Bloks Group Limited — Interim / Quarterly Report 2003

Dec 9, 2003

Hong Kong Pharmaceutical Holdings Limited

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Hong Kong Pharmaceutical Holdings Limited 香港葯業集團有限公司[*]

(Incorporated in Bermuda with limited liability)

ANNOUNCEMENT OF UNAUDITED RESULTS OF THE GROUP FOR THE YEAR ENDED 31 MARCH 2003

Further to the Announcement, the Directors announce the unaudited consolidated annual results of the Group for the year ended 31 March 2003 below.

Based on the unaudited consolidated management accounts of the Group for the year ended 31 March 2003, the Group recorded a loss attributable to shareholders of approximately HK$59 million. Such results may be subject to further changes upon the finalisation of the audit by the Auditors.

The Directors expected that the Results of the Group will be published on 15 December 2003, and the Annual Report will be despatched to shareholders on or before 22 December 2003.

The delay in publication of the Unaudited Results and Results and despatch of the Annual Report constitute breaches of the Listing Agreement. The Stock Exchange has indicated that it reserves the right to take appropriate action against the Company and/or the Directors.

In the meantime, shareholders and public investors are urged to exercise caution in dealing in the shares of the Company.

Hong Kong Pharmaceutical Holdings Limited 10-12-2003 1

Hong Kong Pharmaceutical Holdings Limited

The Directors refer to the announcement dated 2 December 2003 regarding further delay in publication of the audited annual results announcement of the Company for the year ended 31 March 2003 (the “Results”) and the despatch of the annual report for the year ended 31 March 2003 (the “Annual Report”) (the “Announcement”).

This announcement is made pursuant to paragraph 11(3) of Part B of Appendix 7 of the Listing Rules. The Directors announce that the unaudited consolidated annual results of the Company and its subsidiaries (the “Group”) for the year ended 31 March 2003 (which had been reviewed by the audit committee of the Company) (the “Unaudited Results”) together with comparative figures for the year ended 31 March 2002 are as follows:

Turnover Cost of sales Gross profit Other revenue Selling and distribution costs Administrative expenses Other operating expenses Loss from operating activities Finance costs Loss before taxation Taxation Loss after taxation Minority interests	Year ended 31 (Unaudited) 2003 (HK$’000) 108,322 (73,679) 34,643 3,105 (35,142) (29,036) (45,793) (72,223) (6,683) (78,906) (1) (78,907) 19,645	March (Audited) 2002 (HK$’000) 71,063 (40,470)
		30,593
		11,303 (26,482) (26,338) (6,301)
		(17,225) (6,385)
		(23,610) 433
		(23,177) 3,617

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Hong Kong Pharmaceutical Holdings Limited

Net loss from ordinary activities attributable to shareholders Retained (Loss)/profits brought forward Retained (Loss)/profits carried forward	(59,262) (307,632) (366,894)	(19,560) (288,073)
		(307,633)

The results above are based on the unaudited management accounts of the Group for the year ended 31 March 2003 and may be subject to further changes upon the finalisation of the audit by the auditors of the Group (the “Auditors”). Where the audited results of the Group for the year ended 31 March 2003 differ materially from the Unaudited Results as disclosed above, full particulars of, and reason for, the difference will be set out in the preliminary announcement of the audited results of the Group for the year ended 31 March 2003.

The publication of Results and despatch of Annual Report have to be further delayed as the Auditors still have not received all necessary information and supporting evidence they required for their audit purposes. Such information primarily includes the confirmations from the banks in Hong Kong and the PRC relating to the Company’s debt restructuring and refinancing, which mainly involves extension of the repayment periods of the existing credit facilities. The Company needs debt restructuring so as to postpone and defer the existing loan repayments in order to free up financial resources for ongoing operation.

The Directors expected that the results of the Group for the year ended 31 March 2003 will be published on 15 December 2003, and the annual report will be despatched to shareholders on or before 22 December 2003.

The delay in publication of the Unaudited Results and Results and despatch of the Annual Report constitute breaches of paragraphs 8(1), 8(2), 11(1) and 11(3)(i)(c) of the Listing Agreement. The Stock Exchange has indicated that it reserves the right to take appropriate action against the Company and/or the Directors.

The Directors have not dealt in any shares of the Company since 1 July 2003 and have also undertaken not to deal in the shares of the Company until the publication of the results announcement.

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Hong Kong Pharmaceutical Holdings Limited

In the meantime, shareholders and public investors are urged to exercise caution in dealing in the shares of the Company.

By Order of the Board of Directors Hong Kong Pharmaceutical Holdings Limited Huang Shuyun Deputy Chairman and Managing Director

Hong Kong, 9 December 2003

• For identification purpose only

Please also refer to the published version of this announcement in The Standard dated on 10-12-2003.

Hong Kong Pharmaceutical Holdings Limited 10-12-2003

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