Exhibit 99.1
CHINA BIOPHARMACEUTICALS HOLDINGS
www.cbioinc.com Press Release
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DRAFT RELEASE: CONTACT:
Chris Peng Mao, CEO
86-10-8525-1616
info@cbioinc.com
Julie Huang, Financial Dynamics
212-850-5628
julie.huang@fd.com
CHINA BIOPHARMACEUTICALS HOLDINGS ANNOUNCES THIRD QUARTER
RESULTS
- Product Mix Generate Record Revenues, Net Income and EPS -
- EPS Grows to $0.03 -
BEIJING, China, Nov 15, 2006 -- China Biopharmaceuticals Holdings, Inc. (OTC BB:
CHBP), a leading Chinese pharmaceutical company focused on the development,
manufacturing and distribution of innovative drugs in China, today announced
results for the third quarter and nine months ended September 30, 2006.
Consolidated revenues of $7.96 million were 6.2% higher than the $7.49 million
reported in the third quarter of 2005. Net income for the quarter was $1.07
million, an increase of 109% from $516,252 in the prior year period. Earnings
per share from continuing operations increased to $0.03 in the current year
quarter, up from $0.02 earned in the third quarter of 2005.
Commenting on the results, Chris Mao, the Chief Executive Officer of China
Biopharmaceutical Holdings said, "We are on track to making 2006 a banner year
for the Company. The investments we have made to date continue to operate in
line with our expectations and have contributed to our operating margin
improvements this quarter. We have submitted multiple drug applications which
are awaiting review by the Chinese State Food and Drug Administration (SFDA). In
addition, the growing base and continuity of revenues generated by our 260 drugs
already approved by the SFDA for manufacturing and marketing, their distribution
through our new and expanding channels, and our continued pursuit for
appropriate investments in China should sustain our growth, profitability, and
further penetration of the Chinese pharmaceutical marketplace for the
foreseeable future."
Revenues for the quarter reached $7.96 million, representing a 6.2% increase or
$464,633 growth as compared to $7.49 million for the third quarter 2005. This
increase is attributable mainly to organic growth of revenue generated by
subsidiary Erye, as well as to revenue generated as a result of the acquisition
of wholly-owned Enshi. In addition, due to the effect of previously-announced
divestiture of Hengyi, effective of July 1, 2006, revenue of Hengyi was not
included in the period for the three months ended September 30, 2006 but was
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included in September 30, 2005. If revenue from Hengyi was not included in the
September 30, 2005 quarter, the increase in revenue for the three months ended
September 20, 2006 compared to the prior year would have been significantly
higher.
Operating income for the quarter increased 115% for the quarter to $1.94
million, up from $0.91 million in the prior year period. Operating expenses for
the quarter were $1.13 million, a modest increase of $50,917 over the prior year
period. Net income for the quarter was $1.07 million, an increase of 109% from
$516,252 in the prior year period. Third quarter earnings per share were $0.03,
as compared to $0.02 in the third quarter 2005.
Revenues for the first nine months of 2006 increased by 62% to $21.2 million, as
compared to $13.1 million for the same period last year. Operating income for
the first nine months of 2006 was $4.0 million, up from $1.6 million in the
prior year period, representing a 145% increase. Operating expenses for the
first nine months was $3.1 million, as compared to $2.0 million over the prior
year period. This increase was due to an increase in SG&A expense and R&D
expenses incurred by Keyuan, the research and development unit, and the June
2006 acquisition of Enshi. Net income for the first nine months of 2006 was $2.1
million, up from $1.0 million in the prior year period, representing a 100%
increase. For the first nine months of 2006, earnings per share were $0.06, as
compared to $0.04 in the same period last year.
About China Biopharmaceuticals Holdings
China Biopharmaceutical Holdings, Inc (CHBP) is a research-driven pharmaceutical
company dedicated to the discovery, development, manufacturing and marketing of
small and large molecule pharmaceutical products, including medicines, vaccines,
and active pharmaceutical ingredients for various categories of diseases. CHBP's
product portfolio includes 260 drugs already approved for manufacturing and
marketing by the Chinese State Food and Drug Administration (SFDA). CHBP is
publicly-traded in the United States with operating subsidiaries and senior
management based in China. For further information, please visit our website at
www.cbioinc.com.
