Chinese-medicine manufacturer Guangzhou Pharmaceutical plans to invest more than 100 million yuan (HK$93 million) in a new medicine plant. Financial-controller Jiang Shijie said the company planned to move its manufacturing plant to a Guangzhou suburb from the city's central area because of the municipal government's green policy. 'We have to move our plant because it is not environmentally friendly to have a medicine plant in the city centre,' Mr Jiang said. The move and the construction of a new facility would be financed by Guangzhou Pharmaceutical, which had 460 million yuan on hand, he said. The company on Monday reported a 12.4 per cent year-on-year drop in net profit in the first half of this year to 67.82 million yuan. However, sales increased 3.7 per cent to 1.89 billion yuan. Chairman Cai Zhixiang attributed the decline in net profit to a sluggish domestic medicine market. An increase in promotional expenditures to 57.63 million yuan from 41.40 million yuan a year ago contributed to shrinking profit, he said. He said the company's prospects would remain gloomy in the second half. The company is in talks over the purchase of other medicine companies, according to vice-chairman and general manager Li Yiming. Mr Li said the company was aiming for low-cost expansion.