Dawnrays Pharmaceutical (Holdings), which is seeking to list on the main board, said economies of scale helped boost its earnings by about 100 per cent last year despite fierce competition. The Hong Kong-invested, mainland-based antibiotics producer said net profit reached 100.12 million yuan (HK$93.85 million), compared with 48.27 million yuan in 2001, even though it had 30 competitors in the mainland's cephalosporin market. The company, which began as a pharmaceutical trading firm in the 1980s, said it was one of the mainland's three largest makers of cephalosporin, a form of semi-synthetic antibiotic. Dawnrays is seeking to raise $150 million from an initial public offering in Hong Kong and plans to make its debut on the stock market on July 4. It will sell about 200 million new shares and 40 million old shares at between 75 cents and $1.30 each, or at between 6.35 times and 8.72 times last year's earnings on a fully diluted basis. Dawnrays will use part of the proceeds to expand its annual production capacity to 300 tonnes from the current 60 tonnes for cephalosporin in bulk, and to 320 tonnes from 120 tonnes for intermediate pharmaceuticals.