American Oriental (NYSE:AOB)

On March 30, 2012, American Oriental Bioengineering (the “Company”), received a letter from The New York Stock Exchange, Inc. (the “NYSE”), which stated, among other things, that the Company has failed to timely file its annual report with the Securities and Exchange Commission. Section 802.01E of the NYSE Listed Company Manual sets forth procedures applicable to a company that fails to timely file its annual report.

Under Section 802.01E, the NYSE allows a company six months to file its annual report from the due date of its annual report, which would be October 29, 2012 for the Company. If the Company fails to file its annual report within that time period, the NYSE may, in its sole discretion, allow the Company’s securities to remain listed for up to an additional six months, or may, in its sole discretion commence suspension and delisting procedures.

At an audit committee meeting of the Board of Directors of the Registrant held on March 13, 2012, Ernst & Young Hua Ming, informed the audit committee of certain inconsistencies noted during the performance of their audit for the year ended December 31, 2011. As a result, management and the audit committee agreed that the audit committee would immediately commence an independent investigation into the matters identified. Considering the recent commencement of the investigation, the Company was unable to file its Annual Report on Form 10-K for the 2011 fiscal year (the “Form 10-K”), by its prescribed due date of March 15, 2012. Although the length of the investigation is uncertain at this time, the Company will endeavor to file the Form 10-K as soon as possible upon the completion of the investigation.

NEWARK, N.J., February 22, 2012 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB) (the "Company") today announced that on January 31, 2012, its board of directors adopted resolutions approving a reverse stock split (the "Reverse Split") of the outstanding shares of the Company's common stock ("Common Stock") at a ratio of one (1) share for every two (2) shares outstanding, so that every two (2) outstanding shares of Common Stock before the Reverse Split shall represent one (1) share of Common Stock after the Reverse Split.

Pursuant to the Company's Amended Articles of Incorporation filed with the Nevada Secretary of State, the maximum number of shares of Common Stock that the Company is authorized to issue will also be reduced from 150,000,000 to 75,000,000. The Reverse Split will be effected without obtaining shareholder approval pursuant to Nevada law. The effective date of the Reverse Split with the Nevada Secretary of State is set for Friday, February 24, 2012. Accordingly, the New York Stock Exchange has set the effective date of the Reverse Split for Monday, February 27, 2012. The Reverse Split is part of the Company's strategy to maintain the listing of its shares on the New York Stock Exchange.

Currently, the Company has approximately 78,503,381 shares of Common Stock outstanding. After the Reverse Split, the Company would have approximately 39,251,867 shares outstanding. Each stockholder's percentage ownership interest in the Company and proportional voting power will remain unchanged after the Reverse Split except for minor changes and adjustments resulting from rounding of fractional interests. The rights and privileges of the holders of Common Stock shall be substantially unaffected by the Reverse Split

Third Quarter 2011 Results

•  Total revenue for the third quarter of 2011 was $53.9 million, compared to $91.5 million in the same period of 2010.
• Net income for the third quarter of 2011 was $ 7.7 million, or $ 0.10 per diluted share, compared to $4.2 million, or $ 0.06 per diluted share, in the same period of 2010.

Mr. Tony Liu, Chairman and Chief Executive Officer of AOB, commented: "China remains as a major commercial opportunity with significant growth potential. Leaving aside near-term healthcare reform policy headwinds, we keep long-term positive view on the pharmaceutical business. The financial results demonstrate our ability to execute and deliver on a consistent basis. We are fully committed to executing our growth strategy, driving innovation and delivering value to our customers and our shareholders."

JERSEY CITY, N.J., October 7, 2011 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB), or (the "Company") today announced that the Company submitted its plan to cure stock price deficiency with respect to the listing standard of the New York Stock Exchange ("NYSE") on October 5, 2011.

First Quarter Results:

• In the first quarter of 2011, revenue decreased to $52.0 million from $53.7 million in the same period of 2010.
• Net income attributable to controlling interest for the first quarter of 2011 was $0.9 million, or $0.01 per diluted share, compared to $3.1 million, or $0.04 per diluted share, in the prior year period.  

Mr. Tony Liu, Chairman and Chief Executive Officer of AOB, commented, "We are pleased with our financial performance despite the increasingly challenging economic and regulatory environment in China and worldwide.  Our first quarter results reflect our continuing efforts on profitability focus and cost control.  We dynamically adjusted our product mix to minimize the negative impact from the increased costs of certain raw materials and the government's price reduction on certain drugs.  In addition, we believe our continued investments in CAPEX and R&D will give us a competitive advantage in the long term, especially under the stricter regulatory environment."

NEW YORK, March 21, 2011 /PRNewswire-Asia/ -- American Oriental Bioengineering, Inc. announced at its 2010 earnings conference call, held on March 15, 2010, that its board of directors authorized a share buyback program for the repurchase of up to $20 million of the Company's outstanding common stock over the next two years.

Purchases under this program may be made, from time to time, in the open market, privately negotiated transactions, block trades, and accelerated stock repurchase transactions or otherwise, as determined by the Company and will be funded from available working capital. The number of shares to be purchased and the timing of purchases will be based on several factors, including the price of the Company's stock, general business and market conditions and other investment opportunities.  The Company believes the program should enhance shareholder value over time.    

As of March 21, 2010 the Company had 78,598,604 shares of common stock outstanding.

Fourth Quarter Results:

• In the fourth quarter of 2010, revenue decreased to $83.4 million from $100.0 million in the same period of 2009
• Gross profit in the fourth quarter of 2010 was $42.4 million compared to $52.6 million in the fourth quarter of 2009
• Net income attributable to controlling interest for the fourth quarter of 2010 was $2.8 million, or $0.04 per diluted share, compared to $11.7 million, or $0.14 per diluted share.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are pleased with our fiscal year 2010 financial results in which we demonstrated steady growth despite the increasingly challenging economic environment worldwide and China's rapidly changing regulatory environment. Our growth in 2010 was consistent with our expectations and reflects our continued efforts on profitability focus and cost control. We dynamically adjust our product mix to minimize the negative impact from the increased cost of certain raw materials, as well as the government's price cut on certain drugs. In addition, our long-term investments in science and technology have achieved initial results, which were demonstrated by the strong sales from the new products supported by our R&D efforts. Overall, we remain enthusiastic about the tremendous opportunities in China's healthcare sector, and we are looking forward to more progress in the fiscal year ahead."

We currently generate our cash flow through operations. We expect our existing cash and cash flow generated from operations will be sufficient to sustain our working capital, capital expenditures, and milestone payments for the next twelve months. From time to time, we may identify new expansion opportunities for which there will be a need to use cash.

We rely largely on operating cash flow to fund our capital expenditure needs. Due to our significant operating cash flow, we believe we have the ability to meet our capital expenditure needs and foresee no delays to planned capital expenditures.

Third Quarter 2010 Financial Performance

• Revenue continued its double-digit growth, increasing 16.1% year over year to $91.5 million from $78.8 million.

• Gross profit in the third quarter of 2010 increased 7.1% to $47.3 million from $44.1 millionin the third quarter of 2009.

• Gross margin was 51.7%, compared to 56.0% in the prior year period.

• Net income attributable to controlling interest for the third quarter of 2010 was $5.3 million, or $0.07 per diluted share, compared to $10.0 million, or $0.13 per diluted share, in the prior year period.