September 5 -- Northeast Pharmaceutical Group (000597.SZ) lowered the price of its private placement by more than 20 percent as its share price had fallen by about 20 percent in the past two months, reports National Business Daily.

According to a previous filing, the company would issue up to 150 million shares at 14.45 yuan per share in order to raise a maximum of 2.43 billion yuan.

The total amount of shares to be issued and funds to be raised remain unchanged. Funds to be raised will be used to build the company's Xihe pharmaceutical ingredients production base.

The company said in August that first half 2011 net profit tumbled 97 percent year-on-year to 4.07 million yuan on revenue of 2.6 billion yuan.

It attributed the decline to fierce competition in the Vitamin C market which resulted in the lower selling prices of its products, and rising raw material costs.

Upon the release of its disappointing earnings results, the company's share price continued to fall. During the period between mid July till early September, the stock had fallen from 17 yuan to about 12 yuan per share.

Separately, Shanghai Diesel Engine (600841) lowered the issue price of its private placement from 14.8 yuan to 13.45 yuan per share, while increasing the share issuance volume from 70 million shares to 75 million shares.

Source:capitalvue