Luoxin Pharma 2010 Interim Results Marks Tremendous Growth

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• USA - English

    HONG KONG, Aug. 10 /PRNewswire-Asia/ --

    Unaudited financial summary

                              For the six months ended 30 June

                                    2010              2009         Change

                                 (RMB'000)         (RMB '000)

    Turnover                      598,841            431,971        +38.6%

    Gross profit                  315,000            194,377        +62.1%

    Profit attributable to

     shareholders                 192,050            114,830       +67.25%

    Earnings per share         RMB31.5 cents      RMB18.84 cents    +67.2%

    Gross profit margin            52.60%             45.00%       +7.6 pts

    Net profit margin              32.07%             26.58%       +5.49pts

Shandong Luoxin Pharmacy Stock Co., Ltd. ("Luoxin Pharma" or the "Company" or collectively with its subsidiaries the "Group", HKEx: 8058 /OTCQX: SLUXY), one of the leading PRC pharmaceutical enterprises, announced its unaudited interim results for the six months ended 30 June 2010 ("the period under review").

Benefited from the favorable business environment of the pharmaceutical industry, the Company recorded a tremendous growth during the period under review. Turnover increased by 38.6% to approximately RMB 598,841,000, the growth was mainly brought about by the introduction of high value-added products and strengthening of its product portfolio, as well as accelerating the development of sales network, resulting in an increase in the market share of its products. Profit attributable to shareholders grew by 67.25% to approximately RMB 192,050,000 and earnings per share also rose by 67.2% to approximately RMB31.5 cents. The board of directors does not recommend payment of any interim dividend for the six months ended 30 June 2010.

As at 30 June 2010, the Group's cash and cash equivalents amounted to approximately RMB562,156,000. At the same time, the Group did not have any borrowings, and maintains a stable financial condition.

Mr. Liu Baoqi, Chairman of Luoxin Pharma, was pleased with the results and said, "During the period under review, Luoxin Pharma's brand remained strong in the market. The Company obtained approval for the establishment of Shandong Lyophilized Powder Injection Pharmaceutical Engineering Technology Research Centre which helped build a stronger platform for the Group's research and development, and further enhanced the Group's technological research and development capabilities to maintain competitive advantage in the vast potential of the pharmaceutical market."

During the period under review, on the "List of Small and Medium-sized Enterprises in China with Most Potentials, " the first list published by Forbes in 2010, the Company was selected for three consecutive years and the ranking jumped to No. 29 this year. Besides, the Company was rated by the Shandong Pharmaceutical Profession Association as an "Honourable Enterprise" in the Pharmaceutical Industry of Shandong Province at the 60th anniversary of the foundation of the People's Republic of China, and awarded various honourary titles such as an "Advanced Private Enterprise" by the Shandong Provincial People's Government.

Mr. Liu concluded, "With the further reform on medical and sanitary system and increase in medical allowance, we expect to strengthen our product research and development as well as market network expansion to further enhance our brand recognition and competitiveness with an aim to building up "Luoxin" to a globally outstanding pharmaceutical brand in order to generate satisfactory returns to our shareholders."

About Shandong Luoxin Pharmacy Stock Co., Ltd.

Luoxin Pharma has been listed on the GEM of the Stock Exchange of Hong Kong Limited since 9 December 2005. The Company was recognized as one of the "Top Ten Pharmaceutical Enterprises with Growth Potential" and named as one of the "Top 100 Pharmaceutical Companies in China" since 2006. It was also selected on the "List of Small and Medium-sized Enterprises in China with Most Potentials" by Forbes for three consecutive years. The Company is principally engaged in the development, manufacturing and sale of different types of prescription and OTC (over-the-counter) medicines in 4 major categories: (1) antibiotics, including Cephalosporines antibiotics, Quinolones antibiotics and Macrolides antibiotics; (2) anti-viral medicines; (3) system-specific medicines, including digestive system medicines, cardiovascular system medicines and respiratory system medicines; (4) other chemical medicines, including Antineoplastic medicines. The Company's production facilities are located in the High and New Technology Experimental Zone, Linyi, Shandong Province, the PRC, and has obtained all required production permits as well as GMP certification. Its sales and marketing networks cover 27 provinces and 4 municipalities in the PRC.

    For further information, please contact:

     Ms. Kelly Fung
     Tel:   +852 3150 6763
     Email: [email protected]

     Ms. Fiona Ko
     Tel:   +852 3150 6750
     Email: [email protected]

     Ms. Samantha Yeung
     Tel:   +852 3150 6735
     Email: [email protected]

     Fax:   +852 3150 6728

SOURCE Shandong Luoxin Pharmacy Stock Co., Ltd