Henan Lingrui Pharmaceutical Co., Ltd.

  (Public, SHA:600285)

Company’s Fact

Henan Lingrui Pharmaceutical Co., Ltd (Lingrui) is a listed company in China engaged in production and distribution of drugs. During the year ended December 31, 2007, the Company achieved around 65% and 23% of its total revenue from the plaster business and the injection business respectively. Its major markets are Henan Province, Chongqing and Sichuan Province. As of December 31, 2007, the Company had five major subsidiaries.

Lingrui’s predecessor was a limited company established in June 1992, then wholly changed into an incorporated company in June 1999. On September 1, 2000, Lingrui issued the equity capital of 40 million Stock A on Shanghai Stock Exchange, quoted securities and listed stock on October 18.

Lingrui is natural, health-conscious, up-to-date and innovative. Since its establishment, Lingrui has always adhered to the development principle of “Excellent quality brings success; New products, new developments”. With its scientific and technological progress, new products innovation, strengthened internal management, vigorous market promotion, excellent quality and strong developing trend, Lingrui has been rapidly vaulted into the rank of the 50 strongest enterprises of Chinese traditional medicine 　industry in China, appraised as “New and High-tech Enterprise of Henan Province”, “Advanced Collective of Nation-wide Chinese Traditional Medicine System”, “Excellent Medicine Enterprise in China”, “Advanced Unit of Construction of Spiritual Civilization in China”, “Advanced Skeleton Party Organization in China”, and “Key New & High-tech Enterprise of National Torch Plan”.

Today, Lingrui has nearly 100 categories of 6 forms of prepared drugs products, namely plaster, tablet, capsule, granule, liniment and oral liquid, in which the collateral channels invigorating and pain expelling plaster have been appraised as famous brand product of Henan Province, adhibition anima for hyperosteogeny, ginseng and astragalus adiabetin capsule and bechisan capsule have been appraised as new and high-tech products of 　Henan Province. Stomachache relieving tablet, bluestone infusion and compound bistort tablet as varieties of Chinese traditional medicine under state-level protection.

There are nearly 1,000 employees working for Lingrui. Its leading products have high popularity in Chinese market, with its good reputation and advantageous sales proportion in the domestic market, “Lingrui” has been determined by State Industrial & Commercial Administration as “China famous trademark”.

Financial Overview

6.68
+0.09 (1.37%)
Jul 10 - Close    

Open:  6.54      Mkt Cap:  1.34B      P/E:  19.27      Dividend:      -    

High:  6.88      52Wk High:  19.17      F P/E:      -      Yield:      -    

Low:  6.30     52Wk Low:  5.20     Beta:      -      Shares:  200.72M    

Vol:  8.24M      Avg Vol:      -      EPS:  0.35      Inst. Own:      -

Key Stats & Ratios

Date                Open High   Low     Close Volume

8-Jul-08         6.27    6.45    6.09    6.27    4,361,879

7-Jul-08         5.81    6.25    5.77    6.24    4,428,194

4-Jul-08         5.80    5.97    5.67    5.74    2,098,285

3-Jul-08         5.45    5.85    5.37    5.83    2,622,196

2-Jul-08         5.37    5.65    5.37    5.51    1,359,253

1-Jul-08         5.67    5.68    5.25    5.50    1,288,612

30-Jun-08      5.50    5.69    5.46    5.63    1,354,825

27-Jun-08      5.89    5.98    5.51    5.58    2,701,116

26-Jun-08      6.00    6.29    6.00    6.12    3,900,362

25-Jun-08      5.60    6.00    5.55    5.99    3,261,676

24-Jun-08      5.46    5.63    5.35    5.60    2,834,945

23-Jun-08      5.50    5.75    5.27    5.43    1,386,411

20-Jun-08      5.51    5.80    5.20    5.63    2,722,863

19-Jun-08      6.11    6.19    5.50    5.50    2,831,022

18-Jun-08      5.70    6.20    5.29    6.11    3,597,418

17-Jun-08      6.25    6.35    5.60    5.70    2,105,145

16-Jun-08      6.45    6.59    6.00    6.17    2,138,001

13-Jun-08      7.12    7.28    6.40    6.43    2,434,409

12-Jun-08      7.02    7.24    6.83    7.08    2,370,640

11-Jun-08      7.49    7.49    6.90    7.02    2,608,837

10-Jun-08      8.00    8.00    7.58    7.58    1,971,400

6-Jun-08        8.71    8.75    8.36    8.42    1,823,001

5-Jun-08        8.56    8.80    8.55    8.70    1,345,300

4-Jun-08        9.03    9.10    8.61    8.69    2,580,544

3-Jun-08        9.40    9.40    9.00    9.14    4,983,672

Henan Lingrui Pharmaceutical Co., Ltd. released audited financial results for 2007 on April 24 in the company's annual report. Based on the report, Lingrui has achieved revenue RMB 520.33 million in 2007, up 32.37% year-over-year; its net income rose 294.63% to RMB 23.77 million, and EPS was RMB 0.346, growth of 440.63% compared with the same period of 2006.

Every year, Henan Lingrui Pharmaceutical Co. Ltd. has been able to grow revenues from 393.0 million yuan to 520.3 million yuan. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 39.71% to 37.64%. This was a driver that led to a bottom line growth from 12.9 million yuan to 69.5 million yuan.

In the period ending March 31, 2008, Lingrui’s total revenue has reached RMB 71.1 million, net income after tax RMB 1.2 million, and reported total operating expenses of RMB 79.8 million. It has also reported its total assets of RMB 980.9 million, total current liabilities of RMB 424.4, total equity of RMB 556.5 and total common share outstanding of RMB 200.72 million.

Lingrui is a high-tech enterprise who focuses on National Torch Plan, all product formulations and production workshops are certified through the National GMP. In its core business performance, ointment products have contributed the most, and Lingrui strives to become the number one brand in China medical plaster industry in 2010. In recent years the pharmaceutical industry is extremely competitive, however the company's main business has maintained more than 20 per cent growth and the total profit has increased steadily. At the same time, Lingrui Xinyang Science Park has developed a domestic first-class and large medication base, this will become Linrui Group’s new profit growth in the future.

In accordance with the "Framework of Health Development 115”, to 2010, the new agricultural and medical community’s total market size will reach 90 billion to 3400 billion. From the given information, in 2008 financial year, over 190 billion yuan is invested in the medical reformation. This medical reformation in pharmaceutical market will be leading a huge development and all of the Chinese medicine industry will be benefited. Particularly Lingrui which has various products that have enter the health insurance directory, in with three of them are solely manufactured by Lingrui.