SOURCE: Skystar Bio-Pharmaceutical

Skystar Bio-Pharmaceutical

November 16, 2010 07:00 ET

Skystar Bio-Pharmaceutical Announces Record Organic Revenues of $18.5 Million for Third Quarter Fiscal Year 2010

Company Reiterates Fiscal 2010 Guidance of $45.5 Million to $47.5 Million

XI'AN, CHINA--(Marketwire - November 16, 2010) - Skystar Bio-Pharmaceutical Company (NASDAQ: SKBI) ("Skystar" or the "Company"), a China-based manufacturer and distributor of veterinary medicines, vaccines, micro-organisms and feed additives, today reported unaudited third quarter fiscal year 2010 earnings, for the period ended September 30, 2010.

Third Quarter 2010 Highlights

 -- Revenue increases 45% YoY to record $18.5 million
    -- Veterinary vaccines totaled $0.7 million, up 35% YoY
    -- Veterinary medicines totaled $12.4 million, up 45% YoY
    -- Feed additives totaled $0.7 million, up 36% YoY
    -- Micro-organism products totaled $4.7 million, up 48% YoY
 -- Gross margin of 54% for the third quarter of fiscal 2010 as compared to
    52% in the year ago period
 -- GAAP net income $6.6 million or $0.93 per fully diluted share, compared
    with net income of $5.3 million or $0.76 per fully diluted share in the
    year ago period
 -- Fiscal 2010 top line revenue guidance range remains at $45.5 million to
    $47.5 million
 -- Inducted in Forbes, "Asia's 200 Best Companies Under a Billion List"
 -- Secured low interest $3.0 million USD line of credit and short term
    loan facility for $0.7 million in China

Nine Month 2010 Highlights

 -- Net revenue increases 39% YoY to $31.7 million
 -- Gross margin of 54% for the nine months of fiscal 2010 as compared to
    52% in the year ago period
 -- GAAP net income $10.1 million or $1.42 per fully diluted share,
    compared with GAAP net income of $6.3 million or $1.29 per fully
    diluted share in the year ago period

Mr. Weibing Lu, Skystar Bio-Pharmaceutical's chairman and chief executive officer, commented, "Skystar is pleased to report third quarter fiscal 2010 results in our seasonally stronger half of the fiscal year highlighted by record organic revenues. Skystar continues in refining its strategy to remain as one of the leading players in its niche as a manufacturer and distributor of over 250 animal healthcare products.

"Through consistent market research and close contact with our customers both large and small, we have been able to maximize our sales by smartly timing production and distribution of our products in conjunction with the animal farming cycle. We continue to believe that Skystar is servicing market demand for vaccines, medicines, micro-organisms and feed additives in China.

"Skystar experienced double digit organic revenue growth across Skystar's four product lines in the third quarter of fiscal 1010. Driving these positive results was the improved utilization of the Company's primary manufacturing facility in Huxian. Huxian's upgraded vaccine facility in the same location was completed in the second quarter of the fiscal year. Additional tooling, testing and installation of equipment were finalized in the third quarter of fiscal 2010. As of today, we are waiting for the response from the Ministry of Agriculture regarding our application of GMP certification. We invite you to look at some recent pictures of the new vaccine facility in the 'Photos' folder of Skystar's Investor Relations page located at http://www.ir-site.com/skystar/media-gallery.asp.

"With regard to acquisitions, Skystar's 28,000 meter property in Jingzhou, Hubei, purchased out of bankruptcy proceedings continues to be retooled for usage. The Kunshan acquisition is still ongoing and we expect to close the transaction in the fourth quarter. We should see meaningful contributions from the Jingzhou facility in fiscal 2011. The Jingzhou production facility is expected to add an additional 103 products covering aquaculture medicines and veterinary medicines.

"Operationally, Skystar as stated in the second quarter was able to increase collection efforts after significant increases in accounts receivable balances in the second quarter of this year. As a result, the accounts receivable balance declined from $8.3 million as of June 30, 2010, to $6.3 million as of September 30, 2010, even as sales have increased significantly. We expect this trend to continue as we head into Skystar's fiscal year end.

