will need between 15-20 million for these reasons. How much will they have to raise with a stock offering? How much will be payable debt and with what terms? I believe this will only help them grow for the long term, but may be an obstacle for the short term. Regardless of how they plan on doing this cash infusion, they will still be undervalued based on forward 2010 full year net income of 4.5-5 million.
I completely agree with your statements. It just seems as though this may be better than most and the company is very easy to understand and it is very is to see the growth. Just recently I have taken a big interest in the chinese small cap sector, especially pharmaceuticals, but many are growing, but do not have a unique edge or clarity. My favorite long term play is currently BSPM, but HFGB is very intriguing. Thanks and good luck.
Michael, most strong-growth smallcaps, whether they be Chinese companies or American ones (or from other countries) have all taken a HUGE BEATING over the last several weeks to several months because smallcaps are considered (right or wrong) by the market to be "risky." Same with emerging market companies. Even though these smallcap emerging market stocks (like HFGB and many others just in this biopharm / biotech space alone) might have zero or low debt, lots of cash, high inside ownership, and growing by leaps and bounds.
The rush from risk that has been going on much of 2010, intensified in May-June, has hammered 95% or more of our favorite smallcaps.
There are hidden gems all over this particular China smallcap space. Grab what you're attracted to on the basis of due diligence and then BE PATIENT.
It may be a while before "Big Money" decides to rotate back into this sector as they did last Summer / Fall and first two weeks of January (one never knows ahead of time when the big move is going to happen) and then, hang on and keep your seat belt buckled, b/c these things can zoom!
In the mean time there may be lots of smaller ups and also downs because of traders, thin volume, people selling to cover margin calls, etc.
The smallcap space is a volatile one indeed.... But also potentially MASSIVELY rewarding.
Is there something I am missing?
This is a company that I have just recently noticed and it seems as if the share price has come down. It also seems to be extremely undervalued with good upside.
Even though my 3k bid @$0.65 was executed with no wait it is my opinion that the $0.60-$0.70 range will be a good place to do some bottom fishing in this stock.
Book value is presently $0.70 & with a strong balance sheet & good prospects that growth in eps will continue from the current 52 week eps of $0.20 I can't imagine the pps going much lower from here.
Cash was king when the markets were 10% higher but I don't believe that is the case presently & have been buying stocks like hfgb which should give me a excellant return at the current pps.
My brokers account shows the bid @$0.20 & the ask @$1.20 when I called to place a buy order just now.
Last trade was $0.60 down $0.05.
That is indeed a crazy spread however with hfgb now selling @3xcurrent eps & excellant prospects for continued growth I decided to enter a buy 3k@$0.65 today $0.05 above the last trade to see if a sellar is still out there in this pps range.
Two stocks both lightly traded that had big drops last week only to show good relative strengh today as the overall market continued to crumble also happen to be two of my current favorites looking ahead 6-8 months,,,hfgb &wkbt as both should show continued growth in 2010 on top of excellant 2009 results.
Read the filings...lots of shares for services.
I don't know what to think anymore about a lot of our China stocks....
MMs playing games? Hedge funds trading the hell out of them? People simply very aversive toward this sector after so much indiscriminate trash-talking of "China stocks" by Chanos, Faber, et al. (not distinguishing between U.S.-listed cos. and those on the mainland China exchanges)?
We're seeing ridiculously low P/Es now on many dozens of our U.S.-listed China picks. The only thing, it seems to me, that's going to help is when the VIX (perceived risk) comes down significantly, smallcaps and emerging mkts come back in favor, and Big Money rotates back into our China space and other perceived "risky" stock sectors. Til then it's very rough for so many of our favorite picks....
Thanks for the info on MM. Are you eluding that selling off on HFGB were caused by MM ?
Pappy, et al.
Thinking of buying some HFGB and curious to find out more on why HFGB has been sold down so hard, i checked L/II trading and saw HDSN, VFIN, and PERT as market makers on the ask today, albeit asking a very high price. Perhaps they were involved the other day when HFGB sold off very hard....
PERT and HDSN were the ones involved in mid-April when JADA was pushed off a cliff. And VFIN evidently doesn't have a good reputation either.
I found this relayed note from poster fz4fun on 4/17/09 (at http://www.stockmarketcats.com/f46/market-makers-mms-short-4206.html
) about the different market-makers, and which ones seem trustworthy and which ones not.
------------------------
Market Makers or MM's for short
Everybody that is new to trading sees or hears in a chat or discussion thread about MM's and how they are killing or holding a stock from running etc. Anybody that has spent time in front of a screen with Level 2 trading viewing sees the names of the MM's and is familiar with most of the names. Well, market makers are supposed to facilitate a smooth flow of trading for us traders so that when we want to buy Stock XYZ they supply us the shares and make the trade happen so we don't have to wait for Joe Schmoe to show up and decide to sell his shares to us. These MM's for short, make their money on the fractional difference per share that we pay and the seller gets or vice versa. They are licensed to do this and for the most part are honest in their efforts. i found this list in my browsing of the stock info available on the net and thought it would be good for everyone to be familiar with who they are dealing with when trying to buy a stock.
