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China Yongxin Pharmaceuticals, Inc. Announces Results for the Third Quarter Ended September 30, 2009
Date:12/10/2009

CHANGCHUN, China and LOS ANGELES, Dec. 10 /PRNewswire-Asia-FirstCall/ -- China Yongxin Pharmaceuticals, Inc. (OTC Bulletin Board: CYXN) ("Yongxin" or "the Company"), a leading pharmaceutical distributor and chain drugstore operator, today announced financial results for the third quarter ended September 30, 2009.

"While we recognize that many of our products depend on discretionary spending, we expect as the economy continues to recover and consumer confidence picks up further, sales will gain momentum in 2010 and beyond. In the third quarter, we maintained our sales activities and saw improved gross margin as the Company's shift to higher margin products in its retail segment contributed to a more profitable mix of business. Management believes that overall gross profit will continue to improve for the remainder of 2009 and into next year," commented Mr. Yongxin Liu, Chairman and Chief Executive Officer of Yongxin.

"Further, we have initiated distribution of essential drugs and believe the government's new efforts on centralized distribution and the broader healthcare reform provide a myriad of growth opportunities. As one of the leading drug distributors in Northeastern China, we are well positioned to capitalize on these developments and build sustainable and long-term shareholder value," concluded Mr. Liu.

Highlights for the three months Ended September 30, 2009

Net revenue totaled approximately $10.8 million for the three months ended September 30, 2009, a decline of 29.8% from $15.5 million for the same period of 2008, due to lower sales from the Company's wholesale business as result of a change in its sales strategy. In the third quarter, Yongxin shifted its focus to the retail sector as the benefits from China's proposed National Medical Policy for the Company's wholesale business segment have taken longer than initially anticipated.

Cost of goods sold
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SOURCE China Yongxin Pharmaceuticals, Inc.
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