BRIEF: Wai Yuen Tong profit rises six-fold on non-operational gains
Drug and healthcare products maker Wai Yuen Tong Medicine Holdings Ltd. (0897.HK) announced on Wednesday its revenue fell 5.8% year-on-year to HK$347 million ($45 million) in the six months to September. But its profit of HK$23.7 million was up 577% over the same period.
The big profit gain, even as revenue fell, owed mainly to fair value gains related to the company’s investment properties. At the same time, its net impairment losses on properties, plants and equipment were smaller than the same period last year.
Wai Yuen Tong said its sales for the six-month period fell by 7.3% year-on-year due to changes in consumption patterns among local residents and tourists. To counter such negative effects, the company launched new products under the Wai Yuen Tong brand, expanded cross-border e-commerce channels, and cooperated with celebrities and key opinion leaders to increase its visibility.
Wai Yuen Tong’s shares fell 0.4% in Thursday trade in Hong Kong.
By Lau Chi Hang
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