CSPC Pharmaceutical Group Limited — Earnings Release 1999

May 22, 2000

Listed Company Information

CHINA PHARMA<1093> - Results Announcement China Pharmaceutical Enterprise and Investment Corporation Limited announced on 22/5/2000: (stock codes: Ord: 1093 & War: 837) Year end date: 31/12/1999 Currency: HKD (Audited) (Audited) Last Current Corresponding Period Period from 1/1/1999 from 1/1/1998 to 31/12/1999 to 31/12/1998 Turnover - Continuing : 821,321,000 596,342,000 - Discontinued : - - Operating Profit - Continuing : 137,344,000 102,870,000 - Discontinued : - - Total Operating Profit : 137,344,000 102,870,000 Share of Profit/(Loss) of Associated Companies : - - Share of Profit of Jointly Controlled Entities : 7,210,000 5,657,000 Profit after Tax & MI : 142,022,000 101,439,000 % Change over Last Period : +40% EPS -Basic : 12.52 cents 9.71 cents -Diluted : 12.41 cents N/A Extraordinary (ETD) Gain : - - Profitafter ETD Items : 142,022,000 101,439,000 Final Dividend per Share : 3.3 cents 3.0 cents (Specify if with other options) : - - B/C Dates for Final Dividend : 19/6/2000 to 23/6/2000 bdi. Payable Date : 29/6/2000 B/C Dates for Annual General Meeting : 19/6/2000 to 23/6/2000 bdi. Other Distribution for Current Period : - B/C Dates for Other Distribution : N/A Remarks: (1) Earnings per share The calculation of the basic and diluted earnings per share is based on the following data: 1999 1998 Profit attributable to shareholders HK$142,022,000 HK$101,439,000 ========== ============== Weighted average number of ordinary shares for the purposes of basic earnings per share 1,134,591,763 1,045,176,525 Effect of dilutive potential ordinary shares in respect of share options 9,560,976 N/A ----------- ----------- Weighted average number of ordinary shares for the purposes of diluted earnings per share 1,144,152,739 N/A ========= =========== The computation of diluted earnings per share in 1999 does not assume the exercise of the Company's outstanding warrants as the exercise price is higher than the fair value per share during the year. No diluted earnings per share is calculated for 1998 as the exercise price of the Company's outstanding share options was higher than the fair value per share during the year. (2) Adoption of statement of standard accounting practice ("SSAP") certain comparative figures have been restated to conform with the current presentation as required under SSAP 1 (Revised) "Presentation of financial statements" issued by the Hong Kong Society of Accountants. Because of the adoption of SSAP 1 (Revised), the Group has decided to expense pre-operating expenses as they are incurred. The effect of the adoption of this new accounting policy, which has been applied retrospectively, has been to decrease the profit for the year ended December 31, 1998 by HK$9,636,000. Comparative figures have been restated to reflect this change in accounting policy.