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Investment returns came to RMB 268.39 million ($37.80 million) over 2007, a leap of 173.33 percent compared to the previous year, thanks to the bullish stock market.
According to Jinling Pharma's 2007 financial report, the company generated sales revenues of RMB 1.55 billion ($218.03 million), or a 12 percent increase year-on-year.
Mailuoning Injection, a treatment for thromboangiitis obliterans and cardiovascular diseases, and also the company's flagship product, generated a large proportion of the company's revenues last year. Sales of the product reached RMB 443.78 million ($62.50 million), accounting for around 30 percent of the total sales revenues.
Jinling Pharma's earnings per share for 2007 rose to RMB 0.61 ($0.09) from RMB 0.42 ($0.06) in 2006.
In response to criticisms that relying heavily on sales of a single product and on investment returns to drive growth is not a stable development strategy, the company said that it will place greater focus on research and development this year.
The company's antiviral TCM, Qingyin Injection, is undergoing phase three clinical trials and is expected to attain State Food and Drug Administration approval in the near future.
The Changchun Institute of Applied Chemical Research under the Chinese Academy of Sciences has completed its four-year processing research project on four Chinese herbs, which has led it to apply for two patents, the CAS announced.
The institute researched preparations that contain four herbs, namely ginseng, licorice root, radix astragali and icariin.
It is known the quality and pharmaceutical properties of the herbs can vary from region to region in China, but the most potent and prized strains of each are found in the northeastern Chinese province of Jilin. The research examined ways in which modern technology can ensure optimized and standardized quality when processing the herbs.
In addition to exploring the most efficient preparation methods for each of the plants, the research team created finished herbal preparation quality standards and standards for the formulation of preparations. 
The government-funded project has a number of potential applications, including aiding TCM modernization efforts, which is a long-term goal of the Chinese government.
Nasdaq-listed China Medical Technologies Inc., a leading Chinese maker of medical devices, announced Mar. 24 that it has been awarded CE Mark authentication for a number of its products, a mandatory conformity mark for products sold in the European Economic Area (EEA).
Among the products to be awarded the qualification are 15 reagents, including marker reagents for thyroid disorders, diabetes and tumors, as well as two semi-automatic ECLIA analyzers, which are closed in-vitro diagnostic systems that are used to detect various diseases and disorders, have been given the CE Mark.
The company said it is still working towards getting CE Mark approval for its other ECLIA reagents.
China Medical Technologies mainly develops, manufactures and markets IVD products and innovative products using high intensity focused ultrasound technology for the treatment of solid cancers and benign tumors.
The company listed on the Nasdaq Global Select Market in August 2005.
China has been listed by the World Health Organization as the top priority country for Multi-Drug Resistant Tuberculosis (MDR-TB) control, domestic media reported Mar. 21.
According to a Health News report, China was selected by the WHO as the country with the most serious MDR-TB issues among 24 countries other around the globe.
Current statistics from the China Center for Diseases Control and Prevention (China CDC) show that there are an estimated 140,000 people with MDR-TB in China, a number which accounts for 8.9 percent of all TB patients in the country, and between a quarter to a third of global MDR-TB patients. China CCDC is currently compiling more accurate statistics regarding MDR-TB in China.
Standard TB can usually be treated within six to eight months. MDR-TB patients, however, can face treatment courses which can last up to 18 months to 24 months, and for the ordinary Chinese citizen, this represents a much greater financial burden.
According to China CDC estimates, the treatment of MDR-TB in China costs Chinese citizens as much as RMB 6.4 billion ($906.52 million) in medical bills every year.
The WHO's global TB control report for 2008, released earlier last week, concluded that progress in worldwide tuberculosis control efforts slowed slightly in 2006, the most recent year for which data is available. Between 2001 and 2005, the average rate at which new TB cases were detected increased by 6 percent each year; but between 2005 and 2006 that rate of increase was cut in half, to 3 percent.
The report said India, China, Indonesia, South Africa and Nigeria are the top five countries with the largest numbers of people infected with TB, while South Africa has the highest incidence rate of TB in the world.
Family planning efforts in Shanghai over the last 60 years have helped keep the population of China's most populous city down by as many as 7 million people, the Shanghai government said last week.
Shanghai introduced its municipal family planning policy in the 1950s, making it one of the first cities in China to do so. "The policy has led Shanghai's current population to be down by 7 million [compared to estimated population growth if the policy had never been enacted], a difference roughly equal to the population of Hong Kong," the statement said.
By the end of 2007, 18.58 million people were living in Shanghai full-time. Of them, 13.79 held official Shanghai residence permits, and an estimated 6.6 million people were living in the city unofficially either full or part time. In order to stem the tide of people from China's poorer countryside flooding Chinese cities, official residence permits for migrant workers in big cities such as Shanghai are hard to come by, leading to large unofficial and semi-legal populations.
In 2007, the number of full-time residents, official or otherwise exhibited growth of 3.04 per 1,000 people, compared to the year before. However, growth in the number of official residents in the city declined by 0.1 percent per 1,000 over the same time period.
Of Shanghais' official residents at the end of 2007, 2.87 million were above 60 years in age, accounting for 20.8 percent of the total. The life expectancy for Shanghai residents born last year was 81.08 years, according to Shanghai Health Bureau figures released earlier this year, putting residents of the city on a par with some of the richest countries in the world for longevity.
In the statement, the Shanghai government said that this year it will step up management of the migratory population and improve the city's family planning system.
Sector: Biological
Contact Information
Contact Information
Sector Biological

