Tianjin Zhong Xin Pharm

Tianjin Zhong Xin Pharm: 3Q13 net profit fell 6% to Rmb47.6m despite a 10% improvement in revenue to Rmb1,396.2m, mainly due to a 20% drop in contributions from associate Sino-American Tianjin Smithkline & French Lab, as well as the disposal of subsidiary Tianjin Central which the group recognized in 3Q12. Going forward, the company expects to face challenges from the increase in costs of raw materials, energy and human resources, price controls of pharmaceutical products by the govt and relatively high financial costs.