Skystar Bio-Pharmaceutical Company ("Skystar" or the "Company") (Nasdaq: SKBI) Skystar Bio-Pharmaceutical Company was founded in 1997. Skystar has grown to become one of China's leading manufacturers and distributors of vaccines and medicines for poultry,
Mr. Weibing Lu, Chairman and CEO of Skystar, commented, "Skystar's dairy cow probiotic is expected to launch at the end of the fiscal year and is a welcome addition to Skystar's Western medicine-based line of animal husbandry products.
Joining us on the call today is Skystar's Chairman and CEO, Weibing Lu, Skystar's CFO Bing Mei and Director of Corporate Development and U.S.
On behalf of Mr. Lu, Chairman and CEO and the rest of Skystar's management team, I would like to say good morning for those callers joining us here locally and good evening to those who are in China or elsewhere in the world.
Speaking of behalf of Mr. Lu, I would like to share his comments for the quarter.
So Mr. Lu, Chairman and Chief Executive Officer of Skystar commented, the company has achieved significant milestones in preparing two of its manufacturing facilities to become fully operational.
Joining us on the call today is Skystar's Chairman and CEO, Weibing Lu; Skystar's CFO Bing Mei; and Director of Corporate Development and U.S.
On behalf of Mr. Lu, Chairman and CEO, and the rest of Skystar's management team, I wish to say good evening to everyone.
As usual, today I'll be speaking from prepared comments on behalf of Mr. Lu who unfortunately due to technical difficulties in China, we can't seem to keep the connections established and he keeps being dropped from the call.
But we do have Bing Mei, our CFO, on the call and Mr. Lu may be joining back in if we can re-establish the call.
Collectively, we will be sharing the company's comments for this particular strong recent quarter.
We believe the quarter sets a milestone in moving forward as Skystar so we can get back on the production track again.
Some of our production facilities now have the GMP Certification along with some of the accompanying product production permits that have been approved by the government.
Mr. Lu, Chairman and Chief Executive Officer of Skystar, commented on the quarter.He is very pleased to report that it's the strongest quarterly results in the last six reporting periods.
Mr. Weibing Lu, Chairman and Chief Executive Officer of Skystar (SKBO), commented, "Skystar is pleased with unaudited first quarter results seeing increases in both year over year top and bottom line profitability.
Skystar's revenue growth was driven by Veterinary medicine which grew 40% year over year with solid contributions coming from Skystar's other segments.
The increased utilization rates for Skystar's veterinary medication production facility were realized following the receipt of more product permits from the Ministry of Agriculture.
Skystar's YoY gross margin compression from 47% to 41% for the current reporting quarter was anticipated due to increased production coming from the lower margin veterinary medications line for which the Company recently received some product permits, and increased manufacturing overhead as we successfully completed our Huxian vaccine plant construction.
We expect for manufacturing to continue to scale up throughout the year in preparation for the majority of Skystar's sales coming after the first quarter coinciding with China's celebration of the Lunar New Year holiday.
Skystar expects a steady growth trajectory once all of its manufacturing plants can be completed and brought to full utilization rates," concluded Mr. Lu.
Mr. Lu concluded, "Skystar has reported a strong start to the fiscal 2014 reporting cycle.
The Company believes that it has built a strong framework as the only U.S. listed animal pharmaceutical play in China.
The completed and newly GMP certified manufacturing facility in Huxian gives Skystar the ability to produce veterinary medicines and vaccines utilizing modern batch processes, increasing production efficiencies and volume of product produced.
More importantly, the Company has been able to launch and expand infrastructure within the tougher regulatory framework of China's new requirements for GMP production facilities.
These modern manufacturing standards and rules help to ensure the safety of China's food supply as agriculture and animal husbandry standards in China move towards modern standards and industrialization," concluded Mr. Lu.
Mr. Weibing Lu, Skystar's chairman and chief executive officer, will host the call, which will be webcast live.