China Yongxin, a distributor and retailer of pharma and health products in China, announced its revenues for Q2 of 2010 have increased 21.8 percent to $11.16 million, a increase from $9.16 million for the same quarter in 2009.
Revenues from the company's wholesale segment were $7.62 million, an increase of 27.4 percent over $5.98 million in the same quarter of the prior year. Revenues from the retail segment were $3.5 million, an increase of 11.3 percent over $3.18 million in the same quarter last year. The increase in revenue was attributable to both retail and wholesale operations. In the retail segment, the company added seven new drug stores in the second quarter. In the wholesale segment, the company added new accounts through a national competitive bidding process, which increased wholesale revenue.
According to the company, the cost of goods sold for the second quarter of 2010 was $8.34 million, an increase of 29.5 percent, compared to $6.44 million for the second quarter of 2009. Gross profit for the second quarter of 2010 was $2.82 million compared to $2.72 million for the same period in 2009.
The company's GAAP net income, however, decreased by 50.1 percent to $0.52 million from $1 million in the same quarter of the prior year largely due to two items that were unrelated to the operations of the company. First, in the second quarter of 2009, the company earned "other income" of approximately $0.7 million from sponsorship and promotional activities from suppliers, of which this sum was not earned in the current quarter; secondly, the company realized a one-time gain of approximately $0.3 million related to the sale of a subsidiary that occurred in the second quarter of 2009 (and no such gain was recorded in the second quarter of 2010).
The selling expenses for the second quarter of 2010 were $0.96 million, compared to $0.76 million for the second quarter of 2009. The increase in selling expenses was mainly attributable to expenses related to the opening of new retail drugstores during the three month period ended June 30, 2010.