Hope the info helps you somewhat. Some of the info may be a bit dated but is overall pretty accurate. Again, I did not draw up this list-only snagged it for personal use and to share with everyone here. My thanks to whoever put it together originally.
------------------------
[Begin anonymous post on MM's:]
If you learn how to read into Level 2 on the OTCBB & PINK SHEETS it will really enhance your trading. Let's break down the Market Markets.
There are 4 categories of Market Makers let's start by talking about the first one.
Retail Market Makers:
These are the market makers from very popular brokerage firms. They handle a lot of the order flow for small retail investors.
NITE: NITE
UBSS: Schwab
SBSH: Citibank
ETRD: ETRADE
BOFA: Bank of America
Second Category: This is the list that you really have to master because these are the MARKET MAKERS that can kill a stock in a hurry when they are the sitting on right side of the box on Level 2.
HDSN: killed CKYS single-handedly
VFIN:
CGFL: new kid on the block for sub dilution
RBCM: Old CLYP. Has killed many sub penny stocks in the past to no-bid.
FANC: used to be a heavy S-8 seller. May show up once in a great while.
SSGI: aggressive on sub penny stocks
Third category: There are lot market makers in this category so I will break it down to who are the most important: These are some of the more friendlier market makers on the street.
DOMS: one of my favorites
MAXM:
VERT:
HILL:
SALI: can be a seller at times
JEFF:
FRAN: very friendly
ABLE:
QUIN: haven't seen him around much lately
VNDM:
SEAB:
MURF: getting active lately
STGI: getting active lately
VERT:
WDCO: can be a seller at times
PERT:
NIII:
BEST:
GNLN: nice to see him back again
EFGI: can be a seller at times
Category 4: ECN MARKET MAKERS: Electronic Routes
these market makers are only used on OTC BB stocks. They do not work for pink sheet market.
ARCA: used a lot by promoters to sell stock
TRAC: rarely used any more taken over by EDGX
EDGX: new kid on the block
There are probably a few market makers that I left out or there will a few new market makers that show but for the most part these are the major players. Good luck hopes this helps.
I find it interesting that the pps rose to $0.70 today.
That pps is the same as the current bookvalue for hfgb, however with eps of about $0.22 expected in 2010 a 50% increase over 2009 eps of $0.15 the pps remains extremely undervalued.
Sometimes a seller...an institution, regional broker, individual....who knows? just wants OUT of a stock and will clear the books even while driving their own price down. I have seen it done hundreds of times over the years, fear and panic develop in existing stockholders as selling begets more selling and it turns into a massacre.
There have been no filings, no comment from the company that anything material has changed so I would look at the price breakdown as an example of the 'inefficient market theory' that prevails down here and begin to avg down. Prices have not been this low since last Dec.
HFGB.. $0.65..
With the afterhours trade I think the seller was cleaned up,, so I took an other bite of the apple.. hank
06/02/10 9:46 AM EDT Buy 7888 HFGB Executed @ $0.65 Details | Edit
06/02/10 9:46 AM EDT Buy 5000 HFGB Executed @ $0.65 Details | Edit
HFGB.. $0.60
I have continued to Ave. down and until I get some indication that the guidance is off I'll do the same.. Yesterday was a bad day and the afterhour trade may of finished the seller.. No news on any changes that I can find.. hank
Quite a few shares unloaded by someone today.
Average volume is 26,900 shares todays volume was 477,599 shares as the pps crumbled to $0.66-$0.24 or 26.67% with last trade in after hours extending the slide to $0.60.
If company guidance can be trusted this represents a p/e ratio of 3 or less current years expected eps.
If this selling continues tomorrow I maybe forced to average down my 2k bought @$0.95 on May 19th since I feel hfgb will meet its guidance for 2010.
Any comments or opinions on todays selling?
Bought 2k @$0.95,,,I like the growth but don't like the spreads.
This was my 3rd try at buying this stock.eom
Yes hfgb avoided my bid @$1.01 Friday I may try again to get some next week.
Did get a little cpqq@$2.42 ccme@$10.90 wkbt@$3.00 uta@$7.866
HFGB is looking STRONG while many in this china sector are bloodied. VERY nice!!
Thanks 10 bagger.eom
HFGB.. background 3
Huifeng Bio-Pharmaceutical Provides Preliminary 2009 Financial Results and 2010 Guidance
PR Newswire - Feb 04 at 14:02
Company Symbols: NASDAQ-OTCBB:HFGB
XI&;AN, China, Feb. 4 /PRNewswire-Asia-FirstCall/ -- Huifeng Bio- Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB), a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production, today announced preliminary 2009 results and provided guidance for 2010.
