GNPH - Genesis Pharmaceuticals Enterprises
CRGP Seeks $13 Million Arbitration Against GTEC
Capital Research Group measures potential shareholder claim
MIAMI, Sept. 30 /PRNewswire/
-- Capital Research Group, Inc. (CRG) and Capital Research Group Partners, Inc. (CRGP) have filed a $13 Million arbitration case against Genesis Pharmaceuticals (OTC:GNPH) (BULLETIN BOARD: GNPH) , formerly Genesis Technology Group or GTEC. Genesis Technology is currently a wholly owned subsidiary of Genesis Pharmaceuticals (OTC:GNPH) (BULLETIN BOARD: GNPH) , now operating as Genesis Holdings.
Since 2003, CRG & CRGP through a myriad of successive contracts acted as a premier consultant to GTEC or Genesis. CRG & CRGP, through its significant associations, expertise and reputation, was the driving force behind the emergence of GTEC, from a small unknown start-up, to a profitable and noteworthy operation that became an admirable acquisition target by a Chinese pharmaceutical giant.
CRG & CRGP state... GTEC violated the 10 percent share issuance and registration clause of the standard consulting agreement by issuing and registering over 300 million additional shares, and not compensating CRG & CRGP under this and other agreements ultimately diluting CRGP's position by almost 500 percent. Since October 4, 2007 GTEC has authorized an additional 800 million shares.
The $13 million arbitration has a hearing date set for December 1, 2008.
Peter Antipatis, CRGP Director, observed, "Genesis has crossed the line by not honoring our contract, which former CEO Gary Wolfson, now GTEC Holdings CEO, sought out time and time again over the course of five years. CRG & CRGP fostered GTEC's business model and advised GTEC on several capital campaigns that garnered several million dollars for GTEC. We created both a marketing curriculum and a quality investor relation program that increased the market cap 800 percent on several campaigns."
Antipatis further said, "We forged a new business model for GTEC by helping their client companies reach public company status. Such examples are Lotus, Gold Horse and China Wind Systems. We know that the benefits to Genesis shareholders should be a dramatic increase in shareholder valuation and this dilution and refusal to honor our contracts is contributing to the contrary."
"We made several trips to China, visiting GTEC companies, lobbying potential and current clients, as GTEC's largest shareholders as well as corporate directors to help the company survive during its darkest hour. GTEC was able to gain contracts through the Capital Research reputation and rich legacy to obtain sustainable profitability and in turn consummate the merger with the Chinese pharmaceutical company. GTEC officers did extremely well, but the shareholders, and CRG & CRGP, included continue to suffer," said Mr. Antipatis.
Representing the plaintiff: Jeff Tew Tew Cardenas LLP Four Seasons Tower, 15th Floor Miami, Florida 33131 305-536-8452
Representing the defendant: Ben Olive Olive & Associates 2438 E. Las Olas Blvd.
Fort Lauderdale, Florida 33301 954-334-2250
Furthermore, in addition to the arbitration case, Capital Research Group will hold a shareholder caucus, via teleconference on October 15, 2008 at 12 pm EDT. The purpose of this teleconference and online gathering will be to discuss the prospect of potential shareholder litigation against Genesis Pharmaceutical Enterprise, GTEC current and past directors and GTEC Holdings. Agenda items will include, but will not be limited to as follows.
1. Current and past corporate officers may have engaged in schemes to divert cash and assets from GTEC and conceal self-dealings from fellow director's and GTEC public shareholders.
2. Activity of current and past officers may have been reckless and possibly did not fulfill their fiduciary obligations. Officers may have engaged in a covert defalcation of corporate funds.
3. GTEC possibly failed to disclose or publicize the failure or loss of corporate contracts and potentially failed to disclose in the Management's Discussion and Analysis ("MD&A").
4. GTEC officers may have acted recklessly by creating a series of shadow companies that would operate as GTEC in China such as Genesis Equity Partners Capital Group, Pacific Rim Consultants Inc. and Shaohua Tan and Partners, Inc.
5. Officers may have self-dealt contracts for their own personal benefit through shadow companies with identical or similar names to GTEC, and or subsidiaries such as Genesis China and Genesis Equity Partners LLC (GEP).
