Weikang Bio-Technology Group Co., Inc., a leading developer, manufacturer and marketer of Traditional Chinese Medicine (TCM), Western prescription pharmaceuticals and other health and nutritional products in the People's Republic of China announced its 2009 year-end financial results.
- FY 2009 revenues increased 269% to $47.4 million, from $12.8 million for FY 2008
- FY 2009 gross profit increased 214% to $25.8 million, compared to $8.2 million for FY2008
- At December 31, 2009, cash and cash equivalents of $11.3 million
- FY2009 net income increased 115% to $15.6 million, from $7.2 million for
FY 2008 or diluted EPS of $0.62
"Despite of the recent global financial crisis, we are very proud to deliver another outstanding financial quarter to our shareholders," commented by Mr. Ying Wang, Chairman & CEO of Weikang Bio-Technology Group, Inc., "The strategic acquisition of Tianfang in 2008 has yielded phenomenal results for us as Tianfang's sales grew more than 400% to $34.6 million in 2009. We are continuing to achieve greater market penetration and saw a tremendous increase in the demand for our products, particularly our TCM and nutritional supplement, despite an increase in our selling price.
Fiscal Year 2009 Results
During the year ended December 31, 2009, the Company recorded revenue of $47.48 million, compared to $12.85 million for 2008, an increase of $34.63 million or 269%. The increase in sales was primarily a result of increased sales from Tianfang, which contributed about $34 million sales or 72% of our total revenue during 2009. Tianfang's sales increased $28.45 million or 493% during the year ended December 31, 2009; while in 2008, Tianfang had only 6 months operations due to the snow disaster in China. In addition, there was increased demand from the Company's dealers and distributors as a result of growing acceptance and trust in our products from end users despite of the fact the Company has increased the selling price for some of its products in 2009. Weikang believes that the sales will continue to grow as the Company develops new products and continues to improve the quality of our existing products.
Cost of sales increased $17.06 million or 372%, year over year. The increase was mainly due to increased production as a result of our acquisition of Tianfang and overall increases in revenue in 2009. Gross profit was $25.84 million for the year ended December 31, 2009, compared to $8.27 million for 2008, representing profit margins of 54% and 64% respectively. The decrease in profit margin was mainly due to the increase in cost of sales from Tianfang's operations during the year 2009.
Total operating expenses consisted of selling, general and administrative expenses of $5.85 million for the year ended December 31, 2009 compared to $1.21 million for the year ended December 31, 2008. This increase was attributable to the combined expenses of Heilongjiang Weikang and Tianfang due to the acquisition of Tianfang in July 2008. In addition, the Company has spent approximately $1.95 million in R&D expense for developing certain new medicine and health supplemental products with the Botany medicine research center of Northeast Forestry University.
Net income for fiscal year 2009 was $15.62 million compared to $7.27 million prior year, an increase of $8.35 million or 115%. The increase was mainly attributed to growth in top line revenue and efficiency of operations. The Company's Earning Per Share, or EPS, was $.62, based on Basic and diluted weighted average shares outstanding of 25,375,581 shares.
Mr. Wang concludes, "Looking ahead, we will continue our growth strategy of developing newer and higher margin pharmaceutical and nutriceutical products, while expanding our sales and distribution network in China. In 2010, we will also deploy more time and resources towards the U.S. capital markets by increasing our investor relations efforts and potentially uplifting to a senior stock exchange. The management team is fully committed to build long term value for all of our stakeholders."
For the complete corporate filing of Weiking Bio-Technology Group,, Co., including a full report of fiscal year 2009 financial results, or 10K report, please visitwww.sec.gov .
About Weikang Bio-Technology Group Co., Inc.:
Weikang Bio-Technology Group Co., Inc., is principally engaged in developing, manufacturing and distributing Traditional Chinese Medicine (TCM), and health and nutritional supplements in China, in compliance with requisite Chinese licenses and approvals. The Company is also expanding its business scope to develop, manufacture and distribute Chinese herbal extract products and GMP certified western prescription pharmaceuticals through its acquisition of Tianfang.