"Pre-payment for raw materials remains high due to Skystar's buy forward strategy and sales expectations in the second half of the fiscal year. The Company believes that its prepayment for raw materials figure should be significantly reduced in the fourth quarter of fiscal 2010 as the Company reduces inventory via sales.

"To improve our cash positions and take advantage of low cost bank financing in China, the Company was also able to secure a low interest $3.0 million USD line of credit recently, and took out a short term loan facility for $0.7 million in China. Skystar is paying annual interest rates of 6.3% and 7.2% on these short term loans respectively.

"The Company is delighted to share its positive results with the market and hopes to continue to maximize shareholder value while expanding its foot print in China. As evidenced by Skystar's record results, we believe that strong demand for our products will remain ever present in China and we hope to capitalize on this demand," concluded Mr. Lu.

Financial Summary

Gross profit for third quarter 2010 was $10.0 million, up 51% from third quarter 2009. Gross margin for the period was 54%, in line with historical year over year comparables.

Operating expenses for third quarter 2010 were $2.2 million, or 12% of total revenue, compared with $1.7 million or 13% of total revenue in the year ago period.

R&D expenses declined approximately 48% as compared to the same year ago period due to the current period requiring less cash outlays as compared to the year ago period when costly testing and clinical trials took place. Total operating expense increased roughly 30% year over year in proportion to the growth of the Company's business.

Selling expenses totaled $0.7 million, or 4% of revenue, for third quarter 2010, compared with $0.4 million, or 3% of revenue, in the second quarter 2009.

G&A expenses increased from $0.9 million in the third quarter of 2009 to $1.3 million in the third quarter this year, as a result of increased operations and acquisition related costs.

Operating income increased by 58% year over year to $7.8 million in the third quarter of fiscal year 2010, compared with $4.9 million in the same quarter a year ago, and operating margin increased to 42% from 39% in the same period a year ago.

Net income for the third quarter of 2010 was a record $6.6 million, or $0.93 per fully diluted share. This compares to net income of $5.3 million or $0.76 per fully diluted share in the same quarter of 2009. Skystar's adjusted net income for the third quarter of 2010 was $6.5 million or $0.91 per fully diluted share, compared with $4.2 million, or $0.61 per fully diluted share, in the third quarter of 2009 (See "About Non-GAAP Financial Measures" toward the end of this release.)

As of September 30, 2010, Skystar had approximately $2.0 million in cash and restricted cash, current assets of $41.1 million and current liabilities of $9.1 million.

CONFERENCE CALL & WEBCAST INFORMATION

Skystar will host a conference call at 7:45 a.m. ET on Tuesday, November 16, 2010 to review the Company's third quarter and nine months financial and operational performance. Mr. Weibing Lu, Skystar Bio-Pharmaceutical chairman and chief executive officer, will host the call, which will be webcast live.

The webcast will be made available on the investor relations section of the Skystar corporate website at http://www.skystarbio-pharmaceutical.com or http://www.investorcalendar.com. Telephone access to the conference call will be available in North America by dialing +1 (877) 407-9210 or internationally by dialing +1 (201) 689-8049.

An audio replay of the conference call will be available approximately two hours following the conclusion of the call and for the following 30 day period. To access the replay in North America, dial +1 (877) 660-6853 or, when calling internationally, dial +1 (201) 612-7415, using replay account code # 286 and conference ID # 360545. An archived replay of the conference webcast will also be available on investor relations section of the Skystar corporate website at http://www.skystarbio-pharmaceutical.com.

To be added to the Company's email distribution for future news releases, please send your request to skystar@grayling.com.

About Skystar Bio-Pharmaceutical Company

Skystar is a China-based developer and distributor of veterinary healthcare and medical care products. Skystar has four product lines (veterinary medicines, micro-organisms, vaccines and feed additives) and over 170 products. Skystar has formed strategic sales distribution networks covering 29 provinces throughout China. For additional information, please visit http://www.skystarbio-pharmaceutical.com.

