Pharmesis International Ltd. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company's revenue was RMB 11.3 million compared with RMB 13.2 million a year ago. Due to intense competition and pricing pressure, the group saw decline in revenue from both its manufacturing and distribution business segments. Loss from operations was RMB 9.3 million compared with RMB 9.0 million a year ago. Loss before tax was RMB 9.1 million compared with RMB 8.4 million a year ago. Loss for the period was RMB 9.1 million compared with RMB 8.96 million a year ago. Loss attributable to equity holders of the company was RMB 8.1 million compared with RMB 8.2 million a year ago. Net cash flows used in operating activities was RMB 4.2 million compared with RMB 0.83 million a year ago. Acquisition of property, plant and equipment was RMB 0.3 million compared with RMB 0.16 million a year ago. As on December 31, 2012, the company's net asset value per ordinary share was RMB 45.32.

For the year, the company's revenue was RMB 55.2 million compared with RMB 60.99 million a year ago. The decrease was mainly due to lower revenue from the group's manufacturing business as a result of new price cuts arising from continued healthcare reforms in the PRC and intense competition. Loss from operations was RMB 22.7 million compared with RMB 18.8 million a year ago. Loss before tax was RMB 21.99 million compared with RMB 17.8 million a year ago. Loss for the period was RMB 21.99 million compared with RMB 19.4 million a year ago. Loss attributable to equity holders of the company was RMB 19.4 million or 9.72 RMB cents per diluted share compared with RMB 17.1 million or 8.57 RMB cents per diluted share a year ago. Net cash flows from operating activities was RMB 0.69 million compared with net cash flows used in operating activities of RMB 1.8 million a year ago. Acquisition of property, plant and equipment was RMB 0.33 million compared with RMB 0.52 million a year ago.

The company announced impairment loss on property, plant and equipment of RMB 4.2 million for the fourth quarter ended December 31, 2012.