China Health Industries (CHHE) research, news, and more from GeoInvesting

Company description

Wed, 25 May 2011 04:00:00 GMT

Liquidity Requirements

Thu, 29 Sep 2011 04:00:00 GMT

We believe our current working capital position; together with our expected future cash flows from operations will be adequate to fund our operations in the ordinary course of business, anticipated capital expenditures, debt payment requirements and other contractual obligations for at least the next twelve months. However, this belief is based upon many assumptions and is subject to numerous risks, and there can be no assurance that we will not require additional funding in the future.

Comments & Business Outlook

Thu, 29 Sep 2011 04:00:00 GMT

CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Audited)

	For the Year Ended
	June 30, 2011			June 30, 2010

REVENUE		62,779,978			43,105,972

COST OF GOODS SOLD		33,335,334			20,160,420

GROSS PROFIT		29,444,644			22,945,552

OPERATING EXPENSES
Selling, general & administrative expenses		6,000,090			5,399,736
Depreciation and amortization expenses		46,578			79,388
Total operating expenses		6,046,668			5,479,124

INCOME FROM OPERATIONS		23,397,976			17,466,428

OTHER INCOME (EXPENSES)
Interest income		227,837			226,536
Interest expense		(27,317	)		(20,580	)
Other income					29,254
Total other income (expenses)		200,520			235,210

INCOME BEFORE INCOME TAXES		23,598,496			17,701,638

Provision for income taxes		5,924,501			4,447,467

NET INCOME	$	17,673,995		$	13,254,171

OTHER COMPREHENSIVE INCOME
Foreign currency translation gain		1,421,363			327,761

Total other comprehensive income	$	19,095,358		$	13,581,932

Earning per share:
Basic & diluted earning per share	$	0.28		$	0.21

Weighted average shares outstanding:
Basic & diluted weighted average shares outstanding		62,239,737			62,239,737

GeoTeam® Note: Fourth Quarter 2011 vs. 2010 EPS was $0.11 vs. $0.05

2012 Outlook We anticipate our total revenues in 2012 versus 2011 to increase by 20% or approximately $12.5 million with growth in all categories of our product sales. Our gross profit margin in 2012 is expected to be approximately 47% due to increased raw material costs resulting from inflation. We estimate our overall 2012 net profit margin to be approximately 26%. However, there is no assurance that these predictions will be reached.

Comments & Business Outlook

Wed, 25 May 2011 04:00:00 GMT

CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Three Months Ended						For the Nine Months Ended
	March 31, 2011			March 31, 2010			March 31, 2011			March 31, 2010

REVENUE		16,681,724			9,889,459			41,662,210			29,511,002

COST OF GOODS SOLD		8,918,379			4,540,126			21,611,710			13,061,854

GROSS PROFIT		7,763,345			5,349,333			20,050,500			16,449,148

OPERATING EXPENSES
Selling, general & administrative expenses		1,069,847			946,960			3,558,266			3,462,505
Depreciation and amortization expenses		20,958			20,716			60,754			77,012
Research & development		602,860			-			1,374,403			-
Total operating expenses		1,693,665			967,676			4,993,423			3,539,517

INCOME FROM OPERATION		6,069,680			4,381,657			15,057,077			12,909,631

OTHER INCOME (EXPENSES)
Interest income		62,905			226,482			141,542			226,487
Interest expenses		(1,195	)		(3,845	)		(3,531	)		(24,680	)
Total other income (expenses)		61,710			222,637			138,011			201,807

INCOME BEFORE INCOME TAXES		6,131,390			4,604,294			15,195,088			13,111,438

Provision for income taxes		1,730,671			1,140,243			4,394,107			3,289,639

NET INCOME		4,400,719			3,464,051			10,800,981			9,821,799

OTHER COMPREHENSIVE INCOME
Foreign currency translation gain(loss)		1,728,002			(1,870	)		1,929,003			183,227

Total other comprehensive income	$	6,128,721		$	3,462,181		$	12,729,984		$	10,005,026

Earning per share:
Basic & diluted earning per share	$	0.07		$	0.06		$	0.17		$	0.16

Weighted average shares outstanding:
Basic & diluted weighted average shares outstanding		62,239,737			62,239,737			62,239,737			62,239,737

2011 Outlook

We anticipate our total revenues in 2011 versus 2010 to increase by 40% or approximately $17.2 million with growth in all categories of our product sales. Our gross profit margin in 2011 is expected to be approximately 53% due to increased raw material costs resulting from inflation. We estimate our overall 2011 net profit margin to be approximately 28%. However, there is no assurance that these predictions will be reached.