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures for the change in the fair value of the Company's warrants. The Company believes that these non-GAAP financial measures are useful to investors because they exclude non-cash charges that our management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, because these measures provide a consistent method of comparison to historical periods. Moreover, management believes these non-GAAP measures reflect the essential operating activities of Skystar. Accordingly, management excludes the change in the fair value of the Company's warrants when making operational decisions. The Company believes that providing the non-GAAP measures that management uses to its investors is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand the Company's financial performance in comparison to historical periods. In addition, it allows investors to evaluate the Company's performance using the same methodology and information as that used by our management. Non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the non-GAAP financial measure. However, our management compensates for these limitations by providing the relevant disclosure of the items excluded.

Financial Tables Follow

The following table provides the non-GAAP financial measure and the related GAAP measure and provides a reconciliation of the non-GAAP measure to the equivalent GAAP measure.

SKBI- Adjusted Net Income
                                      For the Three       For the Three
                                      Months Ending       Months Ending
                                    September 30, 2010  September 30, 2009
                                    ------------------  ------------------

GAAP Net Income                     $        6,647,799  $        5,347,334

GAAP Basic Earnings Per Share                     0.93                0.77

GAAP Diluted Earnings Per Share                   0.93                0.76

Additions (Subtractions)

Change in fair value of warrants              (141,057)         (1,092,824)
                                    ------------------  ------------------

Addition (subtraction)                        (141,057)         (1,092,824)

Non GAAP Net Income                 $        6,506,742  $        4,254,510


Non GAAP Basic Earnings Per Share                 0.91                0.61

Non GAAP Diluted Earnings Per Share               0.91                0.61


Shares used in computing net income
 per basic share                             7,119,585           6,960,028

Shares used in computing net income
 per diluted share                           7,147,124           7,025,343



            SKYSTAR BIO-PHARMACEUTICAL COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME (LOSS)
                                (UNAUDITED)

                      For Three Months Ended      For Nine Months Ended
                           September 30,               September 30,
                    --------------------------  --------------------------
                        2010          2009          2010          2009
                    ------------  ------------  ------------  ------------

REVENUE, NET        $ 18,569,747  $ 12,777,095  $ 31,703,531  $ 22,844,099

COST OF REVENUE        8,506,137     6,107,477    14,702,419    11,012,672
                    ------------  ------------  ------------  ------------

GROSS PROFIT          10,063,610     6,669,618    17,001,112    11,831,427
                    ------------  ------------  ------------  ------------

OPERATING EXPENSES:
  Research and
   development           208,197       398,685       444,280       882,732
  Selling expenses       709,188       412,051     1,312,132     1,204,653
  General and
   administrative      1,281,731       878,866     2,899,315     1,818,920
                    ------------  ------------  ------------  ------------
      Total
       operating
       expenses        2,199,116     1,689,602     4,655,727     3,906,305
                    ------------  ------------  ------------  ------------

INCOME FROM
 OPERATIONS            7,864,494     4,980,016    12,345,385     7,925,122
                    ------------  ------------  ------------  ------------

OTHER INCOME
 (EXPENSE):
  Other income
   (expense), net        (28,265)       79,068         8,409        78,526
  Interest income
   (expense), net          5,356         9,148       (12,436)        8,662
  Change in fair
   value of
   derivative
   liability             141,057     1,092,824       (18,269)     (349,332)
                    ------------  ------------  ------------  ------------
      Total other
       income
       (expense),
       net               118,148     1,181,040       (22,296)     (262,144)
                    ------------  ------------  ------------  ------------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES          7,982,642     6,161,056    12,323,089     7,662,978

PROVISION FOR
 INCOME TAXES          1,334,843       813,722     2,200,648     1,367,797
                    ------------  ------------  ------------  ------------

NET INCOME             6,647,799     5,347,334    10,122,441     6,295,181

OTHER COMPREHENSIVE
 INCOME (LOSS):
  Foreign currency
   translation
   adjustment          1,015,911        (8,037)    1,256,093       (62,718)
                    ------------  ------------  ------------  ------------

COMPREHENSIVE
 INCOME             $  7,663,710  $  5,339,297  $ 11,378,534  $  6,232,463
                    ============  ============  ============  ============

