CHANGCHUN, China and LOS ANGELES, Dec. 31 /PRNewswire-Asia/ -- China Yongxin Pharmaceuticals, Inc. (OTC Bulletin Board: CYXN; "China Yongxin Pharmaceuticals" or the "Company"), a leading manufacturer, distributor and retailer of Chinese traditional medicines, pharmaceutical products, natural health products, health food, cosmetics, and medical equipment in Northeastern China, today announced its projected financial results for the year ending December 31, 2009.
Revenues for the full-year 2009 are projected to be $46.1 million, a 22% decrease from $59.1 million for 2008. The decrease in total revenue is due to the transition of the Company's sales strategy, which, because of the uncertain direction of the National Medical Policy, has been refocused from the wholesale sector to the retail and medical facilities sector. While a broader product portfolio and expanded marketing activities increased 2009 revenues from the Company's retail drug stores by approximately 30% over the prior year, it was not sufficient to completely offset the decrease in the Company's wholesale business, resulting in comparably lower total net revenue.
For 2009, net income is projected to be approximately $5.4 million, a 35% increase over the $4.1 million for 2008. The increase primarily is related to higher margin retail and medical facilities sales.
The Company expects to report that diluted earnings per share increased to $0.16 for 2009 compared to $0.13 for 2008, based on 34.4 million and 31.2 million shares respectively. Provision for income tax in 2009 is $2.7 million compared to $1 million in 2008.
Mr. Yongxin Liu, Chairman and Chief Executive Officer of China Yongxin,
commented that during 2009, the Company's wholesale business was impacted by
customers waiting for specifics on the new healthcare reform plan. "However,
on August 18th, the Chinese government issued China's Essential Drug L
|SOURCE China Yongxin Pharmaceuticals, Inc.|
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