China Yongxin Pharmaceuticals Inc. reported net income of $2.35 million, or $0.04 per diluted share, for the first quarter of 2010. The company reported net income of $390,000 or $0.01 per diluted share, in the same quarter in 2009.
Revenues also increased sharply on a year over year basis, from $9.2 million in the first quarter of 2009 to $10.7 million in the quarter just ended. China Yongxin Pharmaceuticals Inc. reported that the Retail Drug Store segment saw a 20% increase in revenue, while the Wholesale Pharmaceutical Distribution segment had a 7% increase in revenues.
China Yongxin Pharmaceuticals Inc. said that a high percentage of the increase in revenues was due to the expansion of the national medical insurance program run by the Chinese government.
China has established a National Essential Drug List, which consists of drugs and pharmaceuticals that are eligible for reimbursement by the program. China Yongxin Pharmaceuticals Inc. said that 95% of its products are on the reimbursement list.
Yongxin Liu, the CEO of China Yongxin Pharmaceuticals Inc., said, “Our steady revenue growth, especially growth from our retail business in the first quarter of 2010, we believe indicates that our business is well-positioned to take advantage of increased government support for expanded health care. In 2010, the government accelerated implementation of its reforms, extending benefits to rural areas. We are very confident that the Chinese Government’s efforts toward healthcare reform will continue to boost domestic spending on the products we sell.”
China Yongxin Pharmaceuticals Inc. opened 6 new retail drug stores in the first quarter of 2010, and plans to open a total of 35 in 2010.
For more information on the company, go to www.yongxinchina.com