August 26 -- Guangxi Wuzhou Zhongheng Group (600252.SH) posted 158.9-percent year-on-year growth in net profit from the first half of 2011 to 350 million yuan, reports yicai.com, citing a company filing. Revenue increased 98 percent year-on-year to 750 million yuan during the reporting period, and its gross margin rose 2.97 percent point year-on-year. The company attributed the growth in net profit to increasing sales volume of Xueshuantong injection.

Zhongheng Group said it was influenced by inflation. The company was affected by rising prices of raw materials labor and financing during the first half of 2011.

Zhongheng Group partnered with Shandong Buchang Medicine for its medicine sales from the beginning of 2011. Buchang Medicine contributed sales revenue of 54.1 million yuan by the end June, but the sales were booked in Zhongheng Group’s account receivable.

Shares of Zhongheng Group have been suspended since August 23, as Zhongheng Group was negotiating with Buchang Medicine. Shares of the company may be traded again after five trading days.

Source:capitalvue