Unassociated Document


    Interview
      by Eric Yu for WallSt.net dated July 26, 2007

    Small
      cap voice (Audio Interview)

    


    1.
      For
      those not familiar with your company, please describe your company and its
      business model. 

     

    
      	
              1.

            	
              Benda
                is founded in 2001, and we are a Chin-based pharmaceutical company
                producing conventional and traditional Chinese medicines (TCMs) as
                well as
                Gendicine, the world’s 1st
                commercialized gene therapy medicine for treatment cancer.
                

            


    

    
      	
              2.

            	
              Benda
                owns and operates 5 plants, namely:


            


    

    
      	 	
              a)

            	
              Benda
                Ebei - which produces conventional and traditional Chinese
                Medicines;

            


    

    
      	 	
              b)

            	
              Jiangling
                Benda - which produces active pharmaceutical ingredients used in
                capsules,
                tablets and fluids;

            


    

    
      	 	
              c)

            	
              Yidu
                Benda - which produces bulk chemicals;


            


    

    
      	 	
              d)

            	
              Beijing
                Shusai - which produces Pharyngitis Killer Therapy and
                

            


    

    
      	 	
              e)

            	
              SiBiono
                - which produces Gendicine, a gen-based anti-cancer treatment.
                

            


    

    


    
      	
              3.

            	
              So
                you can see that Benda is focusing on the production of high margin
                medicines while securing a strong foothold in commercialized gene
                therapy
                products. Now we have approximately 580+ full-time
                employees

            


    

     

    2.
      Tell
      us about your background and the backgrounds of other key members of the
      management team. 

     

    
      	
              1.

            	
              Mr.
                Yiqing Wan (Chairman & CEO)- He is co-founder of our group; he has
                more than 20 years experience in pharmaceutical marketing and production;
                he received his master degree in Chemical Synthesis from Wuhan Chemical
                University; bachelor degree in Biological Engineering from Sanxia
                University. 

            


    

     

    
      	
              2.

            	
              Ms.
                Wei Xu (VP of Operations), - she is also the co-founder of our group;
                she
                has more that 25 years experience in pharmaceutical marketing; she
                received her Bachelor’s degree in General Medicines from Wuhan Tongji
                Medical University;

            


    

     

    
      	
              3.

            	
              Dr.
                Zhaohui Peng (VP of Operations) - he is the founder of SiBiono; he
                is the
                inventor of Gendicine; he has more than 15 years devoted to gene
                therapy
                research, development, industrialization and commercialization; he
                received the PhD in Biological Chemistry from Japan’s Chiba University;
                post doctorate at UCLA in Biological
                Chemistry.

            


    

     

    
      	
              4.

            	
              Eric
                Yu (CFO) - I have more than 13 years experience in public and corporate
                accounting and finance; I am the CPAs of Australia and Hong Kong;
                I
                received my Bachelor degree in Accountancy and Legal Studies from
                University of Wollongong, Australia.


            


    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.
      Let's
      talk about what the company achieved so far in 2007. 

     

    In
      terms of finance aspects

     

    Revenue
      for the six months ended June 30, 2007 was approximately $8.2 million, compared
      to approximately $7.6 million for the six months ended June 30, 2006 - an 8%
      increase.

     

    Gross
      profit for the six months ended June 30, 2007 was approximately $3.9 million,
      compared to approximately $3.5 million for the six months ended June 30, 2006
      -
      an 13% increase.

     

    Net
      loss for the six months ended June 30, 2007, was approximately $8.5 million,
      compared to net income of approximately $1.2 million for the six months ended
      June 30, 2006. Net income decreased for the three months ended June 30, 2007
      due
      to approximately $7.9 million in non-cash expenses related to the acquisition
      of
      SiBiono and a non-cash interest expense of approximately $1.0
      million. Excluding
      the non-cash expenses of approximately $8.9 million, the adjusted net income
      for
      the six months ended June 30, 2007 would have been approximately $0.4 million,
      compared to net income of approximately $1.2 million for the six months ended
      June 30, 2006. The decrease in net income was primarily a result of the
      temporary closing of Yidu Benda. 

