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 Tracking 1250 U.S. listed China Stocks and Counting...
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 Hubei Minkang (PINK:HBMK)

Friday, August 15, 2014
Comments & Business Outlook
Hubei Minkang Pharmaceutical Ltd.
 
 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, 2014
   
June 30, 2014
   
June 30, 2013
   
June 30, 2013
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
                         
Revenue
  $ 4,566,647     $ 1,681,211     $ 6,676,692     $ 3,945,140  
                                 
Cost of Goods Sold
                               
Cost of goods sold
    2,822,523       1,146,385       3,693,278       2,075,432  
Inventory obsolescence and markdowns
    -       -       367,786       367,786  
                                 
Cost of Goods Sold
    2,822,523       1,146,385       4,061,064       2,443,218  
                                 
Gross Margin
    1,744,124       534,826       2,615,628       1,501,922  
                                 
Operating Expenses
                               
Selling expenses
    929,633       382,356       1,285,717       722,191  
Professional fees
    65,767       15,767       107,667       63,458  
Research and development
    30,430       21,219       21,466       10,153  
General and administrative expenses
    1,404,940       705,385       1,486,829       742,085  
                                 
Total operating expenses
    2,430,770       1,124,727       2,901,679       1,537,887  
                                 
Loss from Operations
    (686,646 )     (589,901 )     (286,051 )     (35,965 )
                                 
Other (Income) Expense:
                               
Government grants - energy conservation
    (27,368 )     (13,630 )     (26,884 )     (13,541 )
Interest income
    (15,654 )     (7,732 )     (14,451 )     (7,404 )
Interest expense
    109,552       54,937       110,789       54,176  
Forgiveness of debt
    -       -       (180,000 )     (180,000 )
Other (income) expense
    (43,297 )     8,338       362       432  
                                 
Other (income) expense, net
    23,233       41,913       (110,184 )     (146,337 )
                                 
Loss before Income Tax Provision
    (709,879 )     (631,814 )     (175,867 )     110,372  
                                 
Income Tax Provison
    17,477       13,258       (119,476 )     (119,476 )
                                 
Net Income (Loss)
    (727,356 )     (645,072 )     (56,391 )     229,848  
                                 
Other Comprehensive Income (Loss)
                               
Foreign currency translation gain (loss)
    (81,595 )     13,946       219,142       164,135  
                                 
Total other comprehensive income (loss)
    (81,595 )     13,946       219,142       164,135  
                                 
Comprehensive Income (Loss)
  $ (808,951 )   $ (631,126 )   $ 162,751     $ 393,983  
                                 
Net Income (Loss) Per Common Share - Basic and Diluted
  $ (0.01 )   $ (0.01 )   $ (0.00 )   $ 0.00  
                                 
Weighted average common shares outstanding:
                               
- basic and diluted
    52,189,045       52,189,045       52,189,045       52,189,045  

Management Discussion and Analysis

Revenues

We had sales of $1,681,211 for the three month period ended June 30, 2014 as compared to sales of $3,945,140 for the three month period ended June 30, 2013. The decrease in sales was mainly due to decreased production of our major products Yinxing Damo Zhusheye and An Ka Huangmin Jiaonang. Specifically, Yinxing Damo Zhusheye accounted for $552,511 of sales revenue for the three month period ended June 30, 2014 and $2,782,993 of sales revenue for the three month period ended June 30, 2013; An Ka Huangmin Jiaonang accounted for $254,064 of sales revenue for the three month period ended June 30, 2014 and $ $509,273 of sales revenue for the three month period ended June 30, 2013. The decrease in the sales of Yinxing Damo Zhusheye was caused by low stock of inventory. In accordance with the National Medicine Administration Law of the People's Republic of China, all manufacturers of pharmaceutical products are required to comply with applicable Good Manufacturing Practices (“GMP”) certifications and renew GMP Certificates every five years. The Company’s GMP certification for Yinxing Damo Zhusheye expired on December 31, 2013, and therefore can no longer engage in producing this product. The Company is working on obtaining required GMP certificate. Yinxing Damo Zhusheye sold during this quarter was produced before December 31, 2013. The decrease in sales of An Ka is believed to be a result of seasonal fluctuation in demand.


Net Income (Loss)

Our net loss was $645,072 for the three months ended June 30, 2014 as compared to a net income of $229,848 for three months ended June 30, 2013. The decrease in our net income of $874,920 resulted primarily from a decrease in sales of our major products Yinxing Damo Zhusheye and An Ka Huangmin Jiaonang. The sales of Yinxing Damo Zhusheye decreased by $2,230,482 for the three months ended June 30, 2014, compared to the three months ended June 30, 2013; The sales of An Ka Huangmin Jiaonang decreased by $255,209 for the three months ended June 30, 2014, compared to the three months ended June 30, 2013.


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:
&nbs