/EINPresswire.com/ -- FOSTER CITY, CA -- (Marketwired) -- 05/16/16 -- Aoxing Pharmaceutical Company, Inc. (NYSE MKT: AXN) today announced that for the third quarter of fiscal year 2016, ended March 31, 2016, the Company reported revenues of $6,563,944, a modest decline of 0.4% year-over-year from the revenues of $6,590,736 realized during the three months ended March 31, 2015. When the revenues are stated in the local currency (RMB), revenues in the fiscal third quarter increased 6.5% year-over-year. Fiscal third quarter is a relatively slow quarter, mainly due to reduced sales activities during the Chinese New Year holidays, which typically happen during January and February. Also, we noticed that there was some impact of timing on revenue, as several key orders were shifted from the fiscal third quarter to the fiscal fourth quarter. We also noted that inventories in the distribution channels were relatively low at the end of the fiscal third quarter 2016, which is usually a good predictor of increased sales activities in the following quarter.

The Company's net income in Q3 of fiscal year 2016 was $622,720, or $0.01 per share, compared to $777,976, or $0.01 per share, for the three months ended March 31, 2015.

Aoxing's cash balance as of March 31, 2016 was $6,046,327, compared to $5,371,545 as of June 30, 2015, the end of its last fiscal year.

Mr. Zhenjiang Yue, Chairman and CEO of Aoxing Pharma, said, "While fiscal third quarter is a relatively slow quarter due to Chinese New Year holidays, we do see a significant revenue growth for our products other than Zhongtong'an. We believe strong sales growth for our Zhongtong'an product will continue in the fiscal fourth quarter, and we are still trying to achieve our sales target for the fiscal year 2016 despite the slowdown in sales growth in the third quarter of fiscal year 2016. For our Tilidine tablets, we are now near the end of the preparation work. The Tilidine tablets from the API procurement and production to distribution are regulated and tracked by the relevant government agencies, and we have recently received the related documentation from the government. At this point, we expect Tilidine tablet production to start by the end of the fiscal year 2016."

About the Company:

Aoxing Pharmaceutical Company, Inc. is a U.S. incorporated pharmaceutical company with its operations in China, specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, outside Beijing, Aoxing Pharma has the largest and most advanced manufacturing facility in China for highly regulated narcotic medicines. Its facility is one of the few GMP facilities licensed for the manufacture of narcotic medicines by the China Food and Drug Administration ("CFDA"). For more information, please visit: www.aoxingpharma.com.

Safe Harbor Statement:

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and so these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume any duty to update these forward-looking statements.

              AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS

                                             March 31,         June 30,
                                               2016              2015
                                         ----------------
                 ASSETS                     (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents                $      6,046,327  $      5,371,545
Accounts receivable, net                        9,003,401         5,764,738
Notes receivable, net                              16,678            89,317
Inventories, net                                3,761,697         3,240,026
Prepaid expenses and other current
 assets                                        10,490,462         6,630,407
                                         ----------------
TOTAL CURRENT ASSETS                           29,318,565        21,096,033
                                         ----------------

LONG-TERM ASSETS:
Property and equipment, net of
 accumulated depreciation                      26,589,023        28,651,717
Deferred income tax                             1,087,218         2,711,610
Other intangible assets, net                    1,905,169           484,857
Investment in joint venture                        29,036            96,475
                                         ----------------
TOTAL LONG-TERM ASSETS                         29,610,446        31,944,659
                                         ----------------
TOTAL ASSETS                             $     58,929,011  $     53,040,692
                                         ================

  LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Short-term borrowings                    $     11,513,301  $     12,484,356
Accounts payable                                2,566,203         3,625,139
Notes payable                                                     1,631,641
Loan payable - bank                            15,035,344        16,316,408
Current portion of loan payable -
 related parties                                   13,544             5,793
Current portion of loan payable - others           15,502                 -
Accrued expenses and other current
 liabilities                                    8,884,490         7,176,325
                                         ----------------
TOTAL CURRENT LIABILITIES                      38,028,384        41,239,662
                                         ----------------

LONG-TERM LIABILITIES:
Loan payable - related parties                          -             8,158
Loan payable - others                                   -         1,361,199
Deferred income                                   350,344           368,751
                                         ----------------
TOTAL LONG-TERM LIABILITIES                       350,344         1,738,108
                                         ----------------

