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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 |
☒
|
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
☒
|
|
|
Page
|
|
|
|
PART I
|
FINANCIAL INFORMATION
|
|
Item 1.
|
F-1
|
|
Item 2.
|
3
|
|
Item 3.
|
10
|
|
Item 4.
|
10
|
|
|
|
|
PART II
|
OTHER INFORMATION
|
|
Item 1.
|
11
|
|
Item 1A.
|
12
|
|
Item 2.
|
12
|
|
Item 3.
|
12
|
|
Item 4.
|
13
|
|
Item 5.
|
13
|
|
Item 6.
|
13
|
|
14
|
|
Page(s)
|
Financial Statements
|
|
|
|
F-2
|
|
|
|
F-3
|
|
|
|
F-4
|
|
|
|
F-5
|
|
Three months ended June 30,
|
Six months ended June 30,
|
||||||||||||||
|
2016
|
2015
|
2016 |
2015
|
||||||||||||
|
||||||||||||||||
Sales, net
|
$
|
620,138
|
$
|
14,176,234
|
$
|
1,421,765
|
$
|
21,084,981
|
||||||||
Cost of sales
|
321,250
|
8,237,555
|
777,907
|
11,565,052
|
||||||||||||
Gross profit
|
298,888
|
5,938,679
|
643,858
|
9,519,929
|
||||||||||||
|
||||||||||||||||
Operating expenses:
|
||||||||||||||||
Advertising expenses
|
-
|
2,491,577
|
-
|
3,868,741
|
||||||||||||
Selling expenses
|
290,047
|
2,310,314
|
613,113
|
3,610,031
|
||||||||||||
General and administrative expenses
|
539,433
|
1,183,795
|
1,229,856
|
1,959,550
|
||||||||||||
Provision for doubtful debt
|
6,329,711
|
-
|
6,329,711
|
-
|
||||||||||||
Research and development expenses
|
-
|
1,026,177
|
-
|
2,044,789
|
||||||||||||
Total operating expenses
|
7,159,191
|
7,011,863
|
8,172,680
|
11,483,111
|
||||||||||||
|
||||||||||||||||
Loss from operations
|
(6,860,303
|
)
|
(1,073,184
|
)
|
(7,528,822
|
)
|
(1,963,182
|
)
|
||||||||
|
||||||||||||||||
Other income
|
-
|
2,080
|
-
|
2,080
|
||||||||||||
Interest income
|
-
|
320,680
|
-
|
643,025
|
||||||||||||
Interest expense
|
(76
|
)
|
(1,396
|
)
|
(38,315
|
)
|
(62,851
|
)
|
||||||||
Fair value adjustment on warrants
|
16,156
|
90,321
|
44,348
|
80,454
|
||||||||||||
Total other income, net
|
16,080
|
411,685
|
6,033
|
662,708
|
||||||||||||
|
||||||||||||||||
Loss before income taxes
|
(6,844,223
|
)
|
(661,499
|
)
|
(7,522,789
|
)
|
(1,300,474
|
)
|
||||||||
|
||||||||||||||||
Income tax expenses (benefits)
|
58,225
|
(169,072
|
)
|
-
|
(647,943
|
)
|
||||||||||
|
||||||||||||||||
Net loss
|
$
|
(6,902,448
|
)
|
$
|
(492,427
|
)
|
$
|
(7,522,789
|
)
|
$
|
(652,531
|
)
|
||||
|
||||||||||||||||
Foreign currency translation adjustment
|
(1,287,182
|
)
|
279,920
|
(977,927
|
)
|
660,985
|
||||||||||
|
||||||||||||||||
Comprehensive (loss) income
|
$
|
(8,189,630
|
)
|
$
|
(212,507
|
)
|
$
|
(8,500,716
|
)
|
$
|
8,454
|
|||||
|
||||||||||||||||
Net loss per share
|
||||||||||||||||
Basic
|
$
|
(3.12
|
)
|
$
|
(0.22
|
)
|
$
|
(3.40
|
)
|
$
|
(0.30
|
)
|
||||
Diluted
|
$
|
(3.12
|
)
|
$
|
(0.22
|
)
|
$
|
(3.40
|
)
|
$
|
(0.30
|
)
|
||||
|
||||||||||||||||
Weighted average number of common shares outstanding
|
||||||||||||||||
Basic
|
2,210,913
|
2,210,913
|
2,210,913
|
2,210,913
|
||||||||||||
Diluted
|
2,210,913
|
2,210,913
|
2,210,913
|
2,210,913
|
|
Six Months Ended June 30,
|
|||||||
|
2016
|
2015
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net loss
|
$
|
(7,522,789
|
)
|
$
|
(652,531
|
)
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Accrued interest income
|
-
|
(318,987
|
)
|
|||||
Deferred tax benefit
|
-
|
(647,943
|
)
|
|||||
Depreciation and amortization
|
512,863
|
977,876
|
||||||
Recognition of deferred research and development expenses
|
-
|
1,022,395
|
||||||
Allowance for doubtful debts
|
6,329,711
|
-
|
||||||
Warrants liability
|
(44,348
|
)
|
(80,454
|
)
