Vitamin C maker China Pharmaceutical Enterprise and Investment Corp is to receive more asset injections from its parent company to strengthen its penicillin production.
The company has expanded into penicillin production after acquiring Hebei Zhongkang Pharmaceutical Co from the parent Shijiazhuang Pharmaceutical Group Corp late last year.
Shijiazhuang general manager Cai Dongchen said the group was considering injecting more assets for producing downstream penicillin, such as amoxicillin, to China Pharmaceutical.
He declined to give a schedule for the injections.
Shijiazhuang has two more amoxicillin production lines after a recent merger with Hebei Pharmaceutical (Group).
Mr Cai said the group was cautious in selecting assets for China Pharmaceutical because it had to guarantee a minimum return rate of 20 per cent for its Hong Kong-listed vehicle.
He said the consideration aimed to boost the profit level of China Pharmaceutical, which had been sliding since listing in 1994.