Skystar Bio-Pharmaceutical reports gross profit for the second quarter of $3.3m, up 42% from the second quarter of 2008. Gross margin for the quarter was 52.6%, compared to 51.6% in the comparable 2008 period.
Net loss for the period was $117,000, or $0.06 per share, compared to a net loss of $126,000, or $0.07 per share, in the second quarter of 2008.
Weibing Lu, chairman and chief executive officer of Skystar, said: “With our recent listing on the NASDAQ Capital Market, we are pleased to be the only China-based company in our growing industry that trades on a US exchange. As the animal farming industry in China continues to grow, we are expecting to scale our business to meet this increasing demand. We are continuing to execute on our plans to expand our manufacturing capacity and increase our market penetration through an increase in our sales efforts.
Our revenue increase in the second quarter was largely attributable to the utilization of the veterinary medicine facility expansion completed in 2007 and increased sales efforts. We have an established and growing distribution network that services our diverse customer base of more than 1,500 throughout all of the farm producing provinces in China. With more than 350 franchise stores with nationally recognized branding and few direct competitors, we are well positioned as an industry leader.
We are in the process of completing our vaccine manufacturing facility and expanding our existing micro-organism facilities, which are expected to be completed later this year. Once completed, the vaccine facility is expected to increase our vaccine production capacity by 2,300%, from 250 million units to 6 billion units, with a will have a projected increase in revenue of $14 million and related gross margins of 60-70% in 2010. Our micro-organism facility expansion is anticipated to increase our micro-organism and feed additives production capacity by 48.7% and add $2.7 million in revenue with a gross margin of 70% in 2010, Mr. Lu added.