|
||||
Provision for sales discounts
|
-
|
1,149,652
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
1,497,574
|
(2,882,616
|
)
|
|||||
Inventories
|
(89,451
|
)
|
161,123
|
|||||
Deposits and other receivables
|
-
|
821,318
|
||||||
Accounts payable and accrued expenses
|
(223,052
|
)
|
732,542
|
|||||
Value-added tax payable
|
(106,875
|
)
|
157,183
|
|||||
Net cash provided by operating activities
|
353,633
|
439,558
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Deposit paid for intended acquisition
|
-
|
(1,635,831
|
)
|
|||||
Purchase of property, plant and equipment
|
-
|
(30,760
|
)
|
|||||
Net cash used in investing activities
|
-
|
(1,666,591
|
)
|
|||||
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Repayment of short-term bank loans
|
(282,903
|
)
|
(188,121
|
)
|
||||
Net cash used in financing activities
|
(282,903
|
)
|
(188,121
|
)
|
||||
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
97,482
|
43,320
|
||||||
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
168,212
|
(1,371,834
|
)
|
|||||
|
||||||||
Cash and cash equivalents, beginning balance
|
38,898
|
1,685,154
|
||||||
Cash and cash equivalents, ending balance
|
$
|
207,110
|
$
|
313,320
|
||||
|
||||||||
SUPPLEMENTAL DISCLOSURES:
|
||||||||
Interest received
|
$
|
-
|
$
|
5,015
|
||||
Interest paid
|
$
|
(38,315
|
)
|
$
|
(59,867
|
)
|
●
|
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.
|
●
|
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.
|
●
|
Shaanxi Biostar is committed to provide financial support if Aoxing Pharmaceutical requires additional funds to maintain its operations and to repay its debts.
|
●
|
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.
|
ž
|
Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
|
ž
|
Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
|
ž
|
Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
|
Carrying amount
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Estimated fair value
|
||||||||||||
Financial assets
|
|
|
|
|
|
|
||||||||||
|
||||||||||||||||
Carried at (amortized) cost:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
207,110
|
$
|
-
|
$
|
-
|
$
|
207,110
|
|
Carrying amount
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Estimated
fair value
|
||||||||||||
Financial liabilities
|
||||||||||||||||
|
||||||||||||||||
Carried at (amortized) cost:
|
||||||||||||||||
Short-term bank loans
|
$
|
-
|
$
|
-
|
$
|
2,431,172
|
$
|
2,431,172
|
||||||||
|
||||||||||||||||
Carried at fair value:
|
||||||||||||||||
Warrants liability
|
-
|
-
|
14,854
|
14,854
|
||||||||||||
|
$
|
-
|
$
|
-
|
$
|
2,446,026
|
$
|
2,446,026
|
|
Carrying amount
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Estimated
fair value
|
||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|||||||||
|
||||||||||||||||
Carried at (amortized) cost:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
38,898
|
$ | - | $ | - | $ |
38,898
|
|
Carrying amount
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Estimated
fair value
|
||||||||||||
Financial liabilities
|
||||||||||||||||
|
||||||||||||||||
Carried at (amortized) cost:
|
||||||||||||||||
Short-term bank loans
|
$
|
-
|
$
|
-
|
$
|
2,773,199
|
$
|
2,773,199
|
||||||||
|
||||||||||||||||
Carried at fair value:
|
||||||||||||||||
Warrants liability
|
-
|
-
|
59,202
|
59,202
|
||||||||||||
|
$
|
-
|
$
|
-
|
$
|
2,832,401
|
$
|
2,832,401
|
Warrants Liability
|
||||
Value at December 31, 2015
|
$
|
59,202
|
||
