Sam Hsing
谢谢Diana，大家早上好。我要感谢各位今天参加我们的电话会议，并感谢你们对中国医药的持续支持。公司当前的首要任务是积极稳步提升销售额，看到本季度收入增长令人鼓舞。管理层将继续通过积极参与近期省级市场开放以获取新药招标机会，以及进一步渗透市场来大力推动销售。正在进行的仿制药一致性评价以及中国药品生产注册和审评政策的改革，将继续对中国制药企业（包括我们）的当前业绩和未来发展产生重大影响，并可能逐步改变行业商业模式。我们将继续积极适应国家政策导向，进一步评估现有产品、在研产品和市场竞争状况，以优化我们的发展战略。现在我将用英文宣读李女士准备好的其余发言内容。现在我想回顾一下我们2018年第二季度的财务业绩和资产负债表信息。截至2018年6月30日的三个月，收入增长8.8%至320万美元，而2017年同期为300万美元。这一增长主要归因于市场波动。截至2018年6月30日和2017年6月30日的三个月，毛利润均为60万美元。截至2018年6月30日的三个月，我们的毛利率为18.3%，而去年同期为22.2%。这一下降主要是由于在此期间低利润率产品的销售增加，与去年同期销售表现相比。截至2018年6月30日的三个月，我们的销售费用为70万美元，较2017年同期的80万美元减少了10万美元。销售费用占截至2018年6月30日三个月总收入的22.5%，而去年同期为27.5%。截至2018年6月30日的三个月，我们的一般及行政费用为40万美元，较去年同期的60万美元减少了30万美元。一般及行政费用分别占我们截至2018年6月30日和2017年6月30日三个月总收入的11.1%和21%。截至2018年6月30日的三个月净亏损为100万美元，而2017年同期净亏损为230万美元。六个月业绩。截至2018年6月30日的六个月，收入增长9.5%至680万美元，而2017年同期为620万美元。这一增长主要归因于市场波动。截至2018年6月30日的六个月毛利润为160万美元，而2017年同期为140万美元。截至2018年6月30日的六个月毛利率为24.1%，而2017年同期为22%。这一增长主要归因于2018年上半年高利润率产品销售的增加。截至2018年6月30日的六个月净亏损为130万美元，而2017年同期净亏损为330万美元。净亏损的减少主要是由于截至2018年6月30日的六个月收入增加和费用减少。接下来看资产负债表。截至2018年6月30日，公司拥有现金及现金等价物190万美元，而截至2017年12月31日为200万美元。营运资本从截至2017年12月31日的310万美元增加至截至2018年6月30日的340万美元；流动比率在2018年6月30日和2017年12月31日均为1.3倍。截至2018年6月30日，我们的净应收账款余额为240万美元，而截至2017年12月31日为230万美元。总体而言，我们将继续专注于业务发展并推动销售，相信这将支持未来股东权益的公平评估。现在我们将开放电话会议进行提问。接线员？
Sam Hsing
Thank you, Diana, and good morning, everyone. I would like to thank each of you for joining us today and for your continued support of China Pharma. It is the company’s top priority to actively and steadily increase sales and it is encouraging to see increased revenue in this quarter. Management will continue to vigorously promote sales through active participation in recent provincial market openings to receive new drug tender offers and through further penetration into the market. The ongoing generic drug consistency evaluations and reform of China’s drug production registration and review policies will continue to have a significant impact on the current performance and future development of Chinese pharmaceutical manufacturers, including us, and may gradually change business patterns of the industry. We will continue to actively adapt to state policy guidance and further evaluate market conditions for our current existing products, pipeline products, and competition in the market in order to optimize our development strategy. I will now read the rest of Ms. Li’s prepared remarks in English. Now I would like to review our second quarter 2018 financial results and the balance sheet information. Revenue increased by 8.8% to $3.2 million for the three months ended June 30, 2018, as compared to $3 million for the three months ended June 30, 2017. This increase was mainly due to market volatility. Gross profit was $0.6 million for each of the three months ended June 30, 2018 and 2017. Our gross profit margin in the three months ended June 30, 2018 was 18.3% compared to 22.2% in the same period last year. This decrease was primarily due to an increase in sales of lower margin products during this period compared to the sales performance in the same period last year. Our selling expenses for the three months ended June 30, 2018 were $0.7 million, a decrease of $0.1 million compared to $0.8 million for the three months ended June 30, 2017. Selling expenses accounted for 22.5% of the total revenue in the three months ended June 30, 2018 compared to 27.5% in the same period last year. Our general and administrative expenses for the three months ended June 30, 2018 were $0.4 million, which represented a decrease of $0.3 million compared to $0.6 million in the same period last year. General and administrative expenses accounted for 11.1% and 21% of our total revenues in the three months ended June 30, 2018 and 2017, respectively. Net Loss for the three months ended June 30, 2018 was $1 million compared to net loss of $2.3 million for the three months ended June 30, 2017. Six months results. Revenue increased by 9.5% to $6.8 million for the six months ended June 30, 2018 as compared to $6.2 million for the six months ended June 30, 2017. This increase was mainly due to market volatility. Gross profit for the six months ended June 30, 2018 was $1.6 million compared to $1.4 million in the same period in 2017. The gross profit margin in the six months ended June 30, 2018 was 24.1% compared to 22% in the same period in 2017. The increase was mainly due to the increase in sales of higher margin products in the first half of 2018. Net loss for the six months ended June 30, 2018 was $1.3 million compared to net loss of $3.3 million in the same period 2017. The decrease in net loss was mainly the result of increase in revenue and the decreased expenses in the six months ended June 30, 2018. Turning to balance sheet. As of June 30, 2018, the company had cash and cash equivalents of $1.9 million compared to $2 million as of December 31, 2017. Working capital increased to $3.4 million as of June 30, 2018 from $3.1 million as of December 31, 2017; and the current ratio was both 1.3x at June 30, 2018 and December 31, 2017, respectively. Our net accounts receivable balance was $2.4 million as of June 30, 2018 compared to $2.3 million as of December 31, 2017. Overall, we will continue focusing on our business development and promote our sales and believe that this will support the fair evaluation of our shareholders interest in the future. With that, we will now open the call up to questions. Operator?
