On 14 July, 2016, Northeast Pharmaceutical
Group Co., Ltd. (Northeast Pharmaceutical) released its corrected H1 2016
financial pre-announcement:
-
Net profit: +USD0-0.75 million (+RMB0-5
million), vs. -USD12.95 million (-RMB86.13 million) in H1 2015
-
Earnings per share: RMB0-0.011, vs.
RMB-0.18 in H1 2015 (exchange rate: USD1.00=RMB6.6496 on 1 July, 2016,
sourced from the People's Bank of China)
Source: baidu
This is mainly thanks to:
1. Rises in sales prices of its active pharmaceutical ingredients (APIs) like
chloramphenicol and amantadine in H1 2016.
2. Larger sales volumes of preparations like fosfomycin dodium for injection,
carprost suppository, and levocarnitine.
Early in the last financial pre-announcement released on 27 April, Northeast
Pharmaceutical predicted: "The company will suffer a loss of USD0-1.5
million (RMB0-10 million), a great decrease compared to the corresponding
period last year." After revision, the net profit is estimated to realize
a YoY increase of 100.00%-105.81%, giving a strong boost to the company's stock
price. On the very date when the corrected version was released, the stock
price was up by 2.39%.
Northeast Pharmaceutical's net profit, 2013-H1 2016
E
Note: In 2014,
Northeast Pharmaceutical suffered a loss of USD1.32 million (RMB8.76 million)
after extraordinary
items were
deducted.
Source:
Northeast Pharmaceutical Group Co., Ltd.
In 2015, Northeast Pharmaceutical's
performance was undermined by one of its leading products, vitamin C (VC),
whose market price kept depressed.
-
Revenue: +USD576.64 million (+RMB3.83
billion), down 11.51% YoY
-
Net profit: -USD57.80 million (-RMB384.36
million), vs. +USD13.09 million (+RMB87.08 million) in 2014
As one of the leading producers of VC, Northeast Pharmaceutical has kept under
great business pressure. Early in late Feb. 2016, the company stated that the
current sales price of VC still remained low. According to CCM's price
monitoring, from Jan. to June 2016, the domestic market price of 99% feed grade
VC averaged USD3.76/kg (RMB25/kg), down over the same period in 2014 and 2015.
The continuous losses have pushed the company to hunt for profits.
-
In Feb. 2016, the company purchased RMB
financial products from the Bank of Communications with an equity fund of
USD15.04 million (RMB100 million), aiming to improve its efficiency of capital
utilization, generate investment returns and increase its revenue
-
In April, together with its branch company,
the company set up an investment partnership which serves as a financing and
investment platform. Northeast Pharmaceutical is said to be the limited partner
taking 90% of shares, with a fund of USD13.53 million (RMB90 million)
Notably, some of Northeast Pharmaceutical's major shareholders unloaded their
shares. For instance, Wang Zilong, one of the company's shareholders, unloaded
his 16.64 million shares (3.51% of the company's total equity) in the company
through Block Trading System from 27 May to 7 June, 2016. After this, Wang
Zilong no long holds any shares.
Monthly market price of 99% feed grade
vitamin C powder, Jan. 2014-June 2016
Source: CCM
This article comes from Corn Products China News 1607, CCM
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Tag: pharmaceutical vitamin