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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Biostar Pharmaceuticals Inc (CE) | USOTC:BSPM | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.0001 | 0.00 | 01:00:00 |
x
|
Quarterly Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange Act Of 1934
|
¨
|
Transition Report Pursuant To Section 13 Or 15(d) Of The Securities Exchange Act Of 1934
|
Maryland
|
20-8747899
|
|
(State or other jurisdiction of incorporation of origination)
|
(I.R.S. Employer Identification Number)
|
No. 588 Shiji Xi Avenue
Xianyang, Shaanxi Province
People’s Republic of China
|
712046
|
|
(Address of principal executive offices)
|
(Zip code)
|
Large accelerated filer
¨
|
Accelerated filer
¨
|
||
Non-accelerated filer
¨
|
Smaller reporting company
x
|
Page
|
||
PART I
|
FINANCIAL INFORMATION
|
|
Item 1.
|
F-1
|
|
Item 2.
|
3
|
|
Item 3.
|
10
|
|
Item 4.
|
10
|
|
PART II
|
OTHER INFORMATION
|
|
Item 1.
|
12
|
|
Item 1A.
|
12
|
|
Item 2.
|
12
|
|
Item 3.
|
12
|
|
Item 4.
|
12
|
|
Item 5.
|
12
|
|
Item 6.
|
13
|
|
14
|
Page(s)
|
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5
|
BIOSTAR
PHARMACEUTICALS, INC
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
9,341,104
|
$
|
80,072
|
||||
Note receivable - note 2)
|
-
|
1,636,072
|
||||||
Accounts receivable, net of allowance for doubtful accounts of $6,273,091 (December, 2013 : $2,454,108) - note 2)
|
24,665,180
|
17,965,082
|
||||||
Inventories - note 2)
|
669,783
|
830,311
|
||||||
Deposits and other receivables - note 3)
|
1,391,692
|
5,282,574
|
||||||
Income tax recoverable - note 7)
|
464,226
|
374,958
|
||||||
Loan receivables - note 4)
|
9,747,855
|
9,816,433
|
||||||
Total Current Assets
|
46,279,840
|
35,985,502
|
||||||
Non-current Assets
|
||||||||
Deposits - note 3)
|
3,899,142
|
3,926,573
|
||||||
Deferred tax assets
|
3,509,225
|
2,789,175
|
||||||
Property and equipment, net - note 2, 5)
|
7,877,407
|
7,728,700
|
||||||
Intangible assets, net - note 2, 5)
|
15,672,232
|
17,134,494
|
||||||
Total Assets
|
$
|
77,237,846
|
$
|
67,564,444
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts and other payables
|
$
|
5,489,117
|
$
|
4,447,314
|
||||
Short-term bank loans - note 2, 5)
|
3,249,285
|
-
|
||||||
Value-added tax payable
|
540,899
|
344,191
|
||||||
Total Current Liabilities
|
9,279,301
|
4,791,505
|
||||||
Non-current Liability
|
||||||||
Warrant liabilities - note 6)
|
567,732
|
-
|
||||||
Total Liabilities
|
9,847,033
|
4,791,505
|
||||||
Commitment - note 10)
|
||||||||
Stockholders' Equity
|
||||||||
Common stock, $0.001 par value, 100,000,000 shares authorized, 14,326,113 and 12,676,113 shares issued and outstanding as at June 30, 2014 and December 31, 2013
|
14,326
|
12,676
|
||||||
Additional paid-in capital
|
28,648,658
|
25,748,669
|
||||||
Deferred stock-based compensation - note 6)
|
(165,917
|
)
|
(365,017
|
)
|
||||
Statutory reserves - note 8)
|
7,126,432
|
7,126,432
|
||||||
Retained earnings
|
25,601,890
|
|
23,649,725
|
|||||
Accumulated other comprehensive income - note 11)
|
6,165,424
|
6,600,454
|
||||||
Total Stockholders' Equity
|
67,390,813
|
62,772,939
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
77,237,846
|
$
|
67,564,444
|
BIOSTAR
PHARMACEUTICALS, INC
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
AND COMPREHENSIVE (LOSS) INCOME
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Sales, net
|
$
|
19,198,854
|
$
|
14,650,854
|
$
|
32,380,018
|
$
|
26,742,763
|
||||||||
Cost of sales
|
9,931,316
|
7,771,404
|
15,859,392
|
13,174,423
|
||||||||||||
Gross profit
|
9,267,538
|
6,879,450
|
16,520,626
|
13,568,340
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Advertising expenses
|
2,318,826
|
2,550,271
|
4,107,367
|
4,436,952
|
||||||||||||
Selling expenses
|
2,537,288
|
2,621,288
|
4,472,010
|
4,818,634
|
||||||||||||
General and administrative expenses
|
3,266,588
|
1,458,818
|
6,864,581
|
2,536,566
|
||||||||||||
Research and development expenses
|
689,488
|
805,613
|
1,384,432
|
1,601,614
|
||||||||||||
Impairment of intangible assets
|
-
|
238,192
|
-
|
