CHINA SKY ONE MEDICL (CSKI) research, news, and more from GeoInvesting

Company description

Wed, 04 Jun 2008 04:00:00 GMT

China Sky One Medical, Inc., a Nevada corporation, is engaged in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic kit products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company (''TDR'') and Harbin First Bio- Engineering Company Limited ("First"), the Company manufactures and distributes over-the- counter pharmaceutical products as its primary revenue source. (press)

Products are sold as sprays, ointments,creams, powders and patches.

Investor Alert

Thu, 29 Mar 2012 04:00:00 GMT

On February [18], 2012, Mr. William Wei Lee, a director of China Sky One Medical, Inc. (the “Company”) and Chairman of the Company’s Audit committee and member of the Company’s Compensation Committee and Finance Committee [sent a letter to MSPC, the Company’s auditors notifying them that he] resigned from his positions with the Company. Mr. Lee advised the Company that he is resigning because (i) he finds it difficult to get in touch and communicate with the Company’s finance people, so as to carry out his responsibilities as a board director and (ii) he is fully occupied with his own business. [Mr. Lee also stated that the truth is that since Chairman Liu’s illness, CSKI is in a state of total chaos, making it simply impossible for him to do anything as a board member.]

Investor Alert

Wed, 15 Feb 2012 05:00:00 GMT

HARBIN, China, Feb. 15, 2012 /PRNewswire-Asia/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (NASDAQ: CSKI), a fully integrated pharmaceutical company in the People's Republic of China ("PRC"), today announced that Mr. Yanqing Liu, the Company's Chairman, President and Chief Executive Officer, is being treated for a life-threatening illness. Following surgery, he is expected to undergo long-term chemotherapy and traditional Chinese medicine treatments. As a result, Mr. Liu's availability to devote time to the Company's business will be substantially reduced.

Recently, 26 middle-management level employees have resigned, of which nine were in the accounting department, two were in the internal control department, two were in the information technology department, 11 were in the sales department, and two were in the production center. Although the Company is seeking to recruit personnel, it may not be able to hire qualified personnel in a timely manner, or at all.

Mr. Liu's health concerns and the loss of such management employees are likely to materially adversely affect many aspects of the Company's business, including its ability to maintain customer relationships, meet production schedules, as well as maintain its internal controls.

CFO Trail

Thu, 29 Dec 2011 05:00:00 GMT

HARBIN, China, December 29, 2011 /PRNewswire-Asia/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (NASDAQ: CSKI), a leading fully integrated pharmaceutical company in the People's Republic of China ("PRC"), today announced that Hongyu Pan, the Company's Chief Financial Officer, will be leaving the Company effective December 22, 2011 for personal reasons. His resignation was not a result of any disputes or disagreements with the Company on any matter relating to its operations, policies or practices. The Company has initiated a search for a new Chief Financial Officer and will make an announcement as soon as a candidate has been chosen.

"We truly appreciate Mr. Pan's contributions during his tenure and wish him the best in all of his future endeavors," said Mr. Jianping Li, China Sky One Medical's General Manager and a Board Director.

Joint Venture

Fri, 16 Dec 2011 05:00:00 GMT

HARBIN, China, December 16, 2011 /PRNewswire-Asia/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") (NASDAQ: CSKI), a leading fully integrated pharmaceutical company in the People's Republic of China ("PRC"), today announced that its wholly-owned subsidiary, Harbin Tian Di Ren Medical Science and Technology Company ("TDR"), signed an agreement (the "Agreement") to jointly set up a new company, Harbin Tian Xin Biological Engineering Ltd.

Harbin Tian Xin Biological Engineering Ltd. is being organized to perform the storage of umbilical cord stem cells. It is also to perform the clinical applications of bone marrow stem cells, intercord mesenchymal stem cells and other human stem cells.

"As we have been involved in this area of research for the past several years, we are optimistic as to the potential of the stem cell storage and application sector. We are pleased to attract outside investors to this new venture to strengthen our capability in terms of technology and capital," commented Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "We expect that Harbin Tian Xin Biological Engineering Ltd. will be formally put into operation in the first quarter of 2012 and new products and services might be introduced into the market as early as year-end 2012." Mr. Liu added.

On December, 12, 2011, TDR entered into an Agreement with three parties, the No. Four Hospital Associated with Harbin Medical Science University, Harbin Zheng Yuan Construction Group and Mr. Xiao-wei Zhang, pursuant to which they will jointly set up the new company for a total capital commitment of RMB 230.0 million (approximately around $36.3 million). TDR shall invest RMB 90.0 (approximately around $14.2 million) for an ownership stake of 39%. The four parties agreed in the Agreement that 65% of the committed capital is payable within 15 days upon execution of the Agreement, and the remaining 35% is payable within six months after initial payment is made. In addition, TDR shall have the right to appoint Harbin Tian Xin's Chairman and General Manager.