Safe Harbor Statement
The statements contained herein that are not historical facts are "forward
looking statements" within the meaning of Section 21E of the Securities and
Exchange Act of 1934, as amended, and the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements may be identified by, among other
things, the use of forward-looking terminology such as "believes," "expects,"
"may," "will," "should," or "anticipates" or the negative thereof or other
variations thereon or comparable terminology, or by discussions of strategy that
involve risks and uncertainties. In particular, our statements regarding the
potential growth of the markets are examples of such forward-looking statements.
The forward-looking statements include risks and uncertainties, including but
not limited to, general economic conditions and regulatory developments, not
within our control. The factors discussed herein and expressed from time to time
in our filings with the Securities and Exchange Commission could cause actual
results and developments to be materially different from those expressed or
implied by such statements. The forward looking statements are made only as of
the date of this filing, and we undertake no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.
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China Biopharmaceuticals Holdings, Inc.
SUMMARY BALANCE SHEET
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As of
September 30, December 31,
2006 2005
(Unaudited) (Audited)
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CASH $ 2,438,966 $ 1,026,606
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TOTAL ASSETS 45,382,029 26,621,074
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TOTAL LIABILITIES 25,135,669 16,893,936
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MINORITY INTEREST 3,936,694 4,458,414
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TOTAL SHAREHOLDERS' EQUITY 16,309,666 5,268,724
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China Biopharmaceuticals Holdings, Inc.
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
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September 30, September 30, September 30, September 30,
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2006 2005 2006 2005
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REVENUES $ 7,962,641 $ 7,498,008 $ 21,233,187 $ 13,129,081
COST OF GOODS SOLD 4,885,800 5,512,480 14,079,123 9,446,977
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GROSS PROFIT 3,076,841 1,985,528 7,154,064 3,682,104
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OPERATING EXPENSES
Research and development expenses 20,636 504,401
Selling, general and administrative expenses 1,108,674 1,078,393 2,620,645 2,039,938
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Total Operating Expenses 1,129,310 1,078,393 3,125,046 2,039,938
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INCOME FROM OPERATIONS 1,947,531 907,135 4,029,018 1,642,166
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OTHER INCOME (EXPENSE)
Interest income (expense) (383,537) -- (387,739) --
Other income (expense) (91,844) (23,119) (336,007) (35,694)
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Total Other Income (expense) (475,381) (23,119) (723,746) (35,694)
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INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 1,472,150 884,016 3,305,272 1,606,472
PROVISION FOR INCOME TAXES 197,165 -- 346,776 --
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INCOME BEFORE MINORITY INTEREST 1,274,985 884,016 2,958,496 1,606,472
MINORITY INTERESTS 295,384 367,764 954,403 557,094
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INCOME FROM CONTINUING OPERATIONS 979,601 516,252 2,004,093 1,049,378
GAIN FROM OPERATION OF DISCONTINUED
Gain from operation of discontinued 146,771 -- 146,771 --
Income tax liability 49,902 -- 49,902 --
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Net of Gain on Operation Discontinued 96,869 -- 96,869 --
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NET INCOME 1,076,470 516,252 2,100,962 1,049,378
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment 151,701 -- 670,805 --
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COMPREHENSIVE INCOME (LOSS) $ 1,228,171 $ 516,252 $ 2,771,767 $ 1,049,378
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BASIC
CONTINUING OPERATIONS 0.03 0.02 0.06 0.04
DISCONTINUED OPERATIONS 0.00 -- 0.00 --
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NET INCOME 0.03 0.02 0.06 0.04
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DILUTED
CONTINUING OPERATIONS 0.03 0.02 0.06 0.04
DISCONTINUED OPERATIONS 0.00 -- 0.00 --
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NET INCOME 0.03 0.02 0.06 0.04
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WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - 34,902,548 28,133,757 34,902,548 26,218,201
BASIC
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WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - 35,832,548 26,218,201 35,832,548 26,218,201
DILUTED
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