6. GTEC officers through self-dealing may have violated their fiduciary obligations and may have been reckless by commandeering the following contracts which together are in value over $20 million. Huyang Electric Co. LTD (GREEN POWER) now China Wind Systems, Western China Energy Company (ZHONGDA), Sino Steel (SITE), and Lizzie Gardens (LG).
7. Moreover, in October 2007, Genesis Chairman and CEO Gary Wolfson wrote a letter to shareowners of GTEC in which he may have mislead the investing public about his intentions and role with Genesis Pharmaceuticals, GTEC Holdings, corporate dividends, and contracts.
8. Officers may have breached their fiduciary duty to shareowners and the GTEC Board of Directors by failing to disclose conflicts of interest.
The teleconference will be forum to determine potential indemnity, discuss shareholders rights and other items and behaviors of interest that will be determined from the arbitration discovery process. If you would like to participate on the conference call, please send an email to . In the email, please include your full name, address and the phone number you will be calling in from. Only these numbers will be permitted to join the call. If you have a mechanism that blocks caller ID, please disable it or utilize a different number.
Safe Harbor Statement
Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may," or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
DATASOURCE: Capital Research Group Partners, Inc.
CONTACT: Peter Antipatis of Capital Research Group Partners, Inc.,
+1-973-332-1366,
Web site: http://www.thesubway.com/
Genesis Pharmaceuticals Reports Results for its Fourth Quarter and Fiscal Year 2008
LAIYANG, China, Sept. 30 /Xinhua-PRNewswire-FirstCall/
-- Genesis Pharmaceuticals Enterprises, Inc. (OTC:GNPH) (BULLETIN BOARD: GNPH) ("Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced its financial results for its fourth quarter and fiscal year ended June 30, 2008. A 10-K Form was filed for the year with the U.S. Securities Exchange Commission that is available through the Company's website and from the SEC.
Fourth Quarter FY 2008 Highlights
-- Revenue was $28.3 million, up 39.0% from the corresponding quarter in 2007
-- Gross profit was $23.5 million, up 57.7% from the corresponding quarter in 2007, and gross margin was 83.2%, compared to 73.3% in the corresponding quarter in 2007
-- Operating income was $10.1 million, up 42.2% from the corresponding quarter in 2007
-- Net income was $9.6 million, compared to $14.6 million in the corresponding quarter in 2007
Fiscal Year 2008 Highlights:
-- Revenue was $99.5 million, up 30.6% from the year ended June 30, 2007
-- Gross profit was $77.0 million, up 40.0% from the year ended June 30, 2007, and gross margin was 77.4%, compared to 72.2% in the year ended June 30, 2007
-- Operating income was $32.2 million, up 75.9% from the year ended June 30, 2007
-- Net income was $22.5 million, up 1.8% from the year ended June 30, 2007, with earnings of $1.84 per diluted share
-- Completed private placements for a total of $35 million of convertible notes and 2,275,000 warrants
-- Began manufacturing and distributing Baobaole chewable tablets, a Traditional Chinese Medicine
"Genesis had a strong fourth quarter and spent this past year establishing its financial performance, putting a growth strategy into place, and expanding its marketing and sales efforts. Our product line was strengthened by the introduction of Baobaole chewable tablets, a new over the counter drug which is sold directly to pharmacies and has a high profit margin," said Mr. Wubo Cao, Chairman and CEO of Genesis Pharmaceuticals Enterprises, Inc. "We plan to build on the solid performance that we were able to achieve in fiscal year 2008."
Fourth Quarter of Fiscal Year 2008 Results
Total revenue in the fourth quarter ended June 30, 2008 was $28.3 million, up 39.0% from $20.4 million in the prior year's corresponding period. This increase in revenue was due to sales of the Company's new Baobaole chewable tablets (which were not available for sale in the prior year's corresponding period), along with sustained sales of the Company's most popular products, Clarithromycin sustained-release tablets and Itopride Hydrochloride Granules.
Gross profit in the fourth quarter ended June 30, 2008 was $23.5 million, an increase of 57.7% from $14.9 million in the prior year's corresponding period. Gross margin was 83.2%, compared to 73.3% in the prior year's corresponding period. This increase in gross profit was due to rapidly growing sales of Baobaole chewable tablets.
