Polo Biology Global Group Corporation
TSX VENTURE : PGG

Polo Biology Global Group Corporation

June 01, 2009 08:00 ET

Polo Biology Global Group Corporation Reports First Quarter 2009 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2009) -

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Polo Biology Global Group Corporation ("Polo" or the "Company") (TSX VENTURE:PGG), today announced its financial results for the three-month period ended March 31, 2009.

For the three-month period ended March 31, 2009, Polo reported revenues of $666,000 versus $1,565,000 in the corresponding period in 2008. Gross profit amounted to $328,000 or 49 percent of revenues during the first quarter. Lower year-over-year revenues were primarily due to $801,000 less in new franchise sales being recognized in 2009 compared to the same period in 2008. The Company also experienced a $402,000 reduction in product sales in 2009 from the same period in 2008. Management believes these reductions are a result of the challenging world financial conditions and has commenced a significant advertising and marketing campaign to draw more attention to the benefits of its franchises and products. The Company introduced a new technical support fee in 2008 that, while only marginally contributing to revenues in the three months ended March 31, 2008, provided an additional $264,000 of revenues to the Company in 2009 over 2008. The Company had an operating loss amounting to $778,000, compared to an operating profit of $630,000 in the same period in 2008, and a net loss after non-controlling interest of $267,000 ($0.01 per share), compared to a net income of $371,000 ($0.01 per share) in the same period in 2008.

As at March 31, 2009, Polo's cash and cash equivalents remained unchanged at $1.4 million versus December 31, 2008.

On March 9, 2009, Polo announced that it had received a purchase order in the amount of RMB30 million (approximately CDN$5.0 million) from Nanjing Pharmaceutical Co., Ltd. ("NPC") (Shanghai Listing Code: 600713) for the distribution and sale of a series of the Company's products including Polo Biozyme, for which it has received a cash deposit of RMB3.125 million (approximately CDN$446,000). The initial shipment of products is expected to occur during the second quarter of 2009, and Polo expects payments related to this purchase order will strengthen the balance sheet throughout fiscal 2009.

In the interim, management is closely monitoring the deployment of cash for initiatives with an attractive return on capital employed.

"The first quarter proved to be a challenging period for Polo due to the state of the global economy and its impact on consumer spending and behaviour for our products domestically and in our target export markets," said Paul Wu, President and Chief Executive Officer of Polo Biology Global Group. "We continue to build new long-term relationships which will eventually allow us to leverage our assets and aggressively grow and deliver top and bottom line growth in upcoming periods."

As at March 31, 2009, the Company had a weighted average number of shares outstanding at 49,399,997.

About Polo Biology Global Group Corporation

The Company, through its operating subsidiaries in China, develops, manufactures and distributes health supplements, personal and homecare products across China under the Polo brand. The Company currently distributes its products through Polo Biology, which manages a network of retail outlets operated by its franchisees.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Polo Biology Global Group Corporation
    Paul Wu
    Chief Executive Officer
    (604) 609-6155
    Email: info@pbggc.com
    or
    Polo Biology Global Group Corporation
    Ali Mahdavi
    Corporate Finance & Investor Relations
    (416) 962-3300
    Email: am@spinnakercmi.com