Common stock, par value $0.001,
 100,000,000 shares authorized,
 72,252,200 and 69,839,259 shares issued
 and outstanding on September 30, 2015
 and June 30, 2015                                 76,209            69,839
Additional paid in capital                     73,582,257        66,457,250
Accumulated deficit                           (54,395,676)      (58,354,968)
Accumulated other comprehensive income          2,257,488         3,066,026
                                         ----------------
TOTAL SHAREHOLDERS' EQUITY OF THE
 COMPANY                                       21,520,278        11,238,147

NONCONTROLLING INTEREST IN SUBSIDIARIES          (969,994)       (1,175,225)
                                         ----------------
TOTAL EQUITY                                   20,550,284        10,062,922
                                         ----------------

TOTAL LIABILITIES AND SHAREHOLDERS'
 EQUITY                                  $     58,929,012  $     53,040,692
                                         ================


              AOXING PHARMACEUTICAL CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
                                (Unaudited)

                              For the three months     For the nine months
                                     ended                    ended
                                   March 31,                March 31,
                                2016        2015        2016        2015
                            -----------  ----------  ----------

SALES                       $ 6,563,944   6,590,736  23,504,605  17,586,519
COST OF SALES                 1,630,389   1,078,200   5,115,060   4,090,586
                            -----------  ----------  ----------
GROSS PROFIT                  4,933,555   5,512,536  18,389,545  13,495,933
                            -----------  ----------  ----------

OPERATING EXPENSES:
  Research and development
   expense                      (35,743)     73,970   1,171,668     277,117
  General and
   administrative expenses    1,195,094     662,065   2,650,579   1,994,560
  Selling expenses            2,125,771   2,548,848   6,109,982   5,527,281
  Depreciation and
   amortization                 121,723     135,973     381,379     416,049
   TOTAL OPERATING EXPENSES   3,406,845   3,420,856  10,313,608   8,215,007
                            -----------  ----------  ----------

INCOME FROM OPERATIONS        1,526,710   2,091,680   8,075,937   5,280,926
                            -----------  ----------  ----------

  OTHER INCOME (EXPENSE):
  Interest expense, net of
   interest income             (600,572) (1,246,920) (2,509,508) (4,068,200)
  Gain on foreign currency
   transactions                 (83,345)
  Equity in loss of joint
   venture, net                 (24,286)    (19,688)    (63,051)    (67,677)
  Subsidy income                 (2,126)      4,866     202,901     284,439
                            -----------  ----------  ----------
   TOTAL OTHER EXPENSE         (710,329) (1,261,742)  2,369,658  (3,851,438)
                            -----------  ----------  ----------

INCOME BEFORE INCOME TAXES      816,381     829,938   5,706,279   1,429,488

Income tax expense              146,005               1,499,201
                            -----------  ----------  ----------

NET INCOME                      670,376     829,938   4,207,078   1,429,488

Net income attributed to
 non-controlling interest
 in subsidiaries                 47,656      51,962     247,785      92,213
                            -----------  ----------  ----------
INCOME ATTRIBUTABLE TO
 SHAREHOLDERS OF THE
 COMPANY                        622,720     777,976   3,959,293   1,337,275

OTHER COMPREHENSIVE INCOME
 (LOSS):
  Foreign currency
   translation adjustment       572,478      14,766    (851,093)     50,284
                            -----------  ----------  ----------

COMPREHENSIVE PROFIT          1,195,198     792,742   3,108,200   1,387,559
                            -----------  ----------  ----------

Other comprehensive income
 (loss) attributable to
 non-controlling interest        28,624         738     (42,555)      2,514
                            -----------  ----------  ----------

COMPREHENSIVE INCOME
 ATTRIBUTABLE TO THE
 COMPANY                    $ 1,166,574     792,004   3,150,755   1,385,045
                            ===========  ==========  ==========

EARNINGS PER SHARE
                            ===========  ==========  ==========
Basic                       $      0.01        0.01        0.05        0.02
                            ===========  ==========  ==========
Diluted                     $      0.01        0.01        0.05        0.02
                            ===========  ==========  ==========
WEIGHTED AVERAGE SHARES
 OUTSTANDING
                            ===========  ==========  ==========
Basic                        75,670,953  67,638,657  72,863,479  60,907,137
                            ===========  ==========  ==========
Diluted                      75,749,890  67,676,783  72,942,416  60,951,616
                            ===========  ==========  ==========

SOURCE: Aoxing Pharmaceutical Company, Inc.

CONTACT:

Aoxing Pharmaceutical Company:
646-367-1747
investor.relations@aoxingpharma.com

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