Address No.31 Kexueyuan Road, Changping District, Beijing, PRC

Telephone [phone]

Facsimile 86-10 8970 5849

E-mail [e-mail]

Website http://www.ystwt.com
Source: company website
Core businesses
The core business of Beijing Wantai is to produce and market biological products including Enzyme-Linked ImmunoSorbent Assay (ELISA) diagnostic products, rapid tests, components and provision of ELISA troubleshooting services. The company also produces and markets recombinant antigens, and vaccines.
General information
Beijing Wantai was founded in 1991 as a private company, with investment by Yangshengtang Group, a domestic Chinese pharmaceutical, mineral water and health care products holdings company.
The company focuses on the research, development, production and commercialization of IVD, or In Vitro Diagnostic, products and vaccines.
In 2002, the company became the first IVD manufacturer in China to get its management systems and manufacturing facilities certified to GMP (Good Manufacturing Practice) standards by the State Food and Drug Administration.
The company ranked 62nd of Chinese biological products manufacturers by profits in 2006.
Key products & Services
Key products of the company include its ELISA diagnostic products, a range of rapid tests, recombinant antigens and vaccines as well as services such as medical device registration, market research, clinical evaluation, and contract manufacturing and/or research.
Diagnostics and vaccines remain the major areas of the company's R & D focus.
R & D highlights
The company's hepatitis E vaccine, which has been developed using world leading technology, has just entered phase three clinical trials, and is expected to be launched on the market in the next few years.
General information
Nanjing Pharmaceutical Co. Ltd. was established in 1994. It has a current registered capital of RMB 250.77 million ($35.42 million) and total assets of RMB 5.00 billion ($706.21 million).
The company is mainly engaged in the sales of drugs, medical devices, chemical reagents and glass equipment for medical uses. It has nearly 20 subsidiaries and a network of around 500 drug stores operating across the nation. The company is one of the more important drug distributors in eastern China. In addition, the company has a marketing network across the country and has more than ten multinational business partners.
On Jun. 7, 1996, Nanjing Pharmaceutical Co. Ltd. issued 20.76 million A-shares at a price of RMB 5.98 ($0.84) per share. It was listed on the Shanghai Stock Exchange on Jul. 1, 1996.
Registrar
Ticker A share: 600713