Huifeng Bio-Pharmaceutical Technology anticipates revenues between $13 million to $14 million for the full year ended December 31, 2009. This represents a year-over-year revenue growth of 27% to 35%. Preliminary 2009 net income is anticipated to be between $2.8 million to $3.0 million for the year, representing 80% to 93% year-over-year growth. "The increase was attributed to the increase in the company&;s sales of pharmaceutical raw-material and Plant Extractive, and other products, including Rutin, Quercetin, injectable Troxerutin and Diosmin," said the company&;s CEO Jing&;An Wang. "The increase in revenue reflected both a gain in new customers, as well as an increase in the number of orders from our existing customers."
2010 Guidance
Management is providing revenue guidance of $20 million to $25 million and net income guidance between $4.5 million to $5.0 million for 2010. Growth is expected to be driven by increasing sales of current products. Because of the EU COS for Diosmin, the company has a high level diosmin quality. Certain European customers will be interested in Huifeng&;s diosmin and will increase their purchasing quantity from the company. The company will begin to perform the contract with Safic-Alan for diosmin. Another driver is production line expansion and acquisition which will increase the production quantity of diosmin. This will meet the big quantity requirement of new orders.
About Huifeng Bio-Pharmaceutical Technology, Inc. (HFGB)
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 in Xi&;an China. 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. Additional information is available at the Company&;s website: http://www.hfgb.cn/
Safe Harbor Statement
This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of the Company&;s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward- looking statements, including but not limited to the fluctuation of prices of raw materials, the market demand for our products, changes in governmental regulations and/or economic policies and our ability to penetrate new markets.
For further information, please contact:
Investor Relations Network
Tom Gavin
Tel: +1-951-845-1112
Email irnetwork@earthlink.net
SOURCE Huifeng Bio-Pharmaceutical Technology, Inc.
HFGB.. background 2
EquityNet Research Initiates Independent Analyst Coverage of Huifeng Bio-Pharmaceutical Technology
PR Newswire - Dec 21 at 08:29
Company Symbols: NASDAQ-OTCBB:HFGB
XI&;AN, China, Dec. 21 /PRNewswire-Asia/ -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB), a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production, today reported that after preliminary due diligence, including review of the company&;s market potential and development opportunities, EquityNet Research is initiating coverage of the company as an independent analyst.
Founded 10 years ago, the Los Angeles, Calif.-based research firm provides the investing public with professional, independent, objective research on under-followed public companies. It does this by preparing detailed research that highlights the key aspects of the company and its industry. Two of the firm&;s three principals are holders of the Chartered Financial Analyst (CFA) designation.
"Independent research provides a benchmark by which potential investors can gauge a company&;s fair value, eliminating such extraneous factors as supply and demand issues," said EquityNet Founder and Senior Equity Analyst Randall Lewis. "And perhaps most importantly, it is a statement by management to current shareholders and investors that, &;We have enough confidence in our company and future to compensate an independent analyst to perform a fair, accurate valuation of our stock, just like private companies do all the time.&; This shows at least that the company feels it has nothing to hide, and has self-assurance in its business model."
Lewis pointed out that according to a survey by Charles Schwab & Co., reported in The New York Times, an astonishing 78% of active stockholders now "value research from independent firms over analysis by Wall Street firms with financial ties to the companies they are rating..."
EquityNet Research expects to publish its initial coverage of Huifeng Bio-Pharmaceutical in January 2010.
About Huifeng Bio-Pharmaceutical Technology, Inc. (HFGB)
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 in Xi&;an China. 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. Additional information is available at the Company&;s website: http://www.hfgb.cn/
Safe Harbor Statement
This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of the Company&;s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward- looking statements, including but not limited to the fluctuation of prices of raw materials, the market demand for our products, changes in governmental regulations and/or economic policies and our ability to penetrate new markets.
For more information, please contact:
Tom Gavin
Investor Relations Network
Phone: +1-951-845-1112
Email: irnetwork@earthlink.net
SOURCE Huifeng Bio-Pharmaceutical Technology, Inc.
HFGB.. background..
Huifeng Bio-Pharmaceutical Technology Reports 26% Quarterly Revenue Increase
PR Newswire - Nov 24 at 10:55
Company Symbols: NASDAQ-OTCBB:HFGB
XI'AN, China, Nov. 24 /PRNewswire-Asia/ -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB), a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production in Xi'an, China, today reported that in its third quarter, the company realized a 26% increase in revenues.
Revenues for the quarter ended Sept. 30, 2009 were $4,465,770, an increase of $931,147, or 26%, from $3,534,623 for the same quarter in 2008. Net income amounted to 1,002,005, or $0.05 per share for the quarter, compared with $768,206, or $0.04 in the same period last year. "The increase in revenues for the quarter was due to an increase in the company's sales of pharmaceutical raw-material and Plant Extractive, and other products, including Rutin, Quercetin, injectable Troxerutin and Diosmin," said the company's CEO Jing'An Wang. "The increase in revenue reflected both a gain in new customers, as well as an increase in the number of orders from our existing customers."
