3SOF

"AOB" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders.                                                       
All history on a stock pick in 1 thread is awesome.                                                         
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock.                                                       
Thank You....and good luck with all your trades....make some $$$     

AOB has been beaten up on share holder dilution. There is going to be a huge secondary offering sometime in the next month and until that offering comes out the share price will continue to decline. No one wants to buy a stock when they will dilute shareholder value a week later. Anyway AOB will be a good short until this dilution is over. When the dilution is over the shorts will begin to cover. The float is 48 million shares and last month 7.2 million of those shares were short. With a average volume of 1 million shares a day it will take shorts 7 days to cover. You can expect a nice boost in share price after they get this secondary offering out of the way. Until then shareholders will continue to get margin calls and be forced to keep selling there shares.

Keep shorting this stock until institutions step in and support the stock for a couple of days. Right now the institutions are sitting on the sidelines and its obvious with the light volume. Once the secondary has gone through cover and go long. AOB is a great long term stock its just hard to tell where this bottom is right now.

prodigykid6,
The New Thread you just created has been merged here.......
Use the Search...

I see, you also come back and change your user name, WallStreetnBio....
Whatever, still Use the Search.

just FYI:
AOB: Short Interest UP 60.1% to 11.5M in Jun 2007
Friday , June 22, 2007 06:00ET

According to new short interest data from NYSE, short interest for American Oriental Bioengineering Inc (NYSE: AOB) INCREASED 60.1% to 11,533,832 shares for the month ended mid-June, 2007.

SYMBOL             MAY            JUNE          CHANGE       %CHANGE       DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
AOB            7,203,575      11,533,832      +4,330,257       +60.11%          10

Based on AOB's 20-day average daily share volume of 1,233,180, it would require approximately 10 day(s) of buying to cover this short interest.

AOB on my watchlist again:

why?

1)
AOB: Q2 EPS 15c vs 9c Beats 14c Est; Guidance Varies from Consensus
Wednesday, August 08, 2007 16:41ET

QUARTER RESULTS
American Oriental Bioengineering Inc (AOB) reported Q2 results ended June 2007. Q2 Revenues were $33.19M; +45.83% vs yr-ago; BEATING revenue consensus by +0.58%. Q2 EPS was 15c; +66.67% vs yr-ago; BEATING earnings consensus by +7.14%.

Q2 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE
----------  ------------  ------------  ----------  ------------  ----------
Revenues     $33.19M       $22.76M     +45.83%       $33.00M      +0.58%
----------  ------------  ------------  ----------  ------------  ----------
EPS:               15c              9c                +66.67%        14c           +7.14%
----------  ------------  ------------  ----------  ------------  ----------

GUIDANCE

Q3-07 Revenue Outlook [$42M]: AOB expects Q3 revenue of approximately $42.0 million. The Q3-07 revenue forecast is above current consensus estimates.
Q3-07 Earnings Outlook : AOB expects Q3 EPS of approximately $0.15. The Q3-07 earnings forecast is in-line with current consensus estimates.

FY-07 Revenue Outlook [$158M]: AOB expects FY07 revenue of approximately $158 million. The FY-07 revenue forecast is above current consensus estimates.
FY-07 Earnings Outlook [60c]: AOB expects FY07 EPS of of approximately $0.60. The FY-07 earnings forecast is above current consensus estimates.

&

American Oriental Bioengineering Reports Second Quarter 2007 Financial Results
Wednesday, August 08, 2007 16:02ET

NEW YORK, Aug. 8 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products, today announced financial results for the second quarter of 2007.

Revenues for the second quarter of 2007 increased 48.7% to $33.9 million from $22.8 million in the second quarter of 2006. Revenue from PBP products increased 64.6% to $26.0 million from $15.8 million in the prior year's second quarter, driven primarily by $11.5 million in revenues from the Jinji products series, including the Company's newly launched Yi Mu Cao product, and by slightly better than expected revenues from prescription products, including the Cease Enuresis Gel. Within the PBP product category, prescription product revenue increased 15% to $11.5 million compared to $10.0 million in the prior year period. OTC product revenue increased 150% to $14.5 million from $5.8 million in the prior year period. Revenue from PBN products increased 14.5% to $7.9 million from $6.9 million in the second quarter of 2006, due to increased demand for the Company's soy peptide products.