Sector Medicine

Address No. 486 East Zhongshan Road, Nanjing, Jiangsu Province, PRC

Telephone [phone]

Facsimile 86- 025-8455-2651

E-mail [e-mail]

Website www.njyy.com

Auditor Jiangsu Tianheng Certified Public Accountants Co., Ltd

Registrar Shanghai Security Central Clearing and Registration Corporation

Number of employees, by the end of 2007 404

Securities (common, preferred, ADR, GDR, Eurobond, etc.) Common

Source: Nanjing Pharmaceutical Co. Ltd. annual report 2007
Shareholder Structure
Top 10 shareholders
Shareholder Shares (%)

Nanjing Medicine Group 21.00

Communication Bank of China – Huaxia Lanchou Core Funds 4.72

Shanghai Tianfa Investment Co. Ltd. 3.82

Huaxia Growing Securities Investment Funds 2.28

Xingye Bank – Wanjia Hexie Funds 2.23

Industrial and Commercial Bank of China – Jiashi Celuo Funds 2.19

Construction Bank of China – Hua'an Hongli Funds 1.95

Nanjing Jidian Industrial Co. Ltd. 1.87

Taihua Real Estate Developing Co. Ltd. 1.84

Dacheng Funds 1.23

Source: Nanjing Pharmaceutical Co. Ltd. annual report 2007
By the end of December 2007, the number of shareholders totaled 26,134. Nanjing Medicine Group is the company's largest share holder with 52.66 million A-shares respectively, accounting for 21 percent of the total for each.
Core businesses
The company is mainly engaged in the sales of drugs, medical devices, chemical reagents and glass equipment.
Performance Round-up
In 2007, Nanjing Pharma reported business revenues of RMB 9.34 billion ($1.32 billion), up 36.24 percent on the previous year’s revenues. The company’s net profit grew 328.76 percent on an annual basis, from RMB 10.89 million ($1.54 million) in 2006 to RMB 46.68 million ($6.59 million) in 2007. In addition, earnings per share for 2007 came to RMB 0.186 ($0.0263), up 332.56 percent against the previous year’s profits.
The company attributed the growth in profits mainly to changes made to management, operations, marketing and its development strategy, as well as efficient control over costs throughout the year.
Key Operational Indicators for years 2006/ 2007
Indicator Dec. 31, 2006 Dec. 31, 2007 Y-o-y increase (%)

Business Revenue 6,859,871,049.30 9,344,858,351.49 36.24

Net profit 10,887,179.41 46,679,859.11 328.76

Earnings per share 0.186 0.043 332.56

Source: Nanjing Pharmaceutical Co. Ltd. annual report 2007
Corporate Governance
As per CSRC regulations, Nanjing Pharma has so far appointed three independent directors, accounting for over one third of its board, which consists of eight members.
The company runs a fully independent operation in terms of business, assets, personnel, structure and finance, and possesses its own production, supply and sales systems, as well as industrial property, land rights, trademark and patent technologies.
Risks
In 2007, the Chinese government introduced some financial adjustments, and will continue to tighten its adjustments in 2008, which will no doubt affect the pharmaceutical industry as a whole, as well as individual companies.
The price of pharmaceuticals will continue to be pushed down, which has lead to uncertainty in economic growth predictions. In addition, the reform of the medical system will have a direct impact on the development of the pharmaceutical industry, indicating big changes to come for the shape of the industry in future.
Recent developments
November 2007 – The company offered deals that would see the supply of bulk packages of low-cost drugs to retail outlets and hospitals directly from the manufacture. The packages on offer contain around 5000 cheap, commonly used generic drugs. The move is in line with government efforts to cut out middlemen in the pharmaceutical distribution chain in order to reduce medical costs for the average member of public
Consolidated Balance Sheet
Indicator Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007

