Taihua says tough conditions continue

24th Jul 2009 09:12

Chinese bio-pharmaceutical outfit Taihua said sales revenue and profit before tax in Renminbi for the first six months of 2009 continued to fall significantly below the board's expectations.The group said difficulties in 2008 continued into 2009 with foreign exchange rate fluctuations and further decreases in the sales volume and the price of Paclitaxel and Homoharringtonine continuing to put pressure on results. As highlighted before, some of its customers continue to ask it to vary the terms and conditions (through extension) of their credit period. "In addition, as an incentive to continue to maintain cash flow, Taihua offered discounts for cash-on-delivery payment terms which proved helpful with some customers. These combined factors continued to have an adverse impact on the Company's sales and profitability," added the group.