"Revenues generated from prescription drugs represented approximately 25% of total drugstore sales with gross margins of approximately 23.5%. We successfully launched our Electronic Diagnosis System in the 42 chain drugstores located in Changchun, Jilin Province and where we have experienced an approximate 25% increase in prescription drug sales in these stores. We plan to introduce this service to the balance of our retail drugstores, which we expect to drive market share gains and incremental revenue growth during 2009 and beyond. The Chinese government recently released its new plan to spend $124 billion on healthcare reform during the next three years, which will provide accessible and affordable healthcare to the country's 1.3 billion citizens. We believe this healthcare plan will significantly increase the overall market size and our strategic location and strong reputation in Northeastern China will enable us to capitalize on this opportunity, while creating further value for our shareholders," concluded Mr. Liu.
Balance Sheet and Cash Flow
The Company had a current ratio of 1.8 to 1 and $0.6 million in cash and
cash equivalents on December 31, 2008. Stockholders' equity was $13.6 million,
with working capital of $10.2 million and total assets of $31.5 million and
total liabilities of $18 million. Days Sales Outstanding for fiscal 2008 were
37 days, a considerable decrease compared to the 50 days reported during 2007.
For the fiscal year of 2008, the Company generated $5.9 million in cash from
operations versus net cash used in operations of $1.8 million for the same
period in 2007. The increase in cash flow was primarily attributable to an
increase in net income and decrease in accounts receivable, adv
|SOURCE China Yongxin Pharmaceuticals, Inc.|
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