Shanxi medicine maker up on cost cuts and sales lift

PUBLISHED : Tuesday, 26 February, 2002, 12:00am
UPDATED : Tuesday, 26 February, 2002, 12:00am

Shanxi Central Pharmaceutical International's net profit surged 185.6 per cent year on year to HK$28.69 million in the six months to November 30, due to lower expenditure and increased sales.

The Chinese-medicine maker and hospital operator, listed on the main board in Hong Kong, said it had already made most of its investment for business expansion in 2000.

Operating expenses excluding costs of administration and distribution were HK$3.86 million, compared with HK$16.17 million a year earlier.

Despite the surge, the profit was less than the HK$34.15 million recorded in the same period in 1999.

The businesses of the company include a hospital in Taiyuan, the provincial capital of Shanxi, and the manufacturing and distribution of more than 30 patented Chinese medicines.

Both the hospital and medicine manufacturing specialise in rheumatism and arthritis therapy.

Turnover was HK$148.54 million, up 42.53 per cent over the same period the previous year.

Turnover of drug manufacturing and sales rose 60.2 per cent year on year to HK$135.63 million and accounted for 91.31 per cent of the company's turnover.

Trading business contributed 6.45 per cent of the turnover, and the hospital operation in Taiyuan the remaining 2.24 per cent.

Earnings per share were 1.37 HK cents, compared with 0.54 HK cents a year earlier.

No interim dividend will be paid.