Sinopharm Group Co. Ltd. — Capital/Financing Update 2011

May 13, 2011

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

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SINOPHARM GROUP CO. LTD. 國藥控股股份有限公司

(A joint stock limited company incorporated in the People’s Republic of China with limited liability and carrying on business in Hong Kong as 國控股份有限公司 )

(Stock Code: 01099)

ISSUE OF FIRST TRANCHE OF THE MEDIUM-TERM BONDS IN THE PRC

This announcement is made pursuant to Rule 13.09(1) of the Listing Rules. Reference is made to the announcements of the Company dated 23 November 2010, 7 January 2011 and 4 May 2011 and the circular of the Company dated 16 December 2010.

The Company completed the issue of the First Tranche Bonds on 12 May 2011, a summary of which is set out below:

On 19 April 2011, the issue of the Medium-Term Bonds was duly registered with the National Association of Financial Market Institutional Investors (中國銀行間市場交易商協會). The notice of acceptance of registration dated 21 April 2011 (中市協註[2011] MTN75號) has been published on the website of the National Association of Financial Market Institutional Investors (中國銀行間 市場交易商協會) (http://www.nafmii.org.cn).

The aggregate principal amount of the First Tranche Bonds is RMB2 billion, and the maturity period of the First Tranche Bonds is 3 years. Both the par value and the issuing price of the First Tranche Bonds are RMB100 per unit. The First Tranche Bonds were subscribed at multiples of RMB5 million during the period from 11 May 2011 to 12 May 2011 and the minimum subscription amount was RMB5 million. The fi xed interest rate of 4.89% per annum was determined based on the results of the book building. The principal amount of the First Tranche Bonds together with the accrued interests will be repaid on the maturity date.

The proceeds from the issue of the First Tranche Bonds will be mainly used to fund the operational activities of the Company, to add to its liquidity and to repay its bank loans.

A public announcement of the Company relating to the completion of the issue of the First Tranche Bonds will be published in the PRC on 13 May 2011. For details of the announcement and other relevant documents, please visit the websites of China Money (http://www.chinamoney.com.cn) and China Bond (http://www.chinabond.com.cn).

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The issue of the First Tranche Bonds does not constitute any transaction under Chapter 14 and Chapter 14A of the Listing Rules.

This announcement is for information only and does not constitute, or form part of, an offer or invitation, or solicitation or inducement of an offer, to subscribe for or purchase any of the First Tranche Bonds or other securities of the Company, nor is this announcement calculated to invite offers for any securities of the Company.

In this announcement, unless the context otherwise requires, the following terms shall have the following meanings:

, ,anche Bonds or other securities of the Company, norers for any securities of the Company.ef nitionsthis announcement, unless the context otherwise reqlowing meanings:	is this announcemeuires, the following	nt calculated to invterms shall have t
ompany”Sinopharm Group Co. Ltlimited company establisshares are listed on The Sirst Tranche Bonds”the f rst tranche of theprincipal amount of Rqualif ed institutional invfrom investing under reltradable between such qbank bond market in theong Kong”the Hong Kong Special Aisting Rules”the Rules Governing tExchange of Hong Kongedium-Term Bonds”the medium-term bondsmore than RMB5 billionthe PRCRC”the People’s Republic ofSpecial Administrativepurpose of this announceMB”Renminbi, the lawful cur	d. (國藥控股股份有hed in the PRC, oftock Exchange of HoMedium-Term BonMB2 billion issuedestors (except for thoevant laws or regulatualif ed institutionalPRCdministrative Regionhe Listing of SecuLimitedof an aggregate priproposed to be issueChina, excluding HRegion of the PRCmentrency of the PRCBy or	限公司), a joint stowhich 828,340,950
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		rities on The Stoncipal amount of nd by the Companyong Kong, the Macand Taiwan for t
		der of the Board of

12 May 2011

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As at the date of this announcement, the executive director of the Company is Mr. Wei Yulin; the non-executive directors of the Company are Mr. She Lulin, Mr. Wang Qunbin, Mr. Chen Wenhao, Mr. Zhou Bin, Mr. Chen Qiyu, Mr. Deng Jindong, Mr. Fan Banghan and Mr. Liu Hailiang; and the independent non-executive directors of the Company are Mr. Wang Fanghua, Mr. Tao Wuping, Mr. Xie Rong and Mr. Zhou Bajun.

• The Company is registered as a non-Hong Kong company under Part XI of the Companies Ordinance (Chapter 32 of the Laws of Hong Kong) under its Chinese name and the English name “Sinopharm Group Co. Ltd.”

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