Nevada
|
0-24512
|
88-1273503
|
||
(State or Other Jurisdiction
of Incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit No.
|
Description
|
|
99.1*
|
Press Release dated March 17, 2011 announcing first quarter financial results |
*
|
Such Exhibit is being “furnished” (not filed) pursuant to Item 2.02 of the Current Report on Form 8-K. |
CHINA BOTANIC PHARMACEUTICAL INC.
|
||
Date: March 17, 2011
|
By:
|
/s/ Shaoming Li
|
Shaoming Li
|
||
Chief Executive Officer
|
Exhibit No.
|
Description
|
|
99.1*
|
Press Release dated March 17, 2011 announcing first quarter financial results
|
*
|
Such Exhibit is being “furnished” (not filed) pursuant to Item 2.02 of the Current Report on Form 8-K.
|
Company Contact:
|
CCG Investor Relations:
|
China Botanic Pharmaceutical Inc.
|
Mr. Mark Collinson, Partner
|
Ms. Portia Tan, IR Contact
|
Phone: +1-310-954-1343 (Los Angeles)
|
Tel: 86-451-8260-2162
|
Email: mark.collinson@ccgir.com
|
Email: ir@renhuang.com
|
Website: www.ccgirasia.com
|
Mr. Crocker Coulson, President
|
|
Phone: +1-646-213-1915 (New York)
|
|
Email: crocker.coulson@ccgir.com
|
§
|
Net sales increased 32.1% year-over-year to $22.6 million
|
§
|
Gross profit increased 45.8% to $13.8 million from $9.5 million in the first quarter of fiscal year 2010
|
§
|
Gross margin increased to 61.1% from 55.3% a year ago
|
§
|
Net income rose 48.3% to $10.9 million or $0.29 per diluted share
|
§
|
New products, including Qing Re Jie Du Oral Liquid, Compound Schisandra Tablets, Ginseng and Deer Antler Extract and Badger Fat accounted for 15.0% of gross sales in the first quarter of fiscal 2011
|
§
|
The Company passed the annual assessment for the High-Technology Enterprise certificate and will continue to enjoy a preferential tax rate in fiscal 2011. This rate of 15%, commencing on January 1, 2011, is notably lower than the statutory income tax rate of 25 percent, but higher than the zero percent rate the company enjoyed in fiscal 2010
|
For the three months ended
January 31,
|
||||||||
2011
|
2010
|
|||||||
US$
|
US$
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Sales, net
|
22,625,060 | 17,132,614 | ||||||
Cost of goods sold
|
8,807,787 | 7,652,638 | ||||||
Gross profit
|
13,817,273 | 9,479,976 | ||||||
Operating and administrative expenses:
|
||||||||
Sales and distribution
|
1,329,179 | 1,138,981 | ||||||
General and administrative
|
659,882 | 816,969 | ||||||
Research and development
|
180,674 | 152,364 | ||||||
Total operating expenses
|
2,169,735 | 2,108,314 | ||||||
Income from operations
|
11,647,538 | 7,371,662 | ||||||
Other income:
|
||||||||
Interest income
|
24,189 | 11,467 | ||||||
Non-operating income
|
- | - | ||||||
Income before income tax expenses
|
11,671,727 | 7,383,129 | ||||||
Income tax expenses
|
723,432 | - | ||||||
Net income
|
10,948,295 | 7,383,129 | ||||||
Other comprehensive income:
|
||||||||
Cumulative currency translation adjustments
|
664,421 | 2,515 | ||||||
Total comprehensive income
|
11,612,716 | 7,385,644 | ||||||
Earnings per common stock- Basic
|
0.29 | 0.20 | ||||||
Earnings per common stock - Diluted
|
0.29 | 0.20 | ||||||
Weighted average common stock outstanding
|
||||||||
Basic
|
37,239,536 | 37,239,536 | ||||||
Diluted
|
37,895,878 | 37,293,393 |
January 31,
|
October 31,
|
|||||||
2011
|
2010
|
|||||||
US$
|
US$
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
12,384,621 | 27,826,142 | ||||||
Trade receivables, net
|
26,092,584 | 19,814,438 | ||||||
Due from related parties
|
56,424 | 28,877 | ||||||
Inventory, net
|
7,425,234 | 2,645,616 | ||||||
