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China Yongxin Pharmaceuticals Reports First Quarter 2010 Financial Results
Date:5/24/2010

during the winter cold and flu season. Gross profit for the first quarter of 2010 was $2.40 million compared to $2.23 million for the same period in 2009.

Net income increased to $2.35 million for the first quarter of 2010, a 505.3% increase over the $0.39 million for the first quarter of 2009. The increase was primarily due to the sale of the Company's digital e-learning business during the first quarter of 2010 in which we were able to eliminate approximately $1.9 million of liabilities associated with the e-learning business. As part of its strategic plan, it was the Company's intention to divest the digital e-learning business and focus on its core business.

Fully diluted earnings per share increased to $0.04 for the first quarter of 2010 compared to $0.01 for the first quarter of 2009, based on 59.6 million shares and 31.0 million shares for the first quarter of 2010 and 2009, respectively.

Operating expenses for the first quarter of 2010 were $1.64 million, compared to $1.16 million for the first quarter of 2009. Selling expenses for the first quarter of 2010 were $0.79 million, a decrease of 3.2% from $0.82 million for the first quarter of 2009. The decrease was mainly attributable to better control of selling expenses through certain cost-cutting efforts such as the reduction of utilities usage, office supplies and changes in the packaging of products. General and administrative expenses for the first quarter of 2010 increased approximately 150% to $0.85 million, compared to

SOURCE China Yongxin Pharmaceuticals Inc.
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