Gross profit in the second quarter of 2007 increased 61.2% to $23.7 million from $14.7 million in the second quarter of 2006. Gross profit margin increased 550 basis points to a record 69.9% from 64.4% in the prior year's period. The increase in gross profit was a result of increased sales of OTC products, which carry higher margins, and improved operating efficiencies across all business segments. Operating expenses in the second quarter increased 58.4% to $12.2 million compared to $7.7 million in the prior year period. This increase was a result of additional expenses related to GLP and the Jinji product promotional effort that were not associated with the company in the prior year period, as well as increased marketing and advertising expenses related to the Company's efforts to increase market awareness of its brands and products and higher selling expenses to support the Company's growth. Operating income for the second quarter increased 64.3% to $11.5 million from $7.0 million in the second quarter of 2006. Operating income as a percent of sales in the second quarter increased 310 basis points to 33.9% compared to 30.8% in the prior year period. Net Income for the second quarter of 2007 increased 67.2% to $9.7 million, or $0.15 per diluted share, compared to $5.8 million, or $0.09 per diluted share, in the prior year period.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering commented, "We are pleased to report another quarter of continued growth in our business. Each of our three core product categories - prescription, OTC and nutraceuticals -- all experienced growth in the second quarter with the largest contribution coming from our OTC business. We continue to successfully integrate acquisitions and launch new products such as our Jinji Yi Mu Cao product that contribute to our revenue performance and increase our brand strength. As our revenue grows, our ability to manage costs allow us to realize economies of scale that contribute to overall profitability."

Mr. Liu continued, "We successfully raised $74.0 million through a secondary offering recently. Our enhanced cash position allows us to fulfill our goal of acquiring companies that can quickly add value to our business model. In mid-June, we announced our intention to acquire Changchun Xinan Pharmaceutical Group ("CCXA") and today we announced our intention to acquire Guangxi Boke Pharmaceutical Company ("Boke"). Each of these companies will allow us the opportunity to increase our profitability and expand our market presence in China."

Financial Expectations

For the third quarter of 2007, the Company anticipates revenue of approximately $42.0 million, a 55% increase compared to third quarter 2006 revenues of $27.1 million, with the majority of this revenue growth coming from products that serve the OTC market, primarily the Jinji product portfolio. Third quarter revenue assumes approximately $1.0 million in revenue from the previously announced CCXA acquisition, assuming an August 2007 close. The Company anticipates diluted earnings per share of approximately $0.15, based on an estimated weighted average diluted share count of 76.0 million for the third quarter.

For the full 2007 fiscal year, the Company anticipates revenue of approximately $158 million, a 43% increase compared to prior year revenues of $110.2 million. This guidance includes approximately $8.0 million in revenues from CCXA and the newly announced Boke acquisition. This assumes an August acquisition close for CCXA and an acquisition close for Boke at the end of the Company's third quarter 2007. For the full year, the Company anticipates diluted earnings per share of approximately $0.60, based on an estimated weighted average diluted share count of 72.0 million for the full year. This guidance does not account for any other potential acquisitions for the remainder of 2007.

Mr. Liu stated, "We believe the remainder of 2007 is going to be an exciting time for the company and we are very pleased with our revenue guidance for the full year, which represents a strong year-over-year increase in organic growth. We are focused on growing our Company through not only our existing, highly-regarded product line of plant-based pharmaceutical and nutraceutical products, but also through acquisitions and new product launches, both of which help to increase brand awareness of our products and further improve our revenue opportunities."

"We remain committed to building the strongest possible portfolio of products and believe that our flexible business model combined with our strong financial position enables us to capitalize on a broad array of opportunities by quickly adapting to changes in the marketplace and growing our business through opportunistic and well-timed acquisitions. We look forward to continuing our efforts to establish AOBO as a leading integrator and cultivator of plant-based medicine products," concluded Liu.

