Performance by pharmaceuticals and exceptionals help propel group to 11-fold increase
SIIC Medical Science and Technology (Group) (SIIC) posted an increase of 11.7 times in net profit to HK$171.98 million for the first quarter to March 31, helped by exceptional gains and improved performance in its pharmaceutical subsidiary.
'This is an excellent result,' said chairman Zhuo Fumin.
Turnover rose 40.9 per cent to HK$179.93 million, compared with HK$127.67 million achieved in the same period in 2000.
Mr Zhuo said the encouraging result was mainly helped by the exceptional gain of about HK$150 million from the listing of Shanghai Jahwa United on the Shanghai Stock Exchange's A-share market.
In February, SIIC's 40 per cent-owned associate Shanghai Jahwa sold 80 million A shares at 9.18 yuan, allowing the company to raise 734.4 million yuan.
The A-share issue was 410 times oversubscribed, making it one of the country's most popular initial public offerings.
Shanghai Jahwa makes skin-care and hair products, cologne, perfume and household products.
Mr Zhuo said this quarter's result did not include the contribution from Jahwa's operating business as the newly listed mainland company, according to mainland's regulations, was not allowed to issue quarterly financial figures.
During the period, Mr Zhuo said the company saw a sustainable growth in its 55 per cent-owned subsidiary Hangzhou Qingchunbao, which posted a first quarter net profit of HK$31 million, up 20.8 per cent from HK$25.67 million over the same period in 2000.
Earnings per share for SIIC amounted to 27.7 cents, up from 2.2 cents in the first quarter of last year.
The company did not announce any dividend in the first quarter.
To further expand its business, Mr Zhuo said, the company would consider buying two biotechnology assets, which had a total asset value of US$20 million from its parent, Shanghai Industrial Holdings.
Shanghai Indutrial own 50 per cent in Mergen and owns 49.8 per cent in Shanghai Sunve Biotech.
But Mr Zhuo said the company had not made any move on the acquisition plan, waiting for a better market environment for biotech business.
In a bid to gain a market share in both domestic and overseas markets, the company has developed and is set to launch a new health supplement product, Anntiflu in the second half of this year.
The product will be launched in China as well as Hong Kong, said managing director Li Weida.
The product, with a high profit margin, is expected to give a boost to the group's business.
SIIC's net asset value per share in the group grew 35 per cent to HK$1.11.
The debt-free company has cash on hand of HK$387 million.
