China Yongxin Pharmaceuticals, a distributor and retailer of prescription and non-prescription pharmaceuticals, Chinese traditional medicines, natural health-related products in Northeastern China, has reported revenues of $10.51m overall for the third quarter of 2010, a 2.75% decrease from $10.81m for the same quarter in the prior year.
The decrease in net revenue was due to a planned reduction in sales to certain distributors with low gross profit margins, as the company made a shift in 2010 toward higher-margin wholesale customers such as medical institutions and other retailers.
China Yongxin Pharma's gross profit increased from $3.15m for the three month period ended 30 September 2009 to $3.69m for the three month period ended 30 September 2010, representing a 17.18% increase.
GAAP net income decreased 64.29% from a net income of $472,116 in the three month period ended 30 September 2009 to a loss of ($168,603) in the three month period ended 30 September 2010.
China Yongxin Pharma chairman and CEO Yongxin Liu said that the third quarter results truly indicate that they have been successful in positioning themselves to profit from health care reform in China.