Comments & Business Outlook

Wed, 09 Nov 2011 05:00:00 GMT

Third Quarter 2011 Results

Total revenues decreased 26.6% year-over-year to $26.6 million
The Company marketed 85 products, compared with 115 products in the quarter ended September 30, 2010
Gross profit fell 38.1% to $16.3 million
Operating income declined to $1.3 million
GAAP net income, including a non-cash gain from change in the fair value of derivative warrant liability, was $0.5 million, or $0.03 per diluted share

"Our third quarter revenue declined 26.6% compared to the third quarter last year due to an increasingly challenging market environment and the appropriate restructuring of our products portfolio," said Mr. Yan-Qing Liu, Chairman and CEO of China One Medical, Inc.

"We remain confident in the fundamentals of our business and believe that we continue to be well poised to deploy our financial resources so as to emerge in the marketplace as highly viable and successful company," Chairman and CEO Liu continued. "To accomplish this goal, the Company has taken several strategic steps to ensure its competitive edge. We have acquired 74,000 acres of forest land in the Xiao Xing'an Mountain region and started trial planting of herbs as a strategic step to secure sourcing, and have reached several milestones in the construction of our new facilities on our newly acquired land in the High-Tech Development Zone of Song Bei District in Harbin, China which will strongly enhance our R&D, production, logistic and general management capabilities. We believe that these decisive actions will serve as the cornerstone of the Company in years to come and will enable our long-term sustainability and growth."

Comments & Business Outlook

Tue, 09 Aug 2011 04:00:00 GMT

Second Quarter 2011 Financial Highlights

Total revenues decreased 7.6% year-over-year to $37.7 million
The Company marketed 101 products, compared with 114 products in the quarter ended June 30, 2010
Gross profit fell 15.7% to $24.9 million
Operating income declined 39.6% to $8.3 million
GAAP net income, including a non-cash gain from change in the fair value of derivative warrant liability, decreased 50.2% year-over-year to $6.1 million, or $0.36 per diluted share
Excluding the non-cash gain, non-GAAP adjusted net income declined 42.0% to $5.9 million, or $0.35 per diluted share

"Our second quarter revenue declined 7.6% year-over-year, primarily reflecting the loss of two distribution relationships in the third quarter of 2010. We continue to aggressively pursue new customers to distribute our broad portfolio of pharmaceutical products, while investing in China Sky One's future, as exemplified by our winning bid on land use rights for land in Harbin's Song Bei District. We intend to build a research and development center, an injection manufacturing facility, a logistics center and an office building on the land during the first phase of development, which we expect to complete by mid-2012," said Mr. Yan-Qing Liu, Chairman and CEO of China One Medical, Inc. "Despite the challenges of the past year, we are optimistic that we can reestablish robust revenue and earnings growth at China Sky One Medical by continuing to invest in R&D, securing new distributor relationships and identifying uses for our strong balance sheet and cash flow."

Comments & Business Outlook

Wed, 11 May 2011 04:00:00 GMT

First Quarter Results:

Total revenue declined 1.9% year-over-year to $28.4 million, but increased sequentially by 5.5% compared to fourth quarter 2010 revenue
Gross profit decreased 10.8% year-over-year to $19.3 million
Operating income decreased 34.4% year-over-year to $6.6 million
GAAP net income, including a non-cash gain from change in the fair value of derivative warrant liability, decreased 51.4% year-over-year to $6.1 million, or $0.36 per diluted share
Excluding the non-cash gain from change in the fair value of derivative warrant liability, non-GAAP adjusted net income decreased 38.1% to $4.7 million, or $0.28 per diluted share

The Company acquired 13 new drug production licenses from Heilongjiang Traditional Chinese Medical University

"In the first quarter of 2011, we saw encouraging early signs of a sales recovery as we took aggressive steps to rebuild and expand our distribution base after the loss of two major distributor relationships during the third quarter of 2010. Sales have been spread out across a number of new distributors and we begin 2011 with a more diversified client base compared to prior years. Not one of our customers accounted for more than 10% of our total revenue or accounts receivable in the quarter ending March 31, 2011," said Mr. Yan-Qing Liu, the Company's Chairman and CEO. "A more diversified and richer product portfolio also favorably impacted first quarter results and we plan to reinforce China Sky One's long term growth prospects by continuing to invest in our higher margin branded portfolio while introducing additional new drugs in 2011 and beyond."

