Sino Biopharmaceutical nine months profit up 31.8% to HK$451.36mn

The company believes the sales income of the pharmaceutical industry to increase with the slowing inflation and easing of policy restrictions.

Leading modernised Chinese medicine producer, Sino Biopharmaceutical Limited (“Sino Biopharmaceutical”) announced Monday its unaudited results for the nine months ended 30 September 2011.

For the nine months ended 30 September 2011, the Group recorded a turnover of approximately HK$4,340,490,000, an increase of approximately 44.4%, compared with same period last year. Before and after accounted for the provision for fair value loss on equity investments at fair value through profit and loss, profit attributable to the Group rose and dropped by about 31.8% and 11.8% from the previous year to approximately HK$451,357,000 and HK $282,444,000 respectively. Before and after accounted for the provision for fair value loss on equity investments at fair value through profit and loss, basic earnings per share increased and decreased by around 26.2% and 11.8% to 9.11 HK cents and 5.7 HK cents respectively. The Group has also maintained a strong financial position with cash and bank balances at approximately HK$2,337,303,000 (30 September 2010: HK$2,580,638,000).

The Board of Directors declared a third quarter dividend payment of 2 HK cents per share, which together with the dividend of 4 HK cents already paid for the first quarter and the interim period, brings the total dividends per share to 6 HK cents for the first three quarters. (2010: 6 HK cents), according to a Sino Biopharmaceutical report.

Mr Tse Ping, Chairman of Sino Biopharmaceutical, said, “This year marks the first year of China’s “Twelfth Five-Year Plan.” Benefiting from favourable medical reform policies and increased resources earmarked by the Government, the domestic pharmaceutical manufacturing industry maintained rapid growth for the tenth consecutive year. During the period under review, inflation in the PRC and price cut for winning tenders have also restrained profit growth within the pharmaceutical manufacturing industry. Besides implementing stringent quality control measures to ensure its products are safe and reliable, the Group has also increased investment in core businesses development through actively developing new sales models, emerging into new markets, further segmenting existing markets and exploring wider market potential, thereby expanding sales and income from its core products. As a result, the Group has continued to achieve significant sales income growth. On the technological innovation front, the Group has continued to pursue a dual product development strategy to heritage and innovate products simultaneously while emphasizing new product development to maintain the Group’s long term competitiveness.”

Mr Tse concluded, “The management believes that with the slowing inflation and easing of policy restrictions, economic growth in the fourth quarter is expected to remain stable and the sales income of the pharmaceutical industry should also continue to increase. Furthermore, more merger and acquisition opportunities will arise, expediting consolidation within the industry with further intensified competition in the future. Therefore, the management will continue to look for acquisition opportunities for the Group to achieve sustained business growth and generate satisfactory returns for its shareholders.”