China Yongxin Pharmaceuticals Inc. is a leading manufacturer, distributor and retailer of Chinese traditional medicines, pharmaceutical products, natural health products, health food, cosmetics and medical equipment in Northeastern China. The Company today gave a run-down of 2009, announcing that it has opened three new stores last year, reflecting a revamp in its sales strategy.

Yongxin Liu, chairman and CEO of China Yongxin, stated that the company’s focus on the Chinese healthcare market is supported by the government’s call for reform and the company’s ability to offer various products to meet demand.

“With enhanced government support, specifically the commencement of China’s $126 billion health care reform plan focused on providing a broader spectrum of healthcare services and pharmaceutical products to all Chinese residents, we are confident that our modernized logistics center and distribution channels, the broad customer base of our chain drugstores, our extensive product portfolio, and committed management team will enable us to resume our growth momentum and capitalize on a long- term, secular growth opportunity,” Liu stated in the press release.

Two of the stores are located in Tianjin City, which has a local customer population of 23,000. Each of the Tianjin stores offers more than 1,500 products and has achieved average revenue of $429 per store per day. The company’s new Changchun City-based store offers more than 3,000 products with a local customer population of 27,000 and average revenue of $429 per day.

The new stores bring the company’s total count to 96 stores, including 22 franchisees, and broaden its product portfolio, which includes 98 percent of the items listed on the recently issued Essential Drug List (EDL) in China.

Through the addition of the new stores and correlating expanded marketing activities, the new stores and retail drug operations contributed to a 30 percent increase in revenues for 2009. The new stores also improved the company’s 2009 gross profit, which was $15.2 million, and gross margin of 32.6 percent, up from $11.9 million in gross profit and gross margin of 20.1 percent reported for 2008.