EARNINGS PER SHARE:
  Basic             $       0.93  $       0.77  $       1.43  $       1.30
                    ============  ============  ============  ============
  Diluted           $       0.93  $       0.76  $       1.42  $       1.29
                    ============  ============  ============  ============

WEIGHTED AVERAGE
 NUMBER OF COMMON
 SHARES:
  Basic                7,119,585     6,960,028     7,103,365     4,824,306
                    ============  ============  ============  ============
  Diluted              7,147,124     7,025,343     7,116,520     4,890,712
                    ============  ============  ============  ============



            SKYSTAR BIO-PHARMACEUTICAL COMPANY AND SUBSIDIARIES

                        CONSOLIDATED BALANCE SHEETS

                    ASSETS

                                                September 30, December 31,
                                                    2010          2009
                                                ------------- -------------
                                                  Unaudited
                                                -------------
CURRENT ASSETS:
  Cash                                          $   2,032,484 $  11,699,398
  Accounts receivable, net of allowance for
   doubtful accounts of $334,562 and $327,857
   as of September 30, 2010 and December 31,
   2009, respectively                               5,943,592     4,383,187
  Inventories, net of allowance of $267,833 and                           -
   $199,460 as of September 30, 2010 and
   December 31, 2009, respectively                 14,982,786     4,074,645
  Deposits and prepaid expenses                    16,022,324    11,900,314
  Other receivables                                 2,143,236       490,712
                                                ------------- -------------
    Total current assets                           41,124,422    32,548,256
                                                ------------- -------------

PLANT AND EQUIPMENT, NET                           13,381,951     8,829,058

CONSTRUCTION-IN-PROGRESS                           10,631,246     9,389,120

OTHER ASSETS:
  Long-term prepayments                               851,135     1,173,427
  Long-term prepayments for acquistions             7,944,579     6,806,880
  Intangible assets, net                            3,317,821     1,860,172
                                                ------------- -------------
    Total other assets                             12,113,535     9,840,479
                                                ------------- -------------
      Total assets                              $  77,251,154 $  60,606,913
                                                ============= =============

     LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                              $     531,241 $     297,567
  Other payables and accrued expenses               2,274,163       917,284
  Short-term loans                                  1,719,155       220,050
  Short-term loans from shareholders                        -       110,025
  Deposits from customers                             925,216     1,275,958
  Taxes payable                                     3,238,326       722,106
  Shares to be issued to related parties              302,372       327,374
  Due to related parties                              151,715       185,024
                                                ------------- -------------
    Total current liabilities                       9,142,188     4,055,388
                                                ------------- -------------

OTHER LIABILITIES:
  Deferred government grant                         1,122,750     1,100,250
  Derivative liability                                825,025     1,538,686
                                                ------------- -------------
    Total other liabilities                         1,947,775     2,638,936
                                                ------------- -------------
      Total liabilities                            11,089,963     6,694,324
                                                ------------- -------------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
  Preferred stock, $0.001 par value, 50,000,000
   shares authorized, Nil Series "A" shares
   authorized as of September 30, 2010 and
   December 31, 2009 48,000,000 Series "B"
   shares authorized, Nil Series "B" shares
   issued and outstanding as of September 30,
   2010 and December 31, 2009, respectively                 -             -
  Common stock, $0.001 par value, 40,000,000
   shares authorized, 7,106,705 and 6,989,640
   shares issued and outstanding as of
   September 30, 2010 and December 31, 2009,
   respectively                                         7,105         6,989
  Paid-in capital                                  35,450,048    34,580,096
  Statutory reserves                                3,879,077     3,879,077
  Retained earnings                                22,697,347    12,574,906
  Accumulated other comprehensive income            4,127,614     2,871,521
                                                ------------- -------------
    Total shareholders' equity                     66,161,191    53,912,589
                                                ------------- -------------
      Total liabilities and shareholders'
       equity                                   $  77,251,154 $  60,606,913
                                                ============= =============



            SKYSTAR BIO-PHARMACEUTICAL COMPANY AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY


