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FY2008 was a year of challenges and strategically important developments for Luye Pharma Group Ltd. as we continued to build on our successful business strategies and seek to further enhance our position as a leading specialty drugs manufacturer within the PRC pharmaceutical industry.
FY2008 was a year of challenges and strategically important developments for Luye Pharma Group Ltd. (formerly known as Asiapharm Group Ltd.) as we continued to build on our successful business strategies and seek to further enhance our position as a leading specialty drugs manufacturer within the PRC pharmaceutical industry.
Following our successful acquisitions in F Y 2007, we continued our efforts to amalgamate the acquired assets with our existing operations. Reflecting the success of our efforts, Group revenue rose 27.9% to R M B 651.0 million in F Y 2008 from R M B 509.0 million in F Y 2007, bolstered by sales of its proprietary pharmaceutical products such as Lipusu, Nuosen, Lutingnuo, C M Na and maiden contributions from recently acquired product H ypocol ? .
In line with the continued revenue growth, selling and distribution expenses grew by 47.6% to R M B 364.3 million mainly attributable to the recruitment of a larger sales force and traveling and meeting expenses. Other expenses increased by 55.0% to R M B 45.6 million due mainly to an increase in R&Dexpenses as the Group continued to increase its focus on its own product development and a fair value adjustment of an available-for-sale investment of RMB 4.3 million as a result of a decrease in the value of our investments. D espite higher expenses and an increase in taxation due mainly to a deferred tax of RMB 8.4 million for withholding tax on retained profits of the PRC subsidiaries, the Group¡¯s F Y 2008 net profit attributable to equity holders of the parent grew 6.8% to R M B 62.1 million from R M B 58.1 million in FY2007.
Our financial position remains strong.As at 31 D ecember 2008, our cash and cash equivalent balance stood at RMB 118.5 million.
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