Renhuang Pharmaceuticals, Inc. a leading integrated developer, manufacturer and distributor of a broad line of high-quality nutraceutical, natural medicinal and bio-pharmaceutical products in the People's Republic of China (PRC), filed its quarterly report 10Q for the three month period November 1, 2006 - January 31, 2007 and announced the results for the quarter, which is the first quarter of the Company's 2007 fiscal year.

For the three months ended January 31, 2007, the Company generated a record quarterly net income of US$5.50 million. This is a 35% increase over the total net income of US$4.23 million for the entire six month period ending October 31, 2006 and 415% higher compared to the net income of US$1.07 million for the same quarter of last year.

The record results were primarily driven by sales expansion, seasonal strength, and better product mix with more sales of higher margin products. Reduced costs in advertising, research and development also contributed to the year-over-year increase in earnings.

Net profit margin reached 52% compared to 35% for the six month period from May 1 - October 31, 2006 and 11% for the same quarter of the prior year. It is the highest quarterly net profit margin ever achieved by the Company.

Basic earnings per common share for the quarter were US$0.157 compared to US$0.121 for the entire six month period ending Oct. 31, 2006. The number of shares issued and outstanding as of the date of the report was 35,000,181.

The strong sales of US$10.6 million for the quarter represent a 12% increase from the US$9.4 million for the same quarter of the prior year. The sales consist of 51% from Acanthopanax-base products, 18% from Shark Power Health Care products, and 31% from Traditional Medicine products.

Source:佚名