    


    In
      terms of operation

    Benda
      Ebei - a new production line is added to the operation, an approximately
      additional amount $3 to $4 MM will contributed to the revenue. 

    Jiangling
      Benda was re-opened in August 10, 2007 and it will contribute about $3MM to
      $5
      MM to revenue.

    Yidu
      Benda is estimated re-opened in Oct, 2007 and will contribute about $1 MM to
      $2MM to revenue.

     

    4.
      What
      are the goals for the company for the rest of 2007?

     

    
      	
              1.

            	
              TCM
                and conventional medicine revenue growth from $15.9 MM in 2006 to
                $26 MM
                to $29 MM in 2007. 

            


    

     

    
      	
              2.

            	
              The
                addition of Gendicine expected to add $ 9 MM to $12 MM in revenue
                in 2007.
                

            


    

     

    
      	
              3.

            	
              Total
                revenue of 2007 would be ranging $35 MM to $40 MM which is 118% or
                151%
                higher than 2006.

            


    

     

    
      	
              4.

            	
              The
                net loss would be growth from $4 MM in 2007, however if we taken
                out the
                non-cash expenses $10 MM (1stH
                2007 was $8.9 MM, 2ndH
                would be $1.1 MM), the net income would be $6 MM which $3.7 MM or
                160%
                higher than the one in 2006, $2.3
                MM

            


    

     

    5.
      Covering the recent, news talk to me about;

     

    Record
      $3.8 M in Gendicine(R) Orders in One Day Sells Out All Available
      Product;

     

    Shenzhen
      SiBiono Gene Tech Co., Ltd, ("SiBiono"), founded in 1998, is a worldwide pioneer
      in gene therapy development. Its flagship product Gendicine® is the world's
      first and only approved and commercialized gene therapy medicine. In early
      April
      2007, Benda acquired the majority stake of SiBiono. Following the acquisition,
      Benda's management team immediately overhauled SiBiono's marketing and sales
      strategy and grew revenue to approximately $1.5 MM for the three months ended
      June 30, 2007, compared to approximately $0.6 MM for the three months ended
      March 31, 2007 -- a 128% increase.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Three
      months following the Benda's acquisition of SiBiono, the new sales team had
      successfully entered into resale relationships with over 30 leading Chinese
      pharmaceutical firms.

     

    Three
      months following Benda's acquisition of SiBiono, the new sales team had
      conducted 15 sessions, training over 2,000 doctors from 400 hospitals. Those
      doctors, with a full understanding of Gendicine®'s merits and application
      methods, can now recommend Gendicine® to their cancer patients. During the three
      months ended June 30, 2007, over 2,000 patients, including 130 foreigner
      patients, were treated with Gendicine®. By way of comparison, the average
      quarterly number of patients treated prior to Benda's acquisition was 515;
      the
      2,000 patients treated in the second quarter represents a 288% increase under
      Benda's leadership.

     

    --
      Total patients treated to date (since 2003): 8,700

     

    --
      Foreign patients treated to date (since 2003): 1,800

     

    Thus,
      because of the above foundation works, Benda achieved a great success in
      the
      national forum on "Gene Therapy for Tumors" on September 9, 2007. On that day,
      16,000 vials of purchase order was received and in the year 2006, about 8,000
      vials were sold. 

     

    Benda
      Appoints Mr. Charles Mo as Third Independent Director and Chairman of the Audit
      Committee

     

    Mr.
      Mo is an American certified public accountant (CPA), licensed to practice in
      the
      states of California and New Hampshire. He has over 30 years of experience
      in
      public and corporate accounting, finance, governance and operations. He is
      the
      founder and general manager of Charles Mo & Co., an executive search firm.
      He previously served as COO and CFO of Coca-Cola Shanghai and CFO of Nike China.
      Mr. Mo holds an MBA from California State University, Fullerton. He is fluent
      in
      English, Mandarin and Cantonese.

    


    With
      the joining of Mr. Mo to the Board, Benda meet SEC criteria to serve as the
      Board's "financial expert", and hoping to bring Benda to a higher level.