238,192
|
||||||||||||
Total operating expenses
|
8,812,190
|
7,674,182
|
16,828,390
|
13,631,958
|
||||||||||||
Income (loss) from operations
|
455,348
|
(794,732
|
)
|
(307,764
|
) |
(63,618
|
)
|
|||||||||
Other income (expense)
|
||||||||||||||||
Interest income
|
334,467
|
331,404
|
650,898
|
786,635
|
||||||||||||
Interest expense
|
-
|
(99,521
|
)
|
-
|
(195,209
|
)
|
||||||||||
Fair value adjustment on warrants
|
393,162
|
-
|
393,162
|
-
|
||||||||||||
Other income (expense)
|
(4,132
|
) |
635
|
1,048,460
|
(1,463
|
)
|
||||||||||
723,497
|
232,518
|
2,092,520
|
589,963
|
|||||||||||||
Income (loss) before income taxes
|
1,178,845
|
(562,214
|
)
|
1,784,756
|
526,345
|
|||||||||||
Provision for income tax (recovery)
|
(466,649
|
) |
168,766
|
(167,408
|
) |
696,351
|
||||||||||
Net Income (loss)
|
1,645,494
|
(730,980
|
)
|
$
|
1,952,164
|
$
|
(170,006
|
)
|
||||||||
Foreign currency translation adjustment
|
98,949
|
942,176
|
(435,030
|
) |
1,380,009
|
|||||||||||
Comprehensive income
|
$
|
1,744,443
|
$
|
211,196
|
$
|
1,517,134
|
$
|
1,210,003
|
||||||||
Net income (loss) per share | ||||||||||||||||
Basic
|
$
|
0.11
|
$
|
(0.06
|
)
|
$
|
0.14
|
$
|
(0.02
|
)
|
||||||
Diluted
|
0.11
|
(0.06
|
)
|
0.14
|
(0.02
|
) | ||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||
Basic
|
14,326,113
|
11,560,501
|
13,678,875
|
10,777,025
|
||||||||||||
Diluted
|
14,326,113
|
11,560,501
|
13,681,830
|
10,777,025
|
BIOSTAR
PHARMACEUTICALS, INC
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$
|
1,952,164
|
$
|
(170,006
|
)
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Accrued interest
|
-
|
(759,824
|
)
|
|||||
Deferred tax expense (benefit)
|
(741,402
|
) |
230,899
|
|||||
Depreciation and amortization
|
1,591,581
|
1,223,460
|
||||||
Provision for doubtful accounts
|
3,845,811
|
-
|
||||||
Loss on disposal
|
3,277
|
|||||||
Recognition of deferred research and development expenses
|
1,384,433
|
1,601,614
|
||||||
Stock-based compensation
|
199,100
|
6,147
|
||||||
Warrant liability
|
(393,162
|
) |
-
|
|||||
Impairment of intangible assets
|
-
|
238,192
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(9,059,901
|
)
|
8,736,339
|
|||||
Inventories
|
155,118
|
(871,434
|
)
|
|||||
Deposits and other receivables
|
916,527
|
350,570
|
||||||
Accounts payable and accrued expenses
|
1,075,535
|
(304,802
|
)
|
|||||
Value-added tax payable
|
199,615
|
(202,051
|
)
|
|||||
Income tax payable/recoverable
|
(92,119
|
) |
108,142
|
|||||
Net cash provided by operating activities
|
1,036,577
|
10,187,246
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchase of property, plant and equipment
|
(479,792
|
)
|
(955,052
|
) | ||||
Sales proceed of property, plant and equipment
|
2,932
|
-
|
||||||
Settlement of outstanding receivable from disposal of land use right
|
1,562,749
|
290,076
|
||||||
Net cash provided by (used in) investing activities
|
1,085,889
|
(664,976
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Proceed of bank loan
|
3,257,488
|
-
|
||||||
Advance from (repayment to) a related party
|
33,944
|
(1,601,614
|
)
|
|||||
Proceeds from stock issuance and warrants
|
3,862,533
|
-
|
||||||
Net cash provided by (used in) financing activities
|
7,153,965
|
(1,601,614
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(15,399
|
)
|
271,419
|
|||||
Net increase in cash and cash equivalents
|
9,261,032
|
8,192,075
|
||||||
Cash and cash equivalents, beginning balance
|
80,072
|
1,759,078
|
||||||
Cash and cash equivalents, ending balance
|
$
|
9,341,104
|
$
|
9,951,153
|
||||
SUPPLEMENTAL DISCLOSURES:
|
||||||||
Interest (payments)
|
$
|
-
|
$
|
(189,359
|
)
|
|||
Income tax (payments)
|
$
|
(526,770
|
)
|
$
|
(559,441
|
)
|
o
|
Shaanxi Biostar has the full right to control and administer the financial affairs and daily operation of Aoxing Pharmaceutical and has the right to manage and control all assets of Aoxing Pharmaceutical. The registered owners of Aoxing Pharmaceutical as a group have no right to make any decision about Aoxing Pharmaceutical’s activities without the consent of Shaanxi Biostar.
