30th Jun 2015 08:28
LONDON (Alliance News) - Chinese pharmaceutical company Taihua PLC on Tuesday saw its shares rise after it said it doubled pretax profit in 2014 despite lower revenue, thanks primarily to robust sales of its Forsythia product and due to lower inventory provisioning.
Taihua said its pretax profit for the year was CNY6.6 million, up from CNY3.3 million a year earlier, despite revenue falling to CNY50.9 million from CNY52.3 million.
The company, which sells traditional Chinese medicine and some active pharmaceutical ingredients, said that despite tonnages sold falling in 2014 for Forsythia, which is used in Chinese herbology, revenue generated from the product was flat year-on-year due to a price increase caused by the reduced harvest.
Finished product traditional Chinese medicine sales fell for the company, primarily due to caution amongst distributors about taking on new products following a clampdown on manufacturing practices by the Chinese government.
Shares in Taihua were up 15% to 3.4399 pence on the news, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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