China Animal Healthcare, one of the leading players in China’s animal drugs industry, says net profit for 4Q2009 increased 40.5% to net profit to RMB48.5 million ($10.1 million) from RMB34.5 million.

Revenue rose 36.2% to RMB132.5 million since it established its own production facilities in Shenzhou in October 1997 to commence in-house production of its products.

The return to growth in sales of powdered form drugs continued to gain momentum in 4Q2009 with revenue topping RMB106.9 million, an increase of 44.5% over 4Q2008. Sales for this segment in 4Q2008 was saddled by the bird flu scare.

Biological drug sales in 4Q2009 alone amounted to RMB15.8 million, representing a 18.1% increase over 4Q2008. In the official compulsory vaccines sales bidding exercise which commenced in August 2009, the group secured an order book for its swine fever vaccines of approximately RMB25.0 million of which RMB11.4 million was delivered in the current quarter.

Injection form drug sales in 4Q2009 decrease slightly by 2.4% period-on-period as hog breeding activities in FY2009 was to some extent affected by the outbreak of H1N1 influenza at the beginning of the year, which resulted in lower pork prices as consumers initially feared contracting the H1N1 flu virus by consuming pork products.

With the strong 4Q performance, the group’s revenue for the full year rose 13.8% to RMB438.3 million in FY2009 from RMB385.1 million in FY2008.

Net earnings for the full year increases 14.2% to RMB157.9 million in FY2009 from RMB138.3 million in FY2008.

The group’s net asset value per ordinary share increased to 48.16 RMB cents (as at 31 December 2009), from 33.40 RMB cents (as at 31 December 2008).