February 20, 2008

China's Xinfu Pharmaceutical's 2007 net profit surges to RMB240 million

Shenzhen-listed Xinfu Pharmaceutical Co. Ltd, one of the world's largest producer of vitamin B5 products, yesterday (Feb 19) announced a set of sterling results for FY2007 ending December 31.

In a filing to the Shenzhen Stock Exchange, Xinfu reported that revenue had surged by 119.8 percent on-year to RMB764.74 million while net profit jumped 26 times to RMB240.2 million. Earnings per share were at RMB1.26. The company is proposing a dividend of RMB1 for every ten shares, amounting to a total of RMB19.1 million.

The Hangzhou, China-based company attributed the strong financial performance to higher prices and increased sales of its vitamin B5 and D-panthenol products, which had lifted profit margins.

As for 2008, Xinfu is setting a revenue target of RMB808.1 million from its core business. The company will set aside some RMB45 million for research and development efforts. By the end of 2008, Xinfu plans to complete the construction of two new projects in Chongqing and Manzhouli. It is also pushing for the completion of phase 2 of its 20,000 tonne/year PBS plant.

In order to achieve its targeted revenue for 2008, Xinfu will expand its share of the market for products such as PBS and glycolic acids.

RMB1=US$0.1399 (Feb 20)