Third Quarter 2009 Highlights -- Revenues increased 65% from the third quarter of 2008 to a quarterly revenue of $4.0 million -- Gross profit was $2.8 million, compared to $1.8 million in the third quarter of 2008 -- Operating income was $2.4 million, an increase of 114% from $1.1 million in the third quarter of 2008 -- Net income increased 137%, compared to $2.0 million in the third quarter of 2008, or $0.08 per basic and fully diluted share.
Third Quarter 2009 Results
Net revenue was
Gross profit for the quarter was
Operating expenses in the third quarter of 2009 were
Operating income was
Net income was
Nine months Ended
Net revenue was
Operating income was
Financial Condition
As of
Mr. Ye Xiaoqun, Chief Executive Officer of Kun Run Biotechnology commented,
"I am satisfied with our third quarter performance, as we achieved record
revenue and solid profits. During the past nine months, Kun Run has
demonstrated success in developing and commercializing peptide medicine in the
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 United States dollars) September 30, December 31, 2009 2008 (Unaudited) (Audited) ASSETS Current assets Cash and cash equivalents $230,539 $433,599 Trade receivables, net 5,031,103 4,732,750 Bills receivable 613,222 117,360 Other receivables, prepayments and deposits 3,005,675 985,683 Receivables from disposal of properties -- 2,061,793 Inventories - Note 5 1,504,722 689,415 Amounts due from related companies 5,356,149 5,595,307 Deferred taxes -- 8,362 Total current assets 15,741,410 14,624,269 Intangible assets 92,417 111,004 Property, plant and equipment, net 9,248,453 9,685,374 Land use rights 3,723,541 3,775,540 Deposit for acquisition of property, plant and equipment 518,347 445,691 Deposit paid to a related company for acquisition of an intangible asset 7,921,800 -- TOTAL ASSETS $37,245,968 $28,641,878 September 30, December 31, 2009 2008 (Unaudited) (Audited) LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current liabilities Trade payables $473,100 $966,937 Other payables and accrued expenses 2,819,643 1,672,500 Dividend payable to Zhonghe's former/ existing noncontrolling stockholders 7,209 7,209 Income tax payable 645,481 655,019 Amount due to a related company -- 936 Secured borrowings 8,985,375 -- Total current liabilities 12,930,808 3,302,601 Deferred taxes 27,097 8,255 Secured borrowings 330,075 6,528,150 TOTAL LIABILITIES 13,287,980 9,839,006 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock: par value of $0.001 per share, authorized 10,000,000 shares in 2009 and 2008; none issued and outstanding -- -- Common stock: par value of $0.001 per share, authorized 100,000,000 shares, issued and outstanding 25,000,000 shares in 2009 and 25,000,000 shares in 2008 25,000 25,000 Additional paid-in capital 8,969,033 8,969,033 Statutory and other reserves 2,820,850 2,820,850 Accumulated other comprehensive income 1,607,518 1,601,345 Retained earnings 10,321,098 5,217,499 TOTAL KUN RUN BIOTECHNOLOGY, INC. STOCKHOLDERS' EQUITY 23,743,499 18,633,727 NONCONTROLLING INTEREST 214,489 169,145 TOTAL EQUITY 23,957,988 18,802,872 TOTAL LIABILITIES AND EQUITY $37,245,968 $28,641,878 Kun Run Biotechnology, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) (In United States dollars) Three months ended Nine months ended September 30, September 30, (Unaudited) (Unaudited) 2009 2008 2009 2008 Sales revenue $4,048,877 $2,449,618 $10,139,543 $7,799,687 Cost of sales 1,211,070 693,242 2,976,593 2,247,912 Gross profit 2,837,807 1,756,376 7,162,950 5,551,775 Operating expenses Administrative expenses 285,889 257,968 678,314 742,823 Research and developments costs 90,335 107,896 189,647 234,136 Selling expenses 69,882 271,460 287,425 555,540 446,106 637,324 1,155,386 1,532,499 Income from operations 2,391,701 1,119,052 6,007,564 4,019,276 Interest income 49,466 374 116,426 1,516 Other income 116,682 63,312 315,926 165,908 Government subsidy income 32,768 104 40,093 9,729 Finance costs (170,622) (140,690) (428,440) (415,311) Income before income taxes and noncontrolling interest 2,419,995 1,042,152 6,051,569 3,781,118 Income taxes (353,654) (168,803) (902,662) (300,383) Net income before noncontrolling interest 2,066,341 873,349 5,148,907 3,480,735 Net income attributable to noncontrolling interest (18,103) (7,825) (45,308) (30,783) Net income attributable to Kun Run Biotechnology, Inc. common stockholders $2,048,238 $865,524 $5,103,599 $3,449,952 Net income before noncontrolling interest $2,066,341 $873,349 $5,148,907 $3,480,735 Other comprehensive income Foreign currency translation adjustments 31,310 27,386 6,209 774,841 Comprehensive income 2,097,651 900,735 5,155,116 4,255,576 Comprehensive income attributable to noncontrolling interest (18,376) (7,798) (45,344) (31,413) Comprehensive income attributable to Kun Run Biotechnology, Inc. common stockholders $2,079,275 $892,937 $5,109,772 $4,224,163 Earnings per share attributable to Kun Run Biotechnology, Inc. common stockholders: basic and diluted $0.08 $0.04 $0.20 $0.14 Weighted average number of shares outstanding: basic and diluted 25,000,000 24,372,284 25,000,000 24,291,058 For more information, please contact: Kunhe Investment Management Beijing Co., Ltd, Sunne Tang Tel: +86-10-8591-1911 Email: sunne@khinvest.com
SOURCE Kun Run Biotechnology, Inc.