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Tianjin ZhongXin Pharmaceutical net profit edges up on disposal gains

CHINESE medicine producer Tianjin ZhongXin Pharmaceutical Group on Monday said its second quarter net profit edged up from a year ago despite a dip in revenue, due to gains from a disposal.

For the three months ended June 30, net profit was up one per cent year on year to 142.1 million yuan (S$29 million), lifted by a gain on disposal of equity interest of Tianjin Sinobioway Biomedicine Co, Ltd.

Other gains in Q2 was more than double that of the year-ago period at 48.8 million yuan.

Revenue for the quarter came in seven per cent lower at 1.5 billion yuan, while cost of sales was correspondingly 13 per cent lower at 996 million yuan.

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Earnings per share for the quarter was 0.18 yuan and net asset value was 5.59 yuan as at end June.

In the first half, net profit grew seven per cent to 275.9 million yuan, while revenue fell nine per cent to almost 3 billion yuan.

The company said in light of the challenging economic conditions in recent years and taking into account the competitive environment and continuing reforms in the pharmaceutical industry, it is strengthening operations by beefing up marketing plans so as to increase the amount of industrial sales, focusing on research and development activities and to tighten its internal controls and management.