Biostar Pharmaceuticals has posted revenue of $13.2m for the second quarter of 2009, an increase of 40.6% compared to $9.4m for the second quarter of 2008. The company yielded gross profits of $9.7m, compared to $5.4m during the second quarter of fiscal 2008. Gross profits grew by 80.5% on a year-over-year basis.
For the second quarter of 2009, net income was $3.9m, a 119.3% increase as compared to $1.8m for the second quarter of 2008. Diluted earnings per share were $0.16 compared to $0.08 for the second quarter of 2009 and 2008, respectively.
For the six months ended June 30, 2009, revenues increased 27.5% to $20.7m compared to the same period in 2008. Gross profit of the company was $14.5m for the first six months of 2009, representing an increase of 51.9% from the first six months of 2008.
Net income was $5.7m for the six months ended June 30, 2009, an increase of approximately 58.8% from the same period in 2008.
Ronghua Wang, chairman and chief executive officer of Biostar, said: We are very pleased to report strong revenue and net income growth and further improvement in our gross margins which benefited from the success of our overall marketing strategy and solid sales increases, especially in Xin Aoxing Capsule. We anticipate that our strategy will increase sales and that allocating incremental dollars to our marketing budget will improve our brand while allowing us to successfully penetrate new target markets which eventually translate into both strong top and bottom-line growth.”
The Chinese government recently announced a new health care reform plan and will invest $123 billion between 2009 and 2011 with a stated goal of covering 90% of the urban and rural residents with basic medical insurance. With continued marketing efforts, an expanding product portfolio and strong demand for our hepatitis-B product, we are ideally positioned to capitalize on the long-term secular growth occurring in our industry.
We are making progress on all aspects of our business. From commencing construction for our new raw material processing facility, to establishing 1,320 rural sales outlets, to receiving three new product approvals which further diversifies our portfolio, we have set the foundation for long-term growth and profitability in our business. We remain focused on introducing higher margin products and building brand value which will enable us to achieve further market share gains, added Mr. Wang.