Traditional Chinese medicine group Zhongzhi Pharmaceutical Holdings Limited will inject MOP480,000 (US$59,945) into a joint venture with Macau University of Science and Technology (MUST) Foundation by June 30 this year, revealed the company’s 2016 annual report.
A subsidiary of the group, Zhongzhi Pharmaceutical and Grant Talent Development Limited established a joint venture with MUST IPO Group Limited – a trust company of MUST Foundation- and six individuals of the university group last October.
The consortium, named Scienwi Pharmaceutical Technology Company Limited, has a registered capital of MOP1 million, with Zhongzhi Pharmaceutical owning 48 per cent equity share as classified by its proposed investment of MOP480,000.
The company explained in the report that the payment had not yet been made due to ‘expected additional time needed’ for opening a bank account.
Zhongzhi Pharmaceutical registered RMB53.9 million(MOP62.6 million/US$7.8 million) in profits in 2016, a 33.1 per cent year-on-year decrease due to an increase in advertising expenses, the annual report reads.
The company’s selling and distribution expenses primarily originated from its chain pharmacies, which increased 36.7 per cent yearly to RMB277.4 million in 2016. Nevertheless, the group’s revenues still managed to record a 6.2 per cent year-on-year increase to RMB730.5 million.
According to a statement by group chairman Lai Zhi Tian the Chinese Government has placed great emphasis upon regulating TCM, with the ‘Law on Chinese Medicines’ set to be enforced on July 1 this year.
The new legislation will allow TCM practitioners to obtain a licence to practise in hospitals and clinics in the same model as Western medicine professionals, while requiring regional governments to set up TCM clinics in public hospitals and clinics, the chairman notes.
Mr. Lai believes the new policies will stimulate the demand for herbal health supplements leading to a “sharp expansion” of the market.