Third Quarter 2008 Highlights -- Revenues increased 16% from the third quarter of 2007 to a quarterly revenue of $2.4 million -- Gross profit was $1.8 million, compared to $1.3 million in the third quarter of 2007 -- Operating income was $1.1 million, a increase of 41% from $793,998 in the third quarter of 2007 -- Net income increased 50% year-over-year to $865,524, or $0.04 per basic and fully diluted share.
Third Quarter 2008 Results
Net revenue was
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Operating expenses in the
Operating income was
Net income was
Nine months Ended
Net revenue was
Financial Condition
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"We continue to be very excited about the growth opportunities presented
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About Kun Run Biotechnology, Inc.
Kun Run Biotechnology Ltd., together with its subsidiaries, engages in
manufacture and sale of polypeptide medicines. It uses solid phase peptide
synthesis (SPPS) and advanced purifying technology to produce various
therapeutic polypeptide drugs, of which is " TP-5" most known for efficiently
regulating humans' immune systems in order to defend and cure malignant
diseases. The company maintains two state-of-art manufacturing plants and
possesses one of the largest peptide synthesizing capacities across
Safe Harbor Statement
Certain statements set forth in this press release constitute "forward- looking statements." Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs. Actual results may differ materially from predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results are included in the Company's filings, available via the United States Securities and Exchange Commission.
-- FINANCIAL TABLES FOLLOW -- Kun Run Biotechnology, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands of United States dollars) September 30, December 31, 2008 2007 (Unaudited) (Audited) ASSETS Current assets Cash and cash equivalents $307,693 $670,919 Trade receivables (net of allowance of doubtful accounts of $994,380 in 2008 and $741,880 in 2007) 4,811,812 3,529,366 Income tax recoverable -- 196,065 Advances to staff 39,488 383,041 Other receivables, prepayments and deposits 935,898 1,035,659 Inventories 652,711 527,308 Amounts due from related parties 2,617,096 -- Deferred taxes 61,057 -- Total current assets 9,425,755 6,342,358 Intangible assets 3,539 5,379 Property, plant and equipment, net 10,465,100 8,851,242 Land use rights 3,782,532 3,593,265 Deposit for acquisition of property, plant and equipment 414,257 943,022 Deferred taxes -- 34,424 TOTAL ASSETS $24,091,183 $19,769,690 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current liabilities Trade payables $901,526 $572,893 Other payables and accrued expenses 1,612,573 1,257,918 Dividend payable 8,123 138,659 Income tax payable 129,312 -- Amounts due to related parties 50,522 149,820 Deferred taxes -- 7,204 Secured short-term borrowings 5,852,000 1,371,000 Total current liabilities 8,554,056 3,497,494 Secured long-term bank borrowings 658,350 5,792,475 TOTAL LIABILITIES 9,212,406 9,289,969 COMMITMENTS AND CONTINGENCIES MINORITY INTERESTS 134,778 103,365 STOCKHOLDERS' EQUITY Common stock : par value $0.001 per share; authorized 100,000,000 shares, issued and outstanding 25,000,000 shares in 2008 and 24,250,000 shares in 2007 25,000 24,250 Additional paid-in capital 7,683,804 7,541,074 Statutory and other reserves 1,725,313 1,725,313 Accumulated other comprehensive income 1,516,603 742,392 Retained earnings 3,793,279 343,327 TOTAL STOCKHOLDERS' EQUITY 14,743,999 10,376,356 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $24,091,183 $19,769,690 Kun Run Biotechnology, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) (In thousands of United States dollars except per-share information) Three months ended Nine months ended September 30 September 30 (unaudited) (unaudited) 2008 2007 2008 2007 Sales revenue $2,449,618 $2,114,406 $7,799,687 $4,974,279 Cost of sales (693,242) (777,683) (2,247,912) (2,107,300) Gross profit 1,756,376 1,336,723 5,551,775 2,866,979 Operating expenses Administrative expenses 257,968 252,245 742,823 703,839 Research and development costs 107,896 21,567 234,136 145,090 Selling expenses 271,460 268,913 555,540 668,392 637,324 542,725 1,532,499 1,517,321 Income from operations 1,119,052 793,998 4,019,276 1,349,658 Interest income 374 389 1,516 2,241 Other income 63,312 19,663 165,908 38,272 Government subsidy income 104 55 9,729 7,838 Finance costs (140,690) (146,885) (415,311) (386,109) Income before income taxes 1,042,152 667,220 3,781,118 1,011,900 Income taxes (168,803) (85,731) (300,383) (141,737) Minority interests (7,825) (5,120) (30,783) (7,660) Net income $865,524 $576,369 $3,449,952 $862,503 Other comprehensive income Foreign currency translation adjustments 27,413 191,057 774,211 529,178 Total comprehensive income $892,937 $767,426 $4,224,163 $1,391,681 Earnings per share : Basic and diluted $0.04 $0.02 $0.14 $0.04 Weighted average number of shares outstanding :- Basic and diluted 24,372,284 24,250,000 24,291,058 24,250,000 Kun Run Biotechnology, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) (In thousands of United States dollars) Nine months ended September 30 (Unaudited) 2008 2007 Cash flows from operating activities Net income $3,449,953 $862,503 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 498,686 370,473 Amortization of intangible assets and land use rights 52,976 1,965 Deferred taxes (31,370) (45,089) Written off of property, plant and equipment 5,564 -- Provision for doubtful debts 198,657 262,283 Minority interest 30,783 7,660 Changes in operating assets and liabilities :- Trade receivables (1,223,326) (1,197,265) Other receivables, prepayments and deposits 165,869 (53,319) Advances to staff 361,861 (49,997) Inventories (88,215) 621,104 Trade payables 284,377 (57,994) Other payables and accrued expenses 239,722 10,175 Income tax payable -- 105,330 Income tax recoverable 331,753 -- Net cash flows provided by operating activities 4,277,290 837,829 Cash flows from investing activities Payments to acquire and deposit for acquisition of property, plant and equipment (923,536) (941,971) Cash acquired from RTO 164,437 -- Net cash flows used in investing activities (759,099) (941,971)
SOURCE Kun Run Biotechnology, Inc.