Datasets:

---

idleengine

/

reddit_finance_posts_sp500

like 0

Follow

idleengine 1

ERROR: type should be string, got "https://finance.yahoo.com/news/universe-pharmaceuticals-inc-reports-financial-120000094.html\n\nJi’an, Jiangxi, China, Aug. 02, 2021 (GLOBE NEWSWIRE) -- Universe Pharmaceuticals INC (the “Company”) (Nasdaq: UPC), a pharmaceutical producer and distributor in China, today announced its unaudited financial results for the first six months of fiscal year 2021 ended March 31, 2021.\n\nMr. Gang Lai, Chairman and CEO of Universe Pharmaceuticals INC, commented, “We are pleased to present our financial results for the six months ended March 31, 2021, which represent a strong start to our fiscal year 2021. In March 2021, we also successfully completed our initial public offerings in the United States. Despite the continued challenges and uncertainties that we faced from the COVID-19 pandemic, our revenues grew by 48.2%, driven by increases in sales volumes fueled by our growing customer base. Our focus has always been long-term growth as we execute our business strategy, which calls for increasing market share, expansion of our supply chain and sales network, and the ability to secure high quality product at competitive prices. The main catalysts for our long-term growth remain in place, giving us confidence moving in to the second half of fiscal year 2021. Our focus is to continue executing our business strategies as we leverage our strong brand and supply channels to drive further growth and improvement of our financial metrics.”\n\nFinancial Highlights for the Six Months Ended March 31, 2021\n\nRevenues increased by 48.2% from $16.4 million in the six months ended March 31, 2020 to $24.3 million in the six months ended March 31, 2021, primarily attributable to increased sales volume of our traditional Chinese medicine derivatives (“TCMD”) products and third-party products by 3,204,716 units or 29.2%, increased average selling price of our TCMD products by $0.17 per unit or 12.8% and increased average selling price of third-party products by $0.47 per unit or 26.9%, after we resumed business operations from the COVID-19 pandemic.\n\nIncome from operations was $9.6 million for the six months ended March 31, 2021, representing an increase of 45.6% from an income from operations of $6.6 million for the six months ended March 31, 2020, which was caused by a combined effect of increased revenues and gross profit.\n\nNet income was $7.1 million for the six months ended March 31, 2021, representing an increase of 40.9% from a net income of $5.1 million for the six months ended March 31, 2020.\n\nEarnings per share was $0.44 for the six months ended March 31, 2021, representing an increase of 37.5% from earnings per share of $0.32 for the six months ended March 31, 2020.\n\nFinancial Results for Six Months Ended March 31, 2021\n\nRevenues\n\nTotal revenues increased by $7.9 million, or 48.2%, to $24.3 million for the six months ended March 31, 2021 from $16.4 million for the six months ended March 31, 2020.\n\nSales of TCMD products increased by $5.9 million, or 79.0%, from $7.4 million in the six months ended March 31, 2020 to $13.3 million in the six months ended March 31,2021, because the sales volume of our TCMD products increased by 58.7% from 5,760,229 units sold in the six months ended March 31, 2020 to 9,140,000 units sold in the six months ended March 31, 2021, and the average selling price of our TCMD products increased by 12.8% from $1.29 per unit in the six months ended March 31, 2020 to $1.46 per unit in the six months ended March 31, 2021.\n\nSales of third-party products increased by $2.0 million, or 22.6%, from $9.0 million in the six months ended March 31, 2020 to $11.0 million in the six months ended March 31, 2021. Sales volume of third-party products slightly decreased by 3.4%, from 5,219,039 units sold in the six months ended March 31, 2020 to 5,043,984 units sold in the six months ended March 31, 2021. In the six months ended March 31, 2021, due to an overall increase in the market prices of raw materials used in the manufacturing of third-party products, we paid higher purchase prices for products from third-party pharmaceutical companies and accordingly our average selling price of third-party products in the six months ended March 31, 2021 was higher than that in the six months ended March 31, 2020. Our average selling price of third-party products increased by 26.9%, from $1.71 per unit in the six months ended March 31, 2020 to $2.18 per unit in the six months ended March 31, 2021.\n\nCost of revenues and Gross profit\n\nCost of revenues increased by $4.4 million, or 56.4%, from $7.9 million in the six months ended March 31, 2020 to $12.3 million in the six months ended March 31, 2021.\n\nGross profit increased by $3.5 million from $8.5 million in the six months ended March 31, 2020 to $12.0 million in the six months ended March 31, 2021. Gross margin decreased by 2.7% from 52.0% in the six months ended March 31, 2020 to 49.3% in the six months ended March 31, 2021.