Prepayments
|
||||||||
Other receivables, net
|
459,961 | 200,994 | ||||||
Total current assets
|
46,418,824 | 50,516,067 | ||||||
Property and equipment, net
|
1,998,403 | 2,069,460 | ||||||
Intangible Assets
|
1,935,435 | 1,953,617 | ||||||
Construction in progress
|
1,867,392 | |||||||
Deposits
|
33,701,821 | 18,605,935 | ||||||
Total assets
|
85,921,875 | 73,145,079 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Liabilities
|
||||||||
Accounts payable
|
486,287 | 333,555 | ||||||
Tax payable
|
2,073,744 | 1,064,066 | ||||||
Due to related parties
|
- | |||||||
Accrued employee benefits
|
1,808,409 | 1,645,192 | ||||||
Warrant Liabilities
|
155,428 | 342,770 | ||||||
Total liabilities
|
4,523,868 | 3,385,583 | ||||||
Shareholders’ equity
|
||||||||
Preferred stock (no par value, 1,000,000 shares
|
||||||||
authorized; none issued and outstanding as of January
|
||||||||
31,2011 and October 31, 2010,respectively)
|
||||||||
Common stock ($0.001 par value, 100,000,000 shares,
|
||||||||
authorized; 37,239,536 issued and outstanding as of
|
||||||||
January 31,2011 and October 31, 2010, respectively)
|
37,240 | 37,240 | ||||||
Additional paid-in capital
|
7,653,782 | 7,627,987 | ||||||
Common stock warrants
|
496,732 | 496,732 | ||||||
Reserves
|
3,372,697 | 3,372,697 | ||||||
Accumulated other comprehensive income
|
5,433,214 | 4,768,793 | ||||||
Retained earnings
|
64,404,342 | 53,456,047 | ||||||
Total shareholders’ equity
|
81,398,007 | 69,759,496 |
For the three months ended
January 31,
|
||||||||
2011 | 2010 | |||||||
US$ | US$ | |||||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities:
|
||||||||
Net income
|
10,948,295 | 7,383,129 | ||||||
Adjustments to reconcile net income to operating activities:
|
||||||||
Depreciation
|
94,091 | 90,599 | ||||||
Amortization
|
35,253 | - | ||||||
Warrants issued for service
|
2,344 | |||||||
Option granted to directors
|
25,796 | - | ||||||
Noncash rental expenses
|
188,202 | - | ||||||
Warrants liability reevaluation
|
-187,342 | |||||||
Changes in assets and liabilities:
|
||||||||
Decrease in trade receivables
|
-6,077,469 | 2,241,436 | ||||||
Decrease in due from related parties
|
-27,177 | 538,947 | ||||||
Decrease (Increase) in inventory, net
|
-4,736,029 | -290,982 | ||||||
Decrease (Increase) in prepayments
|
89,251 | |||||||
Decrease in other receivables, net
|
-256,099 | -262,378 | ||||||
Increase in accounts payable
|
149,153 | 121,241 | ||||||
Increase in value added tax payable
|
996,035 | -428,884 | ||||||
Increase in accrued employee benefits
|
148,081 | 104,966 | ||||||
Increase(decrease) in other payable
|
- | |||||||
Net cash provided by (used in) operating activities
|
1,300,790 | 9,589,669 | ||||||
Cash flows from investing activities:
|
||||||||
Deposits for land use right and properties
|
-15,056,160 | |||||||
Increase in construction in progress
|
-1,859,436 | |||||||
Purchase of property and equipment
|
-5,171 | |||||||
Net cash used in investing activities
|
-16,920,767 | |||||||
Cash flows from financing activities:
|
||||||||
Proceeds from share issues
|
- | |||||||
Net cash provided by financing activities
|
- | |||||||
Effect of exchange rate changes on cash
|
178,456 | 3,266 | ||||||
Net decrease in cash and cash equivalents
|
-15,441,521 | 9,592,935 | ||||||
Cash and cash equivalents, beginning of year
|
27,826,142 | 8,111,514 | ||||||
Cash and cash equivalents, end of year
|
12,384,621 | 17,704,449 | ||||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the year for income taxes
|
- | - |