FUDANZHANGJIANG<08231> - Results Announcement (Q2, 2005, Summary)
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. announced on 10/08/2005:
(stock code: 08231 )
Year end date :31/12/2005
Currency :RMB
Auditors' report :N/A
2nd Quarterly Report Reviewed by :Audit Committee
Important Note :
This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com
(unaudited) (unaudited)
Current Last Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 30/06/2005 to 30/06/2004
RMB'000 RMB'000
Turnover : 6,460 6,915
Profit/(Loss) from Operations : (10,773) (8,615)
Finance cost : 0 0
Share of Profit/(Loss) of Associates : (798) (1,082)
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : (9,779) (8,139)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : (RMB 0.0138) (RMB 0.0115)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : 0 0
Profit (Loss) after ETD Items : (9,779) (8,139)
2nd Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd Quarter Dividends : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)
For and on behalf of
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd.
Signature :
Name : Wang Rui
Title : Company Secretary
Responsibility statement
The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading.The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard to
the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.
Remarks:
1. Basis of preparation
The unaudited consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS"),
including International Accounting Standards and Interpretations issued
by the International Accounting Standards Board. They have been
prepared under the historical cost convention except that the
available-for-sale investments are adjusted to fair value.
The results are unaudited and have been reviewed by the Audit Committee.
2. Financial review
For the six months ended 30 June 2005, the Group recorded a turnover
of approximately RMB6,460,000, the comparative figure for 2004
being RMB6,915,000.
Of the total turnover of the Group for the first half year of 2005,
RMB5,246,000 (or 81% of total turnover) was derived from the sale
of medical diagnostic products and the provision of relevant
auxiliary services, and RMB1,214,000 (or 19% of total turnover)
came from the income of technology transfer and technical service.
In contrast, of the total turnover of the same period last year,
RMB4,215,000 (or 61% of total turnover) was obtained from the sale
of diagnostic products, and RMB2,700,000 (or 39% of total turnover)
came from the income of technology transfer.
The Group's total turnover for the first half of 2005 has dropped
by 7% from the level of the same period last year. Out of this,
the sale of diagnostic products has witnessed an increase of 24%
from that of last year. This is mainly because that the new product
of the Group, Down's Syndrome Antenatal Screening System, has
obtained a certain degree of market recognition, and has realized
some sales revenues. Meanwhile, the income of technology transfer
and technical service has reduced by 55% comparatively. The only
income recognized from technology transfer for the period under
review was generated by the technology of Mycophenolate Mofetil,
which was transferred from a subsidiary of the Group,
Shanghai Morgan-Tan International Center for Life Sciences, Co.,
Ltd. ("Morgan-Tan"), to a pharmaceutical company based in Shandong.
In addition, RMB14,000 was the earning of the Group for external
technical service provision.
For the six months ended 30 June 2005, cost of sales of the Group
was approximately RMB5,689,000, whereas the comparative figure for
the same period in 2004 was RMB4,946,000. The rising cost of sales
was largely attributable to the extra spending on product quality
control, which aimed at a strict application of the GMP standard,
so as to establish a better market image for the new product to
compete for some bigger market shares in the future.
Within the period under review, operating loss of the Group was
approximately RMB10,773,000, compared to RMB8,615,000 for that of
last year. The major reasons for the increased loss are, in addition
to the increased cost of sales as mentioned above, distribution
costs have also increased by 136% from that of last year. The newly
adopted aggressive marketing strategy calls for more resources to
be devoted to market expansion and sustaining of sales teams, which
resulted in an increase in distribution costs. On the other hand,
due to some efficient controls on administrative expenses and other
operating expenses, expenditure on these two items has reduced by
24% and 66% respectively.
The Group recorded a loss attributable to shareholders of
approximately RMB9,779,000 for the six months ended 30 June 2005,
whereas the loss attributable to shareholders for the same period
last year was RMB8,139,000.
3. Loss per share
The calculation of the loss per share for the three months ended 30
June 2005 and 30 June 2004 were based on the unaudited loss of
approximately RMB4,829,000 (three months ended 30 June 2004: loss
attributable to shareholders of approximately RMB4,040,000) and total
shares in issue of 710,000,000 shares (three months ended 30 June 2004:
710,000,000 shares) during the three months ended 30 June 2005.
The calculation of the loss per share for the six months ended 30 June
2005 and 30 June 2004 were based on the unaudited loss of approximately
RMB9,779,000 (six months ended 30 June 2004: loss attributable to
shareholders of approximately RMB8,139,000) and total shares in issue
of 710,000,000 shares (six months ended 30 June 2004: 710,000,000
shares) during the six months ended 30 June 2004.
Diluted loss per share have not been calculated for the three months
and six months ended 30 June 2005 and 2004 respectively as there were
no dilutive potential ordinary shares during those periods.
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