American Oriental Bioengineering Reports Record Year-End Results
American Oriental Bioengineering Reports Record Year-End Results
53.2% Increase in Annual Revenue Leads to Net Income Increase of 33.3%; Company Generates Net Income of $0.20 Per Share
8 April 2005
HONG KONG, /Xinhua-PRNewswire-FirstCall/ -- American Oriental Bioengineering Inc. (OTC Bullentin Board: AOBO), a leading Chinese company which produces and distributes a broad range of plant based pharmaceutical and nurtriceutical products, today reported year-end results for the period ended December 31, 2004.
For the fiscal year ended December 31, 2004, the Company had revenue of $32.0 million, a 53.2% increase over fiscal 2003 revenue of $20.9 million. The Company had net income of $7.8 million, or $0.23 per basic share ($0.20 per diluted share), compared with net income of $4.6 million, or $0.15 per basic and diluted share.
The Company ended fiscal 2004 with its strongest balance sheet ever, with cash and cash equivalents of $11.4 million, compared to $5.4 million at the end of fiscal 2003.
"2004 was a record year for the Company," said Tony (Shujun) Liu, chairman and chief executive officer of American Oriental Bioengineering , Inc. 'However, we are even more excited by 2005, as we expect that the acquisition of Heilongjiang Songhuajiang will create powerful synergies with our existing business, allowing us to enter new markets. We believe that with the steady growth of the Chinese economy and privatization, we are well positioned to pursue continued growth.
Some of the 2004 highlights included:

The Company acquired Heilongjiang Songhuajiang Pharmaceutical Co., Ltd. ('HSPL') for $7.2 million in cash, formerly a Chinese state-owned pharmaceutical company. HPSL has well known brands of pharmaceutical products in China, and has been in business for over 50 years.
The Company completed a $6 million private placement to institutional and other accredited investors.
The Company achieved ISO9001 certification for its multi-functional beverage and soybean protein peptide manufacturing facilities and processes. The International Standardization Organization quality management standard, ISO9001, is a set of internationally recognized quality management system requirements that provide guidelines for consistent quality management practices across international borders.
The Chinese government recognized the Company's Soybean Protein Peptide as a strategic product for development.
On August 28, 2004 American Oriental Bioengineering Inc. won an award of the First Golden Phoenix Competition in China based on its business performance and marketing achievements. AOBO was also named as the Best Chinese Enterprise for sales and marketing strategy.
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering, Inc. is a leading Chinese developer and distributor of plant based pharmaceutical and nutriceutical products using natural plants and organic soybeans as raw materials. The company has two product lines with over 100 products. The first category covers plant-based pharmaceuticals including Shuanghuanglian Lyophilize Powder Injectible, and Cease-Enuresis Soft Gel. The second category covers nutriceuticals including a series of soy protein peptide products and health supplements. The products can be delivered in forms of injections, tablets, capsules, powder, and oral liquids.
American Oriental Bioengineering, Inc.'s product offering is based on three proprietary technologies -- a unique process to extract soybean peptide more efficiently than using traditional techniques. Cease-Enuresis Soft Gel is currently the only first category prescription natural plant medicine to treat bed-wetting and incontinence approved by the Chinese Food and Drug Administration. Shuanghuanglin Lyophilized Powder Injectable is one of the only two Chinese government approved Huangqi etc. herbs-based anti-viral injection in China. The Company is a leading producer of products in both the nutriceuticals and pharmaceuticals areas in China.
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