China Yingxia International, Inc. (OTCBB: CYXI), a developer and manufacturer of health food products in China, today announced that revenue in the third quarter ended September 30, 2006 was $1,857,392 and net income from operations was $742,251. Net income for the quarter including a provision for income taxes was up 349% to $2,958,786 compared with $659,645 in the third quarter of 2005.
Revenue for the nine months ended September 30 of 2006 totaled $5,308,352, up $1,095,196, or approximately 26%, compared to revenue of $4,213,156 in the comparable nine-month period a year earlier. For the nine months ended September 30 of 2006, the company reported net income of $4,668,569, or $0.14 per fully diluted share, an increase of $3,255,283, or approximately 230%, from the comparable nine-month period of 2005.
Ms. Yingxia Jiao, CEO and chairman of CYXI, said, "The strong increase in revenue was attributable to the successful expansion of our product lines and sales network to meet the needs of existing and new customers. Despite achieving lower sales totals for the three-month period of this quarter, we were able to record higher earnings as a result of the partial operating of our soybean product manufacturing lines. Additionally, we were granted the status of a Foreign-Invested Enterprise ('FIE') as we became wholly owned by an U.S. public company during the period ended September 30, 2006. In accordance with applicable Chinese Law, the Company is therefore eligible for an exemption of income tax in PRC for the first two profitable years and a 50% income tax reduction for the next three years. The income tax exemption and reduction can be applied retroactively. In our case, this exemption is applied to fiscal years 2004 and 2005. As result of this change, the Company recognized a total of $2,216,535 as income tax benefit in this period."
About China Yingxia International, Inc.
China Yingxia International, Inc., through its 100%-owned subsidiary, Harbin Yingxia Industrial Group Co., Ltd. ("Yingxia"), is primarily engaged in the development, production and sales of health food products in China. Yingxia is located in the Province of Heilongjiang in mainland China, and it currently has over 180 employees and 3 agricultural production bases. Yingxia's products include fresh cactus and cactus dry power, organic soybean, and Longgu golden rice. Yingxia is currently implementing an aggressive expansion plan which includes the construction of a new production facility of 16,300 square meters. For the year ending 12/31/2005 the Company achieved $6.1 million in sales with a net income of $1.8 million, with $13.3 million in net assets.
For more information about China Yingxia International, Inc. (OTCBB: CYXI), please visit: http://www.Chinayingxia.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, risks that the results of future performance will not be consistent with the forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements.
Source: Market Wire (November 22, 2006)