Net sales for the year ended December 31, 2011 were $101.68 million, compared to $74.55 million for the year ended December 31, 2010, an increase of $27.13 million or 36%. Increase in units of products sold for the year ended December 31, 2011 accounted for approximately 75% of increase in sales primarily due to 1) the production and sales of new products starting in the third quarter of 2010, which brought us approximately $7.80 million sales revenue during the year of 2011; and 2) a six-month promotion plan starting from the fourth quarter of 2010 to the end of first quarter of 2011, which is the peak season for sales of health care products in the PRC due to the Chinese New Year Holiday and Chinese tradition of having tonic in winter. The remaining 25% increase in sales was attributable to the increase in unit sales price for certain highly demand products, such as Ferrous Fumarate Granule, Eucommia Ulmoides Oliv Granule, Tinidazole Vaginal Effervescent Tablet, Bushen Qiangshen Tablet, and Ranitidine Hydrochloride Capsule.
Gross profit was $59.59 million for the year ended December 31, 2011, compared to $45.02 million for the comparable period of 2010, our gross margin was 59% and 60% of sales for the year ended December 31, 2011 and 2010, respectively. The decrease in our gross profit margin for the year ended December 31, 2011 was mainly due to increase in cost of goods sold resulting from increase taxes for cost of goods sold.
Net income for the year ended December 31, 2011 was $29.63 million compared to $24.44 million for the same period of 2010, an increase of $5.19 million or 21%. The increase was mainly attributable to increase in net sales.
Liquidity and Capital Resources
At December 31, 2011, the Company had cash and equivalents of $70.78 million, other current assets of $11.06 million, and current l
|SOURCE Weikang Bio-Technology Group Co., Inc.|
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