Aoxing Pharmaceutical Company, Inc. announced earnings results for the year ended June 30, 2014. For the year, the company's revenue was $12,739,371, representing a 17.6% increase from the revenue of $10,829,839 for the year ended June 30, 2013. The increase in revenue was primarily attributable to the increase in sales price of its main product, Zhongtongan, whose sales represented 92% of its overall sales revenue during the 2014 fiscal year.

The company reported loss from operations of $3,334,879 for the year, compared with loss from operations of $6,549,135 in fiscal 2013. The primary reasons for the improvement were: during fiscal year 2013 the company recorded an impairment loss on goodwill of $7,055,364 and an impairment loss on intangible assets of $616,947. At the beginning of fiscal 2013 the company incurred large expenditures for research and development and marketing, as the company utilized the proceeds of a $10.2 million financing completed in September 2012.

The company has returned those expenses to a more sustainable level, with the result that research and development expenses fell by 62% from fiscal 2013 to fiscal 2014, and selling expenses fell by 41.6% from fiscal 2013 to fiscal 2014. Nevertheless, after adding the interest expense to its operating loss, the company realized a net loss of $8,634,380 for the year.