Revenues for the nine months ended September 30, 2009 were $8,883,190, a slight decrease of $2,875, or under 1%, from $8,886,065 for the same period in 2008. Net income for the first nine months of 2009 totaled $1,412,562, or $0.07 per share, compared with $1,466,279, or $0.07 in the first nine months of 2008.
Cost of revenues for the quarter ended Sept. 30, 2009 were $2,994,605, an increase of $790,766, or 36%, from $2,203,839 for the quarter ended Sept. 30, 2008. Compared to the quarter ended Sept. 30, 2008, the increase in the cost of revenues for the 2009 third quarter was caused by the significant increase in sales of our pharmaceutical raw-material and Plant Extractive and other products.
Gross margin for the quarter was $1,471,165, an increase of $140,381, or 10.5%, from $1,330,784 for the same period ended Sept. 30, 2008, as a result of the increase in product sales.
The gross profit margin for 2009 decreased from 38% in the third quarter of 2008 to 33% for the third quarter ended Sept. 30, 2009. The decrease was a result of the higher unit cost of products over the three month period despite an increase in the cost of raw material during the third quarter of 2009.
General and Administrative expenses totaled $67,967 for the three months ended Sept. 30, 2009, a decrease of $193,760, or 74%, from $261,727 for the prior year's quarter. The decrease in general and administrative expenses was mainly due to a decrease in legal and professional fees of $6,710, a decrease in allowance for doubtful accounts of $69,819 and a decrease in exchange losses from foreign currency fluctuations of $106,366.
Selling and distribution expenses totaled $87,072 for the three months ended Sept. 30, 2009, an increase of $30,367, or 53%, from $56,705 for the three months ended Sept. 30, 2008. The increase in selling and distribution expenses was mainly due to an increase in freight charges of $50,932.
Cost of revenues for the nine months ended Sept. 30, 2009, was $5,960,465, an increase of $244,311, or 4%, from $5,716,154 for the nine months ended Sept. 30, 2008.
The gross margin for the nine months ended Sept. 30, 2009 was $2,922,725, a decrease of $247,186, or 8%, from $3,169,911 for the period ended Sept. 30, 2008 as a result of the increase in cost of revenues.
Gross profit margin for the nine months ended Sept. 30, 2009 had a slight decrease from 36% to 33% compared to the same period in 2008. The decrease was a result of the higher unit cost of products over the nine-month period despite an increase in cost of raw material during the third quarter of 2009.
General and Administrative expenses totaled $509,373 for the nine months ended Sept. 30, 2009, a decrease of $382,115, or 43%, from $891,488 for the nine months ended Sept. 30, 2008. The decrease in general and administrative expenses was mainly due to a decrease in legal and professional fees of $242,381, and a decrease in exchange losses from foreign currency fluctuations of $247,735.
Selling and distribution expenses totaled $174,001 for the nine months ended Sept. 30, 2009, an increase of $25,398 or 17%, from $148,603 for the nine months ended Sept. 30, 2008. The increase in selling and distribution expenses was mainly due to the increase in freight expenses of $33,166.
Cash balance amounted to $284,886 at Sept. 30, 2009. In the nine months ended Sept. 30, 2009, cash provided by operating activities totaled $169,785, mainly due to net income for the period of $1,429,523 and an increase in accounts receivable of $1,592,376. In the nine months ended Sept. 30, 2009, cash used in investing activities totaled $194,238, mainly for the purchase of property and equipment. Cash provided by financing activities in the nine months ended Sept. 30, 2009 of $263,062 was a bank loan from a PRC bank. Working capital amounted to $6,645,414 at Sept. 30, 2009.
About Huifeng Bio-Pharmaceutical Technology, Inc. (HFGB)
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 in Xi'an China. 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. Additional information is available at the Company's website: http://www.hfgb.cn/
Safe Harbor Statement
This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of the Company's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward- looking statements, including but not limited to the fluctuation of prices of raw materials, the market demand for our products, changes in governmental regulations and/or economic policies and our ability to penetrate new markets.
For further information, please contact:
Investor Relations Network
Tom Gavin
Tel: +1-951-845-1112
Email: irnetwork@earthlink.net
SOURCE Huifeng Bio-Pharmaceutical Technology, Inc.
HFGB.. $1.05
Huifeng Bio-Pharmaceutical Technology Announces Record Q4 and Year-end 2009 Financial Results
PR Newswire - Apr 20 at 08:00
Company Symbols: NASDAQ-OTCBB:HFGB
XI&;AN, China, April 20 /PRNewswire-Asia-FirstCall/ -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB), a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production, today announced record 2009 results and provided guidance for 2010.
