China Pharma’s company’s gross profit increased by 18% to $4.69m as compared to $3.97m for the same quarter in 2009.
Operating income decreased by 79% to $689,213 from $3,363,417 for the quarter ended 30 September 2009, due to a substantial increase in selling and general administrative expenses resulting from a charge to stock-based compensation expense during the period in the amount of $2.22m.
As a result net income decreased by 65.5% to $952,003, as compared to $2.76m for the quarter ended 30 September 2009.
Meanwhile, gross profit margins improved and total liabilities decreased.
China Pharmaceuticals chairman and CEO Guozhu Wang said they are confident that their strong cash and working capital position and lack of long-term debt will provide them with the flexibility needed to continue to maintain growth trajectory through organic growth.