Mr. Hao: China Sky One Medical, Inc., is located in Harbin, which is in the northeast of China. The company specializes in the manufacture of traditional Chinese medicines (TCMs), Western medicines and bioengineered products, which include biological drugs and testing kits used to detect and treat a variety of diseases. We are one of the few Chinese pharmaceutical companies in China with an extensive national distribution network, a diverse product portfolio based on our proprietary intellectual property, a state-of-the-art R&D center with a pipeline of new products and an experienced management team with deep industry knowledge. The company reported revenues of 57 million in the first half of 2009, an increase of 57.6% versus the same period last year. Net income for the first six months of 2009 reached 16.7 million, or 1.01 per diluted share, compared to 12 million, or 0.78 per diluted share, for the same period of 2008.
China Sky One Medical has four subsidiaries. Three of them are engaged in manufacturing traditional Chinese medicines and one, Harbin First Bioengineering, is engaged in the manufacture of bioengineered products. The company upgraded to the American Stock Exchange in May 2008 and then upgraded to the NASDAQ Global Market in September 2008. This provided a much more liquid market for our stock.
TWST: Are your products directed primarily at weight loss or general health?
Mr. Hao: While our Sumei Slim Patch for weight loss is one of our leading products, we have a very broad product portfolio. The pharmaceuticals that we manufacture treat illnesses in major disease categories, ranging from cardiovascular, pulmonary and central nervous system diseases, but also include remedies for many common ailments such as colds, fevers, and coughs and toothaches. We currently manufacture 89 products in a variety of deliveries and forms, such as medicated patches, suppositories, sprays, ointments, capsules, injections and diagnostic kits, which can diagnose fatal illnesses such as heart and kidney disease in early stage. Though the weight loss product you mentioned is one of our top-selling products, accounting for 18% of total revenue in 2008, it is only one of our products. As I mentioned, our pharmaceuticals treat a wide variety of common diseases. In the near term, we are focused on developing and further marketing our TCM products for common disease, as well as our biological testing kits. We believe that high-tech health products such as these will make a major contribution to our revenues in the long run.
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