Analyst update:

American Oriental Bioengineering "buy," target price raised - update

Thursday, August 09, 2007 10:59:01 AM ET
Brean Murray, Carret & Co
NEW YORK, August 9 (newratings.com) - Analyst Julie Chen of Brean Murray maintains her "buy" rating on American Oriental Bioengineering Inc (ticker: AOB), while raising her estimates for the company. The target price has been raised from $14 to $16.
In a research note published this morning, the analyst mentions that the company has posted robust 2Q07 results, with total revenues and EPS ahead of the estimates and the consensus. American Oriental Bioengineering issued impressive 3Q and 2007 guidance, reflecting bright 2H07 prospects, despite uncertainties surrounding the China SFDA reorganization and regulatory modifications. The company's recent Boke acquisition would add complementary products to the existing OTC portfolio going forward, Brean Murray adds. The EPS estimates for 2007 and 2008 have been raised from $0.56 to $0.60 and from $0.67 to $0.74, respectively.

&

American Oriental Bioengineering "buy," target price raised - update

Thursday, August 09, 2007 3:24:30 PM ET
Lazard Capital Markets

NEW YORK, August 9 (newratings.com) - Analysts at Lazard Capital maintain their "buy" rating on American Oriental Bioengineering (ticker: AOB), while raising their estimates for the company. The target price has been raised from $13 to $14.

In a research note published this morning, the analysts mention that the company has posted its 2Q07 results marginally ahead of the estimates and the consensus. American Oriental Bioengineering is poised to generate superior bottom-line and top-line growth in a rapidly consolidating industry going forward, the analysts say. The EPS estimate for 2008 has been raised from $0.70 to $0.77 to reflect the impact of the integration of the Boke and Xinan acquisitions.

Chart:

Jumping in on AOB, it looks like a safe buy at this level...

Good fundamentals.

What keeps me away, though, is having heard the concerns about how their medicines are mainly just bogus.  And the Chinese might even be starting to find out. 

Don't take my word for it, I'm just stating what I've heard in the past.  This could be shorts trying to bring the price down.  It certainly held me out.

I do see great value / growth.   It seems there's no reason it ever should've been slapped into the 7s.   I wanted to buy, but held off for the reasons above. 

Good luck!

Look at the fad diets and natural remedies that are sold in the USA and have no definitive scientific merit;  does that stop the public from buying?

Quote from: bjc on September 08, 2007, 11:32:41 AM
Good fundamentals.

What keeps me away, though, is having heard the concerns about how their medicines are mainly just bogus.  And the Chinese might even be starting to find out. 

Don't take my word for it, I'm just stating what I've heard in the past.  This could be shorts trying to bring the price down.  It certainly held me out.

I do see great value / growth.   It seems there's no reason it ever should've been slapped into the 7s.   I wanted to buy, but held off for the reasons above. 

Good luck!

Quote from: Kublakhan on September 08, 2007, 04:38:09 PM
Look at the fad diets and natural remedies that are sold in the USA and have no definitive scientific merit;  does that stop the public from buying?

I agree with Kublakhan, and especially with regards to the Chinese. They have relied on natural remedies for centuries with apparently highly satisfactory results, and old ways always die hard, even with those living in the US for generations. To the contrary, I would think most Chinese (or  Asians) would be highly resistant to switching to any chemical pharmaceutical alternatives. I also believe there is an ever growing interest in other nations/cultures toward natural remedies.

I think there has always been some fear of fraud on the part of AOB management (for reason), but lately they have gained a whole lot of credibilty. I've been holding some of this for a long time (since AOBO) and added more once again when the price fell below $8.50 (price of the SPO). Seemed like a huge bargain to me and still seems to be. I don't really care that much of the growth is coming from aquisitions. there's LOTS more of that to be had. I hope to still have this in my port. for a very long time to come.

Sully

Glad you've done well with it. 

I just wanted to let it be known what I've heard (or read on the internet, I suppose), it's at least nice to be informed of what's out there and the possibilities.  Even if it may not be true, I still like to know what's being said.