Total Assets 3,328,738,935.25 3,687,227,737.43 4,999,293,400.40

Current Assets 2,574,420,332.80 2,953,370,399.09 4,118,821,530.47

Cash 535,341,171.45 688,433,068.18 1,002,040,919.03

Accounts Receivable 1,082,627,491.54 1,263,333,000.79 1,689,092,748.72

Other Accounts Receivable 84,883,269.49 85,959,728.39 119,700,733.12

Prepaid Accounts 182,850,101.12 183,263,668.05 268,667,904.40

Inventory 665,445,605.83 696,571,158.99 926,704,586.46

Total Fixed Assets 542,875,133.47 501,713,729.63 498,005,383.20

Long-term investment 87,433,678.50 86,602,423.75 52,271,367.65

Intangible Assets 122,991,568.20 144,485,303.65 223,334,021.50

Total Liabilities 2,681,803,388.51 3,043,259,473.19 4,298,366,597.18

Current Liabilities 2,671,521,510.73 2,925,929,611.94 4,180,394,791.64

Accounts Payable 1,124,939,012.54 1,247,920,100.59 1,719,541,487.40

Accounts Pre-received 10,281,877.78 117,329,861.25 104,243,382.26

Long-Term Liabilities 10,281,877.78 117,329,861.25 117,971,805.44

Shareholder's Equity 469,278,648.52 464,929,457.44 700,926,803.22

Share Capital 194,260,716.00 250,766,945 250,766,945

Retained Earnings 22,493,093.00 25,272,648.65 71,624,056.19

Source: Nanjing Pharmaceutical Co. Ltd. annual reports, 2006 and 2007
Key Balance Ratios
Ratio Dec. 31, 2005 (%) Dec. 31, 2006 (%) Dec. 31, 2007 (%)

Current ratio 96.37 100.94 98.53

Quick ratio 71.46 77.13 76.36

Cash ratio 20.04 23.53 23.97

Source: Calculated with information provided in Nanjing Pharmaceutical Co. Ltd. annual reports, 2006 and 2007
Consolidated Income Statement
Indicator Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007

Main Operating Revenues 6,229,685,356.00 6,827,703,592.32 9,344,858,351.49

Main Operating Expenses 5,777,717,077.98 6,349,770,880.82 9,284,869,291.81

Main Business Profit 443,701,984.80 469,106,018.72 /

Sales Expenses 166,010,049.60 181,425,955.48 282,538,665.65

Administration Expenses 239,368,846.06 245,488,123.24 262,535,086.39

Financial Expenses 48,550,414.05 53,240,238.44 62,824,217.73

Operating Profit 7,509,630.34 13,769,333.23 96,340,226.75

Non-operating Income 11,496,601.18 21,454,896.57 33,521,427.07

Non-operating Expense 4,724,873.47 6,763,615.70 6,376,391.46

Corporate Income Tax 9,443,204.26 10,736,246.89 52,142,810.66

Net Profit 18,354,457.44 18,583,884.57 71,342,451.70

Source: Nanjing Pharmaceutical Co. Ltd. annual reports, 2006 and 2007
Key Activity Ratios
Ratio/Indicator Dec. 31, 2006 (%) Dec.31, 2007 (%)

Net Margin 0.27 0.76

ROA 0.50 1.43

ROE 4.00 10.18

Assets Turnover Ratio 185.17 186.92

Source: Calculated with information provided in Nanjing Pharmaceutical Co. Ltd. annual report 2006 and 2007
Dividends
Dividend Per Share 2006 (RMB) 2007 (RMB) Y-on-y change (%)