|
o
|
Shaanxi Biostar is assigned all voting rights of Aoxing Pharmaceutical and has the right to appoint all directors and senior management personnel of Aoxing Pharmaceutical. The registered owners of Aoxing Pharmaceutical possess no substantive voting rights.
|
o
|
Shaanxi Biostar is committed to provide financial support if Aoxing Pharmaceutical requires additional funds to maintain its operations and to repay its debts.
|
o
|
Shaanxi Biostar is entitled to a management fee equal to Aoxing Pharmaceutical’s net profits and is obligated to assume all operation risks and bear all losses of Aoxing Pharmaceutical. Therefore, Shaanxi Biostar is the primary beneficiary of Aoxing Pharmaceutical.
|
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Raw materials
|
$
|
412,391
|
$
|
423,192
|
||||
Work in process
|
107,952
|
93,125
|
||||||
Finished goods
|
149,440
|
224,530
|
||||||
Goods in transit
|
-
|
89,464
|
||||||
$
|
669,783
|
$
|
830,311
|
Buildings
|
30 years
|
Building improvements
|
30 years
|
Machinery & equipment
|
5-10 years
|
Furniture & fixtures and vehicles
|
5-10 years
|
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Buildings
|
$
|
3,627,868
|
$
|
3,653,390
|
||||
Building improvements
|
3,002,739
|
3,023,864
|
||||||
Machinery & equipment
|
1,207,648
|
1,209,401
|
||||||
Furniture & fixtures
|
68,405
|
68,886
|
||||||
Vehicle
|
118,775
|
134,386
|
||||||
Construction in progress
|
2,607,790
|
2,150,927
|
||||||
10,633,225
|
10,240,854
|
|||||||
Less: Accumulated depreciation
|
(2,755,818
|
)
|
(2,512,154
|
)
|
||||
$
|
7,877,407
|
$
|
7,728,700
|
Land use rights
|
50 years
|
Proprietary technologies
|
10 years
|
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Land use rights
|
$
|
3,515,484
|
$
|
3,540,216
|
||||
Proprietary technologies
|
18,973,304
|
19,106,783
|
||||||
22,488,788
|
22,646,999
|
|||||||
Less: Accumulated amortization and impairment
|
(6,816,556
|
)
|
(5,512,505
|
)
|
||||
$
|
15,672,232
|
$
|
17,134,494
|
Years Ending December 31,
|
||||
2014
|
$
|
1,304,051
|
||
2015
|
2,608,102
|
|||
2016
|
1,454,606
|
|||
2017
|
1,454,606
|
|||
2018
|
1,454,606
|
|||
Thereafter
|
7,396,261
|
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Current portion
|
||||||||
a) Deposits paid for research and development of new medicine
|
$
|
1,380,946
|
$
|
2,781,323
|
||||
b) Deposits paid for purchase of inventory
|
-
|
654,429
|
||||||
c) Receivable from disposition of two drug approval numbers
|
-
|
1,390,661
|
||||||
d) Receivable from land use rights disposed
|
-
|
455,427
|
||||||
Other receivables
|
10,746
|
734
|
||||||
Deposits and other receivables
|
$
|
1,391,692
|
$
|
5,282,574
|
||||
Non-current portion
|
||||||||
e) Deposits paid for intended acquisition of a health product manufacturer
|
3,899,142
|
3,926,573
|
||||||
$
|
3,899,142
|
$
|
3,926,573
|
a.