Nobody wants to be uninformed, I'd think.

I wanted to let it be known because I remember when it was first thought CPNE.ob might be a scam, it was up over 4.  I waited, gave all my gains away and sold for a small gain/ loss where I could've gotten out with a 50% gain at least. 

I like AOB.  Hope all goes well for all involved..

Medicines - fake or not fake.

Technicals are good

 
chart quotation:

The breakout continues.....

         



American Oriental Bioengineering To Present at the UBS Global Life Sciences Conference
Monday September 24, 8:30 am ET


NEW YORK, Sept. 24 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB - News), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products in China, today announced that the Company will attend the UBS Global Life Sciences Conference on September 27, 2007 at The Grand Hyatt hotel in New York City. Management is currently scheduled to present at 10:30 a.m. ET. Listeners may access a live webcast of the presentation by visiting the UBS conference webcast link at http://events.streamx.us/us/event/eventdetails.aspx?id=ubs20070924

looking for an entry point.....
any suggestions?

American Oriental Bioengineering "buy," target price raised

Friday, October 19, 2007 3:04:26 AM ET
Brean Murray, Carret & Co

NEW YORK, October 19 (newratings.com) - Analyst Julie Chen of Brean Murray maintains her "buy" rating on American Oriental Bioengineering (ticker: AOB), while raising her estimates for the company. The target price has been raised from $16 to $19.

In a research note published yesterday, the analyst mentions that the company has completed the takeover of Guangxi Boke Pharmaceutical Company Limited (Boke). Boke appears to be a better takeover than GLP for American Oriental Bioengineering and has a superior distributor management and more robust marketing team than the latter company, the analyst says. Boke has the ability to generate $20 million in revenues in 2008, Brean Murray adds. The EPS estimate for 2008 has been raised from $0.74 to $0.81.

Q3 conference call script:

http://seekingalpha.com/article/52914-american-oriental-bioengineering-q3-2007-earnings-call-transcript?source=yahoo
.....
Question-and-Answer Session

Operator

Thank you ma'am, today's question-and-answer session includes both a Mandarin and English translator. Please ask your question in English and allow additional time for translation. (Operator Instructions) We will take our first question from Gur Roshwalb with Piper Jaffray.

Gur Roshwalb - Piper Jaffray

Thank you very much, for taking my questions. Good evening and a good quarter, there.

Tony Liu

[translated]

Hi, good evening.

Gur Roshwalb - Piper Jaffray

Could you please breakout the acquisition revenues for this quarter for CCXA, if any were discussed. There were any?

Tony Liu

[translated]

You mean the acquisition revenue for the fourth quarter, right?

Gur Roshwalb - Piper Jaffray

No I mean from the third quarter, are there any revenues for the...

Tony Liu

[translated]

For the third quarter the acquisition revenue, right?

Gur Roshwalb - Piper Jaffray

Yeah.

Okay. [FOREIGN LANGUAGE]

Wilfred Chow

I will take this question. In the third quarter, we recorded $1.2 million revenue from CCXA. So that is the acquired revenue that we recorded in the third quarter.

Gur Roshwalb - Piper Jaffray

Thank you.

[FOREIGN LANGUAGE]

Gur Roshwalb - Piper Jaffray

How much of this will grow? You think it's available through extending your distribution network to rural markets through your product lines of Jinji and the other successful product lines?

[FOREIGN LANGUAGE]

Tony Liu

[translated]

Yeah. I'll take this question, and then we would like to open queue. In fact, we have been trying to expand our distribution point in the past. After the acquisition of CCXA and Boke, we have then increased the distribution points by about 30%.

Gur Roshwalb - Piper Jaffray

Thank you. What do you attribute the continued strength of prescription product growth given the greater focus you've had on the OTC business results?

[translated]

Could you please repeat your question?

Gur Roshwalb - Piper Jaffray

Okay. To what do you attribute the continued strength in prescription product the Shuanghuanglian powder and Cease Enuresis Gel? How can they continue to grow strongly, or to why they are going strongly given the greater focus on the OTC business away from the prescription products?

