Fiscal Year 2010 Financial Highlights:
- Revenues for the 2010 fiscal year increased by 28.7% year-over-year to $72.7 million, up from $56.5 million in 2009.
- Wholesale revenue was $51.4 million, or 70.7% of total revenues.
- Retail revenues were $21.3 million, or 29.3% of total revenues.
- Gross profit for the year was $39.8 million, an increase of 26.6% compared to $31.4 million in 2009. Gross margin was 54.7% and 55.6% in 2010 and 2009, respectively.
- Adjusted* net income increased 16.7% to $21.2 million, compared to $18.2 million in 2009
- GAAP net income decreased 12.2% year-over-year to $14.4 million, compared to $16.4 million in the previous year
- Earnings per diluted share were $0.54 for the year, compared with diluted EPS of $0.66 achieved in the previous year
Management Commentary for 2010 Results:
Mr. Zhongyi Liu, Chairman and CEO of Lotus, stated, "We continued to expand our business in 2010 and saw especially strong growth of 83% in our retail sales segment. We entered the market for direct sales to over-the-counter drugstores in Beijing in 2010 and have already experienced tremendous success, serving more than 1,000 OTC drugstores in addition to our own 10 stores. We expect this channel to continue being a major sales growth driver in the coming year. Construction of our Beijing facility continues to progress, and we anticipate significant efficiency improvements and additional capacity for growth once we move into the new building."
Mr. Liu continued, "We plan to focus our capital expenditures in the foreseeable future on the completion of ourBeijing facility and our core business in Beijing; as a result, we recognized a one-time, non-cash impairment loss for construction expenditures on our property in Inner Mongolia in 2010. Lotus has a well-established nationwide sales and distribution network, strong product development capabilities, and access to capital. Due to the trends of consolidation and increasing regulatory oversight in China's pharmaceuticals industry, we believe these characteristics position Lotus to emerge as an industry leader."
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See link below for most recent RedChip Conference with LTUS Presentation from Xing Shen: