Highlights
Group
Revenue grew by 39.2% to USD74.7 million (2013 H1: USD53.7 million)
Gross profit increased by 30.9% to USD35.9 million (2013 H1: USD27.4 million)
Operating profit increased by 170.9% to USD9.5 million (2013 H1: USD3.5 million)
Net profit before non-controlling interests increased to USD3.7 million (2013 H1: USD0.03 million)
Net profit attributable to owners of the parent was USD0.2 million, a turnaround from last period (2013 H1: loss of USD3.1 million)
Lansen
Revenue increased by 19.3% to USD55.4 million (2013 H1: USD46.4 million)
12.1% growth in sales of core rheumatic products (Pafulin, Tuoshu, and MMF)
Gross profit increased by 15% to USD30.4 million (2013 H1: USD26.4 million)
Gross margin decreased to 54.9% (2013 H1: 56.9%)
Operating profit increased by 18.3% to USD10.2 million (2013 H1: USD8.6 million)
Net profit increased by 13.9% to USD7.6 million (2013 H1: USD6.7 million)
Acquired Sicorten PlusTM from Novartis and obtained distribution rights for Kefumei from Xian Juzi Biology Gene Technology Company Limited. Combined products contributed profits of USD0.5 million
Haizi
Revenue of USD10.7 million (2013 H1: nil)
Gross profit USD4.2 million (2013 H1: nil)
Overall gross margin was 39.3% (2013 H1: nil)
Operating profit USD1.9 million (2013 H1: loss of USD0.5 million)
Net profit USD1.0 million (2013 H1: loss of USD0.6 million)
Inositol production reached an average of 122 tonnes per month in the second quarter, from 100 tonnes per month at end of 2013
Yangling
Revenue increased by 382.3% to USD3.3 million (2013 H1: USD0.7 million)
Gross profit of USD0.3 million (2013 H1: gross loss of USD0.02 million)
Gross margin 8.4% (2013 H1: negative 3.2%)
Operating loss reduced to USD1.1 million (2013 H1: USD1.7 million)
Botai
Operating loss decreased to USD0.5 million (2013 H1: USD0.6 million)
Expansion and modification of collagen production facilities will commence in H2 2014
Hotel
Revenue increased by 3.5% to USD6.8 million (2013 H1: USD6.6 million)
Occupancy rate increased to 65.2% (2013 H1: 53.7%)
Average room rate decreased to USD133 (2013 H1: USD148)
Gross margin dropped to 14.7% (2013 H1: 15.3%)
Food and beverage sales dropped to USD1.9 million (2013 H1: USD2.1million)
Operating profit was USD0.9 million (2013 H1: USD1.0 million)
Commenting on the interim results, Mr. Lee Jin-Yi, CEO of Cathay International Holdings Limited, said: "Despite the slower growth in China in the first half of the year, Cathay has achieved several important milestones during the period. Haizi has continued to increase its monthly production of inositol and we were very pleased to hit a record high of 130 tonnes in April 2014. Lansen has expanded its product pipeline with the addition of dermatology and skincare products. The management team has continued to work hard by streamlining and forming important synergies across different subsidiaries. Although we expect the next six months to be challenging due to pricing pressures in the region, we are confident that Cathay is well positioned to achieve further performance growth and deliver value to shareholders."