Lily Li

The product name that you mentioned are Shuanghuanglian powder?

Gur Roshwalb - Piper Jaffray

Shuanghuanlian powder.

[translated]

Unidentified Company Representative

What powder, Shuanghuanlian gel, Okay.

[FOREIGN LANGUAGE]

Lily Li

I will take this question.

[translated]

In fact, at the first quarter, due to the macro environment we adapted and adjusted our product development strategy and were focused on the OTC products. In fact, from the results of the third quarter, we can see that the adjustment of our product development strategy has been proved very successful.

In fact, the sales of OTC products account for 45% of order sales and the prescription products accounts for 36% of order sales and so we can see the adjustment is very successful and it has successfully increased our margin and in fact even though we are now focusing on the OTC markets, we still see increase in growth of prescription markets and that's what we have anticipated.

As we have mentioned in the first and the second quarter conference call the prescription products have been witnessing growth and especially the revenues from the key products that you have mentioned the Shuanghuanglian injection powder and the cease enuresis capsule, in fact they have seen 35% of growth.

Gur Roshwalb - Piper Jaffray

Thank you, and my last question. How do you expect the cost of integrating the acquisitions to affect your net margins in 2008?

[FOREIGN LANGUAGE]

Tony Liu

Based upon our past acquisition experience, at the beginning of the acquisitions, in fact the gross margin of our company will be affected by those newly acquired enterprises due to their previous low gross margin or low production efficiency. And so, in fact, the acquisition has to a certain extent, affected the gross margin of our company that as per the net margin in the future. I don't see any big influence.

Gur Roshwalb - Piper Jaffray

Thank you very much for taking my questions.

Tony Liu

Thank you

Operator

And we'll next question comes [Catharine Luv] with CIBC World Market

Catharine Luv - CIBC World Market

Hi. Good afternoon, Tony, Lily, Wilfred, and all. Congratulations on the quarter.

Lily Li

Hello, Catharine.

Catharine Luv - CIBC World Market

Hi, my first question, I just want to get some clarification on your guidance. Does your EPS guidance include foreign exchange gains?

[FOREIGN LANGUAGE]

Wilfred Chow

The guidance that we have on the EPS is based on the net income on the income statement, divided by the estimated weighted average share count. If you are referring to the foreign exchange gain as part of the comprehensive income, that is not included in the calculation of the EPS.

Catharine Luv - CIBC World Market

Okay. Great. Thank you. Yeah, I am afraid I want to continue to follow up on one of the questions asked before. I would like to get a sense of the product gross margin for CCXA and Boke acquisition. I understand in the initial stage of the integration, we probably should expect a decline in gross margin of those products, as Lily just mentioned. But going forward, do you feel the gross margin should come back like 70% end of this quarter, could you give some color on that?

[FOREIGN LANGUAGE]

Catharine Luv - CIBC World Market

Okay, great. Thank you.

Tony Liu

[translated]

For the short-term, to certain extent, the gross margin will be affected by the new acquisition, but for the long-term we are trying to improve the gross margin of those acquired enterprises to the existing level of AOBO, and we are very confident about that. And in fact, the gross margin is affected by many factors such as the product line, the production efficiency, and acquisition. But, I want to reiterate that we are very confident that we are able to improve the gross margin of those newly acquired enterprises to our existing level.

Catharine Luv - CIBC World Market

Okay. My final question is in regard to your acquisition strategy going forward. And from the past two acquisitions, it seems the company is really trying to shifting to the OTC market. But, I am just wondering, because you have significant presence in the rural hospital area.,I am wondering like going forward would your acquisition target more focused on OTC or it will be balanced between OTC and prescription?

[FOREIGN LANGUAGE]

Lily Li

[translated]

Okay, just now Lily said we want to reiterate the criteria that we use to evaluate our target of acquisitions. The first criteria, we want to acquire companies that have good products, meaning their products are very competitive. That is within what the government policy encourages and these are innovative products. Or the target companies have some distributor channels or other assets that can be complementary to our business. Or the target company has some R&D resources that can be very beneficial for our company to further realize our marketing strategies. And in a nutshell, I want to say we want the target companies to be accretive to our existing business and only after we come to this conclusion then we will consider buying such companies.

