Profit Attributable to Shareholders marks Sustainable Growth
Up 34.2% to Approximately RMB 114,830,000
Focus on Product Research and Reducing Production Costs
HONG KONG, Aug. 4 /PRNewswire-Asia/ --
Unaudited financial summary
For the six months ended 30 June
2009 2008
(000' RMB) (000' RMB) Change
Turnover 431,971 308,095 +40.2%
Gross profit 194,377 149,826 +29.7%
Profit attributable
to shareholders 114,830 85,582 +34.2%
Earnings per share 18.84 cents 14.04 cents +34.2%
Gross profit margin 45.00% 48.63% -3.63% pts
Net profit margin 26.6% 27.8% -1.2% pts
Shandong Luoxin Pharmacy Stock Co., Ltd. ("Luoxin Pharma" or the "Company", stock code: 8058), one of the leading PRC pharmaceutical enterprises, announced its unaudited interim results for the six months ended 30 June 2009 ("the period under review").
Luoxin Pharma recorded a sustainable growth during the period under review. For the six months ended 30 June 2009, its turnover increased 40.2% to approximately RMB431,971,000, while gross profit rose 29.7% to approximately RMB194,377,000. Profit attributable to shareholders increased 34.2% to approximately RMB 114,830,000 and earnings per share also rose 34.2% to approximately RMB18.84 cents. The Board of Directors does not recommend payment of an dividend for the six months ended 30 June 2009 (2008: Nil).
Mr. Liu Baoqi, Chairman of Luoxin Pharma said, "The Company strives to capture the opportunities arising from the medical reform, with our continuous effort on strengthening the research and development, production and distribution capabilities, we are able to provide high value-added medical products, upgrade the product mix and accelerate the development of sales network to enlarge the market share of our products. All these contributed to the notable growth in turnover and profit."
At the same time, as the Company was named by Forbes as one of the 200 "Small and Medium-sized Enterprises in China with Most Potentials" last year, the Company is once again included this year and with a big leap in its ranking by 144 places to number 34. Besides, the "Luoxin" trademark was acknowledged as a "Famous Trademark in the PRC" by the State Administration for Industry and Commerce of the PRC during the period under review. All these represent that the remarkable performance of the Company was recognized by the market.
With the aging population in China, concern over medical protection and health expenses among people increased. Accordingly, demand for medical products increased significantly. Moreover, as the State Council passed "The Opinion Relating to the Intensification of the Medical and Public Health Systems Reform" and "The Latest Implementation Emphasis Scheme for the Pharmaceutical and Public Health Systems Reform (2009-2011)" in April 2009. The PRC government will invest RMB850 billion in the coming three years to promote and establish a primary health care protection scheme, which in turn is expected to bring more business opportunities to the pharmaceutical industry.
Mr. Liu concluded, "We are confident that we will continue to maintain a steady and sustainable business growth. We will fully capitalize on the market opportunities by focusing on product research and development, expanding the scale of production and sales rapidly, and more importantly, reducing production costs. We will also continue to launch more high value-added products so as to maintain business growth and satisfactory return to our shareholders."
About Shandong Luoxin Pharmacy Stock Co., Ltd.
Luoxin Pharma has been listed on the GEM of the Stock Exchange of Hong Kong Limited since 9 December 2005. The Company was recognized as one of the "Top Ten Pharmaceutical Enterprises with Growth Potential" and named as one of the "Top 100 Pharmaceutical Companies in China" since 2006. It was also honored as one of the 200 "Small and Medium-sized Enterprises in China with Most Potentials" by Forbes for two consecutive years. Its "Luoxin" trademark has been endorsed as a "Famous Trademark in the PRC" by the State Administration for Industry and Commerce of the PRC. The Company is principally engaged in the development, manufacturing and sales of different types of prescription and OTC (over-the-counter) medicines in 4 major categories: (1) antibiotics, including Cephalosporines antibiotics, Quinolones antibiotics and Macrolides antibiotics; (2) anti-viral medicines; (3) system-specific medicines, including digestive system medicines, cardiovascular system medicines and respiratory system medicines; (4) other chemical medicines, including Antineoplastic medicines. The Company's production facilities are located in the High and New Technology Experimental Zone, Linyi, Shandong Province, the PRC. Its sales and marketing networks cover 27 provinces and 4 municipalities in the PRC.
For further information, please contact:
Ms. Kelly Fung
Tel: +852-3150-6763
Email: kelly.fung@pordafinance.com.hk
Ms. Helen Ng
Tel: +852-3150-6736
Email: helen.ng@pordafinance.com.hk
Fax: +852-3150-6728