|
Deposits paid for research and development less amounts recognized as research and development expense. In December 2010, the Company entered into an agreement with a research institution to jointly develop a new drug for treatment of cardiovascular disease. The development is to be carried out by the research institute. Pursuant to the agreement, the Company’s total commitment is about $11.5 million, in exchange for 60% share of the intellectual property upon successful development of the drug. In the event that the research institute fails to successfully develop the drug, the Company’s contribution is fully refundable.
|
b.
|
Deposits paid for purchase of inventory represented prepayments of inventory to one supplier. As of June 30, 2014, the Company received the prepaid inventory.
|
c.
|
During the year ended December 31, 2013, the Company sold intangible assets relating to two drug approval numbers with a carrying value of approximately $0.2 million to an arm’s length party for approximately $1.4 million (RMB 8.5 million), resulting in a gain on disposal of approximately $1.2 million.
|
d.
|
During the year ended December 31, 2011, the Company disposed two land use rights reclaimed by local governments. As of June 30, 2014, all land use rights receivables had been received.
|
e.
|
In November 2013, the Company signed a letter of intent to acquire 100% interest in a health product manufacturer for an aggregate consideration of approximately $9.2 million (RMB 56 million), consisting of approximately $4.9 million (RMB 30 million) in cash and shares of the Company’s common stock valued at approximately $4.3 million (RMB 26 million), subject to the completion of a due diligence report and certain conditions set out in the letter of intent being met. As at June 30, 2014, the due diligence report is still in progress. The deposit is fully refundable if certain conditions set out in the letter of intent are not met.
|
For the year ended December 31, 2013
|
Shares issued
|
Value
|
||||||
i. issued in connection with the execution of the Weinan Supplemental Agreement, to acquire 13 drug approvals from the former equity holders of Shaanxi Weinan. (Note 1), valued at $0.85 per share, representing the fair value of the shares at the date of the execution of the Weinan Supplemental Agreement
|
1,602,564
|
$
|
1,362,179
|
|||||
ii. awarded to employees based on 2012 Incentive Stock Plan, fair value at $0.82 per share
|
750,000
|
613,647
|
||||||
iii. issued to two consulting firm corporate advisory services during the year, average fair value at $1.00 per share
|
110,000
|
110,550
|
||||||
iv. issued to a consulting firm and the consulting firm’s employees for an one year corporate advisory agreement from November 29, 2013, fair value at $1.81 per share
|
220,000
|
398,200
|
||||||
Total common stock issued during the year ended December 31, 2013
|
2,682,564
|
$
|
2,484,576
|
For the six months ended June 30, 2014
|
Shares issued
|
Value
|
||||||
v. issued to selected investors through public offering, valued at $2.49 per share less financing costs
|
1,650,000
|
$
|
3,862,533
|
|||||
Total common stock issued during the six months ended June 30, 2014
|
1,650,000
|
$
|
3,862,533
|
i) Common stock
|
1,650
|
|||
ii) Warrant liabilities - note b)below
|
960,894
|
|||
iv) Additional paid-in-capital
|
2,899,989
|
|||
$
|
3,862,533
|
Outstanding at,
|
||||||||||||
Expiry date
|
Exercise Price
|
June 30, 2014
