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Nationally depressing economy is going on in early Sept. 2012. According to the statistic data excluding finance industry, the operating income of China's A-share companies increased by about 7.8% in H1 2012, compared with that in the same period of 2011, while the net profits decreased by 15.9%. Most industries suffered a sharp fall in net profits. Among them, basic chemical, building material, non-ferrous metals and steel industries suffered the most, down over 40% in this period over H1 2011. It's predicted that more than 24 companies will see profit decline over 50% year on year in sub-sectors of chemical industry in Q3 2012.
As one of the new materials industries, biomaterial industry undoubtedly faces great challenges, such as Xinfu Pharmaceutical, Kingfa and Rainbow Fine Chemical, whose profits were not satisfactory. However, some domestic producers are still confident on the prospect of biomaterials. For example, Dikang Pharmaceutical decides to expand its capacity of absorbable PLA film and Rainbow Fine Chemical is preparing to establish two wholly owned subsidiaries to produce bio-degradable materials.
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