\n\nOperating expenses\n\nSelling expenses increased by $463,046, or 71.7%, from $646,241 in the six months ended March 31, 2020 to $1,109,287 in the six months ended March 31, 2021, primarily attributable to (i) an increase in advertising expenses by $98,687, or 58.7%, from $168,197 in the six months ended March 31, 2020 to $266,884 in the six months ended March 31, 2021. We use outdoor billboard, magazine and social media such as WeChat and Weibo to advertise our brand and products in order to increase customer awareness. In the six months ended March 31,2021, in connection with our sales promotion of our TCMD products to targeted customers, we spent more on advertising than we did in the six months ended March 31, 2020, which led to higher advertising expenses in the six months ended March 31, 2021; (ii) an increase in our salary and benefit expenses paid to our sales employees by $193,871, or 89.2%, from $217,439 in the six months ended March 31, 2020 to $411,310 in the six months ended March 31,2021, and an increase in business travel and meals expense by $18,799 or 225.2%, from $8,346 in the six months ended March 31, 2020 to $27,145 in the six months ended March 31, 2021, primarily due to our increased sales activities during the six months ended March 31, 2021. For the same period of 2020, from early February to early March 2020, we temporarily suspended our business as affected by the COVID-19 pandemic. During the one-month temporary closure of our facilities in response to COVID-19, we reduced business travels and we only paid basic salary to our sales personnel during this period of time, which led to lower amount of salary expenses and business travel expenses in the six months ended March 31, 2020 as compared to the six months ended March 31, 2021; (iii) an increase in shipping and delivery expenses by $151,620, or 62.7%, from $241,826 in the six months ended March 31, 2020 to $393,446 in the six months ended March 31, 2021, due to our increased sales volume and sales orders fulfillment during the six months ended March 31, 2021.\n\nGeneral and administrative expenses increased by $241,685 or 32.5% from $743,813 in the six months ended March 31, 2020 to $985,498 in the six months ended March 31, 2021, primarily attributable to (i) our professional service fees increased by $290,805 in the six months ended March 31, 2021 as compared to the six months ended March 31, 2020, primarily due to increased audit fee and business consulting fees in connection with our intended public offering, (ii) an increase in our office supply and utility expenses by $86,842, or 135.7%, to support our administration activities; (iii) an increase in our salaries, welfare expenses and insurance expenses paid to administration employees by $74,411, or 31.9%, because of higher amount of annual bonus was distributed to administrative staffs in the six months ended March 31, 2021 as compared to the six months ended March 31,2020, and offset by a decrease in bad debt expense by $212,291 because we accrued more bad debt expenses in period periods based on estimated accounts receivable collection trend and approximately $0.2 million bad debt accrual in prior periods has been collected in the six months ended March 31, 2021.\n\nResearch and development expenses decreased by $236,959, or 43.3%, from $547,627 for the six months ended March 31, 2020 to $310,668 for the six months ended March 31, 2021, primarily attributable to a decrease in the materials used in the R&D activities by $269,185. In the six months ended March 31, 2020, in order to develop new products and improve the formulation of several existing products, we conducted more testing on product stability and safety, and as a result, more materials were used in our R&D activities in the six months ended March 31, 2020 than in the six months ended March 31, 2021.\n\nOther income (expenses), net\n\nTotal other expenses, net, decreased by $18,306 or 43.0%, from $42,578 in the six months ended March 31, 2020 to $24,272 in the six months ended March 31, 2021.\n\nProvision for Income Taxes\n\nProvision for income taxes was $2.4 million in the six months ended March 31, 2021, an increase of $0.9 million, or 64.5% from $1.5 million in the six months ended March 31, 2020 due to our increased taxable income.\n\nNet income\n\nNet income was $7.1 million for the six months ended March 31, 2021, representing a $2.0 million increase from a net income of $5.1 million for the six months ended March 31, 2020.\n\nBasic and diluted earnings per share were $0.44 for the six months ended March 31, 2021, representing a change of 37.5% from basic and diluted earnings per share of $0.32 for the six months ended March 31, 2020.\n\nBalance Sheet\n\nAs of March 31, 2021, the Company had cash of $36.0 million as compared to $10.1 million as of September 30, 2020.\n\nCash Flow\n\nNet cash provided by operating activities was $1.1 million in the six months ended March 31, 2021, compared with $8.4 million in the six months ended March 31, 2020.\n\nNet cash used in investing activities was $50,875 in the six months ended March 31, 2021, compared with $47,512 in the six months ended March 31, 2020.\n\nNet cash used provided by financing activities was $24.1 million in the six months ended March 31, 2021, compared with $0.4 million in the six months ended March 31, 2020."