China Yingxia International, Inc., provider of nutritional food products and supplements primarily for the Chinese market, announced a doubling of revenues for the third quarter ending September 30. Revenue shot up to $7.5 million, a staggering 112% from the same quarter last year, while net income jumped 88%, to $3.2 million. The increase is due largely to the growth in nutritional foods, an expanding area of focus for the company. China Yingxia expanded its sales channels during the third quarter of 2008, adding 146 new franchise stores.
China Yingxia founder and CEO, Ms. Yingxia Jiao, commented on the good news. “Our sales in the third quarter of 2008 more than doubled from the third quarter last year, supported by strong performance of our nutritional food segment. We have continued to shift our product mix towards nutritional food products, and were pleased to see growth more than triple in this product segment from last year. During the quarter, sales from our Jin Ao subsidiary contributed 10.3% of revenues, demonstrating the potential of this acquisition to our revenue growth.”
The superior financial results underline the strong financial condition of the company, which now has over $5 million in cash and cash equivalents, and no long-term debt. Working capital increased to over $21 million, compared to just under $15 million last year. The company recently authorized a $2 million share repurchase program.
As the Company has completed the most capital intensive phase of its expansion, the current focus is on improving the efficiency of its distribution channel. The slowdown in domestic consumption growth in China is expected to be milder compared to the slowdown in export or fixed investment growth. As a result, the company plans to focus on its nutritional foods segment and the soy milk products from its Jin Ao subsidiary.
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