Diluted earnings per share were $0.03 for the fourth quarter of 2008, compared to diluted earnings per share of $0.06 in the fourth quarter of 2007, utilizing 31.2 million shares and 21 million shares respectively. The variance in net income and earnings per share was related to recapitalization on reverse merger.
Fiscal Year Ending December 31, 2008 Financial Results
For the fiscal year ended December 31, 2008, Yongxin announced record revenue of $59.1 million, a 23.5% increase versus $47.9 million reported for 2007. Revenues from the pharmaceutical wholesale business segment increased approximately 25.8% from $38.3 million in 2007 to $48.3 million in 2008, while revenues for retail chain drugstores increased approximately 15.1% to $10.9 million in 2008. Increased demand for its portfolio of pharmaceutical products by a broader customer base and higher sales volume overall, and the addition of 14 new drugstores were the principal drivers of growth year over year. Yongxin Drugstore, Jingyongxin Drugstore and Caoantang Drugstore, three new subsidiaries added in mid-2007, grew rapidly in 2008, which brought in additional revenues and contributed to overall revenue growth.
Cost of goods sold was approximately $47.2 million, yielding a gross
profit of $11.9 million and gross margins of 20.1%, compared to $8.0 million
in gross profit and a gross margin of 16.7% for fiscal year of 2007. Thus,
gross profits grew by 48.8% and gross profit margin improved 340 basis points
on a year-over-year basis. The improved margins were primarily attributable to
the company's ability to receive larger volume discounts for purchases to
service a greater revenue base, in addition to a product mix which included
higher profit margin cosmetics and health and organic products. During 2008,
the Company added 486 new products for d
|SOURCE China Yongxin Pharmaceuticals, Inc.|
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