Selling, general and administrative expenses in the fourth quarter ended June 30, 2008 were $12.3 million, up 73.9% from $7.1 million in the prior year's corresponding period. Higher expenses in 2008 were principally because of higher commission expenses paid to sales personnel, higher advertising, marketing and promotion spending and salaries, wages and related benefits expenses, and expenses related to being a public company.
Operating income in the fourth quarter ended June 30, 2008 was $10.1 million, with an operating margin of 35.8%, a 42.2% increase from $7.1 million in the prior year's corresponding period.
Net income for the quarter ended June 30, 2008 was $9.6 million, compared to $14.6 million in the prior year's period. Net income decreased because non- operating income declined to $1.4 million in the quarter ended June 30, 2008 from $6.6 million in the prior year's corresponding period. Part of this decrease was due to a decrease in a tax exemption that declined to $5.3 million in the fourth quarter of fiscal year 2008 from $9.9 million in the prior year's corresponding quarter. Also, a non-cash debt amortization expense of approximately $2.5 million took place in the fourth quarter of 2008, for which there was no similar expense the prior year's corresponding quarter.
Full Fiscal Year Operating Highlights
Total revenue for fiscal year 2008 was $99.5 million, up 30.6% from $76.2 million in the twelve month period ended June 30, 2007. Gross profit was $77.0 million, up 40.0% from $55.0 million in the twelve month period ended June 30, 2007. Gross margin was 77.4%, up from 72.2% in the twelve month period ended June 30, 2007. Operating income totaled $32.2 million, a 75.9% increase from $18.3 million in the twelve month period ended June 30, 2007. The Company's operating margin was 32.4%, up from 24.0% in the prior year's period. Net income for fiscal year 2008 was $22.5 million, with net margin of 22.6%, a 1.8% increase from $22.1 million, with net margin of 28.9% in the twelve month period ended June 30, 2007. Net margin decreased primarily because of higher selling, general and administrative expenses as a percentage of sales and no longer having a significant tax exemption received in 2007. After giving effect to a one for forty reverse split, net income was $2.45 per basic share and $1.84 per fully diluted share in fiscal year 2008, compared to $2.94 per basic and fully diluted share in the twelve month period ended June 30, 2007.
Adjusting for a recent one for forty reverse split for its shares, there were 10,327,844 outstanding shares of common stock as of June 30, 2008. Of those shares, 560,000 shares are not considered issued and outstanding for earnings per share calculations as of at June 30, 2008 because the issuance of those shares is contingent on the occurrence of certain future events.
Financial Condition
As of June 30, 2008, the Company had $48.2 million in cash and an additional $7.8 million in restricted cash. Working capital was $73.2 million, up from $16.0 million as of June 30, 2007. This increase was primarily due to an increase in cash, investments and accounts receivable as well as decreases in short term bank loans and dividends payable. Current liabilities were $16.4 million and long-term debt consisted of $2.5 million in convertible debt. Shareholder's equity was $95.5 million. Future contractual obligations in fiscal 2009 include $8.6 million in bank indebtedness and $4.4 million in research and development contractual agreements. The Company generated $17.1 million in cash flow from operating activities in fiscal 2008. The Company invested $8.9 million in intangible assets consisting mostly of land use rights and the rights to develop, manufacture and distribute new drugs.
Recent Events
In June 2008, the Board of Directors appointed a new independent board member. The Board of Directors also established an independent Audit Committee and a Compensation Committee.
In July 2008, the Company received approval from the Chinese State Food and Drug Administration ("SFDA") to start producing and distributing Radix Isatidis Dispersible Tablets, an herbal-based traditional Chinese medicine used for viral influenza. Sales in China will begin in October.