Comments & Business Outlook

Thu, 17 Mar 2011 04:00:00 GMT

GeoTeam Notes:

Business has been negatively impacted by the termination of business relationships with one domestic distributor and one overseas sales agent during the third quarter of 2010. The Company did not issue 2011 guidance, but estimates indicate that EPS growth will be dismal over the next two years.

The need for a capital restatement in the 2010 10K is somewhat more ambiguous that comments made in prior filings, where it was more evident that the company would not need to tap capital markets.

EPS: $0.21 vs. $0.36 est.

Comments & Business Outlook

Tue, 15 Mar 2011 04:00:00 GMT

Fourth Quarter Highlights:

Total revenues decreased by $3.0 million, or 10.2% to $26.8 million as compared to the corresponding period of 2009
Gross profit was $19.1 million with gross margin of 71.2%
Operating income was $4.3 million, as compared to $9.1 million in the corresponding period of 2009
Net income was $2.5 million, or $0.15 per diluted share
Excluding the effect of non-cash items related to changes in the fair value of the Company's derivative warrant liabilities and share based compensation expenses, non-GAAP net income was $3.6 million, or $0.21 per diluted share, as compared to $7.9 million, or $0.47 per diluted share a year ago

"Our full year financial results were in line with our expectations. We saw a modest increase in our top line as we took aggressive steps to replace the two major distributors who discontinued their business relationships with us in the third quarter. Our sales network now covers 18 provinces in mainland China and several countries and regions overseas. We are now co-operating with nationwide chain pharmacies to reach all major metropolitan areas throughout China while relying on larger regional sales agents to resell our products to smaller distributors and retail stores," said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical, Inc. "In 2011, we will introduce a number of new products, and we will continue to invest heavily in high margin branded drugs to support long-term sustainable growth."

Full Year 2010 Highlights

Total revenues increased 2.0% to $132.7 million, in-line with management guidance
Gross profit was $96.7 million with gross margin of 72.9%
Operating income decreased 18.7% to $37.6 million
Net income increased 16.1% to $36.0 million, or $2.14 per diluted share
Excluding the effect of non-cash items related to changes in the fair value of the Company's derivative warrant liabilities and share based compensation expenses, non-GAAP net income was $28.2 million, or $1.68 per diluted share, as compared to $37.0 million, or $2.22 per diluted share in 2009
Relocated corporate headquarters to Harbin Song Bei New Development District
Acquired rights to cultivate and produce herbs and other ingredients for use in traditional Chinese medicine (TCM) and other health food products on 74,000 acres of forested land in the Xiao Xing'an Mountain region

Liquidity Requirements

Tue, 15 Mar 2011 04:00:00 GMT

Our current ratio was 8.0 at December 31, 2010 compared to 3.9 at December 31, 2009, and the quick ratio was 7.7 at December 31, 2010 compared to 3.8 at December 31, 2009. We endeavor to ensure that funds are available to take advantage of new investment opportunities and that funds are sufficient to meet future liquidity and capital needs.

GeoTeam® Note: This statement is somewhat more ambiguous than comments made in prior filings, where it was more evident that the company would not need to tap capital markets.

Investor Alert

Tue, 22 Feb 2011 05:00:00 GMT

HARBIN, China, Feb. 22, 2011 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc., today provided an update regarding its progress in amending financial reports previously filed with the State Administration for Industry and Commerce ("SAIC"), the PRC governmental agency responsible for issuing and renewing the Company's business license.

According to the Company, corrected financial reports for 2007, 2008 and 2009 have been submitted to the local SAIC offices in the jurisdictions in which the Company's subsidiaries are located. The Company believes that the financial information included in the amended reports is consistent with the information included in reports filed by the Company with the U.S. Securities and Exchange Commission. As previously reported, the Company believes that, should the SAIC impose a penalty in connection with amending these financial reports, such penalty will not be material.

Liu Yan-qing, the Company's Chief Executive Officer, stated, "We always endeavor to follow all relevant rules and regulations when conducting our business, both in the PRC and abroad. If, on occasion, we become aware that an error was made, we seek advice of professionals to determine the appropriate course of action to correct it, and will continue to do so in the future."

Shareholder Letters

Fri, 21 Jan 2011 05:00:00 GMT

HARBIN, China, Jan. 21, 2011 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc., today announced the shareholder letter from Mr. Yanqing Liu, the Company's Chairman of Board of Directors, and Chief Executive Officer. The full text of this shareholder letter is as follows:

Dear Shareholders,

Our company's reputation continues to be tarnished by unfounded allegations of certain self-serving investors, whose viewpoints recently have been rehashed in media outlets, driving our share price down and create panic among our valued shareholders.

