|Baby formula maker Biostime takes hit from price fixing fine, reports 297m yuan income
Hong Kong-listed infant formular maker Biostime International Holdings (1112), which was fined 162.9 million yuan this month for price fixing by its wholly-owned subsidiary Biostime Guangzhou, reported profits of 297.5 million yuan, up by 8.6 percent for the first half this year.
The company makes infant nutritional products and baby care products. Baby formula accounted for 1.68 billion yuan in revenue up by 53.7 percent in the first half. Baby formula makes up more than 81 percent of Biostime's revenues, Chairman Luo Fei said.
Baby care products, under the BMcare brand, accounted for 63.4 million yuan in revenue for the six months ended June 30, up by 93.7 percent on year.
On August 6, Biostime was fined by the National Development and Reform Commission, following an investigation. The commission said Biostime Guangzhou violated China's Anti-Monopoly Law by providing fixed prices for products in agreements with distributors.
Excluding the fine, Biostime said core profit was 460.4 million yuan, up by 68.1 percent on year.
Revenue grew 51.3 percent to 2.06 billion yuan.
Basic earnings per share were 0.50 fen, representing an increase of 8.7 percent, the company said today.
An interim dividend of 25 HK cents per share was announced, along with a special dividend of 19 HK cents per share. --The Standard