Report Shows 88% Increase in Net Income and Doubling of Net Margins
SANTA MONICA, Calif., April 1, 2008 /PRNewswire-FirstCall/ -- Aida
Pharmaceuticals, Inc. (OTC:AIDA) (BULLETIN BOARD: AIDA) today
announced a summary of its fiscal 2007 Annual Report on Form
10-KSB, which was filed with the Securities and Exchange Commission
on March 31, 2008. In fiscal 2007, revenue decreased by 1.48%
compared with fiscal 2006's revenue of $29,643,103. However, income
from operations in fiscal 2007 increased by approximately 38.33% to
$5,445,246 compared with $3,936,378 in fiscal 2006. Net income in
fiscal 2007 also increased to $2,739,825 from $1,453,584 in fiscal
2006, an approximately 88.49% increase. Aida Pharmaceutical, Inc.'s
net profit margin in fiscal 2007 was approximately 9.38% as
compared to approximately 4.90% in fiscal 2006, which showed that
it was more profitable in fiscal 2007. Financial Data of Aida
Pharmaceutical, Inc. in fiscal 2007 and fiscal 2006 2006 2007
Revenue 29,643,103 29,203,786 Income from operation 3,936,278
5,445,246 Income before tax 2,322,597 4,683,353 Net income
1,453,584 2,739,825 Net Profit Margin 4.90% 9.38% Comparison
Between Fiscal Quarters in 2007 The revenue of Aida Pharmaceutical,
Inc. in the first fiscal quarter ("Q1"), second fiscal quarter
("Q2"), third fiscal quarter ("Q3") and fourth fiscal quarter
("Q4") of 2007 was $5,296,176, $6,419,476, $7,373,770 and
$10,114,364 respectively. Q3's revenue was 14.87% higher than Q2's
revenue and, compared with Q1, Q2 and Q3, the revenue in Q4
increased by 90.97%, 57.56% and 37.17% respectively. Aida
Pharmaceutical, Inc.'s gross profit in Q1, Q2, Q3 and Q4 was
$2,343,660, $2,814,190, $3,816,085 and $5,739,169, respectively. In
Q4, gross profit increased by 146.99%, 103.94% and 50.39% compared
with Q1, Q2 and Q3 respectively. Aida Pharmaceutical, Inc.'s gross
margin was 43.87%, 43.84%, 51.75% and 50.31% in Q1, Q2, Q3 and Q4,
respectively. Although Q2's gross margin decreased marginally as
compared with Q1, Q3's profit margin of 51.75% was much improved
over Q1 and Q2. Q4's gross margin decreased marginally to 50.31% as
compared with 51.75% for Q3. Income from operations increased in
each quarter with $27,312 in Q1, $811,708 in Q2, $1,362,537 in Q3
and $3,243,689 in Q4. In Q4, net cash increased by 28.97% to
$8,391,633 as compared with Q3. In Q3, net cash increased by
$6,506,533 as compared with $2,503,123 in Q2 and $3,397,447 in Q1.
The return on equity in Q4 was 26.46%, a very strong improvement
over 12.31% in Q3, 7.66% in Q2 and 0.26% in Q1. Table 1: Financial
Data of Aida Pharmaceuticals, Inc. in 2007 2007 2007 Q1 2007 Q2
2007 Q3 2007 Q4 Revenue 5,296,176 6,419,476 7,373,770 10,114,364
Gross Profit 2,323,660 2,814,190 3,816,085 5,739,169 Income from
27,312 811,708 1,362,537 3,243,689 operation Income before tax
-177,255 349,465 929,451 3,581,692 Net cash provided by operating
3,397,447 2,053,123 6,506,533 8,391,633 activities Jin Biao,
Chairman of Aida Pharmaceuticals, Inc., noted, "Although revenue in
2007 decreased slightly compared with 2006's revenue, our
profitability measured by income from operations and net income
showed that our profit- generating abilities have been increased
substantially as compared with the past. There are several reasons
why the latter part of 2007 was so much stronger than the previous
quarters. First, the rules for tendering of pharmaceutical
purchases are more widely carried out in the PRC than before, and
these rules are beneficial for patented drugs such as ours as they
help build strong distribution channels. Next, after several years
continuous marketing, more and more clients in China are inclined
and ready to accept patented drugs. By having a stronger and more
reputable name brand due to etimicin sulfate's status as a patented
drug, we are better able to have our drug in hospitals instead of
non-patented drugs from competitors." Chairman Biao continued, "We
have also intensified our marketing program and have made
significant strides in penetrating new geographic markets such as
Fujian, Sichuan and Chongqing. We used to have minimal sales in
those markets but are now showing increased sales and revenue
there. We expect to begin penetrating rural areas in the PRC
especially with the implementation of the PRC's "Overall National
Medical Insurance" policy. We've also made concerted efforts to
maintain and grow sales in major areas that presently account for
large percentages of our sales, such as Zhejiang, Beijing and
Guangdong. Lastly, we have taken strong patent infringement legal
actions against manufacturers who have been counterfeiting our
products. We believe that, for these reasons, we are able to
maintain our healthy growth rate through 2008." About Aida
Pharmaceuticals, Inc. Aida Pharmaceuticals, Inc. is a
product-focused pharmaceuticals company engaged in the formulation,
clinical testing, registration, manufacture, sales and marketing of
advanced pharmaceutical and genetic products in mainland China. The
Company's mission is to discover, develop and market meaningful new
therapies that improve human health. Aida Pharmaceuticals, Inc. in
operation since March 1999, is headquartered in Hangzhou, the
People's Republic of China with manufacturing, distribution and
sales points throughout mainland China. Aida Pharmaceutical, Inc.
is GMP-certified in the People's Republic of China and ISO9002
certified for quality assurance and ISO14000 certified for
ecologically-friendly practices. For additional information, please
visit http://en.aidapharma.com/. Contact Information: Ashley Hull
(310) 450-9100 opt 1 Broker Contact: Chesapeake Group (410)
825-3930 DATASOURCE: Aida Pharmaceuticals, Inc. CONTACT: Ashley
Hull, +1-310-450-9100, opt 1, ; or Broker, Chesapeake Group,
+1-410-825-3930 Web site: http://en.aidapharma.com/
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