Layn Natural Ingredients reports net loss of $3.78 mln in 2010
Shanghai. April 25. INTERFAX-CHINA - Shenzhen Stock Exchange-listed Layn Natural Ingredients Corp. (Layn), a leading domestic herbal extract manufacturer, saw net profit drop 460.81 percent year-on-year in 2010 to book a loss of RMB 24.61 million ($3.78 million), according to Layn's latest annual report, released April 23.
The company reported operational revenue of RMB 86.3 million ($13.26 million) in the same period, down 32.55 percent on an annual basis.
The company attributed the losses to a number of factors, including adjustments to its product portfolio and the relocation of the company to a new site.
Layn is capable of producing more than 200 herbal extracts, but has halted production of those with small domestic demand in order to better cater to the needs of overseas clients, the report added.
Since the second half (H2) of 2010, the company has worked to switch focus to the production of herbal extracts with a large market demand, such as grosvenor momordica fruit, stevia leaf and rhodiola rosea extract, an investor relations representative with Layn told Interfax under the condition of anonymity.
According to the representative, more than 95 percent of all herbal extracts made in China are exported.
In October last year, Layn announced plans to set up a wholly-owned subsidiary in the U.S., the most important overseas market for the company, Interfax previously reported.
"We have received regulatory approval for our U.S. subsidiary," the representative added. "It will have a registered capital of $1 million, and there are plans to enlarge the company in the future."
- MS