China Pharmaceuticals Inc., a leading manufacturer and distributor of prescription and over-the-counter pharmaceuticals, today announced record financial results for its second quarter ended June 30, 2010.

The company reported total revenue for the quarter of $10.44 million, up 105 percent from $5.08 million reported for the second quarter of 2009.

Gross profit increased 89 percent to $6.08 million, up from $3.21 million reported for the comparable period of last year.

Operating income grew 204 percent to $6.35 million as compared to $2.08 million reported for the second quarter ended June 30, 2009.

China Pharmaceuticals’ net income increased 208 percent to $5.37 million, or diluted earnings per share of $0.16, as compared to 2009 second-quarter net income of $1.74 million, or diluted earnings per share of $0.06.

“We are extremely delighted to report a strong second quarter of 2010, with revenues and net income significantly exceeding our expectations. We continue to believe that the factors that contributed to this performance were strong sales from our new products and the highly effective restructuring of our sales and marketing network. …,” stated Guozhu Wang, chairman and CEO of China Pharmaceuticals stated in the press release. “We are focused on continuing to expand our portfolio of high margin products and aggressively expanding our sales and marketing network that will allow us to continue to build sustainable growth in revenues and profits.”

As of June 30, 2010, the company had $6.73 million in cash. Working capital increased 94 percent to $17.94 million, up from $9.24 million as of December 31, 2009. Long-term debt remains at Nil. Shareholders’ equity as of June 30, 2010 was $36.88 million, as compared to $28.62 million at the end of December 31, 2009. Total assets as of June 30, 2010 amounted to $40.13 million.

China Pharmaceuticals also noted its optimism for the remainder of fiscal 2010, saying that it expects continued growth and expansion.

“Fiscal 2010 continues to be a transitional year for China Pharmaceuticals as we prepare for the introduction of new drugs, and pursue additional opportunities for both organic growth and potential strategic acquisitions. Our current outlook reflects only the drugs that we have in hand today and will be subject to update as we execute strategic initiatives to expand our market position and profitability in the future. Based on our performance to date, we continue to remain extremely optimistic regarding our future growth prospects and look forward to sharing further details with our shareholders as we proceed with our expansion plans,” Guozhu Wang stated.

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