Catharine Luv - CIBC World Market

Okay. Thank you very much.

Lily Li

Thank you.

Operator

And we will take our next question Julie Chen with Brean Murray.

Julie Chen - Brean Murray

Hi Lily and Tony and Wilfred how are you?

Lily Li

Hi Julie.

Wilfred Chow

Hi, Julie, we are [fine].

Julie Chen - Brean Murray

I have a few questions, so still in terms of operating efficiency if I were to look at CCXA and Boke for next year, can I view them very similar in terms of the potential revenue contribution very similar to GLP or is that not the model I need to look at?

[FOREIGN LANGUAGE]

Lily Li

[translated]

In fact, the acquisition of GLP has been proved to be very successful and based upon our past experience and the historical records, we are now trying to give outlook towards that new action for Boke and CCXA. But, we currently we cannot give you very accurate assessment for this two companies, but we are very comfortable that the acquisition of Boke and CCXA will be very effective.

Julie Chen - Brean Murray

Thank you, Jing, Next question is on GMP. The China's FDA came out with a new GMP standard that's going to be effective January 1, 2008. With this new standard, how can we you look at what the impact might be in 2008 through this financial statement overall. Is there any OPEX impact, is what I am trying to figure out, or is there any other additional operational impact that will bring?

[FOREIGN LANGUAGE]

[translated]

In fact, on the October 29, the GMP certification standard has been implemented and the pilot implementation started a year ago, and they have conducted very deep studies and researches in to these new standards and we don't think it will affect the hardware, the hard environment. And in fact according to this new standard, greater efforts will be made for the acquisition especially regulation and control. The regulation and control related to the software, such as training of staff, their qualification and production records will be more frequent and stronger. And I think this new standard is a good news to AOBO. In fact, AOBO has been strictly following this new standard and I think the new standard will help the market to develop towards a very good direction. In terms of the increment on the financial statement of our company, I don't see any increment.

Catharine Luv - CIBC World Market

Thank you. My last question is on staffing, with acquisition of Boke and CCXA and potentially with that acquisition coming on in a pipeline. In terms of staffing, how should we think of staffing is not an issue in terms of potential weakness for the company is accompanied proactive looking at staffing, finding the right personal to ensure that the transition will be smooth or is there any other activity is going to make sure that this is a smooth transition?

Lily Li

[translated]

In fact the management of AOBO is well strengthened, the group is very stable and there are about 50 senior management personal who have been absolutely working in various fields and they have been playing very important roles. And they have stably contributed significantly to our company. And in terms of talent selection, we have two methods, one is the internal promotion, those people and staff who are very familiar with our businesses and who have been trained and developed by our company will be promoted to some key position. And another method is the external recruitment and in fact training has been playing a key role in AOBO. For the past three quarters in 2007, a lot of work has been done and a lot of input has been made in training. And in terms of the cost that you can see, the training cost of our company increased by 50% and so we are very confident about the staffing and management team and of course a lot of work has been done.

Catharine Luv - CIBC World Market

Thank you very much.

Tony Liu

[translated]

In terms of the starting for CCXA and the Boke--after the acquisition of these two companies was completed, in fact, we have maintained the written off management team and the team is very stable. Currently, all the major managements are still working in these two companies. And we have adjusted this staffing in these two companies from as per the financial staff according to the requirement of USA SEC and internal control we strengthened our management efforts for financial staff.

Another factor related to the personnel and staffing adjustment is about the enterprise culture. In fact, we have tried to integrate these two companies into culture of AOBO, so that they can adapt themselves to the requirement of the public company and currently the operation of these two companies is very successful and we are very confident about the staffing of these two companies.

Catharine Luv - CIBC World Market

Thank you very much.