Fair value adjustment of warrants during the three months end June 30, 2016
|
(44,348
|
)
|
||
Value at June 30, 2016
|
$
|
14,854
|
|
June 30,
|
December 31,
|
||||||
|
2016
|
2015
|
||||||
|
(unaudited)
|
|||||||
Raw materials
|
$
|
255,834
|
$
|
164,352
|
||||
Work in process
|
39,327
|
51,041
|
||||||
Finished goods
|
22,104
|
19,267
|
||||||
|
$
|
317,265
|
$
|
234,660
|
Buildings
|
30 years
|
Building improvements
|
30 years
|
Machinery & equipment
|
5-10 years
|
Furniture & fixtures and vehicles
|
5-10 years
|
|
June 30,
|
December 31,
|
||||||
|
2016
|
2015
|
||||||
|
(unaudited)
|
|||||||
Buildings
|
$
|
2,481,729
|
$
|
2,548,537
|
||||
Building improvements
|
5,372,548
|
5,517,178
|
||||||
Machinery & equipment
|
1,156,293
|
1,187,421
|
||||||
Furniture & fixtures
|
51,798
|
53,192
|
||||||
Vehicle
|
108,772
|
111,701
|
||||||
Construction in progress
|
470,342
|
483,004
|
||||||
|
$
|
9,641,482
|
$
|
9,901,033
|
||||
Less: Accumulated depreciation
|
(3,235,146
|
)
|
(3,090,100
|
)
|
||||
|
$
|
6,406,336
|
$
|
6,810,933
|
Land use rights
|
50 years
|
Proprietary technologies
|
10 years
|
|
June 30,
|
December 31,
|
||||||
|
2016
|
2015
|
||||||
|
(unaudited)
|
|||||||
Land use rights
|
$
|
2,999,308
|
$
|
3,083,608
|
||||
Proprietary technologies
|
15,518,238
|
16,065,254
|
||||||
|
18,517,546
|
19,148,862
|
||||||
Less: Accumulated amortization and impairment
|
(12,232,806
|
)
|
(12,270,075
|
)
|
||||
|
$
|
6,284,740
|
$
|
6,878,787
|
Years Ending December 31,
|
||||
2016
|
$
|
292,169
|
||
2017
|
584,338
|
|||
2018
|
584,338
|
|||
2019
|
584,338
|
|||
2020
|
105,175
|
|||
Thereafter
|
4,134,382
|
|
June 30,
|
December 31,
|
||||||
|
2016
|
2015
|
||||||
Current portion
|
||||||||
Other receivables and prepaid expenses
|
$
|
2,534
|
$
|
2,591
|
||||
|
||||||||
Non-current portion
|
||||||||
a) Deposits paid for intended acquisition of a health product material supplier
|
$
|
12,117,381
|
$
|
12,402,360
|
||||
b) Deposits paid for intended acquisition of a health product manufacturer
|
3,612,635
|
3,697,598
|
||||||
Deposits
|
$
|
15,730,016
|
$
|
16,099,958
|
a. | In December 2014, the Company signed a letter of intent to acquire 100% interest in a company in the PRC, which is principally engaged in supply of raw materials to produce health product, for an aggregate consideration of approximately $12.3 million (RMB 82 million) in cash. The completion of the acquisition is subject to the completion of a valuation report and certain conditions set out in the letter of intent being met. The deposit is fully refundable if certain conditions set out in the letter of intent are not met. The remaining balance of $0.2 million (RMB 1.5 million) was yet to settle by June 30, 2016. |
b. | 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 $8.7 million (RMB 56 million), consisting of approximately $4.7 million (RMB 30 million) in cash and shares of the Company’s common stock valued at approximately $4.0 million (RMB 26 million), the acquisition is in final stage and the Company is reviewing the draft of shares transfer agreement. It was yet to complete by June 30, 2016. |
|
|
Balance as at
|
||||||||
Inception date
|
Details
|
June 30,
2016
|
December 31,
2015
|
|||||||
|
|
|||||||||
May 26, 2014
|
RMB 20 million, one year term loan, annual interest rate at 7.80%. During the six months ended June 30, 2016, the Company paid interest of RMB 0.3 million. As of June 30, 2016, the Company had cumulatively repaid RMB 3.8 million and recorded accrued interest expenses of RMB 0.9 million.
