Net profit of Hainan Honz Pharmaceutical to fall 40-60% in Q1 of 2011
Hainan Honz Pharmaceutical (300086) predicts its first half net profit will have fallen 40-60 percent year-on-year, reports China Business News, citing a company filing.
The forecast follows the State Food and Drug Administration’s (SFDA) announcement that the company’s main product “Ruizhiqing” is prohibited for children under 12 years of age. The product was originally developed as a children’s antipyretic, and it has contributed 70.65 percent of the company’s 2010 sales revenue. Last year, 75 percent of Ruizhiqing users were children under 12 years old.
Honz Pharmaceutical’s previous 2011 sales target for Ruizhiqing was 176.16 million yuan. However, in the first four months it has earned 28.76 million yuan from sales. The company now expects to earn 55.07 million yuan from the product after the SFDA’s announcement.
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