Operator

(Operator Instructions). We'll take our next question from Shaumo Sadhukhan with Lotus Partners

Shaumo Sadhukhan - Lotus Partners

Hi, can you explain the additional money that was spent this quarter on advertising and which product you were primarily targeting with the increased advertising?

[FOREIGN LANGUAGE]

Unidentified Company Representative

In the first quarter, the advertisement expenditures increased to 16%, in fact the increased advertisement expenditure is closely related to our adjustments from the prescription products to OTC products. In particular, we conducted lot of advertisement efforts for the Jinji product in order to build our products brand and increase the sales. And in fact, this enhanced advertisement expenditures can help strengthen our brand, develop the brand and serve for the other series of product and I think this kind of influence is necessary. It is commensurates with our overall strategy.

Shaumo Sadhukhan - Lotus Partners

The additional advertising, is that for Jinji capsule or is that for Jinji, Yi Mu Cao primarily?

[FOREIGN LANGUAGE]

Lily Li

[translated]

In fact, both Jinji series and Yi Mu Cao products and in fact half of the advertisement expenditures were used for the GLP products and from the financial statements you can see it has been very effective.

Shaumo Sadhukhan - Lotus Partners

The advertising expenditures that you are making, is it primarily for growth now or growth in the future or is it combination of both of those?

[FOREIGN LANGUAGE]

Lily Li

[translated]

In fact, the advertisement input is not just for the short-term specific product. It is designed for the series of products and the brand building of our company. For example, take Jinji product as an example. We want to develop Jinji products into the number one brand for women medicine, and also, this advertisement includes a design to build the position of AOBO as the leading company that produces the plant-based product.

Shaumo Sadhukhan - Lotus Partners

And the additions that you are making to your sales force right now, is that to prepare for the acquisitions that have been made with CCXA and Boke or is it because you expect that those addition to the sales force will help sales of existing AOBO products?

[FOREIGN LANGUAGE]

Lily Li

[translated]

In fact, the increased staff of AOBO is appropriate for our strategy and is designed for both the acquisitions and the organic growth of our company. And the increase of the sales force, in fact, is designed on the one hand consolidate the existing market channels who have better contact with those distributors and the wholesales lines and on the other hand it is designed to expand the existing channels.

Shaumo Sadhukhan - Lotus Partners

One final question, in terms of the acquisitions that you've done the last two GLP, you went from $10 million to $40 million plus in sales. Now same with HSPL you went from you know $5 million or $6 million of sales to more than $25 million of sales. Can you talk about whether the potential of the two new acquisitions, given enough time, is to be able to do some more things?

[FOREIGN LANGUAGE]

Lily Li

[translated]

In fact, Boke has only been quite for about 20 days and for CCXA only more than a month. So I cannot be very specific about them, but I can assure you that we are working for that direction.

Shaumo Sadhukhan - Lotus Partners

Okay, thank you.

Lily Li

Thank you.

Operator

We'll take our next question from Randy Saluck with [Modest Rock Capital]

Randy Saluck - Modest Rock Capital

Hi, most of my question has been answered. But it was a strong quarter and the long term story seems pretty impressive to me. I know you've touched upon this before, but I want to go back and may be, ask you about your pipeline for acquisitions and sort of what plan is in thinking in terms of making additional acquisitions. I am not [roistering] up the criteria as much as what the pipeline looks like and what's the timing?

[FOREIGN LANGUAGE]

Lily Li

[translated]

In fact, as for the acquisition standards I have mentioned, the company that are complementary to our company and have innovative products and can expand our distribution channels and provide strength and research efforts. Then all of those companies will be the target of our acquisition efforts. And currently we are actively evaluating the good potential companies that meet these requirements. But as for the specific number of acquisition, I cannot give you the exact number now. The target acquisition companies are defined I will update you.

Operator

And that does conclude our question-and-answer session. At this time I would like to turn the call back over to our management for additional and closing remarks.

Lily Li

Thank you, everyone for participating in this quarter's conference call. We are looking forward to update you in the next quarter's conference call. Thank you everyone.

Operator

That does conclude today's conference. Thank you for your participation. You may disconnect at this time.

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