Business Outlook and Guidance
"We are pleased to report that we recently added a new over the counter drug, Radix Isatidis Dispersible Tablets, to our product line. We began selling significant amounts of Radix Isatidis Dispersible Tablets immediately after we received our final approvals from the SFDA. We have three other drugs waiting for approval from the SFDA which we hope will be approved in fiscal year 2009 and will find similar market success. We expect sales of our current popular products to continue growing because of increased branding and greater marketing efforts," said Mr. Cao. "Throughout this last year we took a number of steps to improve our corporate governance. This included adding an independent member to our Board, adopting a code of business conduct and ethics, and establishing an audit committee and a compensation committee. These steps are a part of preparing the Company for its applying to have its shares listed on a senior securities exchange."
"Because of our strong financial performance throughout fiscal 2008 and our expectations of expanding our product line and increasing sales throughout the upcoming year, as guidance, we expect revenue for fiscal 2009 to be from $122 to $130 million, and operating income to be from $40 to $43 million. These guidance numbers are subject to change, and are based on our ability to grow our business in the future in the same way as we have in the past," concluded Mr. Cao.
Conference Call
Genesis Pharmaceuticals Enterprises, Inc. management will host a conference call at 9:00 a.m. Eastern on Wednesday, October 1, 2008 to discuss financial results for the fiscal year ended June 30, 2008. The conference call will include Mr. Wubo Cao, Chairman and Ms. Elsa Sung, CFO. To participate in this live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (888) 419-5570. International callers should call (617) 896-9871. The Conference Passcode is 375 022 62. If you are unable to participate in the call at that time, replay of the conference call will be available from Wednesday, October 1 at 11:00 a.m. Eastern until Wednesday, October 15. To access the replay, call (888) 286-8010. International callers should call (617) 801-6888. The Conference Passcode is 31221366.
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a pharmaceutical company in China producing western and Chinese herbal-based medical drugs in tablet, capsule, and granule form.
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs. Actual results may differ materially from predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.
- Financial Statements Follow -
GENESIS PHARMACEUTICALS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS AND YEAR ENDED JUNE 30, 2008 AND 2007
Three Months Ended Year Ended June 30 June 30 2008 2007 2008 2007 REVENUES: Sales 27,334,356 19,383,730 93,982,407 72,259,812 Sales - related party 952,249 970,010 5,564,098 3,933,881 TOTAL REVENUE 28,286,605 20,353,740 99,546,505 76,193,693
COST OF SALES 4,762,168 5,437,483 22,506,547 21,161,530
GROSS PROFIT 23,524,437 14,916,257 77,039,958 55,032,163
RESEARCH AND DEVELOPMENT EXPENSE 1,065,475 702,770 3,235,715 11,143,830
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 12,323,867 7,088,057 41,593,197 25,579,361
INCOME FROM OPERATIONS 10,135,095 7,125,430 32,211,046 18,308,972
OTHER (INCOME) EXPENSE, NET Other expense, net (428,196) - 708,338 - Non-operating (income) expense (1,391,069) (6,592,598) (1,391,301) (6,586,956) Interest expense, net 2,166,190 6,945 3,092,183 211,616 Loss from discontinued business 38,284 380,027 - OTHER EXPENSE, NET 385,209 (6,585,653) 2,789,247 (6,375,340)
INCOME BEFORE PROVISION FOR INCOME TAXES 9,749,886 13,711,083 29,421,799 24,684,312
PROVISION FOR INCOME TAXES 162,114 (936,601) 6,970,739 2,631,256
NET INCOME 9,587,772 14,647,684 22,451,060 22,053,056
OTHER COMPREHENSIVE INCOME: Unrealized (loss) gain on marketable securities - - 1,347,852 - Foreign currency translation adjustment 1,777,833 345,083 5,206,612 1,018,130
COMPREHENSIVE INCOME $11,365,605 $14,992,767 29,005,524 23,071,186
WEIGHTED AVERAGE NUMBER OF SHARES: Basic 7,310,665 7,494,740 Diluted 7,884,370 7,494,740
