6 Apr 2016 07:00
Taihua plc
("Taihua" or the "Company")
Trading Update
Taihua, the China-based pharmaceutical company specialising in the cultivation of Traditional Chinese Medicine ("TCM") raw materials, manufacture of TCM and certain Active Pharmaceutical Ingredients, would like to update its shareholders on its progress in 2015 before the release of its financial results for the financial year ended 31 December 2015.
Sales
Total Sales for 2015 were RMB 35.0m (2014: RMB 53.1m)
Forsythia
The combined harvest of the two plantations was 704 tonnes (2014: 1,145 tonnes). The reduction was primarily due to adverse weather conditions in the Winter and Spring periods. Given the reduced harvest the Company is working with Research Institutes to investigate ways that the harvest can be maximised in the future. This includes measures such as more frost-resistant strains
In 2015 the average selling price was RMB38.93/kg (2014: RMB37.77/kg) excluding sales tax. The Company did not see a further significant increase in the selling price of Forsythia as the adverse weather conditions were largely limited to the region that Taihua obtains its harvest from. Other areas were, in the main, unaffected by poor weather and, as such, their harvest was at a more normal level
As a result the overall revenue derived from Forsythia in 2015 was RMB27.4m (2014: RMB 43.27m). The entire harvest has been sold.
Bian Tong Pian
Bian Tong Pian sales in 2015 were 193,000 boxes (2014:191,600) at an average selling price of RMB11.15 (2014: RMB13.30) per box. This generated revenues of RMB2.152m (2014:RMB2.548m).
Other Traditional Chinese Medicines
Sales of other Traditional Chinese Medicines were RMB2.440m (2014:RMB2.314m)
Active Pharmaceutical Ingredients (APIs)
Sales of Paclitaxel in 2015 were RMB2.411m (2014:RMB2.870m) being 6,150g (2014:7,300g) at an average price of RMB392.03/g (2014:RMB393.16/g).
Sales of Homoharringtonine in 2015 were RMB0.556m (2014:RMB1.362m) being 400g (2014:960g) at an average price of RMB1,388.9/g (2014:RMB1418.8/g).
Outlook
The Company spent much of 2015 concentrating on the re-application for Chinese GMP certification. As previously announced, this has been achieved. This, combined with the renewal of the Company's Drug Production Permit means that there are no regulatory barriers to the expansion of the Company's TCM (including Bian Tong Pian) and Homoharringtonine sales.
The Company intends to spend much of 2016 in leveraging the re-certification, paying particular attention to recovering market share in Homoharringtonine and in expanding its distribution of Bain Tong Pian. The sales of both of these products have been severely constrained by the unstable GMP environment which has now come to an end.
Enquiries:
Nicholas Lyth, Taihua plc 07769 906 686
Katy Mitchell, WH Ireland Limited +44 161 832 2174