Weikang Bio-Technology Group announces increased revenues for second-quarter of 2009

Weikang Bio-Technology Group Co., Inc. reported financial results for its second quarter ended June 30, 2009.

Second Quarter 2009 Highlights: -- Revenues increased to $13.20 million (544%) and $23.31 million (628%) for the three and six months ended June 30, 2009 respectively. -- Gross profit increased to $7.09 million, up 429% from $1.34 million for the same period last year. -- Net income was $3.33 million, or $0.13 per fully diluted share, up 203% from $1.10 million for the same period year over year.

Second Quarter 2009 Results

Revenues were $13.20 million and $23.31 million for the three and six months ended June 30, 2009, respectively, as compared to $2.05 million and $3.20 million for the corresponding periods in 2008 due to the June 30 acquisition of Tianfang (Guizhou) Pharmaceutical Co., Ltd ("Tianfang"), an OTC pharmaceuticals developer and manufacturer. Total revenues increased by $11.15 million and $20.11 million, a 544% and 628% increase, for the three and six months ended June 30, 2009, as compared to total revenues for the three and six months ended June 30, 2008.

Sequentially, revenues were up 31% over Q1 of 2009. The overall gross profit for the Company was $7.09 million and $12.74 million, or 429% and 528%, for the three and six months ended June 30, 2009 respectively. Profit margin increased by $2.23 million to $3.33 million for the three months ended June 30, 2009.

"We are very pleased with this quarter's strong financial performance," said Mr. Yin Wang, President & CEO of Weikang Bio-Technology Group Co., Inc. "We entered into a stock transfer agreement with Tianfang on June 30, 2008 to acquire 100% of its equity interest. As a result of the acquisition we have expanded our operations to include OTC pharmaceuticals. Our business will continue to accelerate as we enter the second half of 2009. We are seeing strong demand for our OTC pharmaceuticals and TCM products especially in the midst of China's new healthcare reform initiatives, which will secure our future growth."

Six Month Results

For the six months ended June 30, 2009, total operating revenues were $23.31 million, up 628% from $3.20 million from the same period last year. Gross profit was $12.74 million, up 528% from the same period 2008. Gross margin increased by $10.71 million to $12.74 million for the six months ended June 30, 2009. Net income increased by $5.53 million (333%) to $7.19 million for the six months ended June 30, 2009, as compared to the corresponding three and six month periods in 2008.