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
Revenues for the year ended December 31, 2009 were $13,764,886, an increase of $2,807,657 or approximately 25.6% from $10,957,229 in 2008. Our increase in sales revenues in 2009 mainly attributed to the increase in sales of pharmaceutical raw materials. In particular, the sales volume of our Diosmin, Rutin and Troxerutin products increased rapidly, as a result of the high quality of our products. An analysis of our increase in sales of our products is as follows:
For the year ended
December 31,
Increase/
Product 2009 2008 (Decrease)
Pharmaceutical raw materials $8,015,822 $5,852,440 $2,163,382
Plant extracts 1,995,907 1,818,924 176,983
Pharmaceutical intermediates 3,753,157 3,285,865 467,292
TOTAL $13,764,886 $10,957,229 $2,807,657
The increase in the sales of pharmaceutical raw materials in 2009 was mainly due to an increase in the sales of Diosmin, Rutin and Troxerutin, three of 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. Our significant revenue growth in Diosmin in international market, especially in Europe, 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 applying Certificate 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 Good Manufacturing Practice (GMP) certified Rutin producer, we experienced rapid growth in both international and domestic market due to our high quality standards.
Our gross profit margin increased from 35% in 2008 to 37% in 2009. Our profit margin for pharmaceutical raw materials increased from 30% in 2008 to 31% in 2009. The profit margin for Plant Extracts increased from 50% in 2008 to 51% in 2009. The profit margin for pharmaceutical intermediates increased from 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 of 2008, in which $508,039 or 41% of gross profit was attributable to the increase in gross margin for Diosmin; $312,611 or 25% was attributable to the increase in gross margin for Troxerutin, and $294,259 or 24% was attributable to the increase in gross margin for Rutin.
"We are very pleased with our Fiscal Year 2009 results and robust growth in Q4 2009. Our results are attributed to our commitment to quality products and manufacturing excellence," stated Mr. Jingan Wang, "In 2010, we expect the opportunity to be up listed on a senior exchange, which will help increase awareness to a broader base of investors, analysts and institutions".
FORWARD-LOOKING STATEMENTS:
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission&;s "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Huifeng Bio-Pharmaceutical Technology, Inc.&;s actual results to differ materially from those currently anticipated, including the risk factors identified in Huifeng Bio-Pharmaceutical Technology, Inc.&;s filings with the Securities and Exchange Commission.
For more information, please contact:
Investor Relations:
Capital Group Communications, Inc.
Mr. Kevin Fickle (English)
Tel: +1-925-330-8315
Email: Kevin@capitalgc.com
Company Contact:
Huifeng Bio-Pharmaceutical Technology, Inc.
Bing He
Tel: +86-139-9195-4170 (Chinese)
Email: expo8@xahuifeng.com
SOURCE Huifeng Bio-Pharmaceutical Technology, Inc
Hey fellas! Quick question.
Im a newb when it comes to 10-K's. Where would i find EPS or REV guidance if there are any that is!?
I put this one on my watch list today to buy on a pull-back.
I like to buy them cheap,,, Buying snbp currently big revenue gains but dilution limiting eps gains. But even so 2010 eps likely to be $0.05 & with the pps around $0.26 & the likely growth in eps to $0.09 or better next year with new products & their flagship product being given the green light to receive Government assistance.
HFGB $1.07 Nice earnings today, I took a positoin.
Interesting...dead board for two years! I bought my first shares of HFGB yesterday....
Now up to 87 US listed china plays...attempt to buy low, and take free shares for the long haul as profit! This one looks interesting...got CAGM yesterday too. Great chart for accumulating CAGM.
100% in 30 days...not too bad. glad i found this early
lol, so looks like im the only one posting here...la la la, well its up .30 cents in a month. cant be too bad i guess.
were approaching the highest volume the stock has ever traded today? up a dime, and only 30k in volume away...someone must be getting the clue
updated with chart information also.
they always say, you build it and people will come...well guys its time
well, someone must be paying attention. it opened again with only 800 shares. but at this point, i guess something is better than nothing...
yay its open! very illiquid stock. but numbers speak for themselves. these guys got their stuff together
company intends on filing for NASDAQ or AMEX application at some point next year.
it would appear they are closer to AMEX standards than NASDAQ.
AMEX minimum:
$4m shareholders equity
-they have $7.9m
$750k in revenues in 2 0f 3 last fiscal years
-they have $6.5 in '07 and $3.06m in '06 and $2.4m in '05
800 share holders and 500k shares publically held
-at last check on the nobel listing they had 767 share holders and atleast 1m shares held
Price of $3.00
-only .75 recently
market value of float $3m
-currently $1.4m
Huifeng Bio-Pharmaceutical (HFGB) Announces 2007 Full Year Results
Monday March 31, 8:30 am ET
XI'AN, China, March 31 /Xinhua-PRNewswire-FirstCall/ -- Huifeng Bio- Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB - News), a developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production, is pleased to announce its audited financial results for the year ended December 31, 2007.
Full Year 2007 Highlights:
The following is a summary of our financial results for the full year ended Dec. 31, 2007.