|
December 31, 2013
|
|||||||||
June 30, 2014
|
$
|
8.22
|
-
|
10,784
|
||||||||
November 1, 2014*
|
9.00
|
166,667
|
166,667
|
|||||||||
March 12, 2017 **
|
3.23
|
759,000
|
-
|
|||||||||
925,667
|
177,451
|
Fair Value as of
June 30, 2014
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||
Liabilities:
|
||||||||
Warrants expiring March 2017
|
$ | 567,732 | $ | 567,732 |
Liabilities:
|
||||
Warrant liability at issuance date of March 13, 2014
|
$
|
960,894
|
||
Change in fair value of warrants
|
(393,162
|
)
|
||
Warrant liability as of June 30, 2014
|
$
|
567,732
|
Weighted Average
|
||||||||||||
Number of options
|
Exercise Price ($)
|
Remaining Life (years)
|
||||||||||
Balance, December 31, 2013
|
386,222
|
7.81
|
1.08
|
|||||||||
Balance, June 30, 2014
|
386,222
|
7.81
|
0.60
|
|||||||||
Vested and exercisable as at June 30, 2014
|
386,222
|
7.81
|
0.60
|
June 30, 2014
|
June 30, 2013
|
|||||||
PRC
|
$ | 1,917,628 | $ | 730,336 | ||||
Others
|
(132,872 | ) | (203,991 | ) | ||||
Total income before income taxes
|
$ | 1,784,756 | $ | 526,345 |
June 30, 2014
|
June 30, 2013
|
|||||||
Current taxes
|
$ | 573,994 | $ | 465,452 | ||||
Deferred taxes
|
(741,402 | ) | 230,899 | |||||
Provision for income taxes
|
$ | (167,408 | ) | $ | 696,351 |
June 30, 2014
|
June 30, 2013
|
|||||||
PRC federal statutory tax rate
|
25 | % | 25 | % | ||||
Computed expected income tax expense
|
$ | 446,189 | $ | 131,586 | ||||
Utilisation of tax losses not recognised
|
(310,191 | ) | - | |||||
Tax effect of unused tax losses not recognised
|
42,026 | 181,760 | ||||||
Tax effect of non-deductible expenses
|
940,539 | 788,061 | ||||||
Tax effect of non-taxable income
|
(1,285,971 | ) | (405,056 | ) | ||||
Income tax
|
$ | (167,408 | ) | $ | 696,351 |
Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Basic earnings per share:
|
||||||||
Numerator:
|
||||||||
Net income (loss) used in computing basic earnings per share
|
$
|
1,952,164
|
$
|
(170,006
|
) | |||
Denominator:
|
||||||||
Weighted average common shares outstanding
|
13,678,875
|
10,777,025
|
||||||
Basic earnings (loss) per share
|
$
|
0.14
|
$
|
(0.02
|
) | |||
Diluted earnings per share:
|
||||||||
Numerator:
|
||||||||
Net income (loss) used in computing diluted earnings per share
|
$
|
1,952,164
|
$
|
(170,006
|
) | |||
Denominator:
|
||||||||
Weighted average common shares outstanding
|
13,678,875
|
10,777,025
|
||||||
Weighted average effect of dilutive securities:
|
||||||||
Stock warrants and options
|
2,955
|
-
|
||||||
Shares used in computing diluted earnings per share
|
13,681,830
|
10,777,025
|
||||||
Diluted earnings (loss) per share
|
$
|
0.14
|
$
|
(0.02
|
) |
Three Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Basic earnings per share:
|
||||||||
Numerator:
|
||||||||
Net income (loss) used in computing basic earnings per share
|
$
|
1,645,494
|
$
|
(730,980
|
) | |||
Denominator:
|
||||||||
Weighted average common shares outstanding
|
14,326,113
|
11,560,501
|
||||||
Basic earnings (loss) per share
|
$
|
0.11
|
$
|
(0.06
|
) | |||
Diluted earnings per share:
|
||||||||
Numerator:
|
||||||||
Net income (loss) used in computing diluted earnings per share
|
$
|
1,645,494
|
$
|
(730,980
|
) | |||
Denominator:
|
||||||||
Weighted average common shares outstanding
|
14,326,113
|
11,560,501
|
||||||
Weighted average effect of dilutive securities:
|
||||||||
Stock warrants and options
|
-
|
-
|
||||||
