-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LP6Rbt4bSmid2d+4k6pb3rfGL9oazeaZhETU5Mqsx6qPzdrQraiNHwnQimc/1LZF mYQWBNNeDYqdk5kq/ADKNg== 0001157523-07-006141.txt : 20070618 0001157523-07-006141.hdr.sgml : 20070618 20070618091148 ACCESSION NUMBER: 0001157523-07-006141 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070615 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070618 DATE AS OF CHANGE: 20070618 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RENHUANG PHARMACEUTICALS INC CENTRAL INDEX KEY: 0000926844 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 881273503 STATE OF INCORPORATION: NV FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24512 FILM NUMBER: 07924653 BUSINESS ADDRESS: STREET 1: NO. 281, TAIPING ROAD, TAIPING DISTRICT STREET 2: HARBIN, HEILONGJIANG PROVINCE, CITY: PEOPLES REPUBLIC OF STATE: F4 ZIP: 150050 BUSINESS PHONE: 86-451-5762-0378 MAIL ADDRESS: STREET 1: NO. 281, TAIPING ROAD, TAIPING DISTRICT STREET 2: HARBIN, HEILONGJIANG PROVINCE, CITY: PEOPLES REPUBLIC OF STATE: F4 ZIP: 150050 FORMER COMPANY: FORMER CONFORMED NAME: ANZA CAPITAL INC DATE OF NAME CHANGE: 20020521 FORMER COMPANY: FORMER CONFORMED NAME: E-NET FINANCIAL COM CORP DATE OF NAME CHANGE: 20000317 FORMER COMPANY: FORMER CONFORMED NAME: E-NET COM CORP DATE OF NAME CHANGE: 20000127 8-K 1 a5426920.txt RENHUANG PHARMACEUTICALS, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): June 15, 2007 Renhuang Pharmaceuticals, Inc. (Exact name of registrant as specified in its charter) Nevada (State or Other Jurisdiction of Incorporation) 0-24512 88-1273503 (Commission File Number) (IRS Employer Identification Number) No. 281, Taiping Road, Taiping District, Harbin, Heilongjiang Province, 150050 P. R. China (Address of Principal Executive Offices) +86-451-5762-0378 (Registrant's Telephone Number, Including Area Code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| 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)) - -------------------------------------------------------------------------------- Item 7.01 Regulation FD Disclosure. ------------------------- On June 15, 2007, Renhuang Pharmaceuticals, Inc (the "Company") issued a press release, a copy of which is attached as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed "filed" for any purpose. Item 9.01 Financial Statements, Pro Form Financial Information and Exhibits. (c) Exhibits. EXHIBITS Exhibit Description - ------- ---------------------------------------------- 99.1 Press Release dated June 15, 2007. - -------------------------------------------------------------------------------- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Renhuang Pharmaceuticals, Inc. Date: June 15, 2007 By: /s/ Shaoming Li ---------------------------------------- Shaoming Li Chief Executive Officer and President - -------------------------------------------------------------------------------- EX-99.1 2 a5426920ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Renhuang Pharmaceuticals Reports Second Quarter 2007 Results with Earnings Up Significantly Year-Over-Year Highlights: -- Second quarter 2007 net income was US$2.66 million, compared with a net loss of US$0.61 million in the second quarter of 2006 for the "Old Renhuang" -- Net sales for the quarter were US$6.96 million, compared to US$7.03 million in the second quarter of 2006 for the "Old Renhuang" -- Earnings per share were US$0.076 for the quarter Business Editors HARBIN, China--(BUSINESS WIRE)--June 15, 2007--Renhuang Pharmaceuticals, Inc. (or "the Company", Stock symbol: RHGP.OB), a leading integrated developer, manufacturer and distributor of a broad line of high-quality nutraceutical, natural medicinal and bio-pharmaceutical products in the People's Republic of China (PRC), filed its quarterly report 10Q on June 14, 2007 and reported its results for the second quarter ending April 30, 2007. Quarterly Key Figures Three Months Ended Three Months Ended April 30, 2007 April 30, 2006 YoY% Change (Old Renhuang) ------------------ ------------------ ----------- Revenue $6,964,700 $7,026,237 (1%) - ---------------------------------------------------------------------- Gross Income $3,844,619 $3,105,196 24% - ---------------------------------------------------------------------- Gross Profit Margin 55% 44% 25% - ---------------------------------------------------------------------- Net Income $2,662,926 ($608,455) NM - ---------------------------------------------------------------------- Net Profit Margin 38% (9%) NM - ---------------------------------------------------------------------- NM = Not meaningful Net income for the three months ending April 30, 2007 was $2.66 million, compared with a net loss of $0.61 million in the same period of 2006. The year-over-year earnings improvement is primarily driven by lower cost of sales as well as lower selling, general & administrative, and advertising costs, as the Company benefited from its efforts to increase efficiency, reduce costs and improve product mix. Quarterly net sales of $6.96 million remained stable compared to the second quarter of 2006 and consisted of 50% from Acanthopanax-base products, 19% from Shark Power Health Care products, and 31% from Traditional Medicine products. Gross profit margin improved 25% from 44% in the second quarter of 2006 to 55% in the current quarter, largely as a result of improved product mix through higher sales of medicines with higher gross margins. Compared to