                         Preferred stock      Common stock
                       -------------------  -----------------   Paid-in
                         Shares    Amount    Shares   Amount    capital
                       ----------  -------  --------- ------- ------------
BALANCE, January 1,
 2009, as adjusted      2,000,000  $ 2,000  3,733,038 $ 3,733 $ 15,237,267

   Shares issued for
    services                                    8,828       8       46,757
   Fractional shares
    due to the
    ten-for-one
    reverse split                               1,772       2           (2)
   Shares issued for
    cash                                    3,220,000   3,220   19,070,461
   Foreign currency
    translation
   Net income
   Appropriation to
    statutory reserves

                       ----------  -------  --------- ------- ------------
BALANCE, September 30,
 2009 (unaudited)       2,000,000    2,000  6,963,638   6,963   34,354,483

   Shares issued for
    services                                    3,610       4       16,245
   Cancellation of
    preferred stock    (2,000,000)  (2,000)                          2,000
   Cash receipts of
    shares issued                                           -            -
   Cashless exercise
    of warrants                                22,392      22      207,368
   Foreign currency
    translation
   Net income
   Appropriation to
    statutory reserves

                       ----------  -------  --------- ------- ------------
BALANCE, December 31,
 2009                           -        -  6,989,640   6,989   34,580,096

   Shares issued for
    services                                    9,166       9       41,238
   Cashless exercise
    of warrants                               107,899     107    1,511,496
   Reclassification of
    purchase option to
    derivative
    liability                                                     (779,674)
   Stock compensation                                               96,892
   Foreign currency
    translation
   Net income
   Appropriation to
    statutory reserves

                       ----------  -------  --------- ------- ------------
BALANCE, September 30,
 2010 (unaudited)               -  $     -  7,106,705 $ 7,105 $ 35,450,048
                       ==========  =======  ========= ======= ============



                          Retained earnings      Accumulated
                       ------------------------     other
                        Statutory               comprehensive
                        reserves   Unrestricted     income        Total
                       ----------- ------------  -----------  ------------
BALANCE, January 1,
 2009, as adjusted     $ 2,952,710 $  4,649,341  $ 2,857,607  $ 25,702,658

   Shares issued for
    services                                                        46,765
   Fractional shares
    due to the
    ten-for-one
    reverse split                                                        -
   Shares issued for
    cash                                                        19,073,681
   Foreign currency
    translation                                      (62,718)      (62,718)
   Net income                         6,295,181                  6,295,181
   Appropriation to
    statutory reserves     802,405     (802,405)                         -

                       ----------- ------------  -----------  ------------
BALANCE, September 30,
 2009 (unaudited)        3,755,115   10,142,117    2,794,889    51,055,567

   Shares issued for
    services                                                        16,249
   Cancellation of
    preferred stock                                                      -
   Cash receipts of
    shares issued                                                        -
   Cashless exercise
    of warrants                                                    207,390
   Foreign currency
    translation                                       76,632        76,632
   Net income                         2,556,751                  2,556,751
   Appropriation to
    statutory reserves     123,962     (123,962)                         -
                                                                         -
                       ----------- ------------  -----------  ------------
BALANCE, December 31,
 2009                    3,879,077   12,574,906    2,871,521    53,912,589

   Shares issued for
    services                                                        41,247
   Cashless exercise
    of warrants                                                  1,511,603
   Reclassification of
    purchase option to
    derivative
    liability                                                     (779,674)
   Stock compensation                                               96,892
   Foreign currency
    translation                                    1,256,093     1,256,093
   Net income                        10,122,441                 10,122,441
   Appropriation to
    statutory reserves                                                   -

                       ----------- ------------  -----------  ------------
BALANCE, September 30,
 2010 (unaudited)      $ 3,879,077 $ 22,697,347  $ 4,127,614  $ 66,161,191
                       =========== ============  ===========  ============



            SKYSTAR BIO-PHARMACEUTICAL COMPANY AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
                                (UNAUDITED)