Shares used in computing diluted earnings per share
|
14,326,113
|
11,560,501
|
||||||
Diluted earnings (loss) per share
|
$
|
0.11
|
$
|
(0.06
|
) |
i)
|
Acquisition of a health product manufacturer
|
ii)
|
Capital commitment contracted but not yet provided for :-
|
2014 Q2 | ||||||||
|
USD
|
|||||||
At June 30, 2014, the Company has commitment contracted but not provided for
|
||||||||
- Construction in process
|
471,146 |
(RMB
|
2,900,000 | ) | ||||
- Acquisition of machinery
|
5,743 |
(RMB
|
35,350 | ) | ||||
|
476,889 |
(RMB
|
2,935,350 | ) |
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Accumulated other comprehensive income, beginning of period
|
$ | 6,600,454 | $ | 4,528,868 | ||||
Change in foreign currency translation adjustment
|
(435,030 | ) | 2,071,586 | |||||
Accumulated other comprehensive income, end of period
|
$ | 6,165,424 | $ | 6,600,454 |
Sales risks concentration
|
|||||||||
Percentage of total sales during the
|
|||||||||
Customer
|
Six Months Ended June 30,
|
||||||||
2014
|
2013
|
||||||||
A |
25
|
%
|
16
|
%
|
|||||
B |
25
|
%
|
17
|
%
|
|||||
Total risks concentration
|
50
|
%
|
33
|
%
|
Three Months Ended June 30,
|
%
|
|||||||||||||||||||
2014
|
2013
|
change
|
||||||||||||||||||
Aoxing Pharmaceutical Products
|
%
|
%
|
||||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
5,840,766
|
30.4
|
%
|
$
|
6,109,232
|
41.7
|
%
|
(4.4
|
)%
|
||||||||||
Other Aoxing Pharmaceutical products
|
4,072,364
|
21.2
|
%
|
3,773,195
|
25.8
|
%
|
7.9
|
%
|
||||||||||||
Aoxing new products
|
2,575,365
|
13.5
|
% |
503,589
|
3.4
|
% |
411.4
|
%
|
||||||||||||
Sub-total
|
12,488,495
|
65.1
|
%
|
10,386,016
|
70.9
|
%
|
20.2
|
%
|
||||||||||||
Shannxi Weinan Products
|
||||||||||||||||||||
Shaanxi Weinan products
|
3,035,577
|
15.8
|
%
|
1,864,267
|
12.7
|
%
|
62.8
|
%
|
||||||||||||
Shaanxi Weinan products (new)
|
173,558
|
0.9
|
%
|
452,701
|
3.1
|
%
|
(61.7
|
)%
|
||||||||||||
Sub-total
|
3,209,135
|
16.7
|
%
|
2,316,968
|
15.8
|
%
|
38.5
|
%
|
||||||||||||
Hospital products
|
3,501,224
|
18.2
|
%
|
1,947,870
|
13.3
|
%
|
79.7
|
%
|
||||||||||||
Total sales
|
$
|
19,198,854
|
100.0
|
%
|
$
|
14,650,854
|
100.0
|
%
|
31.0
|
%
|
Six Months Ended June 30,
|
%
|
|||||||||||||||||||
2014 | 2013 |
change
|
||||||||||||||||||
Aoxing Pharmaceutical Products
|
%
|
%
|
||||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$ | 10,918,075 | 33.7 | % | $ | 11,553,160 | 43.2 | % | (5.5 | )% | ||||||||||
Other Aoxing Pharmaceutical products
|
7,043,858 | 21.8 | % | 6,275,369 | 23.5 | % | 12.2 | % | ||||||||||||
Aoxing new products
|
2,575,365 | 8.0 | % | 613,744 | 2.3 | % | 319.6 | % | ||||||||||||
Sub-total
|
20,537,298 | 63.5 | % | 18,442,273 | 69.0 | % | 11.4 | % | ||||||||||||
Shannxi Weinan Products
|
||||||||||||||||||||
Shaanxi Weinan products
|
5,763,322 | 17.8 | % | 3,503,745 | 13.1 | % | 64.5 | % | ||||||||||||
Shaanxi Weinan products (new)
|
404,507 | 1.2 | % | 896,437 | 3.4 | % | (54.9 | )% | ||||||||||||
Sub-total
|
6,167,829 | 19.0 | % | 4,400,182 | 16.5 | % | 40.2 | % | ||||||||||||
Hospital products
|
5,674,891 | 17.5 | % | 3,900,308 | 14.6 | % | 45.5 | % | ||||||||||||
Total sales
|
$ | 32,380,018 | 100.0 | % | $ | 26,742,763 | 100.0 | % | 21.1 | % |
Three Months Ended June 30,
|
%
|
|||||||||||||||||||
2014
|
2013
|
change
|
||||||||||||||||||
Aoxing Pharmaceutical Products
|
%
|
%
|
||||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
1,005,172
|
10.1
|
%
|
$
|
2,369,943
|
30.5
