SANTA MONICA, Calif., April 1, 2008 /PRNewswire-FirstCall/ -- Aida
Pharmaceuticals, Inc. (OTC Bulletin Board: AIDA) today announced a summary of
its fiscal 2007 Annual Report on Form 10-KSB, which was filed with the
Securities and Exchange Commission on March 31, 2008. In fiscal 2007, revenue
decreased by 1.48% compared with fiscal 2006's revenue of $29,643,103.
However, income from operations in fiscal 2007 increased by approximately
38.33% to $5,445,246 compared with $3,936,378 in fiscal 2006. Net income in
fiscal 2007 also increased to $2,739,825 from $1,453,584 in fiscal 2006, an
approximately 88.49% increase. Aida Pharmaceutical, Inc.'s net profit margin
in fiscal 2007 was approximately 9.38% as compared to approximately 4.90% in
fiscal 2006, which showed that it was more profitable in fiscal 2007.
Financial Data of Aida Pharmaceutical, Inc. in fiscal 2007 and fiscal 2006
2006 2007
Revenue 29,643,103 29,203,786
Income from operation 3,936,278 5,445,246
Income before tax 2,322,597 4,683,353
Net income 1,453,584 2,739,825
Net Profit Margin 4.90% 9.38%
Comparison Between Fiscal Quarters in 2007
The revenue of Aida Pharmaceutical, Inc. in the first fiscal quarter
("Q1"), second fiscal quarter ("Q2"), third fiscal quarter ("Q3") and fourth
fiscal quarter ("Q4") of 2007 was $5,296,176, $6,419,476, $7,373,770 and
$10,114,364 respectively. Q3's revenue was 14.87% higher than Q2's revenue
and, compared with Q1, Q2 and Q3, the revenue in Q4 increased by 90.97%,
57.56% and 37.17% respectively.
Aida Pharmaceutical, Inc.'s gross profit in Q1, Q2, Q3 and Q4 was
$2,343,660, $2,814,190, $3,816,085 and $5,739,169, respectively. In Q4, gross
profit increased by 146.99%, 103.94% and 50.39% compared with Q1, Q2 and Q3
respectively.
Aida Pharmaceutical, Inc.'s gross margin was 43.87%, 43.84%, 51.75% and
50.31% in Q1, Q2, Q3 and Q4, respectively. Although Q2's gross margin
decreased marginally as compared with Q1, Q3's profit margin of 51.75% was
much improved over Q1 and Q2. Q4's gross margin decreased marginally to 50.31%
as compared with 51.75% for Q3.
Income from operations increased in each quarter with $27,312 in Q1,
$811,708 in Q2, $1,362,537 in Q3 and $3,243,689 in Q4.
In Q4, net cash increased by 28.97% to $8,391,633 as compared with Q3. In
Q3, net cash increased by $6,506,533 as compared with $2,503,123 in Q2 and
$3,397,447 in Q1.
The return on equity in Q4 was 26.46%, a very strong improvement over
12.31% in Q3, 7.66% in Q2 and 0.26% in Q1.
Table 1: Financial Data of Aida Pharmaceuticals, Inc. in 2007
2007
2007 Q1 2007 Q2 2007 Q3 2007 Q4
Revenue 5,296,176 6,419,476 7,373,770 10,114,364
Gross Profit 2,323,660 2,814,190 3,816,085 5,739,169
Income from 27,312 811,708 1,362,537 3,243,689
operation
Income before tax -177,255 349,465 929,451 3,581,692
Net cash provided
by operating 3,397,447 2,053,123 6,506,533 8,391,633
activities
Jin Biao, Chairman of Aida Pharmaceuticals, Inc., noted, "Although revenue
in 2007 decreased slightly compared with 2006's revenue, our profitability
measured by income from operations and net income showed that our profit-
generating abilities have been increased substantially as compared with the
past. There are several reasons why the latter part of 2007 was so much
stronger than the previous quarters. First, the rules for tendering of
pharmaceutical purchases are more widely carried out in the PRC than before,
and these rules are beneficial for patented drugs such as ours as they help
build strong distribution channels. Next, after several years continuous
marketing, more and more clients in China are inclined and ready to accept
patented drugs. By having a stronger and more reputable name brand due to
etimicin sulfate's status as a patented drug, we are better able to have our
drug in hospitals instead of non-patented drugs from competitors."
Chairman Biao continued, "We have also intensified our marketing program
and have made significant strides in penetrating new geographic markets such
as Fujian, Sichuan and Chongqing. We used to have minimal sales in those
markets but are now showing increased sales and revenue there. We expect to
begin penetrating rural areas in the PRC especially with the implementation of
the PRC's "Overall National Medical Insurance" policy. We've also made
concerted efforts to maintain and grow sales in major areas that presently
account for large percentages of our sales, such as Zhejiang, Beijing and
Guangdong. Lastly, we have taken strong patent infringement legal actions
against manufacturers who have been counterfeiting our products. We believe
that, for these reasons, we are able to maintain our healthy growth rate
through 2008."
About Aida Pharmaceuticals, Inc.
Aida Pharmaceuticals, Inc. is a product-focused pharmaceuticals company
engaged in the formulation, clinical testing, registration, manufacture, sales
and marketing of advanced pharmaceutical and genetic products in mainland
China. The Company's mission is to discover, develop and market meaningful new
therapies that improve human health. Aida Pharmaceuticals, Inc. in operation
since March 1999, is headquartered in Hangzhou, the People's Republic of China
with manufacturing, distribution and sales points throughout mainland China.
Aida Pharmaceutical, Inc. is GMP-certified in the People's Republic of China
and ISO9002 certified for quality assurance and ISO14000 certified for
ecologically-friendly practices.
For additional information, please visit http://en.aidapharma.com.
Contact Information:
Ashley Hull
(310) 450-9100 opt 1
ashley@leacapital.com
Broker Contact:
Chesapeake Group
(410) 825-3930
SOURCE Aida Pharmaceuticals, Inc.