News blog

Taihua

• BY: Andrew Hore |
• POSTED: 14/06/2013 |

A change in focus led to lower 2012 revenues for Chinese traditional medicines supplier Taihua.

The revenues from active pharma ingredients slumped due to lower selling prices and were the main reason behind the fall in group revenues from RMB60.7m to RMB39.2m. Revenues from medicines and forsythia production, which was slightly lower, both declined. Pre-tax profit dipped from RMB3.3m to RMB12.5m.

The second forsythia harvest fell from 986t to 940t but the selling price is holding steady. A second, slightly larger plantation was acquired at the end of 2012.

Medicines revenues were lower due to a 25% dip in volumes and lower prices. Sales should grow as additional distributors are signed up and new products launched.

Cash balances declined from RMB63 to RMB39m due to the acquisition of a second forsythia plantation.

At 4p a share, Taihua is valued at £3.27m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2013_45.pdf