China's Sanjiu Posts Soaring Net Profit in 2009

Sanjiu Medical & Pharmaceutical Co., Ltd.(Sanjiu), China's leading manufacturer of traditional Chinese medicines on stomach diseases and cold, said Tuesday its net profit in 2009 surged 41.86 percent year-on-year.

In an unaudited financial statement to the Shenzhen Stock Exchange, the Shenzhen-based company said its net profit for 2009 hit 709 million yuan (104 million U.S. dollars). The earnings per share would stand at 0.72 yuan, up 41.18 percent year-on-year.

The company attributed the profit to the soaring revenue made by its medicine-manufacturing business and a preferential income tax rate, which is 15 percent and is enjoyed by the company as a high and new-tech enterprise.

The company said it would announce specific figures in the annual business report later.

Shares of Sanjiu opened lower at 23.03 yuan Tuesday compared with 23.25 yuan at the previous closing despite the profit figures.