EARNINGS PER SHARE: Basic $2.45 $2.94 Diluted $1.84 $2.94
Earnings Per Share are Adjusted to Reflect a Recent Share Split
GENESIS PHARMACEUTICALS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2008 AND 2007
A S S E T S 2008 2007 CURRENT ASSETS: Cash $48,195,798 $17,737,208 Restricted cash 7,839,785 8,410,740 Investments 2,055,241 - Accounts receivable, net of allowance for doubtful accounts of $155,662 and $166,696 as of June 30, 2008 and 2007, respectively 24,312,077 11,825,442 Accounts receivable - related parties 673,808 498,940 Notes receivables - 57,965 Inventories 3,906,174 5,130,934 Other receivables 152,469 23,623 Advances to suppliers 1,718,504 313,018 Financing costs - current 680,303 - Other assets - 100,968 Total current assets 89,534,159 44,098,838
PLANT AND EQUIPMENT, net 11,225,844 10,179,134
OTHER ASSETS: Restricted investments 2,481,413 - Financing costs, net 1,236,641 - Intangible assets, net 9,916,801 1,119,087 Total other assets 13,634,855 1,119,087
Total assets $114,394,858 $55,397,059
L I A B I L I T I E S A N D S H A R E H O L D E R S' E Q U I T Y
CURRENT LIABILITIES: Accounts payable $2,341,812 $2,051,506 Short term bank loans 2,772,100 4,602,500 Notes payable 5,843,295 8,410,740 Other payables 3,671,703 1,367,052 Other payables - related parties 164,137 933,132 Accrued liabilities 334,439 216,468 Liabilities assumed from reorganization 1,084,427 - Dividends payable - 10,520,000 Taxes payable 166,433 - Total current liabilities 16,378,346 28,101,398
CONVERTIBLE DEBT, net of discount $33,078,704 and $0 as of June 30, 2008 and 2007, respectively 2,500,043 -
Total liabilities 18,878,389 28,101,398
COMMITMENTS AND CONTINGENCIES AND SUBSEQUENT EVENTS
SHAREHOLDERS' EQUITY: Convertible preferred stock Series A ($0.001 par value; 0 and 218,000 shares authorized; 0 shares issued and outstanding as of June 30, 2008 and 2007 - - Common Stock ($0.001 par value, 15,000,000 shares, 9,767,844 and 7,494,740 shares issued and outstanding) 9,770 7,495 Treasury stock - (2,805) Paid-in-capital 45,554,513 18,344,309 Capital contribution receivable (11,000) (12,011,000) Retained earnings 39,008,403 17,653,584 Statutory reserves 3,253,878 2,157,637 Accumulated other comprehensive income 7,700,905 1,146,441 Total shareholders' equity 95,516,469 27,295,661 Total liabilities and shareholders' equity $114,394,858 $55,397,059
GENESIS PHARMACEUTICALS ENTERPRISES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2008, 2007 AND 2006
2008 2007 2006 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $22,451,060 $22,053,056 $7,736,167 Loss from discontinued operations 380,027 - - Income from continued operations 22,831,087 22,053,056 7,736,167 Adjustments to reconcile net income to cash provided by (used in) operating activities: Depreciation 517,863 364,417 255,602 Amortization of intangible assets 184,465 122,126 111,786 Amortization of debt issuance costs 123,964 - Amortization of debt discount 2,500,043 - Bad debt expense (recovery) (27,641) 157,214 Loss on sale of marketable securities - - Unrealized loss on marketable securities 696,528 - Common stock issued for services 46,994 Amortization of stock option compensation 10,847 - Gain on debt early distinguish (86,752) - Change in operating assets and liabilities Accounts receivable (10,534,270) (1,534,814) (6,945,531) Accounts receivable - related parties (113,465) (62,599) (12,538) Notes receivables 60,694 (26,626) (28,888) Inventories 1,686,090 1,727,215 (3,680,020) Other receivables (111,571) (20,889) 3,359 Other receivables - related parties - - - Advances to suppliers (1,259,254) (66,821) 264,641 Other assets 92,996 1,563,800 (1,445,205) Accounts payable 55,085 (2,027,968) 764,749 Accrued liabilities 211,362 45,567 70,348 Other payables 2,033,689 (827,498) (630,146) Other payables - related parties (822,155) (3,848,086) (1,470,501) Liabilities from discontinued operations (1,172,816) - - Taxes payable 169,790 (2,168,912) 1,905,120 Net cash provided by (used in) operating activities 17,093,573 15,291,968 (2,943,843)
CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of marketable securities 1,034,028 - - Proceeds from sale of restricted securities 155,000 - - Purchase of equipment (453,718) (183,237) (531,890) Purchase of intangible assets (8,870,631) - (34,106) Capital contribution - - Investment in subsidiary - - Cash receipt from reverse acquisition 534,950 - - Net cash used in investing activities (7,600,371) (183,237) (565,996)
CASH FLOWS FROM FINANCING ACTIVITIES: Restricted cash 3,292,168 435,022 (4,544,212) Principal payments on notes payable (3,292,168) (435,022) 4,544,294 Borrowings on short term loan 2,616,110 4,471,600 5,568,750 Principal payments on short term loan (4,819,150) (5,688,450) - Proceeds from sale of common stock 337,500 - - Proceeds from sale of treasury stock 1,975 - - Payment to escrow account (1,996,490) - - Payments for dividend (10,608,000) - - Proceeds from convertible debt 32,974,500 - - Payments for debt issuance cost (15,408) - - Proceeds from bank loans - - - Proceed from officers - - - Payment for officers - - - Net cash provided by (used in) financing activities 18,491,037 (1,216,850) 5,568,832
EFFECTS OF EXCHANGE RATE CHANGE IN CASH 2,474,351 473,729 74,821
NET INCREASE IN CASH 30,458,590 14,365,610 2,133,814
CASH, beginning of the year 17,737,208 3,371,598 1,237,784
CASH, end of the year $48,195,798 $17,737,208 $3,371,598
DATASOURCE: Genesis Pharmaceuticals Enterprises, Inc.
CONTACT: Genesis Pharmaceuticals Enterprises, Inc., Ms. Elsa Sung CFO,
+1-954-727-8435, ; or CCG Investor Relations, Inc., Mr.
Crocker Coulson, President, +1-646-213-1915,
Web site: http://www.genesis-china.net/
Posted by: bigplay777 Date: Wednesday, October 01, 2008 1:50:52 PM
In reply to: Long-vestor who wrote msg# 4916 Post # of 4918
Best is yet to come...
Listened to CC and here's most important information:
1. They meet all qualifiers to move to a big board. GNPH is just trying to decide which one. Plans are to complete move by end calendar year 2008.
2. As everyone knows four drugs where under development and only needed approval from China's FDA. The first was approved just 2 month ago. The other three new drugs under development are expected to be approved by end of calendar year 2008.
3. They have been advised not to comment on new lawsuit, however, it involves old GTEC shell and they anticipate no involvement of GNPH. Clarification will come ASAP.
4. Production capacity is about 60%, however, when new drugs come on board they will need to expend some capital for new equipment and advertising etc.
5. They feel very confident about their future, including a fifth drug being developed at a University that they will own, manufacture and sell.
6. Their only concern was being to raise capital because of the USA financial crisis.
I'm feeling good about being a shareholder. China will possibly outperform the world in growth dispite a global slowdown. Wabu in an honest gentalman and is haunted by premerger skelitons he had nothing to do with.
I feel GNPH is a safe place to be considering the dim outlook here in the USA. Any interest that is generated will move SP up.
bigplay777
Genesis Pharma Books 31% Higher Revenues in 2008
By: China Bio Today Wednesday, October 01, 2008 2:04 PM
Genesis Pharmaceuticals Enterprises (OTCBB: GNPH) released its 2008 full-year (ended June 30) financial report, showing that the company continues to do well. In 2008, revenues for the company climbed 31% to $99.5 million, though net income was up a miniscule 2% at $22.5 million. The net income works out to $1.84 per share, fully diluted.
The culprit for the relative shortfall in profit seems to have been Selling, General & Administrative costs, which rose 63% or $16 million in the year to $41.6 million. In 2008, SG&A constituted 42% of revenues, as opposed to just 34% in 2007. The rise in SG&A was partially offset by a decline in R&D spending, which fell to $3 million in 2008 from $11 million last year.
Looking ahead to 2009, Genesis expects to achieve revenues between $122 and $130 million during its next fiscal year, while operating income will be in a range between $40 and $43 million. The company’s 2008 operating income was $32.2 million.