12 Months Ended 12 Months Ended Growth
In US Dollars December 31,2007 December 31,2006 %
Net Revenue $6,571,531 $3,076,779 114%
Gross Profit $1,977,313 $457,518 332%
Gross Profit Margin 30% 15%
Net Income $1,283,683 $131,736 874%
Net Income Margin 20% 4%
Earnings Per Share $0.07 $0.01 600%
Huifeng achieved outstanding growth during 2007, with sales more than doubling and net income increasing by over 800%. "Huifeng achieved a number of significant milestones in 2007. We have increased our product offering and achieved significant sales in both Rutin and Diosmin," states company CEO Jing'An Wang. Furthermore, in late 2007, Huifeng signed the largest supply agreement in company history and completed a $2 million fundraising.
"Huifeng expects to continue achieving significant gains in both sales and net income in 2008 through organic growth of our current products," forecasted Mr. Wang. The company restructured its production lines in the fourth quarter to accommodate the increased production levels of Diosmin necessitated under its current contract with Safic-Alcan of France. Huifeng also hopes to close a strategic acquisition in 2008 under its stated policy of seeking synergistic, accretive acquisitions in the Xi'an region of China.
The company is maintaining its stated guidance of sales of US$18 million and net income of US$4 million ($0.18 cents per share) in 2008.
For more detailed information on this transaction, investors should refer to Huifeng's Current Report on Form 10-KSB and related exhibits filed with the Securities and Exchange Commission on Friday, March 31, 2008.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Huifeng Bio-Pharmaceutical Technology, Inc. (HFGB)
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. http://www.hfgb.cn/
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, included or incorporated by reference herein relating to management's current expectations of future financial performance, continued growth, changes in economic conditions or capital markets and our ability to consummate strategic acquisitions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Words or phrases such as "anticipates," "may," "will," "should," "believes," "estimates," "expects," "intends," "plans," "hopes," "predicts," "projects," "targets," "will likely result," "will continue" or similar expressions identify forward-looking statements. Forward-looking statements involve risks and uncertainties which could cause actual results or outcomes to differ materially from those expressed. We caution that while we make such statements in good faith and believe such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records and other data available from third parties, we cannot assure you that our projections will be achieved.
For more information, please contact:
Dan Carlson, Primary Capital LLC
Email: DCarlson@PrimaryLLC.com
10k due out soon. Should show approx .06 positive cents per share earnings. And somewhere in the neighborhood of $8m in revenue.
For 2008, Projecting .18 earnings and $18m in revenue
Form 8-K/A for HUIFENG BIO-PHARMACEUTICAL TECHNOLOGY, INC.
--------------------------------------------------------------------------------
9-Jan-2008
Entry into a Material Definitive Agreement, Creatio
ITEM 1.01 Entry Into a Material Definitive Agreement
The information reported in Item 2.03 of this Current Report on Form 8-K is incorporated herein by reference.
ITEM 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On December 31, 2007, Huifeng Bio-Pharmaceutical Technology, Inc. (the "Company") entered into a series of agreements including a Securities Purchase Agreement, a Registration Rights Agreement, certain Convertible Promissory Notes (the "Notes"), certain warrant agreements, and Pledge Agreements, (collectively referred to herein as the "Transaction Documents") with certain purchasers including, among others, Professional Offshore Opportunity Fund, Ltd. ("PROOF") Ancora Greater China Fund, Strategic Alliance Fund, L.P., and Strategic Alliance Fund II, L.P. (collectively referred to herein as the "Purchasers").
Pursuant to the terms and conditions of the Transaction Documents, the Company has arranged for debt financing in the amount of Two Million ($2,000,000.00). As part of the Transaction Documents, the Notes bear simple interest at the rate of ten percent (10%) per annum and are due and payable on December 30, 2009. The Notes are convertible at the Purchasers' election into shares of common stock of the Company at $1.00 per share.
The Transaction Documents are secured by collateral that includes 5,272,862 shares of the Company's common stock held by certain shareholders and 500,000 shares of the common stock of Northwest Bio-Technic, Inc. held by certain shareholders. Additionally, the Transaction Documents require Jing An Wang, the Company's CEO, to personally place 1,400,000 shares of common stock in the Company in escrow to be released to the Purchasers if the Company does not produce a certain amount of net income in the 2008 fiscal year.
The Company intends to use the proceeds to fund acquisitions of synergistic companies within the Shaanxi Province in the People's Republic of China. Primary Capital, LLC acted as the sole placement agent for this transaction.
Huifeng Bio-Pharmaceutical (HFGB) Announces Five-Year Supply Agreement
Tuesday November 6, 8:24 pm ET
XI'AN, CHINA--(MARKET WIRE)--Nov 6, 2007 -- Huifeng Bio-Pharmaceutical Technology, Inc (OTC BB:HFGB.OB - News), a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production, today announced that it has entered into a five-year supply agreement with Sichuan Huafamei Enterprise Co., Ltd., a division of Safic Alcan Group.