We regret that our faithful shareholders have suffered loss in the capital market as a result of reckless criticism and attacks. Most of the issues that recently resurfaced in the media were raised some time ago and have already been addressed by management. We have worked closely and diligently with all SEC inquiries and will continue to do so.

As you know, despite all attempts, China Sky One Medical is one of China's leading pharmaceutical companies. We manufacture and distribute over 100 products across approximately 30,000 pharmacies and 1,000 hospitals throughout China. We will continue to focus on delivering strong operating performance, which should provide a key source of confidence for our shareholders in the long run. So far, there are not many shareholders who have been visiting the Company, or met with our management team. Without conducting field research or seeing firsthand the dedication of our professionals, we consider the negative challenges have demonstrated little interest in knowing the business.

China Sky One Medical operates four pharmaceutical factories and two R&D centers in China. We are well positioned in the country's pharmaceutical industry, with strong R&D capabilities and expanding marketing and branding strategies. The Company has a world-class product pipeline, which represents huge business potential. Based on China Sky One's fundamentals, the management is optimistic for a brighter future.

In the Company's history, our executive directors have never sold a single share of China Sky One Medical. Despite all the accusations, we will keep focusing on business development and continue to focus on managing our business to create long term shareholder value. We also intend to continue to update investors regularly through press releases as we reach any key milestones in 2011, including research and development progress, as well as new business advances. We highly value smooth and transparent communication with our investors.

Management is now busy working on annual auditing and reporting for 2010. As soon as practical, we intend to update investors on our 2010 performance and our financial guidance for 2011.

To provide foreign investors a better opportunity to understand the real China Sky One Medical, especially at this critical time, we want to extend a sincere open invitation to our current shareholders, potential investors, and different opinion holders to visit our headquarters and pharmacies in China. We will show you how we manage the business from manufacturing to distributing. We are willing to cover your travel expenses in China. "Seeing is the base of believing." China Sky One Medical truly welcomes investors and media to come visiting us and understand how we conduct our business with their own eyes!

Mr. Yanqing Liu

Chairman of Board of Directors, and Chief Executive Officer

China Sky One Medical

Comments & Business Outlook

Tue, 11 Jan 2011 05:00:00 GMT

HARBIN, China, Jan. 11, 2011 /PRNewswire-Asia-FirstCall/ -- China Sky One Medical, Inc. today announced that following the Tang Wang He forest land acquisition, the Company plans to develop, manufacture and market thirteen new health food products, including teas, oral liquids and herbal wines. These products are expected to receive approvals from China's State Food and Drug Administration ("SFDA") in 2011. The Company will leverage its existing sales network to sell the following new products to consumers through pharmacies:

Category	Name	Utility	Expected SFDA Approval
Health Tea	Tea from Acanthopanax Root	To nourish blood, improve appetite and facilitate sleep	Q2 2011
	Tea from Fruit of Chinese Magnoliavine	To energize, improve memory and combat fatigue	Q2 2011
	Tea from Pinus Prokoraiensis Needles	Antioxidant, anti-aging	Q2 2011
	American Ginseng Tea	To adjust endocrine and enhance immunity	Q2 2011
	Astragalus Mongholicus Ginseng Tea	To energize and improve cardiac muscle strength	Q2 2011
Health Oral Liquid	Blueberry Oral Liquid	Antioxidant, anti-aging	Q3 2011
	Honeysuckle Oral Liquid	Anti-virus, to improve immunity	Q3 2011
	Rose Hip Oral Liquid	To supplement Vitamin C, antioxidant	Q3 2011
	Pinus Prokoraiensis Needles Oral Liquid	Antioxidant, anti-aging	Q3 2011
Health Herbal Wine	Kidney Invigorating Wine	To invigorate the kidney	Q1 2011
	Longevity Wine	To energize and rejuvenate	Q1 2011
	Rheumatism Wine	To activate blood circulation; to dissipate blood stasis and rheumatism	Q1 2011
	Nerve relieving Wine	To nourish blood and for tranquilization	Q1 2011

The Company also reached an agreement with the research division of Heilongjiang Traditional Chinese Medicine University, which will transfer the ownership of eleven patch products at fair market value prices to the Company upon receipt of corresponding production approvals. These products include: Breast and Uterus Patch, Heart Patch, Headache Patch, Intestines Patch, Bowel Relaxing Patch, Onychomycosis Patch, Dry Skin Patch, Cold and Fever Patch, Carsickness Patch, Bone Healing Patch, and Waist Patch.