                                            Nine months ended September 30,
                                            ------------------------------
                                                 2010            2009
                                            --------------  --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                $   10,122,441  $    6,295,181
  Adjustments to reconcile net income to
   net cash used in operating activities:
      Depreciation                                 515,178         384,465
      Amortization                                 125,591         115,621
      Allowance for slow moving inventories         63,177               -
      Common stock issued for services              16,245          46,765
      Common stock to be issued to related
       parties for compensation                     96,892         125,041
      Change in fair value of derivative
       liability                                    18,269         349,332
    Change in operating assets and
     liabilities
      Accounts receivable                       (1,445,225)     (3,673,207)
      Inventories                              (10,699,989)     (4,534,194)
      Deposits and prepaid expenses             (3,674,364)       (232,333)
      Other receivables                           (583,082)        (33,819)
      Accounts payable                              69,181        (268,295)
      Other payables and accrued expenses          726,855        (166,351)
      Deposits from customers                     (370,290)        101,562
      Taxes payable                              2,458,008       1,483,034
                                            --------------  --------------
        Net cash used in operating
         activities                             (2,561,113)         (7,198)
                                            --------------  --------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Refunds of prepayments for potential
   acquisitions                                          -       2,711,182
  Proceeds from loan receivable                          -       2,288,490
  Addition to loan receivable                            -      (2,579,984)
  Prepayment for acquisitions                   (4,673,367)              -
  Loans to third parties                          (441,300)     (1,832,563)
  Purchases of plant and equipment              (2,527,188)     (1,742,284)
  Purchases of intangible assets                    (1,883)     (1,172,720)
  Payments on construction-in-progress            (788,797)     (1,237,802)
                                            --------------  --------------
        Net cash used in investing
         activities                             (8,432,535)     (3,565,681)
                                            --------------  --------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Decrease in restricted cash                            -          80,673
  Proceeds from short-term loans                 1,799,621         219,885
  Repayment of short-term loans                   (330,975)       (747,609)
  Proceeds from equity offering                          -      18,411,496
  Proceeds from short term investment                    -         351,816
  Repayment of shareholder and directors          (110,325)       (307,839)
  Proceeds from shareholder and directors                -         109,943
  Due (from) to related parties                    (34,859)       (254,236)
                                            --------------  --------------
        Net cash provided by financing
         activities                              1,323,462      17,864,129
                                            --------------  --------------

EFFECT OF EXCHANGE RATE CHANGES ON CASH              3,272         (70,669)
                                            --------------  --------------

DECREASE IN CASH                                (9,666,914)     14,220,581

CASH, beginning of period                       11,699,398         576,409
                                            --------------  --------------

CASH, end of period                         $    2,032,484  $   14,796,990
                                            ==============  ==============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
 INFORMATION:
  Cash paid for interest                    $       11,368  $       51,993
                                            ==============  ==============
  Cash paid for income taxes                $      579,670  $      794,660
                                            ==============  ==============
  Non-cash investing and financing
   activities
    Long-term prepayment transferred to
     construction-in-progress               $            -  $    2,492,030
                                            ==============  ==============
    Long-term prepayment transferred to
     intangible assets                      $    1,518,660  $            -
                                            ==============  ==============
    Long-term prepayment transferred to
     plant and equipment                    $    1,931,720  $            -
                                            ==============  ==============
    Construction-in-progress transferred to
     plant and equipment                    $    1,347,489  $            -
                                            ==============  ==============
    Interest expense capitalized as
     construction-in-progress               $            -  $       51,596
                                            ==============  ==============
    Cashless exercise of warrants           $    1,511,603  $            -
                                            ==============  ==============
    Issuance of common stock accrued in
     previous year                          $       25,002  $            -
                                            ==============  ==============
    Expense paid through Long-term
     prepayment                             $      294,200  $            -
                                            ==============  ==============
    Expense paid through contribution
     receivable                             $            -  $      662,185
                                            ==============  ==============


Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

Contact Information

  • Contacts:

    Skystar Bio-Pharmaceutical Company
    Scott Cramer
    Director - Corporate Development and U.S. Representative
    (407) 645-4433

    Grayling

    Investor Relations
    Christopher Chu
    (646) 284-9426
    christopher.chu@grayling.com