HONG KONG, Sept. 19 /Xinhua-PRNewswire/ -- Shanghai Century (Amex: SHA), a special purpose acquisition company, today announced that Sichuan Kelun Pharmaceutical Co., Ltd (Kelun), China's largest producer of intravenous (IV) solution products, has provided Shanghai Century with unaudited financial highlights with respect to the consolidated results of operations of Kelun and its subsidiaries and variable interest entity (Kelun Group) for the first half of 2007.
As previously announced on May 29, 2007, Shanghai Century entered into a definitive agreement to acquire Kelun, China's largest producer of intravenous (IV) solution products, and on August 16, 2007, filed a preliminary proxy statement with the U.S. Securities and Exchange Commission seeking approval from its shareholders.
In preparing Kelun Group's consolidated results of operations for the six months ended June 30, 2006 and 2007, the results of the 11 new operating subsidiaries and a new variable interest entity acquired by Kelun in March/April 2007 pursuant to its corporate restructuring were not included in the 2006 first half results but were included in the 2007 first half results from their respective dates of acquisition.
Kelun achieved sales of approximately RMB 691 million (US$90.8 million) in the first half of 2007, up approximately 63% from RMB 425 million (US$55.8 million) in the first half of 2006. According to Kelun, the 2007 increase in sales was attributed to (1) an increase in sales volume following the completion of the acquisition of the above mentioned operating entities in March/April 2007, which accounted for approximately 39% of the increase, (2) an increase in sales volume with respect to Kelun and its other operating entities and (3) a change in product mix towards higher priced and higher margin products. Gross margin recorded in the first half of 2007 was approximately 20%.
Net income after tax and minority interests for the first half of 2007
|SOURCE Shanghai Century Acquisition Corporation|
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