During the past 12 months, the company completed a private placement of $35 million worth of convertible notes, and it received SFDA approval for Baobaole chewable tablets, a TCM for gastric distress. In September, after its fiscal year ended, the company effected a 40-to-1 reverse split of its stock. At the time of the reverse split, Genesis was worth $5 per share, post-split. Its price wandered lower following the split, but has now recovered. After the earnings announcement, Genesis moved up $.75 to $7.75, for a Price/Earnings ratio of just over 4.
Genesis ended its fiscal year with $48 million in cash and working capital of $73 million. Cash flow from operating activities in 2008 was $17.1 million.
In July, Genesis received SFDA approval to being producing Radix Isatidis Dispersible Tablets, a TCM for viral influenza. Sales in China will begin in October. The company is awaiting word from the SFDA on approval for three additional products.
The following is a description of Genesis’ principal products:
Clarithromycin sustained-release tablets -- semi-synthetic antibiotics. Genesis’ China subsidiary is one of only two domestic producers of this drug. It produced $46.4 million in revenues, approximately 50% of the China market share.
Itopride Hydrochloride granules – treats digestive system diseases. It produces $35.5 million in revenues. Genesis’ subsidiary has approximately 10-12% of the China market share.
Ciprofloxacin Hydrochloride tablets – an antibiotic. Produced $2.5 million in revenue last year but now being phased out. For a short period of time, Genesis’s subsidiary found itself as the only company in China with significant supplies of the raw material and produced the drug. Now that the shortage has evaporated, it no longer represents a market opportunity.
Paracetamol tablets -- a nonprescription analgesic used for treating fever due to common flu or influenza. Produced $500,000 in revenue in fiscal 2008. Will be phased out because revenues have declined in recent years.
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29.09 Annual Report (10-K) http://www.sec.gov/Archives/edgar/data/1091164/...199/v127505_10k.htm
30.09 PR-NEWS http://ih.advfn.com/...&cb=1223100092&article=28413348&symbol=NB^GNPH
30.09 PR-NEWS http://ih.advfn.com/...&cb=1223100092&article=28415408&symbol=NB^GNPH
02.10 Current Report (8-K) http://www.sec.gov/Archives/edgar/data/1091164/...5741/v127870_8k.htm
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Kurs Handelsplätze DTL.: http://www.ariva.de/quote/simple.m?secu=101235772
Wochenverlauf_USA: 29.09.-03.10.2008
( -8% [von 8,45$ auf 8-,00$] / Handelsvolumen 11,6K-Aktien )
Angehängte Grafik:
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Gruss
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06.10 EDGAR (S-1/A) http://ih.advfn.com/...&cb=1223734257&article=28537083&symbol=NB^GNPH
09.10 PR-NEWS http://ih.advfn.com/...&cb=1223734257&article=28628471&symbol=NB^GNPH
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...die turbulente Handelswoche ist auch an GNPH nicht ganz spurlos vorbei gegangen:
Kurs Handelsplätze DTL.: http://www.ariva.de/quote/simple.m?secu=101235772
Wochenverlauf_USA: 06.10.-10.10.2008
( -9,38% [von 8,00$ auf 7,25$] / Handelsvolumen 9,5K-Aktien )
Angehängte Grafik:
chart_gnph_wochenverlauf.gif (verkleinert auf 80%)
chart_gnph_wochenverlauf.gif (verkleinert auf 80%)
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Kurs Handelsplätze DTL.: http://www.ariva.de/quote/simple.m?secu=101235772
Wochenverlauf_USA: 13.10.-17.10.2008
( -26,90% [von 6,50$ auf 5,30$] / Handelsvolumen 10,4K-Aktien )
Angehängte Grafik:
chart_gnph_wochenverlauf.gif (verkleinert auf 80%)
chart_gnph_wochenverlauf.gif (verkleinert auf 80%)
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22.10 EDGAR http://ih.advfn.com/...&cb=1225034906&article=28880168&symbol=NB^GNPH
22.10 EDGAR (3) http://ih.advfn.com/...&cb=1225034906&article=28893312&symbol=NB^GNPH
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Kurs Handelsplätze DTL.: http://www.ariva.de/quote/simple.m?secu=101235772
Wochenverlauf_USA: 20.10.-24.10.2008
( -5,966% [von 5,30$ auf 5,00$] / Handelsvolumen 18K-Aktien )
Angehängte Grafik:
chart_gnph_wochenverlauf.gif (verkleinert auf 80%)
chart_gnph_wochenverlauf.gif (verkleinert auf 80%)
In wenigen Wochen haben wir wieder Kurse wie vor dem Reverse-Split mit ner 0 vorm Komma !
