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China Yongxin Pharmaceuticals Inc. Announces Second Quarter 2009 Financial Results
Date:10/14/2009

CHANGCHUN, China and LOS ANGELES, Oct. 14 /PRNewswire-Asia/ -- China Yongxin Pharmaceuticals, Inc. (OTC Bulletin Board: CYXN; "China Yongxin Pharmaceuticals" or "the Company"), a leading manufacturer, distributor and retailer of pharmaceuticals in Northeastern China, today announced its unaudited financial results for the second quarter of 2009 which ended June 30, 2009.

Revenues for the second quarter of 2009 were essentially flat at approximately $14.6 million compared to the second quarter of 2008, with a marginal increase due to an increase in revenue from its retail drug stores offset by a decrease in volume from its pharmaceutical wholesale business. Revenues from retail drug stores were $6.0 million, compared to $5.8 million for the same period in 2008, which included a 10.9% increase for existing same store sales. A broader product portfolio, in addition to increased marketing activities, contributed to the growth. During the quarter, the Company launched one new chain drug store in Tianjin.

"We believe our business during the first half of 2009 was impacted by customers waiting for specifics on the new healthcare reform plan. On August 18 the Chinese government issued China's Essential Drug List (EDL) which included 307 commonly used pharmaceuticals. These will be subsidized by the government to provide easier access to all citizens. China Yongxin distributes 295 products included on this list and we believe our Company will benefit from the government's efforts to boost domestic spending, in addition to the new healthcare reform which is gaining momentum," commented Mr. Yongxin Liu, Chairman and Chief Executive Officer of China Yongxin. "We have added 12 high margin pharmaceutical products with exclusive distribution rights in Jilin province in the first half of 2009 and we expect this to drive market share gains and growth during the balance of this year."

Cost of goods sold for the second quart
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SOURCE China Yongxin Pharmaceuticals, Inc.
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