"We look forward to the commercial launch of these new health food and patch products and expect to continue to diversify our rich product portfolio to strengthen the Company's competitive position and support sustainable long-term growth," said Mr. Yan-Qing Liu, Chairman and CEO of China Sky One Medical. "We are now working on the sales forecast for these new products and will update investors with the 2011 full year financial forecast soon."

CFO Trail

Tue, 23 Nov 2010 05:00:00 GMT

China Sky One Medical, Inc. ("China Sky One Medical" today announced that Mr. Hong-yu Pan was appointed by the Company's Board of Directors to serve as the Company's Chief Financial Officer and Treasurer, effective as of November 19, 2010.

Comments & Business Outlook

Mon, 08 Nov 2010 05:00:00 GMT

For the three months ended September 30, 2010, total revenues decreased by approximately $7,034,000, or 16.3%, as compared to the same period of 2009.

Net income decreased to $8.6 million from $12.6 million.

EPS decreased to $0.51 from $0.76.

Our sales and marketing strategy is to promote certain of our products which have less market competition by coordinating with reputable distributors who have extensive market channels. However, these distributors seek lower sales prices which will have a negative impact on our overall gross product margins.

Historically, our Slim Patch products have been one of our best selling products both domestically and outside of the PRC. Beginning in the fourth quarter of 2009, China domestic sales of Slim Patch products began to decline. The regulations and restrictions launched at that time by the Chinese government prohibiting television advertisement of weight loss products in the PRC have negatively impacted the Slim Patch distribution channel in the PRC. The revenue generated from the China domestic market of Slim Patch products was $4,193,000 and $9,879,000 for the nine months ended September 30, 2010 and 2009, respectively. In addition, following Hangzhou Jiupin’s termination of its business relationship with us, our overseas sales of Slim Patch products also decreased. Revenues generated from the Slim Patch overseas sales were $5,928,000 and $8,956,000 for the nine months ended September 30, 2010 and 2009, respectively. We expect sales of our Slim Patch products in the PRC to remain lower for the foreseeable future due to the Chinese government’s restrictions, and to remain lower overseas until we are able to locate a new overseas sales agent to handle sales in the affected or new markets.

For the remainder of fiscal year 2010, we anticipate price increases of certain raw materials due to unforeseen natural disasters and inflation that will result in the increase of our cost of goods sold. In addition, our sales and marketing strategy to promote certain of our products which have less market competition by coordinating with reputable distributors who have extensive market channel and will launch these products at lower margins. These factors will have negative impact on our overall gross product margins.

Business Outlook

The Company reiterates guidance for 2010 of

Revenue from $128 million to $136 million

Adjusted net income, excluding the impact of the derivative warrant liability, from $26 million to $31 million.

The Company currently is in the process of evaluating its outlook for 2011 and will provide guidance for next year once its forecast has been finalized.

"We believe that our strong and efficient sales network, combined with new relationships with national and provincial distributors, provides a solid base from which we can rekindle growth heading into 2011. Furthermore, our healthy cash position provides us with flexibility to pursue value creating acquisitions and to enter into beneficial strategic relationships. We are very excited about our recently announced joint application with Heilongjiang Traditional Chinese Medical University ("HTCMU") for production licenses of 15 new medical products. We look forward to revenue and earnings contribution in 2011 from these products as well as from another 3 to 5 products that we hope will obtain SFDA approval by the end of 2010. We will continue our efforts in research and development of high margin branded products, while focusing on increasing sales and promotion of our current products, including our promising portfolio of diagnostic kits," concluded Mr. Liu.

Research

Fri, 03 Sep 2010 04:00:00 GMT

China Sky One Medical shocked investors when, after the close, it announced that it lowered its guidance:

The Company has lowered its 2010 revenue guidance from a prior range of $160 million and $164 million to between $128 million and $136 million.
The Company also has lowered its 2010 adjusted net income guidance, excluding the impact of derivative warrant liabilities, from between $40 million and $41 million to between $26 million and $31 million.
Management's reduced guidance reflects the termination of relationships with certain private distributors, who after several rounds of discussions, chose to end their cooperation with the Company after learning that their business information was disclosed in the Company's public SEC filings and would continue to be disclosed in such documents as required by SEC regulations. This disclosure, these distributors claim, has led to increased scrutiny of their financial performance by government authorities within China. While the Company expects to replace these lost distribution arrangements over time, revenue and net income in the second half of 2010 are expected to be negatively impacted by the disruption in distribution channels. The Company expects to incur higher selling and marketing costs during second half 2010 to develop new distributor relationships.