|
$
|
2,431,172
|
$
|
2,773,199
|
|
Outstanding as at,
|
|||||||||||
Expiry date
|
Exercise Price
|
June 30, 2016
|
December 31, 2015
|
|||||||||
March 12, 2017
|
|
22.61
|
|
108,428
|
|
108,428
|
|
Weighted Average
|
|||||||||||
|
Number of options
|
Exercise Price ($)
|
Remaining Life (years)
|
|||||||||
Balance, December 31, 2015
|
6,762
|
26.39
|
0.54
|
|||||||||
Expires
|
(3,333
|
)
|
41.37
|
-
|
||||||||
Balance, June 30, 2016
|
3,429
|
11.76
|
0.75
|
|||||||||
Vested and exercisable as at June 30, 2016
|
3,429
|
11.76
|
0.75
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
||||||||||||||||
Basic loss per share:
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net loss used in computing basic earnings per share
|
$
|
(6,902,448
|
)
|
$
|
(492,427
|
)
|
$
|
(7,522,789
|
)
|
$
|
(652,531
|
)
|
||||
|
||||||||||||||||
Denominator:
|
||||||||||||||||
Weighted average common shares outstanding
|
2,210,913
|
2,210,913
|
2,210,913
|
2,210,913
|
||||||||||||
Basic loss per share
|
$
|
(3.12
|
)
|
$
|
(0.22
|
)
|
$
|
(3.40
|
)
|
$
|
(0.30
|
)
|
||||
|
||||||||||||||||
Diluted loss per share:
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net loss used in computing diluted earnings per share
|
$
|
(6,902,448
|
)
|
$
|
(492,427
|
)
|
$
|
(7,522,789
|
)
|
$
|
(652,531
|
)
|
||||
|
||||||||||||||||
Denominator:
|
||||||||||||||||
Weighted average common shares outstanding
|
2,210,913
|
2,210,913
|
2,210,913
|
2,210,913
|
||||||||||||
Diluted (loss) earnings per share
|
$
|
(3.12
|
)
|
$
|
(0.22
|
)
|
$
|
(3.40
|
)
|
$
|
(0.30
|
)
|
|
June 30,
|
December 31,
|
||||||
|
2016
|
2015
|
||||||
|
||||||||
Accumulated other comprehensive income, beginning of period
|
$
|
3,434,348
|
$
|
6,391,998
|
||||
Change in cumulative translation adjustment
|
(977,927
|
)
|
(2,957,650
|
)
|
||||
Accumulated other comprehensive income, end of period
|
$
|
2,456,421
|
$
|
3,434,348
|
|
Total capital
payment commitment
|
June 30,
2016
|
December 31,
2015
|
|||||||||
a) Three agreements with certain research institutes to conduct clinical trials for two new and one existing drugs.
|
$
|
2.0
|
$
|
0.8
|
$
|
0.8
|
||||||
b) In December 2014, the Company signed a letter of intent to acquire 100% interest in a company in the PRC, which is principally engaged in supply of raw materials to produce health product, for an aggregate consideration of approximately $12.3 million (RMB 82 million) in cash.
|
12.3
|
0.2
|
0.2
|
|||||||||
c) 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 $8.7 million (RMB 56 million), consisting of approximately $4.7 million (RMB 30 million) in cash and shares of the Company’s common stock valued at approximately $4.0 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.
