Aoxing Pharmaceutical Company, Inc. announced financial results for the first quarter ended September 30, 2013. Revenues for the three months ended September 30, 2013 were $3,577,108, representing a 37% increase over the revenues realized in the comparable period of fiscal year 2013. The increase in revenue was mainly attributable to the increase in sales of main product, Zhongtongan, which is now being marketed for gynecological and orthopaedic applications in addition to its core pediatric and stomotological market.

Sales of Zhongtongan accounted for 93% of sales during the quarter ended September 30, 2013. As a result of the reduced profit margin on its sales and increased operating expenses, Aoxing Pharma recorded a loss from operations of $1,244,961 for the three months ended September 30, 2013, compared with an operating profit of $87,478 recorded in the same period a year earlier. Interest expense increased by 109% to $1,074,690 in the quarter ended September 30, 2013, due to the increase in bank loans at the end of 2012.

The resulting net loss recorded for the three months ended September 30, 2013 was $2,350,974, whereas the company's net loss for the three months ended September 30, 2012 was $448,516. Loss before income tax for the first quarter ended September 30, 2013 was $2.35 million, compared to loss before income tax of $448,516 for the same quarter ended September 30, 2012. The company has reported loss attributable to shareholders of the company for the first quarter ended September 30, 2013 was $2.23 million, or $0.04 loss per share, compared to a loss attributable to shareholders of the company of $433,335, or $0.01 loss per share, for the same quarter ended September 30, 2012.