GeoTeam® note:

We found it very interesting that the PRC government has poked its head into the CSKI story and we are surmising that it will not be the last. It may be that China is finally getting wind of the fraud allegations taking place in the ChinaHybrid® space. We are curious if part of the issue in CSKI's case could be with the existence of possible discrepancies between distributor sales reported in its SEC filings and those reported by its distributors in China. Furthermore, as tax evasion may be prevalent in China, maybe the distributors see a potential risk on their end as they may have under reported income. Any theory is just speculation for now, but this could open up a can of worms and give shorts another avenue to champion their cause by contacting PRC government officials.

This development gives investors another reason to perform extreme due diligence in the ChinaHybrid sector.

CFO Trail

Fri, 03 Sep 2010 04:00:00 GMT

The Company announced the resignation of its CFO, Mr. Stanley Hao, due to health considerations, effective September 01, 2010. Mr. Hao will retain his position as Company Director and Board Secretary. Mr. Yu-kun Zhang, the Company's Principal Financial and Accounting Officer, will continue to oversee the accounting and finance functions, while the Company actively searches for a new CFO.

Liquidity Requirements

Mon, 09 Aug 2010 04:00:00 GMT

As of June 30, 2010, cash and cash equivalents were approximately $64,656,000 as compared to $48,233,000 at June 30, 2009. We had working capital at June 30, 2010 of approximately $77,152,000, compared to $60,584,000 at June 30, 2009 (restated). Our increase in working capital in 2010 was principally due to increased cash and cash equivalents funded by the increased cash flows generated from our operating activities. We consider current working capital and borrowing capabilities are adequate to cover our current operating and capital requirements in the near future.

Comments & Business Outlook

Mon, 09 Aug 2010 04:00:00 GMT

2010 Second Quarter Highlights:

Revenues increased by approximately $8,579,000, or 26.7%, as compared to the same period of 2009. The increase is primarily due to the strong sales from products in our Ointment and Others product categories, partially offset by the decreased revenue from the sales of our Slim Patch and Diagnostic Kits.
Non-GAAP EPS after taking warrant gains/losses into account was $0.61 vs $.57.

"Historically, we signed agreements with suppliers that allowed us to hold extra raw materials at the cost of the suppliers. As a result, we were able to minimize our own inventory carrying costs, and improve our cash management, by keeping the inventory at the minimum level required to support the short-term sales. However, due to our forecasts for certain cost increases of raw materials and the overhead costs for storing such raw materials in fiscal 2010, we began to increase our inventory levels toward the second half of 2009 and in 2010. We expect this practice to continue for the foreseeable future.

For the remainder of fiscal year 2010, we anticipate price increases of certain raw materials due to unforeseen natural disasters and inflation that will result in the increase of our cost of goods sold. In addition, our sales and marketing strategy to promote certain of our products which have less market competition by coordinating with reputable distributors who have extensive market channel and will launch these products at lower margins. These factors will have negative impact on our overall gross product margins."

GeoBargain Notes

Wed, 17 Mar 2010 04:00:00 GMT

CSKI removed from GeoBargain List.

No longer meets the 30% EPS growth minimum requirement.

Added to GeoBargain list on Friday, May 30, 2008 @ $12.85.

Reached a high of $25.45 on December 28, 2009.

Current Price: $14.50

The GeoTeam will follow the story for developments that could lead to the resumption of 30% EPS growth.

Comments & Business Outlook

Thu, 10 Dec 2009 05:00:00 GMT

"We are confident about the prospects for our business in 2009 and will continue to focus on increasing market share by both strengthening and further refining our sales and distribution network, building and enhancing our brand image, and seeking out strategic acquisitions that support our growth. In the first nine months of 2009, we increased our number of sales representatives to roughly 1,500 from 1,300. Currently, our products are sold in approximately 5,500 pharmacies in 24 provinces in China compared to 4,500 pharmacies in 22 provinces in 2008. Over the long term, we will continue to focus on developing and manufacturing our biological diagnostic kits and on our cord stem cell bank initiative, areas that we believe have very promising market opportunities," said Mr. Liu.

"Based on our progress so far this year, we are reaffirming our guidance for the year," added Mr. Liu. "We expect 2009 full year revenue to increase by 40%, or approximately $37.0 million, to $130 million, driven by growth in all of our product sales categories. We estimate that 2009 gross margin to be approximately 75%, which factors in market competition and possibly higher raw material costs. We expect 2009 net income will increase to approximately $39 million, resulting in net profit margin of approximately 30%."

