China’s Biostar Pharmaceuticals reports $5.7M loss in 2016

Biostar Pharmaceuticals, a PRC-based manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, has reported its financial results for the year ended December 31, 2016.

The company has reported net loss of $5.7 million as compared to net loss of $25.1 million for the year 2015.

The company said that it had no sales on all Aoxing Pharmaceutical Products in the year ended December 31, 2016 as Aoxing Pharmaceutical temporarily stopped production to conduct maintenance of its production lines in order to renew its GMP certificates which is expected to be renewed in the first half of 2017.

Also, sales of Shaanxi Weinan’s products decreased during the last year due to replacing production equipment to comply with government’s environmental protection requirement. The company said that it expects the production of Shaanxi Weinan products will resume in the first half of 2017.

The temporary suspension of production has materially negatively affected the company’s operating results and, as the company said, there may be substantial doubt regarding the Company’s ability to continue as a going concern.