the first quarter of 2007 with a net income of $5.5 million and net sales of $10.6 million, the second quarter is seasonally weaker. The first quarter covering November, December, and January is always the strongest quarter of the year as winter is the best season to maintain and restore health in Chinese tradition and Chinese consumers tend to consume more nutraceutical products. In addition, it is a holiday season including the Western New Year holiday and the Chinese Spring Festival holiday when people purchase a large amount of nutraceutical products as holiday gifts. For the six month period ending April 30, 2007, the Company generated a net income of $8.2 million, compared with $0.46 million for the same period in 2006. Total sales for the current six month period were $17.5 million, representing a 7% growth year-over-year. Six Month Period Key Figures Six Months Ended Six Months Ended April 30, 2007 April 30, 2006 YoY% Change (Old Renhuang) ---------------- ---------------- ----------- Revenue $17,532,286 $16,427,921 7% - ---------------------------------------------------------------------- Gross Income $9,839,269 $7,564,694 30% - ---------------------------------------------------------------------- Gross Profit Margin 56% 46% 22% - ---------------------------------------------------------------------- Net Income $8,158,107 $457,900 1682% - ---------------------------------------------------------------------- Net Profit Margin 47% 3% 1467% - ---------------------------------------------------------------------- Basic earnings per common share were US$0.076 for the quarter and $0.233 for the six month ending April 30, 2007. The number of shares issued and outstanding as of the date of the report was 35,000,181. "I am satisfied with our second quarter results which were within expectations. Quarterly sales remained solid and earnings showed strength," said Renhuang's Chairman and Chief Executive Officer Mr. Li, Shaoming. "I am particularly pleased that our strategy to improve product mix and margins by increasing sales of higher margin products has started to pay off, as demonstrated by a 25% year-over-year improvement in gross margin." Looking forward, Mr. Li commented, "We are very confident in our ability to continuously deliver solid earnings for the reminder of the year. The earnings projection for year 2007 we set out early this year was $10-$12 million. The Company generated a total net income of $8.2 million for the first six month period of 2007, ending April 30. With this performance trend continuing while taking into consideration of the seasonal factor, we are well on track of reaching $12 million for the year - the upper end of the targeted earnings range. This would represent more than 150% increase over the net income of $4.68 million in 2006." Details of the Company's financial data for the quarter ending April 30, 2007 are available in the Company's Quarterly Report 10Q dated and filed with the Securities and Exchange Commission on June 14, 2007. About Renhuang Pharmaceuticals, Inc.: Renhuang Pharmaceuticals, located in Harbin of Heilongjiang Province in Northeast China, is a leading integrated developer, manufacturer and distributor of a broad line of high-quality nutraceutical, natural medicinal and bio-pharmaceutical products. The Company provides three major product lines including the Acanthopanax-based natural medicinal products, Shark Power Health Care series (a natural marine biological product) and Traditional Medical Products. Renhuang's key product line is Acanthopanax-based products, an effective natural medicine in treating depression and melancholy. By controlling an estimated 70% of China's natural resource of Acanthopanax (also known as Siberian Ginseng), the Company possesses a unique competitive edge and therefore occupies a dominant market position in Acanthopanax-based natural anti-depressant. The Company distributes its products through a multi-layer sales network of over 2000 sales agents. Its products are not only sold nationwide but also exported to Russia and Southeast Asia. Renhuang has established a multi-channel research and development infrastructure composed of in-house researchers, a post-doctoral working center, and collaboration with well known institutions and scientists. The Company has achieved a significant progress in research & development of standard extraction, separation of effective components, and medication with specificity. Several of these products have already been submitted for approval by the State Food and Drug Administration ("SFDA"). These products are expected to have a substantial upside growth potential due to their insufficient supply in China. In manufacturing, the Company strictly follows the international GMP certified quality standards and system by utilizing cutting-edge technologies, the state of the art equipment, and the proprietary innovative and award winning processes. RHGP-G Safe Harbor Statement This press release contains certain statements that may include 'forward-looking statements' as defined in the Securities Act of 1933, and the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are 'forward-looking statements.' Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements. CONTACT: Christensen Christy Shue, 917-576-2209 cshue@ChristensenIR.com or In China: Renhuang Pharmaceuticals Inc Gina Gao, 0086-451-57620378 gs@renhuang.com -----END PRIVACY-ENHANCED MESSAGE-----