Source: PR Newswire (November 17, 2009)

Financials

Thu, 14 May 2009 04:00:00 GMT

1st QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED MARCH

	1st Quarter 2009	1st Quarter 2008	Period Change
GAAP Revenue	$24.8 million	$12.4 million	99.8%
GAAP EPS	$0.43	$0.26	65.4%
Tax Rate	20%	21%	-4.8%
Fully Tax-Adjusted EPS ^a	$0.36	$0.22	63.6%
Fully Diluted Shares	16,665,221	13,370,528	11.9%

Source: See Release

FULL YEAR 2008 vs. 2007 FINANCIAL SNAPSHOT ENDED DECEMBER

	Full Year 2008	Full Year 2007	Period Change
GAAP Revenue	$91.8 million	$49.3 million	86.2%
GAAP EPS	$1.87	$1.15	62.6%
Tax Rate	21%	18%	16.7%
Fully Tax-Adjusted EPS	$1.59	$0.94	69.15%
Fully Diluted Shares	15,429,136	13,370,528	15.4%

Source: See Release

^a For valuation purposes the GeoTeam� prefers to adjust EPS to reflect a standard United States rate.

Research

Fri, 30 May 2008 04:00:00 GMT

CSY is considered a GeoBargain as it meets 8 out of 10 of the following criteria:

X Recent 52 week High
X EPS growth at least 30%
X Revenue growth at least 10%
X Strong Balance Sheet
X Return on Equity of at least 15%
X Minimum Pre-tax operating margin of 8%
X Small Float
High insider ownership**
Limited Institutional ownership**
X Strives to Maximize Shareholder value

**The GeoTeam is attempting to locate accurate figures on Insider and Institutional Ownership.

As evidenced in the financial section of this discussion CSY exceeds many of the above criteria by a wide margin. The growth in the company’s business has been a direct result of increased distribution channels coupled with new product introductions. The stock has been rather quiet for sometime despite its financial performance, but the recent move to the American Stock Exchange from the OTC Bulletin Board may give the stock more exposure.

Several pieces of information point toward the company continuing its aggressive growth trend:

* Searching the SEC filings one can find earnings targets that the firm set in association with a recent capital raise initiative. If these targets are not met extra shares will be given to certain investors resulting in diluting ownership. Thus, although these targets are not guidance, it may be inferred that companies set targets that they can realistically achieve. This is very common in China reverse mergers. CSY met the target for 2007. The 2008 Earnings Per Share Target is $1.61 ($1.35 on an adjusted fully taxed basis ).

* Published analyst Estimates reveal EPS expectations of $1.58 for 2008 ( $1.32 on a fully taxed basis ) and $2.48 for 2009 ( $2.08 on a fully taxed basis ).
(Source: SEC 8K Filing Feb 21, 2008 )

* According to the company recent acquisitions will be accretive to earnings:

- "As a result of our recent acquisitions, we are currently on track to increase revenues materially as compared to last year and hope to increase
our gross margin to approximately 78.5%."
(Source: PR Newswire May 13, 2008)

* Involvement in new initiatives:

- “We are in the early stages of stem cell research which involve perfecting, cultivation methods and the freezing and storage of stem cells. We hope to complete this in the second half of 2008 and expect to see material revenues from these efforts begin to develop in 2009.” (Source: 2007 Year end conference call)

* Strong Pipeline of drugs:

- "By the end of 2008, the Company will have a total 38 new drugs submitted to the SFDA approval." (Source: PR Newswire May 20, 2008)

* Strong commentary:

- "For the full year 2008, and as a result of our recent acquisitions, we are currently on track to increase revenues materially as compared to last year and hope to increase our gross margin to approximately 78.5%."
(Source: PR Newswire May 13, 2008 )

2007 Key ratios are also impressive:

* Pre-tax Profit Margin: 37%
* Current Ratio: 4.29 to 1
* Tax Adjusted Return On Equity: 39%
* Long-Term Debt : None

GeoTeam note: We were impressed that the company swiftly changed accounting firms. It seems that the previous accounting firm may had come under some public scrutiny, although we are not sure as to the specific reasons for the change. This move shows that the firm is committed to developing a solid reputation among investors and enhancing shareholder value:

* ''We look forward to working with our new independent auditor, Moore Stephens, to ensure that the Company continues to achieve high standards in financial reporting, which is in keeping with our profile as an American Stock Exchange listed company. We are committed to protecting the interests of our shareholders and providing transparent public disclosure,'' said Mr. Yan-qing Liu, Chairman, CEO and Director of China Sky One Medical, Inc. (Source: PR Newswire May 28, 2008)

The GeoTeam holds a position in CSY. Sticking with the Geo discipline, we may place good-to-cancel sell limits. We may change these limits or liquidate our position if new developments arise. We may also change these limits or liquidate our position to meet firm capital needs or as our market outlook changes.

