Polo Biology Global Group Corporation
TSX VENTURE : PGG

Polo Biology Global Group Corporation

April 30, 2009 20:59 ET

Polo Biology Global Group Corporation Reports Fiscal 2008 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Polo Biology Global Group Corporation ("Polo" or the "Company") (TSX VENTURE:PGG), today announced its financial results for the year ended December 31, 2008, representing the Company's first full operational period.

For the year ended December 31, 2008, Polo reported revenues of $3.7 million versus $nil in the corresponding period in 2007. Gross profit amounted to $2.4 million or 65 percent of revenues in fiscal 2008. The Company generated operating income totalling $107,784, compared to a loss of $48,395 in the same period in 2007, and a net loss after non-controlling interest of $8,016 ($0.00 per share), compared to a loss of $31,375 in the same period in 2007. These improvements in operating results were primarily due to the Company acquiring an operating business during 2008, whereas there was no operating business in fiscal 2007.

As at December 31, 2008, Polo has $1.5 million in cash and cash equivalents, compared to $0.5 million at December 31, 2007.

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 as early as 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.

"I am pleased with our progress in 2008 in building a strong platform for growth and a management team that will take Polo to its next growth phase in the upcoming quarters," said Paul Wu, President and Chief Executive Officer of Polo Biology Global Group. "We are working with a number of China's largest distributors and hope to be able to share the excitement and significant developments at Polo with all of our stakeholders in the months to follow."

As at December 31, 2008, the Company had a weighted average number of shares outstanding at 37,501,093.

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 Science Park Co., Ltd., which manages a network of retail outlets operated by its franchisees.

Cautionary Note Regarding Forward-Looking Information

Information set forth in this news release may involve forward-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. In this news release, forward looking information includes, but is not limited to, information related to the schedule for the initial shipment of products, the payment for such products, the development of the special relationship between the Company and NPC as contemplated by the parties, the integration of the Polo and NPC channels, and NPC's commitment to Polo products. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the shipment of products, the collection of accounts receivables, marketing and sale of securities; the need for additional financing; reliance on key personnel; the potential for conflicts of interest among certain officers, or directors with certain other projects; the volatility of our common share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and, except as required in accordance with applicable securities legislation, the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements. Additionally, disclosure relating to NPC has been obtained from public sources, and while the Company expects it to be reliable, Polo disclaims any liability for its accuracy or to update any such information.

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
    info@pbggc.com
    or
    Polo Biology Global Group Corporation
    Ali Mahdavi
    Corporate Finance & Investor Relations
    (416) 962-3300
    am@spinnakercmi.com