|
8.7
|
5.1
|
4.9
|
|||||||||
Total capital payment commitment
|
$
|
6.1
|
$
|
5.9
|
Sales risks concentration
|
|||||||||
Percentage of total sales during the
|
|||||||||
Customer
|
Six Months Ended June 30,
|
||||||||
2016
|
2015
|
||||||||
A
|
0
|
%
|
42
|
%
|
|||||
B
|
100
|
%
|
8
|
%
|
|||||
Total risks concentration
|
100
|
%
|
50
|
%
|
|
Three Months Ended June 30,
|
%
|
||||||||||||||||||
|
2016
|
2015
|
change
|
|||||||||||||||||
Aoxing Pharmaceutical Products
|
%
|
%
|
||||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
-
|
-
|
%
|
$
|
5,838,067
|
41.2
|
%
|
(100.0
|
%)
|
||||||||||
Other Aoxing Pharmaceutical products
|
-
|
-
|
%
|
2,109,381
|
14.9
|
%
|
(100.0
|
%)
|
||||||||||||
Sub-total
|
$
|
-
|
-
|
%
|
$
|
7,947,448
|
56.1
|
%
|
(100.0
|
%)
|
||||||||||
|
||||||||||||||||||||
Shaanxi Weinan Products
|
620,138
|
100.0
|
%
|
153,925
|
1.1
|
%
|
302.9
|
%
|
||||||||||||
|
||||||||||||||||||||
Hospital products
|
-
|
-
|
%
|
7,219,943
|
50.9
|
%
|
(100.0
|
%)
|
||||||||||||
|
||||||||||||||||||||
Subtotal
|
$
|
620,138
|
100.0
|
%
|
$
|
15,321,316
|
50.9
|
%
|
(96.0
|
%)
|
||||||||||
Less provision for sales discount
|
$
|
-
|
-
|
%
|
$
|
(1,145,082
|
)
|
(8.1
|
%)
|
(100.0
|
%)
|
|||||||||
Net sales
|
$
|
620,138
|
100.0
|
%
|
$
|
14,176,234
|
100.0
|
%
|
(95.6
|
%)
|
|
Six Months Ended June 30,
|
%
|
||||||||||||||||||
|
2016
|
2015
|
change
|
|||||||||||||||||
Aoxing Pharmaceutical Products
|
%
|
%
|
||||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
-
|
-
|
%
|
$
|
9,112,452
|
43.2
|
%
|
(100.0
|
%)
|
||||||||||
*Other Aoxing Pharmaceutical products
|
-
|
-
|
%
|
3,117,727
|
14.8
|
%
|
(100.0
|
%)
|
||||||||||||
Sub-total
|
-
|
-
|
%
|
12,230,179
|
58.0
|
%
|
(100.0
|
%)
|
||||||||||||
|
||||||||||||||||||||
Shaanxi Weinan Products
|
1,421,765
|
100.0
|
%
|
580,320
|
2.8
|
%
|
145.0
|
%
|
||||||||||||
|
||||||||||||||||||||
Hospital products
|
-
|
-
|
%
|
9,419,564
|
44.7
|
%
|
(100.0
|
%)
|
||||||||||||
|
||||||||||||||||||||
Subtotal
|
$
|
1,421,765
|
100.0
|
%
|
$
|
22,230,063
|
105.4
|
%
|
(93.6
|
%)
|
||||||||||
Less provision for sales discount
|
$
|
-
|
-
|
%
|
$
|
(1,145,082
|
)
|
(5.4
|
%)
|
(100.0
|
%)
|
|||||||||
Net sales
|
$
|
1,421,765
|
100.0
|
%
|
$
|
21,084,981
|
100.0
|
%
|
(93.3
|
%)
|
|
Three Months Ended June 30,
|
%
|
||||||||||||||||||
|
2016
|
2015
|
change
|
|||||||||||||||||
Aoxing Pharmaceutical Products
|
%
|
%
|
||||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
-
|
-
|
%
|
$
|
1,018,591
|
12.4
|
%
|
(100.0
|
%)
|
||||||||||
Other Aoxing Pharmaceutical products
|
-
|
-
|
%
|
1,572,202
|
19.1
|
%
|
(100.0
|
%)
|