Potential Valuation Scenarios

Fri, 30 May 2008 04:00:00 GMT

Trailing EPS: $1.08
Forward EPS: $1.35
EPS future growth rate: 46%

EPS numbers have been adjusted to reflect a fully taxed scenario and any one time charges or gains. Future EPS numbers have been obtained from public sources. The GeoTeam feels that an adjustment to net income to reflect a standard tax rate is necessary for investors to make proper investment decisions.

Short Term (NOW) Scenarios Based on:

P/E of 25 on four quarters trailing EPS: $27.00

P/E of 15 on four quarters forward EPS: $28.05

Long Term (12 Months Forward) Scenario Based on:

P/E of 25 on four quarters forward EPS: $46.75

Alternate Scenarios Based on P/E to EPS Growth Comparison:

Common rule of thumb that the P/E should equal the future EPS growth rate: $49.68

These scenarios are not intended to be investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions

Financial Target Agreements

Fri, 30 May 2008 04:00:00 GMT

As of the Closing Date, the Company, the Company s majority shareholder (the CSKI Shareholder ) and the Investor Agent (collectively, the Make Good Parties ) entered into a Make Good Agreement (the Make Good Agreement ), pursuant to which the CSKI Shareholder agreed to place up to 3,000,000 shares of Common Stock of the Company (the Escrow Shares ) into escrow for the benefit of the Investors, in the event that the Company fails to attain Earnings Per Share, as adjusted ( Adjusted EPS ) of at least

(i) $1.05 per share for the fiscal year ending December 31, 2007, based on fully diluted shares outstanding. ( $0.88 on a fully taxed basis ).

(ii) $1.61 per share for the fiscal year ending December 31, 2008, based on fully diluted shares outstanding. ( $1.35 on a fully taxed basis ).

(Source: SEC 8K Filing Feb 21, 2008 )

Comments & Business Outlook

Fri, 30 May 2008 04:00:00 GMT

'Thus far in 2008, we have completed two acquisitions, including one which will enhance our product portfolio and pipeline of new drugs and another which will allow us to quickly expand sales of our medicinal products. In 2008, we expect strong growth in all of our product categories, with sales of Bio chemical products and our highly successful Slim Patch making the largest contributions,' said Mr. Liu. 'For the full year 2008, and as a result of our recent acquisitions, we are currently on track to increase revenues materially as compared to last year and hope to increase our gross margin to approximately 78.5%.'

(Source: PR Newswire May 13, 2008 )

Financials

Thu, 29 May 2008 04:00:00 GMT

Full Year 2007 Financial Notes:

* Total revenues increased 148% in to $49.3 million from $19.9 Million

* Operating income increased 863% to $18.6 Million from $1.7 Million

* Pret-tax Profit Margin was 37%

* Net income increased to $15.3 million from $0.6 million

* Earnings Per Diluted Share was $1.15 compared to $0.05

* Tax Rate was 17.69%

* No Long-Term Debt

Adjusting financials for a standard tax rate and adding back $1.8 Million in one time costs to 2006 yields:

* Net Income of $12.5 million compared to $2.24 million

* Fully Diluted EPS increasing 480% to $0.94 from $0.16

* Return On Equity of 39%

( Source 2007 10 K )

2008 First Quarter Financial Notes:

* Revenues increased 140% year to year to $12.4 Million from $5.2 Million

* Pre-tax income increased 154% to $4.9 Million from $1.89 Million

* Pret-tax Profit Margin was 39.5%

* Net income increased 160% to $3.9 million from $1.6 Million

* Earnings Per Diluted Share was $.26 compared to $0.12

* Period Tax Rate was 20% up from 18%

* Fully Diluted Outstanding shares were 20% higher at 14.89 million.

Adjusting financials for a standard tax rate yields:

* Net income increasing to $3.3 Million from $1.3 Million

* Fully diluted EPS increasing 124% to $.22 from $0.098

( Source 2008 First Quarter 2008 10 Q )

Research

Fri, 23 May 2008 04:00:00 GMT

China Sky One Medical, Inc. Approved for Listing on the American Stock Exchange

"This approval is contingent upon China Sky One Medical being in compliance with all applicable listing standards on the date it begins trading on the AMEX and may be rescinded if China Sky One Medical is not in compliance with such standards. Concurrent with its first trade on AMEX, China Sky One Medical will no longer be quoted on the Over-the-Counter Bulletin Board."

(Source: Press)