Pharmaceutical Companies Performs well for 2008     

Chinese pharmaceutical enterprises will see good performances this year. In the first three quarters of 2008, they had a significant growth compared to the same period of 2007.
   In the first three quarters of 2008, Jilin Zixin Pharmaceutical Industrial Company (SZ: 002118) achieved an operating revenue of RMB149 million, a year-on-year increase of 59.91%. The company has made a net profit of RMB40 million, a year-on-year growth of 53.46%. Net profit was mainly attributable to a rapid increase in sales and the reduced income tax rate from 33% to 25%. The company focuses on the manufacture and sales of traditional Chinese medicines, chemical medicines and health-care products as well as pharmaceutical raw materials.
   Beijing Double-crane Pharmaceutical Company (SZ: 002038) engages in the research and development, production and sales of genetic medicines. In the first three quarters of this year, it achieved an operating revenue of RMB269 million, an increase of 63.40% over the same period of 2007. The company also recorded a net profit of RMB160 million, an increase of 72.44%. And in the third quarter, the company saw an operating revenue and a net profit of RMB110 million and RMB64 million respectively, a year-on-year growth of 61.07% and 58.52% respectively. The good records are mainly driven by a significant increase in sales and a revenue increase in technology licences.
   Zhejiang Medicine Company (SH: 600216) is a leading manufacturer of vitamins in China. The company expects to achieve a net profit of approximately RMB1 billion attributable to shareholders in 2008, compared to RMB56 million in 2007. The growth anticipation attributes to the sharp price rise of VE, VA, VH, the core products of the company, and the income tax rate reduced from 25% to 15% since 2008 for three years because the company acquired the high-new tech enterprise qualification in 2008.