||||||||||||
Sub-total
|
$
|
-
|
-
|
%
|
$
|
2,590,793
|
31.5
|
%
|
(100.0
|
%)
|
||||||||||
|
||||||||||||||||||||
Shaanxi Weinan Products
|
321,250
|
100.0
|
%
|
136,004
|
1.7
|
%
|
136.2
|
%
|
||||||||||||
|
||||||||||||||||||||
Hospital products
|
-
|
-
|
%
|
5,510,758
|
66.9
|
%
|
(100.0
|
%)
|
||||||||||||
|
||||||||||||||||||||
Total cost of sales
|
$
|
321,250
|
100.0
|
%
|
$
|
8,237,555
|
100.0
|
%
|
(96.1
|
%)
|
|
Six Months Ended June 30,
|
%
|
||||||||||||||||||
|
2016
|
2015
|
change
|
|||||||||||||||||
Aoxing Pharmaceutical Products
|
%
|
%
|
||||||||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
-
|
-
|
%
|
$
|
1,580,876
|
13.7
|
%
|
(100.0
|
%)
|
||||||||||
Other Aoxing Pharmaceutical products
|
-
|
-
|
%
|
2,339,098
|
20.2
|
%
|
(100.0
|
%)
|
||||||||||||
Sub-total
|
$
|
-
|
-
|
%
|
$
|
3,920,074
|
33.9
|
%
|
(100.0
|
%)
|
||||||||||
|
||||||||||||||||||||
Shaanxi Weinan Products
|
777,907
|
100.0
|
%
|
403,334
|
3.5
|
%
|
92.9
|
%
|
||||||||||||
|
||||||||||||||||||||
Hospital products
|
-
|
-
|
%
|
7,241,644
|
62.6
|
%
|
(100.0
|
%)
|
||||||||||||
|
||||||||||||||||||||
Total cost of sales
|
$
|
777,907
|
100.0
|
%
|
$
|
11,565,052
|
100.0
|
%
|
(93.3
|
%)
|
|
Three Months Ended June 30,
|
|||||||||||||||
|
2016
|
2015
|
||||||||||||||
Aoxing Pharmaceutical Products
|
Gross Profit
|
Product Gross Margin %
|
Gross Profit
|
Product Gross Margin %
|
||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
-
|
-
|
%
|
$
|
4,819,476
|
82.6
|
%
|
||||||||
Other Aoxing Pharmaceutical products
|
-
|
-
|
%
|
537,179
|
25.5
|
%
|
||||||||||
Sub-total
|
$
|
-
|
-
|
%
|
$
|
5,356,655
|
67.4
|
%
|
||||||||
|
||||||||||||||||
Shaanxi Weinan Products
|
298,888
|
48.2
|
%
|
17,921
|
11.6
|
%
|
||||||||||
|
||||||||||||||||
Hospital products
|
-
|
-
|
%
|
1,709,185
|
23.7
|
%
|
||||||||||
|
||||||||||||||||
Subtotal
|
$
|
298,888
|
48.2
|
%
|
$
|
7,083,761
|
46.2
|
%
|
||||||||
Less provision for sales discount
|
$
|
-
|
-
|
%
|
$
|
(1,145,082
|
)
|
-
|
%
|
|||||||
Net sales
|
$
|
298,888
|
48.2
|
%
|
$
|
5,938,679
|
41.9
|
%
|
|
Six Months Ended June 30,
|
|||||||||||||||
|
2016
|
2015
|
||||||||||||||
Aoxing Pharmaceutical Products
|
Gross Profit
|
Product Gross Margin %
|
Gross Profit
|
Product Gross Margin %
|
||||||||||||
Xin Aoxing Oleanolic Acid Capsule
|
$
|
-
|
-
|
%
|
$
|
7,531,476
|
82.7
|
%
|
||||||||
Other Aoxing Pharmaceutical products
|
-
|
-
|
%
|
778,629
|
25.0
|
%
|
||||||||||
Sub-total
|
$
|
-
|
-
|
%
|
$
|
8,310,105
|
67.9
|
%
|
||||||||
|
||||||||||||||||
Shaanxi Weinan Products
|
643,858
|
45.3
|
%
|
176,986
|
30.5
|
%
|
||||||||||
|
||||||||||||||||