Auditor trail

Fri, 25 Mar 2011 04:00:00 GMT

On March 23, 2011, the board of directors of China Health Industries Holdings, Inc. (hereinafter referred to as “we,” “us,” “our,” or the “Company”) dismissed E-Fang Accountancy Corp. & CPA (“E-Fang”) as our independent registered public accounting firm and appointed Windes & McClaughry Accountancy Corporation (“Windes”) as our new independent registered public accounting firm. The decision to appoint Windes as our new independent registered public accounting firm was approved by our board of directors on March 23, 2011.

Comments & Business Outlook

Tue, 15 Feb 2011 05:00:00 GMT

CHINA HEALTH INDUSTRIES HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Three Months Ended						For the Six Months Ended
	December 31, 2010			December 31, 2009			December 31, 2010			December 31, 2009

REVENUE	$	13,363,093		$	9,374,937		$	24,980,486		$	19,621,543
COST OF GOODS SOLD		6,708,036			4,035,362			12,693,331			8,521,728

Gross Profit		6,655,057			5,339,575			12,287,155			11,099,815

OPERATING EXPENSES
Selling, general & administrative expenses		1,227,027			1,999,220			2,488,419			2,515,545
Depreciation and amortization expenses		20,099			35,965			39,796			56,296
Research & development		34,115			-			771,543			-
Total operating expenses		1,281,241			2,035,185			3,299,758			2,571,841
Operating profit		5,373,816			3,304,390			8,987,397			8,527,974

OTHER INCOME (EXPENSES)
Interest expenses		(1,168	)		(4,936	)		(2,336	)		(20,835	)
Interest income		39,282			-			78,637			5
Other income		-			-			-			-
Total other income (expense)		38,113			(4,936	)		76,300			(20,830	)

INCOME (LOSS) BEFORE INCOME TAXES		5,411,930			3,299,454			9,063,698			8,507,144
Income taxes		1,548,022			831,363			2,663,436			2,149,396
Net income (loss)	$	3,863,908		$	2,468,091		$	6,400,262		$	6,357,748

OTHER COMPREHENSIVE INCOME
Foreign currency translation gain (loss)	$	(23,552	)	$	642		$	201,001		$	185,097
Comprehensive income	$	3,840,356		$	2,468,733		$	6,601,263		$	6,542,845

Basic and diluted net loss per share		0.06			0.04			0.10			0.10
Weight average shares outstanding		62,239,737			62,234,737			62,239,737			62,234,737

2011 Outlook We anticipate our

total revenues in 2011 versus 2010 to increase by 40% or approximately $17.2 million with growth in all categories of our product sales
gross profit margin in 2011 is expected to be approximately 53% due to increased raw material costs resulting from inflation
overall 2011 net profit margin to be approximately 28%.

However, there is no assurance that these predictions will be reached.

GeoTeam® note: Applying the company's guidance, for the last half of fiscal 2011:

Revenues will come in at $35.0 million vs. $23.5 million

Net income will come in at $9.8 million vs. $6.9 million

EPS will come in at (assuming no dilution) $0.16 vs. $0.11

Comments & Business Outlook

Mon, 15 Nov 2010 05:00:00 GMT

For the Three Months Ended
	September 30, 2010			September 30, 2009
REVENUE	$	11,617,393		$	10,246,606
COST OF GOODS SOLD		5,985,295			4,486,366

Gross Profit		5,632,098			5,760,240

OPERATING EXPENSES
Selling, general & administrative expenses		1,261,392			516,325
Depreciation and amortization expenses		19,697			20,331
Research & development		737,428			-
Total operating expenses		2,018,517			536,656
Operating profit		3,613,581			5,223,584

OTHER INCOME (EXPENSES)
Interest expenses		(1,168	)		(15,899	)
Interest income		39,355			-
Other income					5
Total other income (expense)		38,187			(15,894	)

INCOME (LOSS) BEFORE INCOME TAXES		3,651,768			5,207,690
Income taxes		1,115,414			1,318,033
Net income (loss)	$	2,536,354		$	3,889,657

OTHER COMPREHENSIVE INCOME
Foreign currency translation gain (loss)	$	224,553		$	184,455
Comprehensive income	$	2,760,907		$	4,074,112

Basic and diluted net loss per share		0.04			0.06
Weight average shares outstanding
Basic		62,239,737			62,234,737
Diluted		62,239,737			62,234,737

2011 Outlook

We anticipate our total revenues in 2011 versus 2010 to increase by 40% or approximately $17.2 million with growth in all categories of our product sales. Our gross profit margin in 2011 is expected to be approximately 53% due to raw material cost inflation. We estimate our overall 2011 net profit margins to be approximately 28%. However, there is no assurance that these predictions will be reached.

