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China YCT International, Inc. : China YCT International Group Inc. (CYIG), Pre-Announces Higher Than Expected Fiscal Year 2009

^{Published on 2009-01-26 05:35:45, Last Modified on 2009-01-26 05:36:54 - Market Wire}
 

NEW YORK, NY--(Marketwire - January 26, 2009) - China YCT International Group Inc., (OTCBB: [ CYIG ]) ("China YCT" or "the Company"), a leading company engaged in the business of developing, manufacturing and marketing gingko-based products through its wholly owned subsidiary, Shandong Spring Pharmaceutical Co. Ltd, today announced that it expects to report higher revenues for the third quarter of fiscal year 2009 ending on December 31, 2008 as compared to the same period for fiscal year 2008. Revenues for the third quarter of fiscal year 2009 are expected to total approximately $8.63 million, about 60.4% or $3.25 million higher than revenues reported during the same period of fiscal year 2008. The company also expects to report cumulative revenues of $21.97 million for the nine months ended December 31, 2008, which represents an increase of 106.7% or $11.34 million compared to the same period of 2007. Higher revenues were primarily attributable to higher income from the Company's core business of gingko based products.

In line with the increased revenues, China YCT anticipates net earnings of approximately $2.19 million for the third quarter of fiscal year 2009 compared to net income of $0.97 million earned in the same period of fiscal year 2008. For nine months ended December 31, 2008, the company expects to report net income of approximately $6.40 million, an increase of $4.16 million or 185.8% as compared to the net income for the same period in 2007. The Company expects the positive trend in its financial performance to continue into the last quarter of fiscal year 2009 and through fiscal year 2010. In addition, the Company expects to improve its revenue in 2010 by contributing more in advertising via nationwide multi-media outlets.

"In addition to higher than expected sales income from our core business, higher operating results reflect our growing advertising expenditures," Mr. Tinghe Yan, President of China YCT commented. "We have incurred cumulative advertising costs of approximately $1.10 million for the nine months ended December 31, 2008, which represents a significant increase of $0.61 million or 124.4%, compared to what we incurred for the nine months ended December 31, 2007."

"According to the current market situation, and our own operating status, we are not greatly affected by the worldwide economic slowdown. We are seeing stronger operating results quarter to quarter, and we believe that, on a year-to-year basis, we will continue our strong growth into fiscal year 2010," concluded Mr. Yan.

About China YCT International Group Inc.

Established in 2005, China YCT International Group, Inc., through its operating subsidiary, Shandong Spring Pharmaceutical Co. Ltd. ("Shandong Spring Pharmaceutical"), a corporation organized under the laws of the People's Republic of China, is a high-tech enterprise, which applies modern biological technology and integrates research & development, production and sales of ginkgo healthcare products, ginkgo cosmetics, daily-use chemical products, ginkgo glycoside products and biological medicines. All of Shandong YCT's businesses are currently in China.

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