Lianhe Chemical Net Profit up 30%     

Lianhe Chemical Technology Co., Ltd. (SZ: 002250), which is engaged in the development, manufacture and sales of fine chemical products and other customized products, increased sales by 9.93% to RMB1.08 billion,.
    Net profit rose 28.30% to RMB74.7 million, or RMB0.66 per share, according to its annual results released on March 19th.
   The sales increase was mainly due to growing business and sales, as well as extensive market network and good relation with clients. The company's industrial business gained 33.53% from a year earlier. But business in trading declined 25.33% as the company stepped away from the sector to avoid the downward risk of petrochemical raw material prices.
   In its industrial business sector, domestic market sales rose 18.93% while international sales boosted 37.67%. Also among this sector, sales for pharmaceutical intermediates fell 17.40% to RMB119.15 million, pesticide intermediates jumped 68.87% to RMB620.67 million, and dye intermediates tumbled 83.02% to RMB8.3 million. Gross profit margin was 23.52%, 35.80% and 13.70% respectively for the three businesses.
   The growth in net profit is mainly driven by the industrial business sector and increased government subsidies. Meanwhile, the company is subject to a 15% income tax for three years since 2008, a preferential levy granted to the high-tech companies.
   Lianhe Chemical is based in Taizhou, Zhejiang province.