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HONG KONG, Mar 5, 2009 - (ACN Newswire) - Shandong Luoxin Pharmacy Stock Co., Ltd. (Luoxin Pharma or the Company, stock code: 8058), one of the leading PRC pharmaceutical enterprises, announced today its annual results for the year ended 31 December 2008 (the year under review).
Financial Highlights
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2008 2007 Change
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Turnover 667,792 509,092 +31.2%
Gross Profit 316,596 248,464 +27.4%
Profit Attributable to Shareholders 183,155 121,943 +50.2%
Basic Earnings Per Share (RMB cents) 0.3 0.2 +50.0%
Net Profit Margin 27.4% 24.0% +3.4%
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During the year under review, the Company has maintained a strong growth momentum with turnover increased by 31.2% to approximately RMB667,792,000, the growth was mainly due to the introduction of high value-added products and strengthening of its product portfolio, as well as accelerating the development of sales network in order to increase the market share of its products. Profit attributable to shareholders grew by 50.2% to approximately RMB183,155,000. Basic earnings per share were RMB0.3, representing an increase of 50% over 2007. The Board of Directors recommended the payment of final dividend of RMB0.02 per share for the year ended 31 December 2008 as a token of appreciation for the continuous support from shareholders.
Mr. Liu Baoqi, Chairman of Luoxin Pharma, was pleased with the results and said, "With the proactive medical reforms imposed by the Central Government, persistence of an aging population, expansion in the scope of medical protection, and increasing health expenses among people, the demand for medicine had increased significantly, which in turn created new opportunities for the pharmaceutical industry. As a leading pharmaceutical enterprise in the PRC, the Company fully capitalized on the immense market opportunities during the year under review by expanding its existing businesses. More resources were allocated in expanding its production capacity and enhancing technological standard, as well as strengthening its sales network and accelerating the research and development of new products. All these contributed to the satisfactory growth in both turnover and profits."
To meet with the increasing market demand, the Company's third phase of production capacity expansion project has commenced operation after completion. The achievement of economies of scale will help lower the production cost and increase the market share of its products gradually. Since the commencement of new operation, the production capacity for aseptic bulk medicine and bulk medicine for system-specific medicines has increased by 200 tonnes respectively. With the continuous expansion of the production capability of bulk medicine, the Company will be able to further enhance the gross profit margin of its products.
In order to strengthen the fundamental strength of its business, the Company entered into an acquisition agreement with Qilu Medical Investment Management Limited for the acquisition of 20% of its equity interest. Through this acquisition, the Company is able to broaden its scope of business and enhance its competitive strengths as a vertically integrated entity covering research and development, production and sales of pharmaceuticals.
In 2008, the Company successfully obtained approvals from the State Food and Drug Administration on 27 new products, broadening the Company's products portfolio. Leveraging on its strong research and development capabilities, the Company's technology centre was certified as the "Provincial Enterprise Technology Center" in September 2008. In addition, the Company joined forces with Shenyang Pharmaceutical University to establish Luoxin Pharma Post-doctorate workstation, education and training station, and internship station. This cooperation would further strengthen the Company's technological advancement, as well as providing a broader channel for technology exchange and nurture of talent between both parties.
Mr. Liu concluded, "We believe the pharmaceutical industry will continue to experience rapid growth in 2009 with the acceleration of the implementation of medical reforms imposed by the Central Government. To capture the opportunities arising from market consolidation, the Company will further strengthen its research and development capability, lower the production cost, expand the production scale and develop more high value-added products. The Company has obtained the shareholders' approval for the proposed transfer of listing of its H shares from GEM to the Main Board at the extraordinary general meeting and the respective class meetings on 24 October 2008. We believe that the transfer to the Main Board not only will help us further enhance our profile and increase the trading liquidity and recognition of the Company's shares, but also be beneficial to the future business development of Luoxin Pharma in the long run. We are confident that the Company will maintain a steady growth in business and generate satisfactory returns to its shareholders."
Contact:
Issued by Porda International (Finance) PR Group
for Shandong Luoxin Pharmacy Stock Co., Ltd.
Ms. Kelly Fung
Tel: +852 3150 6763
kelly.fung@pordafinance.com.hk
Ms. Kate Lam
Tel: +852 3150 6738
kate.lam@pordafinance.com.hk
Ms. Susanna Ho
Tel: +852 3150 6755
susanna.ho@pordafinance.com.hk
Fax: +852 3150 6728
Topic: Earnings
Source: Shandong Luoxin Pharmacy Stock Co., Ltd.
Sectors: Daily Finance, Health & Pharm
https://www.acnnewswire.com
From the Asia Corporate News Network
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