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 Tracking 1239 U.S. listed China Stocks and Counting...
 Tracking 3053 U.S. Stocks and Counting...

 Hubei Minkang (PINK:HBMK)

Tuesday, May 20, 2014
Comments & Business Outlook
 
Consolidated Statements of Operations and Comprehensive Income
 
   
For the Three Months
   
For the Three Months
 
   
Ended
   
Ended
 
   
March 31,
2014
   
March 31,
2013
 
   
(Unaudited)
   
(Unaudited)
 
             
Net Revenues
  $ 2,885,436     $ 2,731,552  
                 
Cost of Goods Sold
    1,676,138       1,617,846  
                 
Gross Margin
    1,209,298       1,113,706  
                 
Operating Expenses
               
Selling expenses
    547,277       563,526  
Professional fees
    50,000       44,209  
Research and development
    9,211       11,313  
General and administrative expenses
    699,555       744,744  
                 
Total operating expenses
    1,306,043       1,363,792  
                 
Income (Loss) from Operations
    (96,745 )     (250,086 )
                 
Other (Income) Expense:
               
Government grants - energy conservation
    (13,738 )     (13,343 )
Interest income
    (7,922 )     (7,047 )
Interest expense
    54,615       56,613  
Other (income) expense
    (51,635 )     (70 )
                 
Other (income) expense, net
    (18,680 )     36,153  
                 
Income (Loss) before Income Tax Provision
    (78,065 )     (286,239 )
                 
Income Tax Provison
    4,219       -  
                 
Net Income (Loss)
    (82,284 )     (286,239 )
                 
Other Comprehensive Income (Loss)
               
Foreign currency translation gain (loss)
    (95,541 )     55,007  
                 
Total other comprehensive income (loss)
    (95,541 )     55,007  
                 
Comprehensive Income (Loss)
  $ (177,825 )   $ (231,232 )
                 
Net Income (Loss) Per Common Share - Basic and Diluted
  $ (0.00 )   $ (0.01 )
                 
Weighted average common shares outstanding:
               
- basic and diluted
    52,189,045       52,189,045  

Management Discussion and Analysis

Three Months Ended March 31, 2014 Compared to Three Months Ended March 31, 2013

Revenues

We had sales of $2,885,436 for the three month period ended March 31, 2014 as compared to sales of $2,731,552 for the three month period ended March 31, 2013.  The increase in sales was mainly attributable to increased sales of the product An Ka Huangmin Jiaonang.  The product Yinxing Damo Zhusheye accounted for $1,442,718 of sales revenue for the three month period ended March 31, 2014 and $1,515,936 of sales revenue for the three month period ended March 31, 2013.  An Ka Huangmin Jiaonang accounted for $721,359 of sales revenue for the three month period ended March 31, 2014 and $ $543,831 of sales revenue for the three month period ended March 31, 2013.

We had total cost of goods sold of $1,676,138 for the three months ended March 31, 2014 as compared to $1,617,846 for the three month ended March 31, 2013. The increase of cost of goods sold was mainly due to the increase in the cost of raw material of our major product An Ka Huangmin.

We had gross profit of $1,209,298 for the three months ended March 31, 2014 as compared to gross profit of $1,113,706 for the three months ended March 31, 2013. Our gross profit increased principally as a result of the increase in sales of An Ka Huangmin for the three months ended March 31, 2014.


Net Income (Loss)

Our net income (loss) was ($82,284) and ($286,239) for three months ended March 31, 2014 and 2013, respectively.  The increase in net income of $203,955 resulted primarily from an increase in sales of An Ka Huangmin Jiaonang. The sales of An Ka Huangmin Jiaonang increased by $177,528 for the three months ended March 31, 2014, compared to the three months ended March 31, 2013.


Wednesday, April 16, 2014
Comments & Business Outlook
Consolidated Statements of Operations and Comprehensive Income
 
   
For the Year Ended
   
For the Year Ended
 
   
December 31,
2013
   
December 31,
2012
 
             
             
Net Revenues
  $ 14,742,964     $ 13,918,655  
                 
Cost of Goods Sold
               
Cost of goods sold
    8,314,457       6,961,109  
Inventory obsolescence and markdowns
    139,112       201,840  
                 
Cost of Goods Sold
    8,453,569       7,162,949  
                 
Gross Margin
    6,289,395       6,755,706  
                 
Operating Expenses
               
Selling expenses
    2,785,574       2,342,384  
Professional fees
    160,207       154,837  
Research and development
    81,630       43,532  
General and administrative expenses
    3,220,031       3,190,639  
                 
Total operating expenses
    6,247,442       5,731,392  
                 
Income (Loss) from Operations
    41,953       1,024,314  
                 
OTHER (INCOME) EXPENSE:
               
Government grants - energy conservation
    (54,235 )     (38,002 )
Interest income
    (30,677 )     (22,376 )
Interest expense
    221,352       236,845  
Forgiveness of debt
    (180,000 )     (130,634 )
Other (income) expense
    12,043       23,676  
                 
Other (income) expense, net
    (31,517 )     69,509  
                 
Income (Loss) before Income Tax Provision
    73,470       954,805  
                 
Income Tax Benefit (net of credit of $120,429)
    (53,798 )     (6,315 )
                 
Net Income
    127,268       961,120  
                 
Other Comprehensive Income
               
Foreign currency translation gain
    347,050       68,420  
                 
Total other comprehensive income
    346,290       68,420  
                 
Comprehensive Income
  $ 474,318     $ 1,029,540  
                 
Net Income Per Common Share - Basic and Diluted
  $ 0.00     $ 0.02  
                 
Weighted average common shares outstanding - basic and diluted
    52,189,045       43,757,431  

Management Discussion and Analysis

Revenues

Hubei Minkang PRC had sales of $14,742,964 and total cost of goods sold of $8,314,457 for the year ended December 31, 2013 as compared to sales of $13,918,655 and total cost of goods sold of $6,961,109 for the year ended December 31, 2012. The increase in sales was mainly due to increased sales of Yinxing Dame Zhusheye. Yinxing Dame Zhusheye accounted for $9,288,067 of sales revenue in the year ended December 31, 2013 and $8,615,647 of sales revenue in the year ended December 31, 2012. An Ka Huangmin Jiaonang accounted for $2,506,304 of sales revenue in the year ended December 31, 2013 and $1,990,368 of sales revenue in the year ended December 31, 2012.

Hubei Minkang PRC recorded inventory obsolescence and markdown expenses of $139,112 for the year ended December 31, 2013 and $201,840 for the year ended December 31, 2012. Hubei Minkang PRC had gross profit of $6,289,392 for the year ended December 31, 2013 as compared to gross profit of $6,755,706 for the year ended December 31, 2012.


Net Income (Loss)

The net income (loss) was $127,268 and $961,120 for the fiscal years ended December 31, 2013 and 2012, respectively. The decrease in net income of $833,852 resulted primarily from an increase of cost of goods sold, increase in selling expenses, increase in professional fees, increase in research and development expenses and increase of general and administrative expenses. The sales of Yinxing Dame Zhusheye increased by $672,420 for the fiscal year ended December 31, 2013, compared to the fiscal year ended December 31, 2012. The sales of An Ka Huangmin Jiaonang increased by $515,936 for the fiscal year ended December 31, 2013, compared to the fiscal year ended December 31, 2012.


Thursday, August 15, 2013
Comments & Business Outlook
 Consolidated Statements of Operations and Comprehensive Income
 
   
For the Six Months
   
For the Three Months
   
For the Six Months
   
For the Three Months
 
   
Ended
   
Ended
   
Ended
   
Ended
 
   
June 30, 2013
   
June 30, 2013
   
June 30, 2012
   
June 30, 2012
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
                         
 Net Revenues
  $ 6,676,692     $ 3,945,140     $ 5,786,181     $ 3,098,242  
                                 
 Cost of Goods Sold
    -                          
 Cost of goods sold
    3,693,278       2,075,432       2,827,456       1,363,152  
 Inventory obsolescence
    367,786       367,786       -       -  
                                 
 Cost of Goods Sold
    4,061,064       2,443,218       2,827,456       1,363,152  
                                 
 Gross Margin
    2,615,628       1,501,922       2,958,725       1,735,090  
                                 
 Operating Expenses
                               
 Selling expenses
    1,285,717       722,191       879,966       524,587  
 Professional fees
    107,667       63,458       91,385       25,536  
 Research and development
    21,466       10,153       29,471       20,140  
 General and administrative expenses
    1,486,829       742,085       1,407,049       751,697  
                                 
 Total operating expenses
    2,901,679       1,537,887       2,407,871       1,321,960  
                                 
 Income(Loss) from Operations
    (286,051 )     (35,965 )     550,854       413,130  
                                 
 OTHER (INCOME) EXPENSE:
                               
 Government grants - energy conservation
    (26,884 )     (13,541 )     (12,532 )     (7,267 )
 Interest income
    (14,451 )     (7,404 )     (8,321 )     (4,085 )
 Interest expense
    110,789       54,176       114,484       58,676  
 Forgiveness of debt
    (180,000 )     (180,000 )     -       -  
 Other (income) expense
    362       432       (7,394 )     (12,642 )
                                 
 Other (income) expense, net
    (110,184 )     (146,337 )     86,237       34,682  
                                 
 Income (Loss) before Income Tax Provision
    (175,867 )     110,372       464,617       378,448  
                                 
 Income Tax Provison
    (119,476 )     (119,476 )     (38,619 )     (91,364 )
                                 
 Net Income (Loss)
    (56,391 )     229,848       503,236       469,812  
                                 
 Other Comprehensive Income
                               
 Foreign currency translation gain (loss)
    219,142       164,135       55,591       4,496  
                                 
 Total other comprehensive income
    219,142       164,135       55,591       4,496  
                                 
 Comprehensive Income (Loss)
  $ 162,751     $ 393,983     $ 558,827     $ 474,308  
                               </