Wuyi International Pharmaceutical (01889) said it expects to record an increase in consolidated net loss for the year ended 31 December 2014 as compared to that for the previous financial year.
Its financial performance has been affected by a drop in gross profit margin of the Group mainly due to the continuingly increasing pressure in raw material costs, packing material costs and labour costs in the market of the People's Republic of China. The management also estimated an increase in depreciation expense and some relevant modification charges of the Group for the year as a result of the commencement of production of a new factory of the Group in Haixi Commercial Trading Development Zone, Jianyang, Fujian Province, after a New GMP certification was granted at the beginning of the year.
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