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SOURCE: Tongli Pharmaceuticals, Inc.
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November 19, 2008 12:17 ET
Tongli Pharmaceuticals Announces Strong Revenue and Net Income Growth in Second Quarter of Fiscal Year 2009
NEW YORK, NY--(Marketwire - November 19, 2008) - Tongli Pharmaceuticals (OTCBB: TGLP), a
pharmaceutical company specializing in development, manufacture, and
commercialization of a wide range of prescription and over the
counter ("OTC") pharmaceutical products, today announced financial results
for the quarter ended September 30, 2008.
Financial Results
Revenue in the second quarter of fiscal year 2009 increased 298% year over
year to $1,645,540 from $413,034, and revenues in the six months ended
September 30, 2008 increased 328% year over year to $3,310,710 from
$773,574, reflecting an increase in product demand attributable to
increased brand recognition, effective pricing strategy and penetration
into previously unaddressed markets.
Gross profit in the second quarter of fiscal year 2009 increased 306% to
$718,721 from $177,144 in the same period of 2007. Gross margin was
approximately 43.7%, compared to 42.9% in the same period of the prior
year. Gross profit in the six months ended September 30, 2008 increased
329% to $1,413,751 from $328,850 in the same period of 2007. Gross margin
was approximately 42.7%, compared to 42.5% in the same period of the prior
year. These results reflect the stability of our Company's operations and
continued focus on profit maximization.
For the second quarter of fiscal year 2009, operating expenses increased
96% to $238,146 from $121,335 in the comparable period of 2007. For the six
months ended September 30, 2008, operating expenses increased 89% to
$436,114 from $230,178 in the comparable period of 2007. The increase in
operating expenses was primarily due to increased administrative costs
attributable to expanding operations and costs associated with being a
public reporting company. Operating income in the third quarter of 2008
increased 761% to $480,575 from $55,809 in the third quarter of 2007 and
increased 890% to $977,637 in the six months ended September 30, 2008 as
compared to $98,672 in the same period in 2007.
Net income for the second quarter of fiscal year 2009 increased 1,675% to
$487,036, or $0.05 per diluted share, compared to $27,424 or $0.00 per
diluted share, in the same period of the prior year. Net income for the six
months ended September 30, 2008 increased 1,454% to $992,021, or $0.10 per
diluted share, compared to $49,665 or $0.01 per diluted share, in the same
period of the prior year.
Mr. Mingli Yao, founder and CEO of Tongli, commented: "This has been a very
exciting six months for Tongli. We became a US publicly listed company
during the quarter ended September 30, 2008. We are growing rapidly and
expanding our product lines. During this period we have filled key
management positions in our plant operations and recruited two highly
experienced board members who will provide guidance and management
oversight. We believe that we are well-positioned to take advantage of the
growing demand in China for pharmaceutical products. Looking forward we
aim to continue meaningful dialogue with the US financial community and to
attract more investors to our Company. Towards that end, we presented at
the Rodman and Renshaw Conference on November 12, 2008 and were pleased to
meet with new investors interested in growth opportunities in the
healthcare sector in China. We will continue to update our stockholders
and the investment community about our progress and appreciate your support
and interest in our Company."
About Tongli Pharmaceuticals
Tongli Pharmaceuticals (USA), Inc., through its subsidiary, Harbin Tianmu
Pharmaceutical Co., Ltd., manufactures and markets pharmaceutical and
healthcare products in the People's Republic of China. The company,
formerly known as American Tony Pharmaceutical, Inc., is based in New York,
New York.
Safe Harbor Statement
Statements made in this press release are forward looking and are made
pursuant to the safe harbor provisions of the Securities Litigation Reform
Act of 1995. Such statements involve risks and uncertainties that may cause
actual results to differ materially from those set forth in these
statements. The economic, competitive, governmental, technological and
other factors identified in the Company's filings with the Securities and
Exchange Commission, including the Form 10-Q for the quarter ended
September 30, 2008, may cause actual results or events to differ materially
from those described in the forward-looking statements in this press
release. The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether because of new information, future
events, or otherwise.
TONGLI PHARMACEUTICALS (USA), INC.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
2008 2008
----------- -----------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 127,388 $ 130,630
Trade accounts receivable, net 12,775 2,470
Inventories 34,051 11,172
Prepaid expenses 22,023 -
Refundable deposits 10,976 405,643
Advances to suppliers 900,226 678,654
----------- -----------
TOTAL CURRENT ASSETS 1,107,439 1,228,569
PROPERTY AND EQUIPMENT, NET 7,228,756 7,813,779
CONTRACT DEPOSIT 1,025,514 -
----------- -----------
TOTAL ASSETS $ 9,361,709 $ 9,042,348
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Note payable - bank $ 1,009,216 $ 995,168
Accounts payable 713,207 959,382
Due to related parties 544,356 819,620
Accrued expenses and other sundry current
liabilities 279,243 90,893
----------- -----------
TOTAL CURRENT LIABILITIES 2,546,022 2,865,063
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, $0.001 par value, Authorized
1,000,000 shares; none issued - -
Common stock, $0.001 par value, Authorized
200,000,000 shares Issued and outstanding -
10,033,216 shares and 9,963,216, respectively 10,033 9,963
Additional paid-in capital 6,585,093 7,092,663
Accumulated other comprehensive income 1,109,169 955,288
Accumulated deficit (888,608) (1,880,629)
----------- -----------
TOTAL SHAREHOLDERS EQUITY 6,815,687 6,177,285
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,361,709 $ 9,042,348
=========== ===========
TONGLI PHARMACEUTICALS (USA), INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME
(UNAUDITED)
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
---------------------- ----------------------
2008 2007 2008 2007
----------- ---------- ----------- ----------
REVENUE $ 1,645,540 $ 413,034 $ 3,310,710 $ 773,574
COST OF SALES, including
depreciation and
amortization of $4,111,
$9,296 $85,901 and
$27,769, respectively 926,819 235,890 1,896,959 444,724
----------- ---------- ----------- ----------
GROSS PROFIT 718,721 177,144 1,413,751 328,850
----------- ---------- ----------- ----------
OPERATING EXPENSES:
General and administrative 164,551 37,741 304,596 77,748
Research and development 10,175 - 10,175 -
Depreciation expense 42,807 72,037 85,155 138,204
Selling expense 20,613 11,557 36,188 14,226
----------- ---------- ----------- ----------
TOTAL OPERATING EXPENSES 238,146 121,335 436,114 230,178
----------- ---------- ----------- ----------
OPERATING INCOME 480,575 55,809 977,637 98,672
OTHER EXPENSE (INCOME):
Interest expense 51,839 28,385 86,916 49,007
Rental income (58,300) - (101,300) -
----------- ---------- ----------- ----------
NET INCOME 487,036 27,424 992,021 49,665
OTHER COMPREHENSIVE INCOME:
Foreign currency
translation adjustment 7,763 83,066 153,881 144,903
----------- ---------- ----------- ----------
COMPREHENSIVE INCOME $ 494,799 $ 110,490 $ 1,145,902 $ 194,568
=========== ========== =========== ==========
BASIC AND DILUTED INCOME
PER SHARE $ 0.05 $ - $ 0.10 $ 0.01
=========== ========== =========== ==========
WEIGHTED AVERAGE SHARES
USED IN BASIC AND DILUTED
INCOME PER SHARE $10,033,231 $9,963,216 $10,033,231 $9,962,216
=========== ========== =========== ==========