Weikang Bio-technology Group Relocates to Newly Purchased Building

Weikang Bio-technology Group, Inc. has recently relocated its management departments to a new building that the company had purchased last quarter for $14 million.

Now the company is located at No.365 Chengde Street in the Daowai District of Harbin, the hub of northeast China. Weikang previously rented two floors of the building.

Yin Wang, the chairman and CEO of Weikang commented, “We are very glad that finally we have our own headquarters building, which can accommodate all of our departments, instead of having to rent different places for different departments.”

Weikang Bio-Technology Group has been into developing, manufacturing and distributing Traditional Chinese Medicine (TCM), and health and nutritional supplements in China, in compliance with requisite Chinese licenses and approvals.

In a recent release, Wang also answered some additional investor questions regarding WKBT's third quarter. Wang said that the company’s net sales increased 11 percent from the prior year yet Accounts Receivable increased 10 times from $650,000 to $6.5 million because market for their products was affected by the slowing down of the economy in China in the recent months and to cope with that, they extended credit terms to some large customers from 30 days to 60 days.

As result, the AR increased to $6.5 million, the collection of which has been very good with no delays. Despite the increase in AR, percentage-wise, the amount is still under control.

In addition, the company has entered in to a large contract with a large supplier to lock down the price of raw material, for which they paid about $5 million as a down payment. This was done to control the cost, said Wang.

The company is also expanding its business scope to develop, manufacture and distribute Chinese herbal extract products and GMP certified western prescription and OTC pharmaceuticals through its acquisition of Tianfang Pharmaceutical Co., Ltd.