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Kangmei Pharmaceutical expects 2009 profit to rise 60%

(Xinhua)
Updated: 2010-01-27 14:52

Kangmei Pharmaceutical Co Ltd (Kangmei), a major Chinese medicine maker listed on the Shanghai Stock Exchange, Wednesday forecast its 2009 profits would jump more than 60 percent from the previous year.

In a statement filed to the Shanghai Stock Exchange, Kangmei said the profit rise was attributable to increased sales of traditional Chinese medicines and related materials.

In 2008, its return per share was 0.385 yuan and net profit stood at 295 million yuan ($43.2 million).

Kangmei, based in South China's Guangdong province, is yet to announce its final annual report of 2009.

On Wednesday, Kangmei's share price opened at 10.3 yuan, up 0.3 percent from the closing price on Tuesday. It dipped after the opening, but closed at 10.3 yuan per share at the end of the morning trading session.

With its market value exceeding 17 billion yuan, Kangmei is one of top 10 listed Chinese medicine makers.

Kangmei expanded rapidly last year. The company said its operating revenue rose almost 34 percent to 1.74 billion yuan in the first three quarters.

In July last year, it was chosen as the exclusive supplier of processed traditional Chinese medicine materials to a Beijing-based hospital, the China Academy of Chinese Medical Sciences' Guang'anmen Hospital.

In December 2009, Kangmei acquired two Shanghai-based food companies, Shanghai Meifeng Food Co Ltd and Shanghai Jinxiang Food Co Ltd, for a total of 40 million yuan. Kangmei said the acquisitions were in line with the homology of medicine and food, a traditional Chinese medical culture.