Hospital products
|
-
|
-
|
%
|
2,177,920
|
23.1
|
%
|
||||||||||
|
||||||||||||||||
Subtotal
|
$
|
643,858
|
45.3
|
%
|
$
|
10,665,011
|
48.0
|
%
|
||||||||
Less provision for sales discount
|
$
|
-
|
-
|
%
|
$
|
(1,145,082
|
)
|
100.0
|
%
|
|||||||
Net sales
|
$
|
643,858
|
45.3
|
%
|
$
|
9,519,929
|
45.2
|
%
|
|
Three months ended June 30,
|
|||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||
|
Operating expenses
|
% of net sales
|
Operating expenses
|
% of net sales
|
% change
|
|||||||||||||||
Advertising expenses
|
$
|
-
|
-
|
%
|
$
|
2,491,577
|
17.6
|
%
|
(100.0
|
%)
|
||||||||||
Selling expenses
|
290,047
|
46.8
|
%
|
2,310,314
|
16.3
|
%
|
(87.4
|
%)
|
||||||||||||
General and administrative expenses
|
539,433
|
87.0
|
%
|
1,183,795
|
8.4
|
%
|
(54.4
|
%)
|
||||||||||||
Allowance for doubtful debts
|
6,329,711
|
1,020.7
|
%
|
-
|
-
|
%
|
100.0
|
%
|
||||||||||||
Research and development expenses
|
-
|
-
|
%
|
1,026,177
|
7.2
|
%
|
(100.0
|
%)
|
||||||||||||
Total operating expenses
|
$
|
7,159,191
|
1,154.5
|
%
|
$
|
7,011,863
|
49.5
|
%
|
2.1
|
%
|
|
Six months ended June 30,
|
|||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||
|
Operating expenses
|
% of net sales
|
Operating expenses
|
% of net sales
|
% change
|
|||||||||||||||
Advertising expenses
|
$
|
-
|
-
|
%
|
$
|
3,868,741
|
18.3
|
%
|
(100.0
|
%)
|
||||||||||
Selling expenses
|
613,113
|
43.1
|
%
|
3,610,031
|
17.1
|
%
|
(83.0
|
%)
|
||||||||||||
General and administrative expenses
|
1,229,856
|
86.5
|
%
|
1,959,550
|
9.3
|
%
|
(37.2
|
%)
|
||||||||||||
Allowance for doubtful debts
|
6,329,711
|
445.2
|
%
|
-
|
-
|
%
|
100.0
|
%
|
||||||||||||
Research and development expenses
|
-
|
-
|
%
|
2,044,789
|
9.7
|
%
|
(100.0
|
%)
|
||||||||||||
Total operating expenses
|
$
|
8,172,680
|
574.8
|
%
|
$
|
11,483,111
|
54.5
|
%
|
(28.8
|
%)
|
|
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
|
-
|
-
|
-
|
|||||||||||||||
|
||||||||||||||||||||
Payment for intended acquisition of a health product material supplier
|
0.2
|
0.2
|
-
|
-
|
-
|
|||||||||||||||
|
||||||||||||||||||||
Payment for intended acquisition of a health product manufacturer
|
5.1
|
5.1
|
-
|
-
|
-
|
|||||||||||||||
|
||||||||||||||||||||
Total contractual obligations
|
$
|
6.1
|
6.1
|
$
|
-
|
-
|
-
|
|
BIOSTAR PHARMACEUTICALS, INC.
(Registrant)
|
||
|
|
|
|
Date: August 22, 2016
|
By:
|
/s/ Ronghua Wang
|
|
|
Ronghua Wang, Chief Executive Officer and President
(Principal Executive Officer)
|
|
Date: August 22, 2016
|
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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