Tianjin Zhong Xin Pharmaceutical Group Corporation has reported earnings of RMB213 million ($43.5 million) for its 1QFY2021 ended March, up 25% y-o-y.

The higher earnings follow an increase in revenue for the period, which climbed 10% y-o-y from RMB1.65 billion to RMB1.83 billion on the back of higher sales in tandem with China’s recovering economy.

Gross profit for the 1QFY2021 grew 13% y-o-y to RMB753.4 million, with gross profit margin was 41.2%, up 1.2 percentage points from the previous year.

Marketing and distribution expenses remained relatively flat at RMB431.5 million, despite the higher sales. However, R&D expenses grew 44% y-o-y to RMB29 million, while administrative expenses climbed 28% y-o-y to RMB100.8 million due to an increase in employee benefits.

Other gains fell 41% y-o-y to RMB9.5 million due to a decrease in government grants received. In addition, other losses climbed 34% y-o-y to RMB9.3 million for the period due to higher impairments.

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However, share of profit of associates grew marginally, climbing 2% y-o-y to RMB48.5 million.

Cash and cash equivalents stood at RMB2.09 billion as at end-March.

Shares in Tianjin Zhong Xin closed up 2 US cents or 2.19% higher at 93.5 US cents on April 29.