Profits slump at Taihua

30th Sep 2009 13:33

Chinese bio-pharmaceutical outfit Taihua saw a sharp deterioration in sales and pre-tax profits in the first half of 2009 which it blamed on a tightening of its credit policy, decreases in the sales volume and market prices of its key active pharmaceutical ingredients - Paclitaxel and Homoharringtonine - and foreign exchange rate fluctuations. The company reports its results in Chinese Renminbi (RMB).Sales fell to RMB 8.1m from RMB29.8m in the first half of 2008, while pre-tax profits slumped to RMB 0.52m from RMB 14.65m.'I can, however, report that in response to these continuing challenges, the board has already moved to relax our credit policy once more, and to lower our selling prices to customers in line with the market. These moves have already shown early benefits by arresting the decline in sales volumes, and since the end of June sales of Paclitaxel and Homoharringtonine APIs have both improved,' said Taihua's chairman, Nicholas Lyth.