"We are pleased to enter into this new agreement with Safic Alcan," said Mr. Jing'An Wang, CEO of HFGB. "Safic Alcan is committed to developing their presence in the European pharmaceutical industry. They appreciate the quality of the products we can provide and we look forward to working with them on our Diosmin Product line." The supply agreement between HFGB and Safic Alcan grants Safic Alcan exclusive rights to market Diosmin in the European market and calls for minimum guaranteed quantities of Diosmin to be delivered by HFGB to Safic over each of the five years of the contract, which is renewable for an additional 5 year term with mutual consent of both parties. The minimum quantity of Diosmin to be delivered in year one is 50 tons, increasing yearly to at least 500 tons in the last year of the contract.
Huifeng Bio-Pharmaceutical (HFGB) Closes Two Million Convertible Debt Financing
Monday December 31, 1:03 pm ET
XI'AN, CHINA--(MARKET WIRE)--Dec 31, 2007 -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC BB:HFGB.OB - News), a leading developer and producer of plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production, is pleased to announce that it has successfully closed a two million dollar ($2,000,000) convertible debt financing. The debt is convertible into shares of common stock at $1.00 per share and the Company's use of proceeds is to fund acquisitions of synergistic companies within the Shaanxi Province, China. Primary Capital LLC acted as the sole placement agent for this transaction.
For more detailed information on this transaction, investors should refer to Huifeng's Current Report on Form 8-K and related exhibits filed with the Securities and Exchange Commission on Monday, December 31, 2007.
The convertible debt issued in the private placement has not been registered under the Securities Act of 1933, as amended, and may not be subsequently offered or sold by the investors in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Huifeng has agreed to file a registration statement covering the resale by the investors of the common stock underlying the notes issued in the private placement.
...Finally, I want to look at Huifeng Bio-Pharmaceutical (HFGB.OB). This company closed its convertible transaction on 12/31, raising $2 million in proceeds. And what was the conversion discount? There was no discount. In fact, the conversion price was set at a PREMIUM to its closing price - $1.00 versus a closing price of $0.75. I looked at the deal and thought: Why not? Conversion happens in the future, and if the investor buys into the company's growth story, a premium like this is very possible....
This article compared the conv debt vs other recent transactions
http://seekingalpha.com/article/61749-china-water-drink-favors-institutional-investors?source=yahoo
Updated info on company as of 3/20/08
HUIFENG BIO-PHARMACEUTICAL TECHNOLOGY, INC. OTCBB: HFGB
Outstanding shares: 20.5M
Approximate float: 2.1M
www.hfgb.cn
Huifeng Bio-Pharmaceutical Technology, Inc. operates through its 100% holding subsidiary, Huifeng Biochemistry Joint Stock Company (.The Company.) with registered capital of RMB 57 million (or US$ 7.125 million). The Company is principally
engaged in the production and sales of plant extracts, biochemical products and pharmaceutical raw products in China. The Company’s main products include Rutin, Troxerutin, Quercetin, Ginkgo Biloba Extract, L-Rhamnose and Diosmin.
Huifeng was founded in Xi’an, China in 2000. The company is engaged in the production of plant extracts and bio-chemical products used as raw materials in pharmaceuticals. Most of the Company’s products are distributed within the Peoples Republic of China (PRC) and some European countries. With the Company’s proprietary technology of .Producing Rutin by Eliminating Enzyme and Mucus together with abundant resources of high quality pagoda rice, Huifeng Bio-Pharmaceutical has strategically positioned itself as one of the leading Rutin Companies in Xi’an city after only two years since commencing operations. Huifeng became a US listed public company in 2004 by completing a reverse merger with Enternet Inc., an OTCBB listed company.
The Company’s products are well accepted not only domestically, but also in many international markets such as Japan, USA, Germany, Spain, Middle East, Southeast Asia, Finland, Hong Kong and etc. The Company has continually emphasized
technology and product innovation and its strategic mission objective is to commercialize Chinese traditional medicine while maximizing profits for shareholders.
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 make unrestricted domestic
sales. Products manufactured under GMP conditions have higher quality, consistency and potency assurances. In January, 2007, the Chinese Ministry of Science and Technology, which regulates raw materials extract producers in China, will begin to
restrict unqualified producers. sales. The Company’s participation in PRC governmental biopharmaceutical industry initiatives also entitles it to research funding for new products.
. HFGB is anticipating revenues of $18 million for 2008
. an increase of 125% from their 2007 revenue projections of $8 million.
. Huifeng Bio-Pharmaceutical is projecting $0.18 EPS for 2008.
. The company 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 2007, approximately 60% of products were sold in China and 40% were exported.
. The demand for flavonoid plant extracts is increasing internationally with the growth of the pharmaceutical markets and the aging of the population in Europe,
the United States and China.
