Nevada
(State or Other Jurisdiction of
Incorporation)
|
001-34808
(Commission File Number)
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88-1273503
(IRS Employer
Identification No.)
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Level 11, Changjiang International Building
No. 28, Changjiang Road
Nangang District, Harbin
Heilongjiang Province, P.R. China
(Address of Principal Executive Offices)
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150090
(Zip Code)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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99.1
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Press Release dated March 19, 2012.
|
§
|
Net sales increased 24.4% year over year to $28.1 million
|
§
|
Gross profit increased 25.4% to $17.3 million from $13.8 million in the first quarter of fiscal 2011
|
§
|
Gross margin increased to 61.6% from 61.1% in the year ago period
|
§
|
Net income rose 12.4% to $12.3 million, or $0.33 per diluted share, from $10.9 million, or $0.29 per diluted share, in the first quarter of fiscal 2011
|
CHINA BOTANIC PHARMACEUTICAL INC. AND SUBSIDIARIES
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||
January 31,2012
|
31-Oct-11
|
|||
(Unaudited)
|
(Audited)
|
|||
ASSETS
|
||||
Current assets
|
||||
Cash
|
$
|
21,424,980
|
$
|
15,283,583
|
Trade receivables, net
|
32,590,787
|
21,548,325
|
||
Inventory, net
|
16,417,407
|
7,416,720
|
||
Other receivables, net
|
|
154,296
|
|
6,823,410
|
Total current assets
|
70,587,470
|
51,072,038
|
||
Property and equipment, net
|
1,704,332
|
1,778,984
|
||
Intangible assets, net
|
17,205,410
|
17,146,700
|
||
Construction-in-progress
|
1,964,277
|
1,937,103
|
||
Deposits for properties
|
35,541,536
|
37,822,113
|
||
Deferred tax assets
|
|
141,179
|
|
139,226
|
Total assets
|
$
|
127,144,204
|
$
|
109,896,164
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LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||
Current Liabilities
|
||||
Accounts payable
|
$
|
2,360,318
|
$
|
2,098,256
|
Tax payable
|
9,010,596
|
5,976,417
|
||
Accrued employee benefits
|
2,269,391
|
2,131,565
|
||
Warrant Liabilities
|
|
18,445
|
|
23,443
|
Total liabilities
|
|
13,658,750
|
|
10,229,681
|
Shareholders’ equity
|
||||
Preferred stock (no par value, 1,000,000 shares authorized; none issued and outstanding as of January 31,2012 and October 31, 2011,respectively)
|
-
|
-
|
||
Common stock ($0.001 par value, 100,000,000 shares authorized; 37,239,536 issued and outstanding as of January 31,2012 and October 31, 2011, respectively)
|
37,240
|
37,240
|
||
Additional paid-in capital
|
7,789,726
|
7,763,987
|
||
Common stock warrants
|
496,732
|
496,732
|
||
Reserves
|
3,372,697
|
3,372,697
|
||
Accumulated other comprehensive income
|
10,106,694
|
8,620,695
|
||
Retained earnings
|
|
91,682,365
|
|
79,375,132
|
Total shareholders’ equity
|
|
113,485,454
|
|
99,666,483
|
Total liabilities and shareholders’ equity
|
$
|
127,144,204
|
$
|
109,896,164
|
CHINA BOTANIC PHARMACEUTICAL INC. AND SUBSIDIARIES
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
||||
For the three months ended January 31,
|
||||
2012
|
2011
|
|||
(Unaudited)
|
(Unaudited)
|
|||
Sales, net
|
$
|
28,140,091
|
$
|
22,625,060
|
Cost of goods sold
|
|
10,815,503
|
|
8,807,787
|
Gross profit
|
|
17,324,588
|
|
13,817,273
|
61.6%
|
|
61.1%
|
||
Operating and administrative expenses:
|
||||
Sales and marketing
|
1,590,890
|
1,329,179
|
||
General and administrative
|
1,046,633
|
659,882
|
||
Research and development
|
|
236,415
|
|
180,674
|
Total operating expenses
|
|
2,873,938
|
|
2,169,735
|
Income from operations
|
|
14,450,650
|
|
11,647,538
|
51.4%
|
|
51.5%
|
||
Other income:
|
||||
Interest income
|
32,107
|
24,189
|
||
Income before income tax expenses
|
|
14,482,757
|
|
11,671,727
|
Income tax expenses
|
|
2,175,525
|
|
723,432
|
Net income
|
$
|
12,307,232
|
$
|
10,948,295
|
Other comprehensive income:
|
||||
Cumulative currency translation adjustments
|
|
1,485,999
|
|
664,421
|
Total comprehensive income
|
|
13,793,231
|
|
11,612,716
|
Earnings per common stock- Basic
|
$
|
0.33
|
$
|
0.29
|
Earnings per common stock - Diluted
|
$
|
0.33
|
$
|
0.29
|
Weighted average number of common stock outstanding
|
||||
Basic
|
37,239,536
|
37,239,536
|
||
Diluted
|
|
37,243,559
|
|
37,895,878
|
CHINA BOTANIC PHARMACEUTICAL INC. AND SUBSIDIARIES
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||
For the three months ended January 31,
|
||||
2012
|
2011
|
|||
(Unaudited)
|
(Unaudited)
|
|||
Cash flows from operating activities:
|
||||
Net income
|
$
|
12,307,232
|
$
|
10,948,295
|
Adjustments to reconcile net income to operating activities:
|
||||
Depreciation
|
98,910
|
94,091
|
||
Amortization
|
180,554
|
35,253
|
||
Share compensation
|
25,739
|
25,796
|
||
Noncash rental expenses
|
264,935
|
188,202
|
||
Warrants liability reevaluation
|
-4,998
|
-187,342
|
||
Changes in assets and liabilities:
|
||||
(Increase) in trade receivables
|
-10,664,863
|
-6,077,469
|
||
(Increase) in due from related parties
|
-
|
-27,177
|
||
(Increase) in inventory, net
|
-8,834,257
|
-4,736,029
|
||
Decrease (Increase) in other receivables, net
|
6,717,399
|
-256,099
|
||
Increase in accounts payable
|
230,997
|
149,153
|
||
Increase in tax payable
|
2,929,651
|
996,035
|
||
Increase in accrued employee benefits
|
|
107,166
|
|
148,081
|
Net cash provided by operating activities
|
|
3,358,465
|
|
1,300,790
|
Cash flows from investing activities:
|
||||
Deposits for land use right, property and patents
|
2,526,967
|
-15,056,160
|
||
Increase in construction-in-progress
|
-
|
-1,859,436
|
||
Purchase of property and equipment
|
|
-
|
|
-5,171
|
Net cash provided by (used in) investing activities
|
|
2,526,967
|
|
-16,920,767
|
Effect of exchange rate changes on cash
|
255,965
|
178,456
|
||
Net increase (decrease) in cash
|
6,141,397
|
-15,441,521
|
||
Cash, beginning of year
|
|
15,283,583
|
|
27,826,142
|
Cash, end of year
|
$
|
21,424,980
|
$
|
12,384,621
|
Supplemental disclosure of cash flow information:
|
||||
Cash paid during the year for income taxes
|
-
|
-
|
||
Interest paid during the year
|
-
|
-
|