Aida Pharmaceuticals Reports Fiscal 2006 Year End Results

Aida Pharmaceuticals Reports Fiscal 2006 Year End Results

April 04, 2007

Net Income Up 89% Excluding Non-recurring Item


    HANGZHOU, China, April 4  /Xinhua-PRNewswire/ -- Aida
Pharmaceuticals, Inc. (OTC Bulletin Board: AIDA), one of
mainland China's leading pharmaceutical companies, today
announced its financial results for the fiscal year ended
December 31, 2006.  Excluding a non-recurring, non-cash
expense of $1,320,000, net income for fiscal 2006 totaled
$2,773,584, representing an 89% increase over net income of
$1,468,335 for fiscal 2005.  Full details of the Company's
year-end financial results are available in the Company's
Form 10-KSB at http://www.sec.gov .

    Financial Performance:

    -- Revenues for the year ended December 31, 2006
totaled $29,643,103, a 
       20.9% increase from revenues of $24,527,379 for the
year ended December
       31, 2005.  Substantial increases in Etimicin
transfusion and injection 
       sales offset a slight decrease in Etimicin powder
sales, reflecting 
       customer preferences and the Company's intensive
promotion of these 
       preferred products.

    -- Gross profit totaled $15,562,063 in fiscal 2006, a
decrease of 
       approximately 3.9% versus gross profit of
$16,193,760 in fiscal 2005. 
       The gross profit margin for full year 2006 declined
to 52.5%, from 
       66.0% for full year 2005.  The decline primarily
reflects the changed 
       revenue mix, with lower margin Aike transfusion
products now accounting
       for a larger portion of sales.  This change in
revenue mix first 
       appeared in early 2006.  

    -- Income from operations totaled $3,936,278 in fiscal
2006, an increase 
       of 85.7% versus income from operations of $2,120,003
for fiscal 2005. 
       The increase reflects the substantial decline in
selling and 
       distribution expense following the Company's earlier
rationalization of
       its sales and distribution channels.  Selling and
distribution expense 
       declined from $10,081,651 in fiscal 2005 to
$5,581,681 in fiscal 2006.

    -- Net income totaled $1,453,584 at year-end 2006,
declining 1% from net 
       income of $1,468,335 at year-end 2005.  The Company
reported net income
       per share of $0.06 in fiscal 2006 and $0.06 in
fiscal 2005.  The slight
       decline in reported net income largely reflects a
non-recurring, non-
       cash compensation expense that was incurred in
fiscal 2006.  Stock-
       based compensation amounting to $1,320,000 was paid
to two consultants 
       for services to be rendered over three years from
mid-2006 through mid-
       2008.  The entire amount, however, was expensed in
fiscal 2006, based 
       on management's decision to adhere to a more
conservative accounting 
       approach.  Excluding this item, net income would
have totaled 
       $2,773,584 for fiscal 2006, representing an increase
of 89% over net 
       income of $1,468,335 in fiscal 2005.  

    -- Cash and equivalents increased to $6,116,816 at
year-end 2006, versus 
       $3,129,450 at year-end 2005. Shareholders' equity
increased to 
       $10,352,218 at year-end 2006 from $6,724,107 at
year-end 2005.  
       Weighted average shares outstanding increased to
25,953,425 for fiscal 
       2006 from 23,481,849 for fiscal 2005.  

    "We believe we have now cycled through the sales
mix changes that decreased our gross margins," said
Jin Biao, Aida's chief executive officer.  "Because
these sales mix changes first appeared in early 2006, we
anticipate comparisons becoming normalized again in the
first quarter of 2007.  With our gross margins mostly
stabilized, our sales costs down substantially and revenues
continuing to grow sharply, we're positioned to see strong
earnings growth over the near-term."  

    Biao continued, "We expect our revenue and
earnings growth to average 30% per year over the next five
years, as a result of strong growth in Etimicin
consumption, along with our pipeline of new drugs for
cancer, hepatitis and stroke and our focus on selective
acquisitions.  We believe our current marketplace valuation
of 1X sales is too low, given our prospects.  We continue to
focus on taking shareholder friendly actions to more closely
align AIDA's valuation with our strong growth profile."




                              COMPARATIVE RESULTS 
     
                                                   For
Fiscal Year Ended 
                                                12/31/06   
       12/31/05 
     
    Revenue                                   $29,643,103  
     $24,527,379
    Cost of Goods Sold                        (14,081,040) 
      (8,333,619) 
    Gross Profit                               15,562,063  
      16,193,760
      Gross profit margin (%)                     52.5%    
         66.0% 
    Income from Operations                      3,936,278  
       2,120,003 
    Net Income                                  1,453,584  
       1,468,335 
    Net Income per share                          0.06     
         0.06 
    Weighted average shares outstanding         25,953,425 
      23,481,849 


    About Aida Pharmaceuticals

    Aida Pharmaceuticals is a product-focused
pharmaceuticals company engaged in the formulation,
clinical testing, registration, manufacture, sales and
marketing of advanced pharmaceutical and genetic products
in mainland China. The Company's mission is to discover,
develop and market meaningful new therapies that improve
human health. Aida, in operation since March 1999, is
headquartered in Hangzhou, China with manufacturing,
distribution and sales points throughout mainland China.
Aida is GMP certified in China and ISO9002 certified for
quality assurance and ISO14000 certified for
ecologically-friendly practices. Aida is now producing and
marketing a patented prescription drug in China, etimicin
sulfate. It is the first antibiotic developed in China and
is regarded as a category "A" drug by the State
Food and Drug Administration of China. 

    Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995: 

    This press release includes certain
"forward-looking statements" within the meaning
of the United States Private Securities Litigation Reform
Act of 1995. These statements are based on Aida
Pharmaceuticals, Inc.'s management's current expectations
and are subject to risks and uncertainties and changes in
circumstances. All forward-looking statements included in
this press release are based upon information available to
Aida Pharmaceuticals, Inc. as of the date of the press
release, and it assumes no obligation to update or alter
its forward looking statements whether as a result of new
information, future events or otherwise. These
forward-looking statements may relate to, among other
things, plans and timing for the introduction or
enhancement of our services and products, statements about
future market conditions, supply and demand conditions, and
other expectations, intentions and plans contained in this
press release that are not historical fact. Further
information on risks or other factors that could affect
Aida Pharmaceuticals, Inc.'s results of operations is
detailed in its filings with the United States Securities
and Exchange Commission available at http://www.sec.gov.




    For more information, please contact:

    Aida Pharmaceuticals, Inc.
     31 Dingjiang Road
     Jianggan District
     Hangzhou, China 310016

    Investor Relations:
     Equity Performance Group
     Bethany Tomich 
     Tel:  [phone]
     Email: [e-mail]
     Web:   http://www.equityperformancegroup.com