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China Yongxin Pharmaceuticals Projects Higher Net Income and EPS on Reduced Revenue for Full-Year 2009
Date:12/31/2009

aunched its Electronic Diagnosis System, of which 20 systems have been installed so far in Yongxin chain drugstores located in Changchun, Jilin. The System enables our customers to remotely receive medical diagnosis and conveniently purchase prescription drugs at that store. The Company is always working to improve the level of service it offers and leverage its large and growing base of "Member" customers who are entitled to discounts, rebates and special offers. This strategy, in addition to selling a broader array of higher margin health, beauty and cosmetic products has increased customer retention and improved revenue and profitability in this business segment.

Since the beginning of 2009, China Yongxin has signed 12 exclusive distribution agreements for Jilin province with several well known pharmaceutical manufacturers including Tianjin Smith Kline & French Laboratones Ltd. As of June 30, China Yongxin has approximately 216 drugs with exclusive distribution rights in Jilin province. This portfolio is a key component of its long-term growth strategy to leverage the large distribution center and channels established to drive incremental future revenue growth. These agreements are typically one year in duration and are renewable.

China Yongxin recently secured loans from local banks and rural credit unions totaling $2.9 million, with terms ranging from 1 to 3 years, renewable after the initial terms. Loan proceeds will be used to provide working capital for the Company's distribution segment as it capitalizes on new organic growth opportunities supported by the government's new healthcare initiative.

Mr. Liu further commented, "With enhanced government support, specifically the commencement of China's $126 billion health care reform plan focused on providing a broader spectrum of healthcare services and pharmaceutical products to all Chinese residents, we are confident that our modernized logistics center and d
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SOURCE China Yongxin Pharmaceuticals, Inc.
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