Liquidity Requirements

Mon, 15 Nov 2010 05:00:00 GMT

Management considers current working capital and borrowing capabilities adequate to cover our current operating and capital requirements for the full fiscal year 2011.

Comments & Business Outlook

Tue, 28 Sep 2010 04:00:00 GMT

For the year ended June 30, 2010 as compared to June 30, 2009

Total revenues increased by 293% to $43.1 million for the year ended June 30, 2010 compared to the same period in 2009. The $32,138,144 increase in revenue is attributable to strong performances from our sales distribution channels.

"This growth in sales is attributable to volume and our efforts to continue to develop our distribution channels by hiring additional sales agents to assure that our products and their associated benefits are seen by those making or influencing the purchasing decisions."

Net income increased 375.0% to $13.3 million from $2.8 million.
EPS increased to$0.21 compared to $0.05.

GeoTeam® Note: 2010 Fourth quarter EPS was flat at $0.05.

2011 Outlook:

We anticipate our:

Revenues will increase 40.0% to $60.3 million with growth in all categories of our product sales.
Gross profit margin to be approximately 53% due to raw material cost inflation.
Net profit margins to be approximately 28%. This would translate into net income of $16.9 million and EPS of $0.27 using the 2010 share count of 62.2 million.

GeoSpecial Notes

Thu, 03 Jun 2010 04:00:00 GMT

Added to the GeoSpecial list on December 28, 2009 @ 0.55.

Catalyst: Stock was selling at a cheap valuation, given bullish guidance.
Peak performance: Reached a high of $2.00 on January 7, 2010.
Current Price: $0.81

Current road block: No IR; very illiquid; Stock has over 60 million outstanding shares which is above our preferred 50 million maximum threshold; Did not reiterate guidance in its Third quarter 10Q; Company still has not responded to our questions.

Remains on the GeoSpecial list. Previous guidance is still bullish; trailing P/E is 4.04 despite well above average EPS growth rates.

GeoTeam note:

On July 6, 2010 we removed all ChinaHybrids from the GeoBargain/Special lists, pending review.

We have yet to verify if the Chinese filings for ChinaHybrid stocks we monitor match respective SEC filings. We are in the process of completing this task. Although we are not totally convinced that SAIC filings are an accurate represenation of financial statements the issue is impacting stock prices. Conservative investors may want to limit exposure or buy put options on stocks, that have this availability, as insurance against long positions, until we publish our findings. Odds are we will identify some promising companies that will fail this litmus test.

GeoTeam® Note:

Please note: On July 6, 2010, the GeoTeam® removed all Chinese stocks that were on GeoBargains and GeoSpecial lists to respective Radar lists as we complete our "quality assessment."

Short term and risk adverse investors should be aware of the quality issues currently present in the ChinaHybrid Space, questioning the validity of what seem like solid fundamental stories. It is beginning to get ugly so be cautious and understand that more pain may have to be endured, as ChinaHybrids are easy prey for short investors. The broad brush that is being applied to theses stocks appears unfair, but we can’t ignore the psychological impact this can have on investors' portfolio decisions. If history is our guide, fear will eventually create an immense opportunity to invest in the companies that prove they can meet quality litmus tests enact shareholder friendly moves. Credibility can also be restored if independent legal/SEC opinions validate accounting practices currently in question.

***Very Important GeoTeam® note. We have yet to verify if the Chinese filings for ChinaHybrid stocks we monitor match respective SEC filings. We are in the process of completing this task. Although we are not totally convinced that SAIC filings are an accurate represenation of financial statements the issue is impacting stock prices. Conservative investors may want to limit exposure or buy put options on stocks, that have this availability, as insurance against long positions, until we publish our findings. Odds are we will identify some promising companies that will fail this litmus test.

see relevant articles

Comments & Business Outlook

Sun, 04 Apr 2010 04:00:00 GMT

We anticipate our total revenues in 2010 versus 2009 to increase by 300% or approximately $30 million with growth in all categories of our product sales. Our gross profit margin in 2010 is expected to be approximately 55.45% due to raw material cost inflation. Operating expenses will increase due to higher percentage of R&D investment as well as expanding our own distribution channels. We estimate our overall 2009 net profit margins to be approximately 22.64%. However, there is no assurance that these predictions will be reached. Fiscal Year ends in June.

