CCM: Kingdomway: large rise in Q1 2016 revenue 08-25-2016

On 28 April, 2016, Xiamen Kingdomway Group Co., Ltd. (Kingdomway, stock code: 002626) released its financial figures in Q1 2016.



Source: Baidu


  • Revenue: USD58.77 million (RMB379.48 million), largely up 49.74% YoY
  • Net profit: USD7.44 million (RMB48.03 million), up 15.65% YoY (the figure deducting gains/losses from extraordinary items: USD7.43 million – RMB47.99 million, up 18.09% YoY)


Earnings per share: RMB0.08, vs. RMB0.07 in Q1 2015 (exchange rate: USD1.00=RMB6.4565 on 3 May, 2016, sourced from the People's Bank of China)


These rises were mainly thanks to:


1. Increases in sales prices of the company's vitamins, like vitamin E and vitamin D3, pulled up the sales by USD4.80 million (RMB31 million).


2. Vitatech Nutritional Sciences, Inc. (Vitatech), a subsidiary newly added to the consolidated financial statement, contributed USD17.97 million (RMB116 million) to the total revenue.




Besides, the company's financial report also showed that:


  • Cost of sales: largely up 58.54% YoY, mainly due to the rise in total sales
  • Net cash inflow from operating activities: +USD6.87 million (+RMB44.33 million), vs. -USD1.41 million (-RMB9.14 million), mainly thanks to the strengthened management on remittance
  • Tax returned: up 77.95% YoY, due to the increase in refunds from export tax rebate

 
Kingdomway is vigorously developing pharmaceutical business and expanding sales channels in domestic and overseas markets.


Domestic


In July 2015, the company acquired 8% of shares in Hangzhou Netops Technology Co., Ltd. (Netops Technology) to facilitate its strategic business upgrading and transformation, taking advantage of Netops Technology's e-commerce and Internet marketing strengths.


Overseas


In Sept. 2015, Kingdomway purchased the main operating assets in Vitatech (a healthcare product maker in the US), including Vitatech's advanced production technology, production capacity as well as the brand and client resources in the healthcare industry. Moreover, the company also gives full play to Vitatech's good location to achieve synergy effects.
In Feb. 2016, it acquired two Singaporean healthcare product sellers, Vitakids Pte. Ltd. and Pink of Health Pte. Ltd., to expand the South Asian market.

 

This article comes from Vitamins China E-News 1605, CCM

 



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Tag: vitamins

 

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