|
%
|
(57.6
|
)%
|
||||||||||
Other Aoxing Pharmaceutical products
|
2,880,488
|
29.0
|
%
|
2,656,677
|
34.2
|
%
|
8.4
|
%
|
||||||||||||
Aoxing new products
|
2,103,151
|
21.2
|
%
|
362,676
|
4.7
|
% |
479.9
|
% | ||||||||||||
Sub-total
|
5,988,811
|
60.3
|
%
|
5,389,296
|
69.3
|
%
|
11.1
|
%
|
||||||||||||
Shannxi Weinan Products
|
||||||||||||||||||||
Shaanxi Weinan products
|
1,315,367
|
13.2
|
%
|
806,400
|
10.4
|
%
|
63.1
|
%
|
||||||||||||
Shaanxi Weinan products (new)
|
117,206
|
1.2
|
%
|
188,389
|
2.4%
|
(37.8
|
)% | |||||||||||||
Sub-total
|
1,432,573
|
14.4
|
%
|
994,789
|
12.8
|
%
|
44.0
|
%
|
||||||||||||
Hospital products
|
2,509,932
|
25.3
|
%
|
1,387,319
|
17.9
|
%
|
80.9
|
%
|
||||||||||||
Total cost of sales
|
$
|
9,931,316
|
100.0
|
%
|
$
|
7,771,404
|
100.0
|
%
|
27.8
|
%
|
Six Months Ended June 30,
|
%
|
|||||||||||||||||||
2014
|
2013
|
change
|
||||||||||||||||||
Aoxing Pharmaceutical Products
|
%
|
%
|
||||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
1,829,284
|
11.5
|
%
|
$
|
3,737,613
|
28.4
|
%
|
(51.1
|
)%
|
||||||||||
Other Aoxing Pharmaceutical products
|
4,984,526
|
31.4
|
%
|
4,322,900
|
32.8
|
%
|
15.3
|
%
|
||||||||||||
Aoxing new products
|
2,103,151
|
13.3
|
%
|
442,335
|
3.4
|
% |
375.5
|
% | ||||||||||||
Sub-total
|
8,916,961
|
56.2
|
%
|
8,502,848
|
64.6
|
%
|
4.9
|
%
|
||||||||||||
Shannxi Weinan Products
|
||||||||||||||||||||
Shaanxi Weinan products
|
2,554,612
|
16.1
|
%
|
1,510,296
|
11.5
|
%
|
69.1
|
%
|
||||||||||||
Shaanxi Weinan products (new)
|
305,429
|
1.9
|
%
|
380,216
|
2.9
|
% |
(19.7
|
)% | ||||||||||||
Sub-total
|
2,860,041
|
18.0
|
%
|
1,890,512
|
14.3
|
%
|
51.3
|
%
|
||||||||||||
Hospital products
|
4,082,390
|
25.8
|
%
|
2,781,063
|
21.1
|
%
|
46.8
|
%
|
||||||||||||
Total cost of sales
|
$
|
15,859,392
|
100.0
|
%
|
$
|
13,174,423
|
100.0
|
%
|
20.4
|
%
|
Three Months Ended June 30,
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Gross Profit
|
Product Gross Margin %
|
Gross Profit
|
Product Gross Margin %
|
|||||||||||||
Aoxing Pharmaceutical Products
|
||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
4,835,594
|
82.8
|
%
|
$
|
3,739,289
|
61.2
|
%
|
||||||||
Other Aoxing Pharmaceutical products
|
1,191,876
|
29.3
|
%
|
1,116,518
|
29.6
|
%
|
||||||||||
Aoxing New Product
|
472,214
|
18.3
|
%
|
140,913
|
28.0
|
%
|
||||||||||
Sub-total
|
6,499,684
|
52.0
|
%
|
4,996,720
|
48.1
|
%
|
||||||||||
Shaanxi Weinan Products
|
||||||||||||||||
Shaanxi Weinan products
|
1,720,210
|
56.7
|
%
|
1,057,867
|
56.7
|
%
|
||||||||||
Shaanxi Weinan products (new)
|
56,352
|
32.5
|
%
|
264,312
|
58.4
|
%
|
||||||||||
Sub-total
|
1,776,562
|
55.4
|
%
|
1,322,179
|
57.1
|
%
|
||||||||||
Hospital products
|
991,292
|
28.3
|
%
|
560,551
|
28.8
|
%
|
||||||||||
Total gross profit
|
$
|
9,267,538
|
48.3
|
%
|
$
|
6,879,450
|
47.0
|
%
|
Six Months Ended June 30,
|
||||||||||||||||
2014
|
2013
|
|||||||||||||||
Gross Profit
|
Product Gross Margin %
|
Gross Profit
|
Product Gross Margin %
|
|||||||||||||
Aoxing Pharmaceutical Products
|
||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
9,088,791
|
83.2
|
%
|
$
|
7,815,547
|
67.7
|
%
|
||||||||
Other Aoxing Pharmaceutical products
|
2,059,332
|
29.2
|
%
|
1,952,469
|
31.1
|
%
|
||||||||||
Aoxing New Product
|
472,214
|
18.3
|
%
|
171,409
|
27.9
|
%
|
||||||||||
Sub-total
|
11,620,337
|
56.6
|
%
|
9,939,425
|
53.9
|
%
|
||||||||||
Shaanxi Weinan Products
|
||||||||||||||||