Ich finde das hier sehr entmutigend. Da geht ja sogar die VW Aktie mehr ab ;-)
Ihr findte mich eigentlich bei wo.
Ich hab hier vermisst,das Jemand die Funktion der Homepage gemeldet hat.
Ansosten halt ich mich hier ganz zurück,per bm natürlich zu erreichen.
In schlechten Zeiten sollte man halt zusammen halten.
Für mich ist gnph ein Longinvest.
http://www.genesispharmaceuticals.com/
JA GNPH ist ein longtermer und steht mit ganz oben auf der liste !
http://investorshub.advfn.com/boards/board.aspx?board_id=11828
Angehängte Grafik:
promising_longterm_investments.jpg (verkleinert auf 72%)
promising_longterm_investments.jpg (verkleinert auf 72%)
http://biz.yahoo.com/iw/080930/0438886.html
Es ist so,allerdings,totschweigen gilt nicht.
http://messages.finance.yahoo.com/...59&tid=5696&mid=5696&tof=3&frt=2
http://messages.finance.yahoo.com/...&mid=5697&tof=3&rt=2&frt=2&off=1
Das hab ich bei yahoo gefunden,leider ohne Quelle
Für mich der wichtigste Auszug
We are always looking for the opportunities and not just within China, we would also like to export to other neighboring Asian countries, where the market potential is really encouraging. Also, we have plans to enter into the Indian market, where we have contacts with many companies.
Also,macht es gut hier,Ihr findet mich bei wo.
Mein Grundsatz,nichts verschweigen,immer raus mit der Wahrheit
Gruss
Press Release Source: Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Files Counter Claims
Friday October 31, 11:57 am ET
LAIYANG, China, Oct. 31 /Xinhua-PRNewswire-FirstCall/ -- Genesis Pharmaceuticals Enterprises, Inc. (OTC Bulletin Board: GNPH - News; "Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, was granted leave by the American Arbitration Association ("AAA") to amend its counterclaims and add claims for defamation and breach of contract in a contractual dispute with Capital Research Group Partners, Inc. and Capital Research Group, Inc. ("CRG&P"). The hearing date for the arbitration is set for December 1, 2008 in the AAA offices in Miami, Florida.
ADVERTISEMENT
CRG&P recently issued a press release that Genesis alleges included numerous false and defamatory statements about Genesis and Genesis' officers and directors.
"We believe that CRG&P made false statements against us in an attempt to damage our Company's reputation. We plan to vigorously pursue our new counterclaims in the upcoming arbitration," stated Mr. Wubo Cao, Chairman and CEO of Genesis Pharmaceuticals Enterprises.
About Genesis Pharmaceuticals Enterprises, Inc.
Genesis Pharmaceuticals Enterprises, Inc. is a U.S. public company engaged in the research, development, production, marketing and sales of pharmaceutical products in the People's Republic of China. Its operations are located in Northeast China in an Economic Development Zone in Laiyang City, Shandong province. Genesis is a pharmaceutical company in China producing western and Chinese herbal-based medical drugs in tablet, capsule, and granule form.
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HOMEPAGE: http://www.genesispharmaceuticals.com
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31.10 PR-NEWS http://ih.advfn.com/...&cb=1225627878&article=29072394&symbol=NB^GNPH
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Kurs Handelsplätze DTL.: http://www.ariva.de/quote/simple.m?secu=101235772
Wochenverlauf_USA: 27.10.-31.10.2008
( -16,80% [von 5,50$ auf 4,16$] / Handelsvolumen 20,3K-Aktien )
Angehängte Grafik:
chart_gnph_wochenverlauf.gif (verkleinert auf 80%)
chart_gnph_wochenverlauf.gif (verkleinert auf 80%)