Source: 10K (For the quarterly period ended December 31, 2009)

Reverse Merger Activity

Mon, 28 Dec 2009 05:00:00 GMT

China Health was formed on July 20, 2007 for the purpose of seeking and consummating a merger or acquisition with a business entity.

On August 20, 2007, the sole shareholder of China Health entered into a Share Purchase Agreement with the owners of Humankind.

On December 31, 2008, China Health closed a reverse merger with Universal Fog, Inc, a U.S. public traded shell company.

Harbin Humankind Biology Technology Co., is in the business of the manufacture and sale of health products, “green” (or organic) food and the detection of disease susceptibility or pre-disposition through genetic studies. Harbin Huimeijia Medicine Company was incorporated on October 14, 2008. Huimeijia completed its GMP certification on July 23, 2009 and will be producing and selling our medical drugs.

Financial Summary:

Fiscal Yr. Ends June	Full Year 2009	Full Year 2008	Period Change
GAAP Revenue	$10.98 million	$763.60 thousand	1337.93%
GAAP EPS	$0.05	$0.00	n/a
Tax Rate	34.36%	n/a	n/a
Fully Diluted Shares	62,234,737	61,203,088	1.69%

Source: See SEC Filing (For the period ended June 2009)

Fiscal Qtr. Ends September	1st Quarter 2010	1st Quarter 2009	Period Change
GAAP Revenue	$10.25 million	$286.21 thousand	3481.29%
GAAP EPS	$0.06	$0.00	n/a
Tax Rate	25.31%	n/a	n/a
Fully Diluted Shares	62,234,737	62,234,732	0.00%

We anticipate our total revenues in 2010 versus 2009 to increase by 101% or approximately $11.04 million with growth in all categories of our product sales. Our gross profit margin in 2010 is expected to be approximately 55.45% due to raw material cost inflation. Operating expenses will increase due to higher percentage of R&D investment as well as expanding our own distribution channels. We estimate our overall 2009 net profit margins to be approximately 22.64%.However, there is no assurance that these predictions will be reached.

Source: See SEC Filing (For the quarterly period ended September 30, 2009)

Comments & Business Outlook

Mon, 28 Dec 2009 05:00:00 GMT

2010 Outlook:

"We anticipate our total revenues in 2010 versus 2009 to increase by 101% or approximately $11.04 million with growth in all categories of our product sales. Our gross profit margin in 2010 is expected to be approximately 55.45% due to raw material cost inflation. Operating expenses will increase due to higher percentage of R&D investment as well as expanding our own distribution channels. We estimate our overall 2009 net profit margins to be approximately 22.64%.However, there is no assurance that these predictions will be reached."

Source: See SEC Filing (For the quarterly period ended September 30, 2009)

Special Situations

Mon, 28 Dec 2009 05:00:00 GMT

The GeoTeam® is taking a bold move and coding China Health Industries (Pinksheets:CHHE), which trades on the Pink Sheets, as a GeoSpecial. After some initial due diligence and reviewing filed financials it is possible that some investors may view CHHE as an interesting risk/reward opportunity.

Positive points:

Fiscal 2009 revenues increased 1337.93% to $10.98 million.
First quarter fiscal 2010 revenues increased 3481.29% to $10.25 million.
First quarter 2010 sales have essentially matched all of 2009's figure.
Achieved 2009 EPS profitability of $0.05.
First quarter 2010 EPS has already matched all of 2009's figure.
Positive 2010 outlook:

Source: See SEC Filing (For the quarterly period ended September 30, 2009)

We should note that we are somewhat perplexed on one issue: The 2010 guidance, which implies 2010 full year revenues of approx. $22 million, seems a little peculiar given that CHHE has already booked $10.25 million in revenues for its 2010 first quarter. The GeoTeam® will delve into this matter.

Other points to ponder:

Shares outstanding of 62 million are above our preferred minimum.
We found no verbiage on 2010 capital requirements
Stock trades on the pinksheets, although the company is filing SEC documents, a practice uncommon with pinks.