Shaanxi Weinan products
|
3,208,710
|
55.7
|
%
|
1,993,449
|
56.9
|
%
|
||||||||||
Shaanxi Weinan products (new)
|
99,079
|
24.5
|
%
|
516,221
|
57.6
|
%
|
||||||||||
Sub-total
|
3,307,789
|
53.6
|
%
|
2,509,670
|
57.0
|
%
|
||||||||||
Hospital products
|
1,592,500
|
28.1
|
%
|
1,119,245
|
28.7
|
%
|
||||||||||
Total gross profit
|
$
|
16,520,626
|
51.0
|
%
|
$
|
13,568,340
|
50.7
|
%
|
Three months ended June 30,
|
||||||||||||||||||
2014
|
2013
|
|||||||||||||||||
Operating expenses
|
% of net sales
|
Operating expenses
|
% of net sales
|
% change
|
||||||||||||||
Advertising expenses
|
$
|
2,318,826
|
12.1
|
%
|
$
|
2,550,271
|
17.4
|
%
|
(9.1
|
)%
|
||||||||
Selling expenses
|
2,537,288
|
13.2
|
%
|
2,621,288
|
17.9
|
%
|
(3.2
|
)%
|
||||||||||
General and administrative expenses
|
3,266,588
|
17.0
|
%
|
1,458,818
|
10.0
|
%
|
123.9
|
%
|
||||||||||
Research and development expenses
|
689,488
|
3.6
|
%
|
805,613
|
5.5
|
%
|
(14.4
|
)%
|
||||||||||
Impairment of intangible assets
|
-
|
-
|
|
238,192
|
1.6
|
%
|
(100
|
)%
|
||||||||||
Total operating expenses
|
$
|
8,812,190
|
45.9
|
%
|
$
|
7,674,182
|
52.4
|
%
|
14.8
|
%
|
Six months ended June 30,
|
||||||||||||||||||
2014
|
2013
|
|||||||||||||||||
Operating expenses
|
% of net sales
|
Operating expenses
|
% of net sales
|
% change
|
||||||||||||||
Advertising expenses
|
$
|
4,107,367
|
12.7
|
%
|
$
|
4,436,952
|
16.6
|
%
|
(7.4
|
)%
|
||||||||
Selling expenses
|
4,472,010
|
13.8
|
%
|
4,818,634
|
18.0
|
%
|
(7.2
|
)%
|
||||||||||
General and administrative expenses
|
6,864,581
|
21.2
|
%
|
2,536,566
|
9.5
|
%
|
170.6
|
%
|
||||||||||
Research and development expenses
|
1,384,432
|
4.3
|
%
|
1,601,614
|
6.0
|
%
|
(13.6
|
)%
|
||||||||||
Impairment of intangible assets
|
-
|
- |
|
238,192
|
0.9
|
%
|
(100
|
)%
|
||||||||||
Total operating expenses
|
$
|
16,828,390
|
52.0
|
%
|
$
|
13,631,958
|
51.0
|
%
|
23.4
|
%
|
1.
|
If after taking legal action, it appears that an accounts receivable is not likely to become collectible, such accounts receivable will be written off if it is more than two years old.
|
2.
|
If during the collection period, the customer provides bankruptcy or other insolvency documentation, the corresponding accounts receivable will be written off.
|
3.
|
If we are no longer able to locate a particular customer in order for us to take any collection or legal actions, the accounts receivable for such customer will be written off if it is more than two years old.
|
Payments due by period ($ million)
|
||||||||||||||||||||
Total
|
Within 1 year
|
1-3 years
|
3-5 years
|
>5 years
|
||||||||||||||||
Research and development contracts
|
0.8
|
0.8
|
-
|
-
|
-
|
|||||||||||||||
Purchase of a health product manufacturer
|
5.3
|
5.3
|
-
|
-
|
-
|
|||||||||||||||
Weinan construction project and
|
||||||||||||||||||||
purchase of machinery
|
0.5
|
0.5
|
-
|
-
|
-
|
|||||||||||||||
-
|
-
|
|||||||||||||||||||
Total contractual obligations
|
$
|
6.6
|
$
|
6.6
|
$
|
-
|
-
|
-
|
BIOSTAR PHARMACEUTICALS, INC.
(Registrant)
|
|||
Date: August 14, 2014
|
By:
|
/s/ Ronghua Wang
|
|
Ronghua Wang, Chief Executive Officer and President
(Principal Executive Officer)
|
Date: August 14, 2014
|
By:
|
/s/ Qinghua Liu
|
|
Qinghua Liu, Interim Chief Financial Officer
(Principal Financial and Accounting Officer)
|
1 Year Biostar Pharmaceuticals (CE) Chart |
1 Month Biostar Pharmaceuticals (CE) Chart |
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