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Pharmaceutical firm regains rights to Wong Lo Kat herbal tea
By Ding Yining |
May 14, 2012, Monday
|
Online Edition
Online Edition
GUANGZHOU Pharmaceutical Co Ltd surged the daily limit of 10 percent today after it said it will regain exclusive usage of the Wong Lo Kat trademark after a trade arbitration over the weekend.
According to a ruling by the China International Economic and Trade Arbitration Commission received by Guangzhou Pharmaceutical on Friday, JDB Group will have to stop using the trademark, Guangzhou Pharmaceutical said in a filing to the Shanghai Stock Exchange over the weekend.
Two supplement trademark leasing agreements signed by the two parties were announced as invalid, the filing said.
Guangzhou Pharmaceutical opened 10 percent higher in the morning session at 20.91 yuan.
"Regaining the trademark will give Guangzhou Pharma a boost in sales and push up its earnings significantly," said Zhou Jing, an analyst with Guolian Securities.
He estimated a 35 percent annual increase in the company's profit this year.
JDB Group, a unit of Hong Kong-based Hung To (Holdings) Co, has been producing the red-canned Wong Lo Kat herbal tea product since 1997, It received the trademark through authorization by Guangzhou Pharmaceutical and the usage was extended until 2020 through two supplement contracts.
Guangzhou Pharmaceutical argued that the trademark leasing contract was signed after former Guangzhou Pharmaceutical vice president and general manager Li Yimin took bribes and CIETAC's ruling was apparently in their favor.
According to a ruling by the China International Economic and Trade Arbitration Commission received by Guangzhou Pharmaceutical on Friday, JDB Group will have to stop using the trademark, Guangzhou Pharmaceutical said in a filing to the Shanghai Stock Exchange over the weekend.
Two supplement trademark leasing agreements signed by the two parties were announced as invalid, the filing said.
Guangzhou Pharmaceutical opened 10 percent higher in the morning session at 20.91 yuan.
"Regaining the trademark will give Guangzhou Pharma a boost in sales and push up its earnings significantly," said Zhou Jing, an analyst with Guolian Securities.
He estimated a 35 percent annual increase in the company's profit this year.
JDB Group, a unit of Hong Kong-based Hung To (Holdings) Co, has been producing the red-canned Wong Lo Kat herbal tea product since 1997, It received the trademark through authorization by Guangzhou Pharmaceutical and the usage was extended until 2020 through two supplement contracts.
Guangzhou Pharmaceutical argued that the trademark leasing contract was signed after former Guangzhou Pharmaceutical vice president and general manager Li Yimin took bribes and CIETAC's ruling was apparently in their favor.
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