China Pharmaceuticals, Inc. (fka CFMI)

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CFMI $1.55 Earnings..

China Pharmaceuticals, Inc. (CFMI) Announces Record Fiscal Year 2009 Results

Business Wire - Apr 20 at 15:46

Company Symbols: NASDAQ-OTCBB:CFMI


XI'AN, China--(BUSINESS WIRE)-- China Pharmaceuticals, Inc. (OTC Bulletin Board: CFMI) ("China Pharmaceuticals Inc." or the "Company"), today announced financial results for its fiscal year ended December 31, 2009. The Company's annual report on Form 10-K was filed on April 15, 2010 with the United States Securities and Exchange Commission.

"We are delighted to report a strong finish to fiscal 2009, with revenues, operating income, and cash flow significantly exceeding our expectations for the year. We believe that the factors that contributed to this performance were strong sales from our new products and the successful restructuring of our sales and marketing network. With $8,924,102 in operating cash flow in FY 2009, a 69.95% increase over the previous period, we ended the fiscal year with $6,685,630 in cash. We believe that our strong cash position will provide us with significant flexibility to pursue continued organic growth," said Mr. Guozhu Wang, Chief Executive Officer of China Pharmaceuticals, Inc. "We are focused on continuing to expand our portfolio of high margin products that address major disease categories and on continuing to build sustainable growth in revenues and profits."

Fiscal Year 2009 Highlights:

-- Total revenue increased 46.96% year-over-year to $26,708,285.
-- Gross profit increased 29.02% to $14,300,250.
-- Operating income rose 21.26% year-over-year to $10,913,289.
-- Net income grew 21.38% to $8,907,379.
-- Cash flow from operating activities grew 69.95% to $8,924,102.


Total revenue for fiscal 2009 increased 46.96% to $26,708,285 from $18,174,003 in fiscal year 2008. Gross profit rose 29.02% to $14,300,250, as compared to $11,083,576 in the prior year. Gross profit margin increased to 53.54%, compared to 49.52% for the previous year. Operating income grew 21.26% to $10,913,289 from $8,999,550 in fiscal 2008. Net income increased 21.38% to $8,907,379, as compared to $7,598,773 in fiscal 2008.

Financial Condition

As of December 31, 2009, the Company had $6,685,630 in cash as compared to $5,049,188, at the end of fiscal 2008, an increase of 32.4%. Working capital was $9,243,121, up from $4,754,626 as of December 31, 2008. Particularly noteworthy, was the fact that the Company generated $8,924,102 in cash flow from operating activities in fiscal 2009, representing an impressive 69.95% increase over the previous fiscal year. Shareholder's equity as December 31, 2009 was $28,624,514, as compared to $19,676,858 at the end of fiscal 2008.

Outlook for 2010

"Fiscal 2010 is expected to be a transitional year for China Pharmaceuticals, Inc. as we prepare for the introduction of new drugs, and pursue additional opportunities for both organic growth and potential strategic acquisitions. Our current outlook reflects only the drugs that we have in hand today and will be subject to update as we execute strategic initiatives to expand our market position and profitability in the future. We remain very confident regarding our future growth prospects and look forward to sharing further details with our shareholders as our expansion plans reach a definitive stage," concluded Mr. Wang.

About China Pharmaceuticals, Inc.

China Pharmaceuticals, Inc., www.chinapharmaceuticalsinc.com, has its headquarters in the City of Xi'an, Shaanxi Province, China. The Company identifies, discovers, develops, manufactures and distributes both prescription and over-the-counter, including both conventional and Traditional Chinese Medicines, pharmaceutical products for the treatment of some of the most common ailments and diseases. China Pharmaceuticals, Inc. currently manufactures 85 pharmaceutical products in the form of capsules, oral solutions, tablets, granules, syrups, medicinal teas, tincture and solutions for injection that are either small volume parenteral solutions that are freeze dried powders or large volume parenteral solutions. China Pharmaceuticals, Inc.'s manufacturing facilities are based in Hanzhong and the Xi'an Jinghe Industrial Zone, both in Shaanxi Province. For the twelve months ended December 31, 2009, total revenue was $26,708,285 and net income was $8,907,379 or $0.23 per share. As at December 31, 2009 shareholders' equity was $28,624,514 and total assets were $33,694,796.

Safe Harbor Statement

This announcement 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 fact in this announcement are forward-looking statements, including but not limited to, the company's ability to raise additional capital to finance the company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the company; the ability of the company to operate as a public company; the period of time for which its current liquidity will enable the company to fund its operations; the company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.




Source: China Pharmaceuticals, Inc.


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