SOURCE: Benda Pharmaceutical, Inc.

May 21, 2007 18:47 ET

Benda Pharmacuetical, Inc. Reports First Quarter Revenue of $3.0 Million

HUBEI PROVINCE, CHINA -- (MARKET WIRE) -- May 21, 2007 -- Benda Pharmaceutical, Inc. ("Benda" or the "Company") (OTCBB: BPMA), a China-based pharmaceutical company producing conventional and Traditional Chinese Medicines, as well as Genedicine,® the world's first commercialized gene therapy medicine for the treatment of cancer, has announced operating results for the quarter ended March 31, 2007.

Benda reported revenue of approximately $3.0 million for the quarter ended March 31, 2007, as compared to approximately $3.7 million for the quarter ended March 31, 2006 -- a 17% decrease.

Benda 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 decrease in revenue was primarily the result of the temporary closing of the Company's Yidu Benda plant in order to upgrade waste water treatment systems to meet government requirements. The Yidu Benda plant is scheduled to reopen July 2007. In addition, net revenue decreased because of the continued closure of the Jiangling Benda plant for Good Manufacturing Practices (GMP) certification. The Jiangling Benda plant is scheduled to reopen August 2007.

Benda also reported operating income of approximately $0.5 million for the quarter ended March 31, 2007, as compared to $1.2 million for the quarter ended March 31, 2006 -- a 59% decrease. The decrease in operating income resulted from the drop in revenue caused by the temporary closing of the Yidu Benda plant. In addition, an increase in general and administrative expenses associated with being a public company also contributed to the decrease in operating income.

Benda also reported net income of approximately $0.4 million for the quarter ended March 31, 2007, as compared to $0.8 million for the quarter ended March 31, 2006 -- 51% decrease. Net income decreased due to the drop in revenue resulting from the temporary cessation of Yidu Benda's production during the quarter ended March 31, 2007 as well as an increase in general and administrative expenses.

Benda reported basic earnings per share $0.004 for the quarter ended March 31, 2007 as compared to $0.01 for the quarter ended March 31, 2006.

About Benda Pharmaceutical, Inc.

Benda Pharmaceutical, Inc. (www.bendapharma.com), a China-based pharmaceutical company, is a pure play on explosive Chinese pharmaceutical spending and the global search for a cancer cure. Benda produces conventional and Traditional Chinese Medicines, as well as Genedicine,® the world's first commercialized gene therapy medicine for the treatment of 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.
Consolidated Statements of Operations (UNAUDITED)
(Amounts expressed in U.S. Dollars)

                                               THREE MONTHS ENDED MARCH 31,
                                                      2007         2006
                                                  ===========  ===========
                                                   (UNAUDITED)  (UNAUDITED)

Revenue                                           $ 3,029,035  $ 3,656,776
   Cost of Goods Sold                              (1,808,902)  (1,887,517)
                                                  -----------  -----------
Gross Profit                                        1,220,133    1,769,259
                                                  -----------  -----------

Selling Expenses                                      (88,183)    (140,208)

General and administrative
   Amortization                                       (67,406)     (69,282)
   Depreciation                                      (196,599)    (138,427)
   Other general and administrative                  (382,470)    (234,163)
                                                  -----------  -----------
Total general and administrative                     (646,475)    (441,872)
Research and development                                    -            -
                                                  -----------  -----------
   Total operating expenses                          (734,658)    (582,080)
                                                  -----------  -----------
Operating Income                                      485,475    1,187,179

Interest expenses                                     (17,585)     (40,218)
Other income (expenses)                               (11,088)    (246,770)
                                                  -----------  -----------

Income before minority interest and income taxes      456,802      900,191
                                                  -----------  -----------
Income taxes                                                -            -
Minority interest                                     (40,765)     (51,504)
                                                  -----------  -----------

Net Income                                        $   416,037  $   848,687
                                                  ===========  ===========

Earnings per share - basic                        $      0.00  $      0.01
                                                  ===========  ===========

Weighted average shares outstanding - basic        96,281,951   64,942,360
                                                  ===========  ===========

Earnings per share - diluted                      $      0.00  $      0.01
                                                  ===========  ===========

Weighted average shares outstanding - diluted     124,099,914   64,942,360
                                                  ===========  ===========



Benda Pharmaceutical Inc.
Consolidated Balance Sheets
(Amounts expressed in US Dollars)

                                                    March 31   December 31
                                                      2007         2006
                                                  ============ ============
Assets                                             (UNAUDITED)
   Current Assets
     Cash and cash equivalents                    $  6,632,601 $  1,676,119
     Receivables, net                                7,616,585    6,661,048
     Refundable purchase price paid                  5,367,801    5,367,801
     Inventories                                       536,044      701,339
     Prepaid expenses and deposits                      15,797        4,818
                                                  ------------ ------------
       Total current assets                         20,168,828   14,411,125
   Due from related parties                          2,143,427    1,976,815
   Property and equipments, net                     13,766,129   13,673,067
   Intangible assets                                 1,459,487    1,501,483
   Debit Issue Costs                                   377,657            -
                                                  ------------ ------------
Total Assets                                      $ 37,915,528 $ 31,562,489
                                                  ============ ============

Liabilities & Shareholders' Equity
   Current Liabilities
     Accounts payable and accrued liabilities     $  1,618,755 $  1,823,030
     Various taxes payable                             195,724      226,931
     Bank loans payable                                      -      256,492
     Wages payable                                     231,453      145,903
     Deferred revenues                                     874        1,732
                                                  ------------ ------------
       Total current liabilities                     2,046,806    2,454,088
   Long-term convertible promissory notes               15,497            -
   Due to related parties (Long-term)                3,111,807    3,034,365
                                                  ------------ ------------
         Total liabilities                           5,174,109    5,488,454
                                                  ------------ ------------
Minority interest                                    2,165,578    2,154,356
                                                  ------------ ------------

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;
     96,964,606 shares issued and outstanding           96,964       96,258
   Additional paid in capital                       18,945,121   13,099,424
   Retained earnings (unrestricted)                  7,853,700    7,437,663
   Statutory surplus reserve fund (Note 11)          1,869,523    1,869,523
   Accumulative other comprehensive income           1,424,132    1,090,408
   Shares issuable for services                              -      326,403
                                                  ------------ ------------
   Total Shareholders' Equity                       30,189,441   23,919,680
                                                  ------------ ------------
Total Liabilities & Shareholders' Equity          $ 37,529,128 $ 31,562,489
                                                  ============ ============

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