Natural and organic nutritional food and supplement manufacturer Yingxia International has posted an increase in fiscal 2006 revenues of 36%, driven by the launch of new products into the Chinese market.
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Revenue climbed to US$8.4m. Following a tax gain of approximately $3m, the company posted a 205% increase in net profits, which rose to $5.3m. Gross profit for 2006 increased 43% to $4.6m, the company revealed. Gross margins were also up, increasing to 54.35% in 2006 compared to 51.44% in 2005.
The company attributed gains to new product launches, however it also said that NPD carried various expenses that put pressure on margins and profitability. In order to gain market share and consumer recognition the company offered new products at a discounted price, while Yingxia increased its R&D spend considerably during the period
Yingxia Jiao, chairwoman and CEO of China Yingxia, said: “We are very pleased with our company’s performance for 2006. We continue to show solid growth in our sales, which was attributable to the introduction of our new products. The total number of products we sell has grown dramatically in 2006 to 186.”
Looking to the coming year, Yingxia said that the company had put in place a strategy to drive future growth.
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By GlobalData“We initiated our growth strategy for 2007 during 2006 and we continue to execute according to plan. To diversify risk and increase returns on investment, we have already begun to expand our product base and enter new geographical expansion throughout China. We have also invested in a new facility, which will cover 54,600 square feet. Upon completion there will be a capacity of 60,000 tons of soybean, 90,000 tons of millet, and 1,500 tons of cactus powder produced annually. This will enable CYXI to provide many more products to many more outlets,” she said.
