The financial operational performance for the 12 months ended December 31, 2008 was clearly improved compared to the 12 months ended December 31, 2007. Gross profit for 2007 was approximately $15.57 million, and the gross profit margin was 46.9%, while the 2008 gross profit was $25.29 million and the gross profit margin increased to reach 49.6%. The gross profit increased by approximately $9.72 million, or 62.5% from 2007 to 2008, which was mainly due to the continued revenue growth in 2008 and increased cost control, and also to the continued launch of new products.
The operating income for the year ended December 31, 2008 was $19,730,304, compared to $12,251,229 for the same period of 2007, an increase of $7.48 million, or 61.1%. The operating gross margin was 38.7% and 36.9%, for fiscal year 2008 and fiscal year 2007, respectively.
Due to substantial increases in sales revenue and gross profit, and
effective cost control in 2008, the net income for the year ended December 31,
2008, excluding the effect of foreign exchange transactions, increased to
approximately $17.83 million, which was 39.1% higher than the $12.82 million
for the year ended December 31, 2007. The net profit margins were 35.0% and
38.6% respectively in fiscal year 2008 and fiscal year 2007. The decrease in
net profit margin was due to the effect of the increasing income tax from 0%
to 9%. The Company did not have any income tax in 2007, when the Company was
still in the preferential tax period of 0%, while in 2008, due to the
Company's location in the special economic zone of Hainan, the Company was
granted a favorable rate of 9%. Excluding the effect of the increasing income
|SOURCE China Pharma Holdings, Inc.|
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