American Oriental Bioengineering, Inc. Announces Strong Second Quarter Sales Growth (prnews)
HARBIN, China, Aug. 15 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (OTC Bulletin Board: AOBO), a leading producer and developer of bioengineered products and Chinese medicine in China, today announced results for the second quarter ended June 30, 2002. All results are on a pro-forma basis and include the acquisition of all of the equity interest of Harbin Three Happiness Bioengineering Co., Ltd., which became effective on June 27, 2002.
For the three months ended June 30, 2002, revenues were US $2,388,436, an increase of US $774,493 or 48% from the corresponding period of the prior year. The increase was attributed primarily to increased selling and marketing efforts. Net income for the quarter decreased by $499,744 to a net loss of $185,835, or $0.02 per share, versus net income of $313,909, or $0.03 per share, in the prior year. Merger expenses totaling $589,824 were reported in the results for the most recent quarter.
For the six months ended June 30, 2002, revenues were US $4,772,914 million, an increase of 33% compared to revenues of US $3,593,089 million in the year earlier period. Net income and earnings per share in the first six months ended June 30, 2002 were US $610,428, or $0.06 per share, versus income of US $592,100, or $0.06 per share, for the corresponding period of the prior year. Weighted average common and equivalent shares outstanding were 10,141,017 million for each of the four periods reported.
As of June 30, 2002, the Company had a cash balance of $2,480,767 and a working surplus of $2,655,817. This compares with a cash balance of $322,777 and a working capital surplus of $685,162 for the corresponding period of the prior year. Net cash provided from operating activities increased by $855,852 to $1,178,629 from $322,777 for the six months ended June 30, 2002 as compared to the corresponding period of the prior year.
Since 1998, the Company has developed over twenty kinds of bio-technology products to support the Company's growth and to ensure the Company's market position. AOBO is a leader in natural protein peptide commercialization, and its proprietary technique of "Double Enzyme Extraction" (DEE) is employed in extracting fish protein-10 HAD. DEE processing of nutrients improves the extraction of enzymes, yielding 30% more enzymes than traditional extracting techniques. DEE is used in extracting the medicinal elements for several of the Company's products. DEE represents the highest level in extraction technique used in the Chinese compound medicine industry. AOBO distributes approximately 65% of its products in China, through over 1,000 hospitals directly and through l12 sales and marketing branches and over 1,000 independent retail distributors. The Company also derives 20% of its revenues in Korea, 5% in Japan and 10% in other Asian countries.
Tony Liu, President of AOBO, made the following comments concerning the Company's operations: "We are very pleased with our recent strong sales growth and the potential revenue opportunities presented by our recently completed merger. Although merger costs in the quarter ended significantly impacted our bottom line, we expect favorable results to accrue from the merger going forward. We have also made considerable recent progress in developing and test marketing additional nutritional products for Asia's large and growing health products markets. We are well-positioned to take advantage of the increased demand for traditional Chinese medicine, as well as the significant opportunities presented for marketing our newly developed bioengineered products internationally. Additionally, we are working to build foreign distribution agreements in order to commence sales in the U.S. and Europe."
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering, Inc., formally known as Harbin Three-Happiness Bioengineering Co., Ltd. was founded in 1994. The Company has become a leading producer and developer of bioengineered products and Chinese medicine in China, and utilizes proprietary processes that give it advantages in the manufacture and formulation of some of its products. The Company is engaged in the development and production of nutritional products and Chinese medicine, and has proprietary processes that give it advantages in the manufacture and formulation of some of its products. Important relationships with Harbin University of Medical Sciences, the Ocean Research Institute of China Academy of Sciences and the Shenyang Ecological Research Institute of China Academy of Sciences support the creation of an evolving pipeline of new and improved products. The Company has a total of 150 employees, of which 70 are involved in sales and marketing and 20 are dedicated to research.
Safe Harbor Statement
Except for the historical statements made herein, the statements made in this release are forward-looking statements, including: "We are well-positioned to take advantage of the increased demand for traditional Chinese medicine, as well as the significant opportunities presented for marketing our newly developed bioengineered products internationally" and "we are working to build foreign distribution agreements in order to commence sales in the U.S and Europe." Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risks. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission.
AMERICAN ORIENTAL BIOENGINEERING, INC.
(FORMERLY INTERNET GOLF ASSOCIATION, INC.)
CONSOLIDATED STATEMENTS OF INCOME
(United States Dollars)
Unaudited
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Sales $ 2,388,436 $ 1,613,943 $ 4,772,914 $3,593,089
Cost of Sales 974,735 749,269 1,876,436 1,617,300
Gross Profit 1,413,701 864,674 2,896,478 1,975,789
Selling & Administrative
Expense 242,771 116,755 435,580 230,348
Advertising 379,364 180,723 485,581 621,835
General & Administrative
Costs 251,533 66,488 424,722 198,104
Merger Costs 589,824 -- 589,824 --
Depreciation &
Amortization 115,403 105,634 217,134 176,464
Interest 23,260 22,913 46,518 46,506
Other (Income) Expense (72,523) (82) (72,523) --
Income (Loss) Before
Income Taxes (115,931) 372,243 769,642 702,532
Income Taxes 69,904 58,334 159,214 110,432
Net Income (Loss) $(185,835) $313,909 $610,428 $592,100
Basic & diluted net
income (loss) per
common share $ (0.02) $0.03 $0.06 $0.06
Basic & diluted
weighted average
common shares
outstanding 10,141,017 10,141,017(1) 10,141,017 10,141,017(1)
(1) Number of shares outstanding the day of the merger for comparison
only
AMERICAN ORIENTAL BIOENGINEERING, INC.
(FORMERLY INTERNET GOLF ASSOCIATION, INC.)
CONSOLIDATED BALANCE SHEET SUMMARY
(United States Dollars)
Unaudited
ASSETS
June 30, December 31,
2002 2001
CURRENT ASSETS
Cash and bank balances $ 2,480,767 $ 1,325,453
Trade receivables, net of provisions 1,588,649 1,089,572
Inventory 732,030 603,520
Payment for goods 766,290 565,931
Other 123,400 242,385
TOTAL CURRENT ASSETS 5,661,136 3,826,861
FIXED ASSETS, net of depreciation 3,899,616 4,043,301
OTHER ASSETS, net of amortization 763,119 813,253
TOTAL ASSETS $10,323,871 $ 8,683,415
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $901,677 $429,647
Prepayments for materials 297,790 278,982
Bank loans 1,445,783 1,445,783
Other 360,069 215,646
TOTAL CURRENT LIABILITIES 3,005,319 2,370,058
MEMBERS' EQUITY -- 6,313,357
SHAREHOLDERS' EQUITY 7,318,522 --
TOTAL EQUITY 7,318,522 6,313,357
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY $10,323,871 $8,683,415
MAKE YOUR OPINION COUNT - Click Here
tbutton.prnewswire.com
SOURCE American Oriental Bioengineering, Inc.
CONTACT: Investor - Harvey Goralnick of FOCUS Partners LLC, +1-212-752-9445, aobo@focuspartners.com, for American Oriental Bioengineering, Inc.
If you no longer wish to receive this Alert, click here to turn off this alert.
Disclaimer
The information in this alert is provided by Bell Globemedia Interactive from other third party sources. It is not verified by TD Waterhouse Canada Inc. ("TD Waterhouse") its subsidiaries and their employees assume no liability for the accuracy, completeness or timeliness of the information provided.
Copyright © 2002 Bell Globemedia Interactive. All rights reserved. |