. The Chinese pharmaceutical market is expected to grow to $60 billion USD by 2010.
. U.S. drug and nutraceutical manufacturers. Demand for rutin, quercetin and troxerutin is expected to grow by approximately 15% in each of the next four years,
according to industry projections.
. Demand for plant extracts, as pharmaceutical and nutraceutical ingredients and food/beverage additives, is rapidly growing worldwide.
. The Company’s production efficiency has allowed it 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 dosing and lrhamnose. Huifeng Bio-Pharmaceutical has also recently expanded production facilities to
manufacture these new products.
. The Chinese plant extract industry is highly fragmented, so both government-owned and private acquisition opportunities exist.
. Consumption of vitamins and minerals has risen by almost 18% annually since the midnineties, and is expected to rise by 17% annually through 2009.
Jingan Wang - Chief Executive Officer
Mr. Jingan Wang, age 47, CEO of the Company, is the founder
and currently serves as President of Huifeng. Mr. Wang has over
fifteen years of experience in accounting and financial
management. Mr. Wang has served as Accounting Supervisors
and Chief Financial Officers for various companies during his
professional career. Before Mr. Wang founded Huifeng in 2000,
he was the Chief Financial Officer for Wei Xing Enterprises from
1999 to 2000. In 2004, he was awarded "the Entrepreneur of the
Year" by the Xi’an Hi Tech Development Zone. Mr. Wang is also
a certified public accountant.
Sanding Tao - Chief Financial Officer
Mr. Sanding Tao, age 39, CFO of the Company and of Huifeng.
Mr. Tao served as VP of Finance and CFO for various technology
and bio-tech firms before he joined Huifeng in 2003. From 1998 -
2000, Mr. Tao served as Chief Financial Officer for Xi’an Lan Xi
Science & Technology Inc.; and from 2000 -2003, Mr. Tao served
as Chief Financial Officer for Xi’an Xing Yi Science & Technology
Inc. Mr. Tao is a graduate of Chinese Southern Financial
College.
Xinwen Hou - Director and Secretary
Mr. Xinwen Hou, age 39, Director and Secretary of the Company,
currently also serves as Assistant to the President and as
Company Secretary for Huifeng Bio-Pharmaceutical ("Huifeng")
in Xian, China. Mr. Hou held various leadership positions in
different public companies in China before he joined Huifeng in
January 2004. From 1997 - 2003, Mr. Hou served as Company
Secretary for De Li Bang Pharmaceutical Inc., which is listed on
China’s A share stock exchange. He is also a reputable
economist. He graduated from Xi’an Transportation University
with a major in Business Administration.
HUIFENG BIO-PHARMACEUTICAL TECHNOLOGY, INC
16B/F Ruixin Road Bldg. No.25 Gaoxin Road Xi.an 710075
Shaanxi Province, China
Secure Data Inc. Changes Name to Huifeng Bio-pharmaceutical Technology Inc. and Its Symbol from SCRE to HFGB
Monday October 17, 1:49 pm ET
PHOENIX--(BUSINESS WIRE)--Oct. 17, 2005--Huifeng Bio-pharmaceutical Technology (OTCBB: HFGB - News) announces that as of Oct. 14 shares of HFGB are trading on the OTCBB market.
Huifeng Bio-pharmaceutical is a Chinese bio-pharmaceutical company that has come to the public markets by way of a reverse merger with Secure Data (SCRE).
Huifeng produces products in the pharmaceutical intermediates, pharmaceutical material and plant extractive fields in the People's Republic of China. The company's patent application for its proprietary technology for producing Rutin has been accepted and audited by the State Intellectual Property Bureau of PRC (patent No. 02114402.8).
Huifeng produces a series of Rutin and Rutin-related products.
In 2004 Huifeng had two major production facilities:
1. Manufacturing plant located at No. 1, Huifeng Road, Changwu,
Xianyang
2. Manufacturing plant located in Fenghui, Changan, Xian
The two production facilities together occupy a total area of approximately 300,000 square feet. The existing utilization rates of the two plants are approximately 60% to 70%. The general physical condition of the plants and production facilities of the company can completely satisfy the production needs of the company in terms of quantity and production quality for the near future.
All of Huifeng's products are raw materials for production of medicines, and the users of these products are industrial clients. As a result, Huifeng's main target customers are pharmaceutical companies and food manufacturers.
For the year ended Dec. 31, 2004, $2,177,478 or 87.8% of our sales revenues were derived from sales of Rutin and Rutin-related pharmaceutical intermediates and material. $301,285 or 12.2% of our sales revenues were derived from sales of plant extracts.
Huifeng currently has 5,200,223 shares outstanding as of Oct. 12, 2005.
Safe Harbor Act Notice
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings. Third-party statements contained herein and information contained on any third-party Web site are not endorsed by or adopted by HFGB, nor has their accuracy been verified by HFGB.
Contact:
First Global Media
Trevor Blank, 480-902-3110
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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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