March 26, 2009
China's Northeast Pharmaceutical Group '08 profits increase sixfold
Northeast Pharmaceutical Group Co Ltd, one of China's leading Vitamin C manufacturers, announced Wednesday (Mar 25) a sixfold jump in the company's 2008 profits.
In 2008, with the high export prices of Vitamin C being the main profit driver, the Group recorded a net profit of RMB358 million (US$52.4 million), an on-year increase of 653 percent. In total, the Group achieved RMB1.028 billion (US$150.4 million) in Vitamin C sales in 2008.
Meanwhile, analysts believed that more pharmaceutical companies would be expanding in the Vitamin C industry due to the high export prices. Therefore, there may be oversupplies of Vitamin C in the market. In addition, the joint venture between North China Pharmaceutical Group Corporation and DSM to set up a Vitamin C production plant is likely to challenge Northeast Pharmaceutical Group's leading position in the industry.
Currently, China's four main Vitamin C enterprises, namely Shijiazhuang, Northeast, Jiangshan and North China Pharmaceutical Group, along with the Netherlands-based DSM have a 90 percent share of the global Vitamin C production output.
