Luoxin Announces 2010 First Quarterly Results

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• USA - English

    HONG KONG, May 11 /PRNewswire-Asia/ --



    Unaudited financial summary

                               For the three months ended 31 March
                                    2010           2009
                                (RMB'000)      (RMB'000)    Change
    Turnover                     305,340        198,676     +53.7%
    Gross profit                 161,299         86,089     +87.4%
    Profit attributable
     to shareholders             107,055         52,727    +103.0%
    Basic earnings
     per share            RMB17.56 cents  RMB8.65 cents    +103.0%
    Gross profit margin            52.8%         43.33%   +9.5 pts
    Net profit margin              35.1%          26.5%   +8.6 pts

Shandong Luoxin Pharmacy Stock Co., Ltd. ("Luoxin" or the "Company", HKEx: 8058), a leading PRC pharmaceutical enterprise, announced its unaudited first quarterly results for the three months ended 31 March 2010 (the "period under review") today, recording a strong growth in turnover and profit attributable to shareholders.

During the period under review, the Company continued to strengthen R&D, production and distribution capabilities, thereby maintaining a well operation condition. The Company's turnover rose 53.7% year-on-year to approximately RMB305,340,000, profit attributable to shareholders surged by 103.0% to approximately RMB107,055,000. Basic earnings per share were RMB17.56 cents, representing an increase of 103.0% over the corresponding period in 2009. Gross profit margin and net profit margin surged to 52.8% and 35.1% respectively. The Board of Directors does not recommend payment of an interim dividend for the three months ended 31 March 2010.

As at 31 March 2010, the Company's cash on hand and cash equivalents amounted to approximately RMB551,922,000 and without borrowings, representing a solid gearing ratio and cash flow. During the period under review, the Company obtained the approval for the establishment of Shandong Lyophilized Powder Injection Pharmaceutical Engineering Technology Research Centre, laying a stronger research and development platform and further enhancing the Group's technological research and development capabilities.

Commenting on the strong growth of the results for the period under review, Mr. Liu Baoqi, Chairman of Luoxin, said, "The Company continued to insist on our strategy of strengthening the production, research and development and distribution abilities in providing reliable and high value-added medical products, as well as to enlarge market share of our products. With the increasing awareness of the Chinese government on the development of the pharmaceutical industry and of the medical insurance benefits among the Chinese citizen, it is expected that the reform on Chinese healthcare system will accelerate and thus providing enormous business opportunities to the pharmaceutical industry. Looking ahead, we will strive to expand production and sales as to build up our strength in terms of scale and low cost, the management team is confident in maintaining steady business growth to bring satisfactory return to our shareholders."

About Shandong Luoxin Pharmacy Stock Co., Ltd.

Luoxin Pharma has been listed on the GEM of the Stock Exchange of Hong Kong Limited since 9 December 2005. The Company was recognized as one of the "Top Ten Pharmaceutical Enterprises with Growth Potential" and named as one of the "Top 100 Pharmaceutical Companies in China" since 2006. It was also honored as one of the 200 "Small and Medium-sized Enterprises in China with Most Potentials" by Forbes for three consecutive years. The Company is principally engaged in the development, manufacturing and sale of different types of prescription and OTC (over-the-counter) medicines in 4 major categories: (1) antibiotics, including Cephalosporines antibiotics, Quinolones antibiotics and Macrolides antibiotics; (2) anti-viral medicines; (3) system-specific medicines, including digestive system medicines, cardiovascular system medicines and respiratory system medicines; (4) other chemical medicines, including Antineoplastic medicines. The Company's production facilities are located in the High and New Technology Experimental Zone, Linyi, Shandong Province, the PRC, and has obtained all required production permits as well as GMP certification. Its sales and marketing networks cover 27 provinces and 4 municipalities in the PRC.

    For further information, please contact:

    Porda International (Finance) PR Group
     Ms. Kelly Fung
     Tel:   +852-3150-6763
     Email: [email protected]

     Ms. Samantha Yeung
     Tel:   +852-3150-6735
     Email: [email protected]
     Fax:   +852-3150-6728

SOURCE Shandong Luoxin Pharmacy Stock Co., Ltd.