Common 0.043 0.186 332.56

Source: Nanjing Pharmaceutical Co. Ltd. annual report 2007
Note: From January 1, 2007, China's Ministry of Finance implemented a revised accounting standard. Listed companies changed some of the accounting items for their interim reports in line with the new standard, which do not reveal the main business profit and lead to a slight upward adjustment in net profits.
On Mar. 15 this year, the fifth session of the eleventh National People’s Congress passed a State Council resolution to consolidate the roles of various ministries with responsibilities that overlapped. Of significance for the health sector, the move saw the State Food and Drug Administration, China's food and drug safety watchdog, become a subordinate of the Ministry of Health rather than answering directly to the State Council.  
This is not so much a reform as a "return" for the SFDA, as it had only existed as an agency directly under the control of the State Council for ten years.
Establishment of drug administrations
The State Drug Administration came into being in 1998, before which, there had been no specific drug supervisory body. As the country moved towards reforms of state-owned enterprises and government institutions, calls increased for a special agency devoted to drug quality supervision, similar to in the United States or Japan.
In March 1998, the first session of the Ninth National People's Congress approved the State Council’s institutional reform plan, which included the establishment of the State Drug Administration. The new body brought together the National Medicine Management Division of the (now defunct) State Economic and Trade Commission, the Ministry of Health’s Pharmaceutical Policy Division and some divisions under the State Administration of Traditional Chinese Medicine.
The SDA was officially opened on April 16, 1998. Zheng Xiaoyu, the then chief of the NMMD, was appointed to be the chief of the SDA, while Shao Mingli, then chief of the MoH’s pharmaceutical policy division, became the new administration’s vice chief. The SDA at that time was responsible for the supervision of over 7,000 drug manufactures, 16,000 drug wholesale companies and 60,000 drug retail companies.
In the summer of 1998, a flood hit the south of China, and the newly established SDA organized drug manufacturers to provide drugs to the worst hit areas. Soon after, the SDA discovered and demolished large numbers of counterfeit drugs. The two events led to widespread acclaim for the administration.
In the following two years, local drug administrations were set up in various provinces, with the first one, Hebei provincial drug administration, being opened on Jan. 13, 1999. By November 2000, every province, autonomous region and municipality on the Chinese mainland had set up a drug administration.
One problem in the establishment of the drug administration was that the general managers of state-owned provincial pharmaceutical companies were appointed as chiefs of the local drug administrations, creating a situation in which local drug administrations had closer ties to local pharmaceutical companies than with the State Drug Administration.
GMP authentication
The SDA launched a series of reforms after its establishment, among which were introducing Good Manufacturing Practice standards, and the improvement of local drug standards to national standards.
Zheng Xiaoyu went on record saying that the SDA wanted to see all Chinese drug manufacturers GMP certified by July 2004. The SDA’s keenness to encourage GMP standards in the Chinese pharmaceutical manufacturer was because they saw it as being a way of ensuring higher drug production standards, eliminating non-competitive smaller drug manufactures, improving the SDA’s profile.
However, due to the large investment required from individual companies to pass GMP authentication, a number of companies sought other ways of getting certified, including giving bribes to government officials in charge of issuing GMP certificates.
Worse still, drug administrations failed to follow up on companies that had been awarded the qualification, by not supervising well enough drug production, which, in some cases, resulted in a lapse back to pre-GMP production standards.
The antibiotic Xinfu (clindamycin phosphate glucose injection), manufactured by Anhui Huayuan Worldbest Biology Pharmacy Co., and the counterfeit armillarisni A injection, produced by Qiqihar No. 2 Pharmaceutical Co. in 2006, both of which companies had been GMP authenticated, led to severe adverse drug reactions and a number of deaths, undermining the standing of the SDA.
Further corruption problems
On Dec. 1, 2002, the SDA began a trial implementation of the Provisions on Drug Registration. The move should have heralded the bringing into line of local drug standards with national drug standards, reducing the tendency toward local protectionist policies and encouraging cross-provincial drug distribution. In reality, power was concentrated in a few hands in the state- and provincial-level drug administrations with few checks or balances. The result was an increase in corruption.
That year, Zhou Hang, then chief of Zhejiang provincial drug administration, was sentenced to death for receiving bribes, while Han Baishi and Bi Kezhan, former officials in the National TCM Protection Examination and Appraisal Committee, were subject to a well publicized criminal