SOURCE: Benda Pharmaceutical, Inc.

May 04, 2007 18:28 ET

Benda Pharmaceutical, Inc. Reports Record Annual Revenue of $15.9 Million

HUBEI PROVINCE, CHINA -- (MARKET WIRE) -- May 4, 2007 -- Benda Pharmaceutical, Inc. ("Benda" or the "Company") (OTCBB: BPMA), a China-based pharmaceutical company engaged in the identification, discovery, development, and manufacturing of conventional medicines, active pharmaceutical ingredients, pharmaceutical intermediaries (bulk chemicals) and Traditional Chinese Medicines, has announced operating results for the year ended December 31, 2006.

Benda reported revenue of approximately $15.9 million for the year ended December 31, 2006, compared to approximately $15.4 million for the year ended December 31, 2005 -- a 3% increase. Benda Pharmaceutical owns three plants in the Hubei Province of China: Benda Ebei, which produces conventional medicines and Traditional Chinese Medicines; Jiangling Benda, which produces active pharmaceutical ingredients used in capsules, tablets and fluids; and Yidu Benda, which produces bulk chemicals. The increase in revenue was primarily attributable to Benda Ebei's increased sales of branded medicines and Yidu Benda's increased sales of 1.2.4-triazol carboxylic acid methyl ester. Revenues increased modestly overall because higher revenues from Benda Ebei and Yidu Benda were offset by reduced revenue from Jiangling Benda, which was closed in July 2004 for plant overhaul in preparation for Good Manufacturing Practices (GMP) certification. The Jiangling Benda plant is expected to resume production in August 2007.

Benda reported net income for the year ended December 31, 2006 of approximately $2.3 million, compared to approximately $3.5 million for the year ended December 31, 2005 -- a decrease of 33%. Excluding approximately $632,644 of one-time charges associated with its reverse merger, Benda would have reported net income of approximately $3.0 million.

Benda reported a profit of approximately $0.03 per share for the year ended December 31, 2006, compared to a profit of $0.05 per share for the year ended December 31, 2005. Excluding the one-time charges associated with its reverse merger, Benda would have reported a profit of approximately $0.04 per share.

As of December 31, 2006, there are 96,258,411 basic shares of common stock issued and outstanding and 124,816,347 shares outstanding on a fully diluted basis.

About Benda Pharmaceutical, Inc.

Benda Pharmaceutical, Inc. (www.bendapharma.com) is engaged in the business of identifying, discovering, developing, and manufacturing conventional medicines, active pharmaceutical ingredients, bulk chemicals (or pharmaceutical intermediates), and Traditional Chinese Medicines ("TCMs") for the treatment of some of the most widespread common ailments and diseases (e.g. common cold, diabetes, and cancer).

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

BENDA PHARMACEUTICAL, INC.
(FORMERLY APPLIED SPECTRUM TECHNOLOGIES INC.)
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
(Stated in US Dollars)



                                                  Year ended December 31
                                                    2006          2005
                                                ============  ============

  Revenue                                       $ 15,932,075  $ 15,414,106
  Other Sales                                          2,937             -
                Cost of Goods Sold                (8,925,430)   (9,361,497)
                                                ------------  ------------
  Gross Profit                                     7,009,582     6,052,609
                                                ------------  ------------

  Selling Expenses                                  (599,571)     (697,521)

  General and administrative
                Amortization                        (254,990)     (195,838)
                Depreciation                        (643,794)     (649,726)
                Shares issuable for services        (326,403)            -
                Other general and
                 administrative                   (1,897,839)     (600,479)
                                                ------------  ------------
  Total general and administrative                (3,123,026)   (1,446,043)
  Research and development                           (30,821)      (16,604)
                                                ------------  ------------
                Total operating expenses          (3,753,418)   (2,160,168)
                                                ------------  ------------
  Operating Income                                 3,256,164     3,892,441

  Interest expenses                                 (108,811)     (150,498)
  Other income (expenses)                           (530,571)          (49)
                                                ------------  ------------

  Income before minority interest and income
   taxes                                           2,616,782     3,741,894
                                                ------------  ------------
  Income taxes                                             -             -
  Minority interest                                 (298,024)     (256,126)
                                                ------------  ------------

  Net Income                                    $  2,318,758  $  3,485,768
                                                ============  ============

  Earnings per share - basic                    $       0.03  $       0.05
                                                ============  ============

  Weighted average shares outstanding - basic     73,414,057    64,942,360
                                                ============  ============

  Earnings per share - diluted                  $       0.03  $       0.05
                                                ============  ============

  Weighted average shares outstanding - diluted   74,864,283    64,942,360
                                                ============  ============


BENDA PHARMACEUTICAL, INC.
(FORMERLY APPLIED SPECTRUM TECHNOLOGIES INC.)
CONSOLIDATED BALANCE SHEETS
AS OF DECMEBER 31, 2006 AND 2005
(Stated in US Dollars)

                                                   Year ended December 31
                                                      2006         2005
                                                  ============ ============
Assets
   Current Assets
         Cash and cash equivalents                $  1,676,119 $    308,082
         Receivables, net                            6,661,048    4,389,515
         Refundable purchase price paid              5,367,801            -
         Inventories                                   701,339      447,082
         Prepaid expenses and deposits                   4,818            -
                                                  ------------ ------------
   Total current assets                             14,411,125    5,144,679
   Due from related parties                          1,976,815    1,444,788
   Property and equipments, net                     13,673,067   11,096,865
   Intangible assets                                 1,501,483    1,014,923
                                                  ------------ ------------

Total Assets                                      $ 31,562,489 $ 18,701,255
                                                  ============ ============

Liabilities & Shareholders' Equity
   Current Liabilities
         Accounts payable and accrued liabilities $  1,823,030 $  1,296,473
         Various taxes payable                         226,931      358,385
         Bank loans payable                            256,492    1,970,984
         Short-term loans payable                            -       24,792
         Wages payable                                 145,903      124,847
         Deferred revenues                               1,732            -
         Due to related parties, shareholder
          loans                                              -    2,298,434
                                                  ------------ ------------
   Total current liabilities                         2,454,088    6,073,915
   Due to related parties (Long-term)                3,034,365    3,174,486
                                                  ------------ ------------
   Total liabilities                                 5,488,454    9,248,401
                                                  ------------ ------------

Minority interest                                    2,154,356    1,548,882
                                                  ------------ ------------

Shareholders' Equity
   Preferred stock, $0.001 par value; 5,000,000
    shares authorized; None issued and
    outstanding                                              -            -
   Common stock, $0.001 par value; 150,000,000
    shares authorized; 96,258,411 shares issued
    and outstanding                                     96,258       64,942
   Additional paid in capital                       13,099,424      584,481
   Retained earnings (unrestricted)                  7,437,663    5,751,566
   Statutory surplus reserve fund                    1,869,523    1,231,427
   Accumulative other comprehensive income           1,090,408      271,555
   Shares issuable for services                        326,403            -
                                                  ------------ ------------
   Total Shareholders' Equity                       23,919,680    7,903,972
                                                  ------------ ------------
Total Liabilities & Shareholders' Equity          $ 31,562,489 $ 18,701,255
                                                  ============ ============

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