Net Profit of Jiangzhong Growing by 50% in 2014, Aftereffect for Health Care Product upon Strategic Transformation
 
    On Mar. 28, Jiangzhong Pharmaceutical(600750) issued their annual report of 2014. The company recorded an income of RMB2.834 billion in 2014, up 2% year on year, with business cost of RMB1.338 billion, down 23% year on year; net profit for owner of parent company RMB265 million, up 54% compared to the previous year; and earnings for each share of RMB0.87. The sharp increase of the company’s profit is mainly resulted from the beyond expectation sales of the Digestive Pill and the decline in cost of radix pseudostellariae. In 2014, health care products contribute RMB300 million to the total income of the company, down 20% compared to the same period in 2013, accounting for 10.7% of the company's total income, down 5% year on year. The decline in sales of health care products shall be mainly attributed to the ideas and initiatives of “adjusting the direction, reinforcing the execution, stabilizing the sales and promoting the growth”, the continued execution of business transformation, and quit of the advertisement of “Chuyuan” oral liquid. Due to inadequate market investment, low product reputation and changing consumption environment, high-end health care products encounter notable dump. Centering on TCM industry, JZJT Group covers the operation of OTC, health care products and functional foods.