Sinopharm Group Co. Ltd. — Interim / Quarterly Report 2011

May 4, 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)

ANNOUNCEMENT PRICE-SENSITIVE INFORMATION

This announcement is made pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Reference is made to the announcements of Sinopharm Group Co. Ltd. (the “ Company ”) dated 23 November 2010 and 7 January 2011 and the circular to shareholders of the Company dated 16 December 2010, regarding the proposed issue of medium-term bonds by the Company in the PRC (the “ Bond Issue ”).

The original Chinese version of the following unaudited fi nancial results of the Company and its subsidiaries for the fi rst quarter ended 31 March 2011 prepared in accordance with PRC Generally Accepted Accounting Principles have been published on the websites of China Money (http://www.chinamoney.com.cn) and China Bond (http://www.chinabond.com.cn) in connection with the Bond Issue:

1

Consolidated Balance Sheet As at 31 March 2011

(All amounts in RMB unless otherwise stated)

Items Current assets: Monetary funds Settlement provisions Capital lent Transaction f nancial asset Notes receivable Accounts receivable Prepayment Insurance premium receivable Reinsurance accounts receivables Contract reserve of reinsurance receivable Interest receivable Other receivables Purchase restituted f nance asset Inventories Including: Raw materials Inventories (Finished goods) Non-current asset due within one year Other current assets Total current assets Non-current assets: Granted loans and advances Financial asset available for sales Held-to-maturity securities Long-term account receivable Long-term equity investment Investment property Fixed assets, at cost less: Accumulated depreciation Fixed assets, at net book value less: Impairment provision for f xed assets Fixed assets, net Construction in progress Engineering material Disposal of f xed asset Productive biological asset

As at 31 March 2011 As at 31 December 2010 7,401,842,405.80 8,206,796,116.33 — — — — 16,564,167.50 990,067.50 1,674,997,214.66 1,511,315,406.75 21,330,972,955.01 16,240,562,315.86 1,098,002,130.10 1,023,273,496.95 — — — — — — — — 318,809,451.19 193,746,284.78 — — 7,885,968,305.03 7,314,946,150.55 — — 7,631,508,888.05 7,087,776,224.57 — — 2,162,377.15 1,991,714.89 39,729,319,006.44 34,493,621,553.61 — — 47,195,498.00 48,492,906.40 12,000.00 12,000.00 — — 541,284,060.27 493,482,268.64 324,564,291.46 294,317,790.63 3,866,514,017.50 3,657,628,433.33 1,009,153,575.32 881,415,756.55 2,857,360,442.18 2,776,212,676.78 1,317,219.72 1,317,219.72 2,856,043,222.46 2,774,895,457.06 719,188,336.57 489,264,576.72 4,795,320.05 — 727,303.53 — — —

2

As at As at 31 March 2011 31 December 2010

Items

Oil and gas asset Intangible assets Expense on Research and Development Goodwill Long-term expenses to be apportioned Deferred income tax asset Other non-current asset Including: Special materials reserve authorised by government Total non-current asset Total assets Current liabilities: Short-term loans Loan from central bank Absorbing deposit and interbank deposit Capital borrowed Transaction f nancial liabilities Notes payable Accounts payable Accounts received in advance Selling f nancial asset of repurchase Commission charge and commission payable Wage payable Including: Salary payable Welfare payable Including: Bonus and benef t fund for staff Taxes payable Including: Tax payables Interest payable Other accounts payable Reinsurance payables Insurance contract reserve Client money received for acting as securities trading agent Client money received for acting as securities underwriter Non-current liabilities due within one year Other current liabilities Total current liabilities	— 2,377,213,222.49 10,803,151.07 921,009,697.52 103,029,722.89 118,332,046.59 206,073,079.13 206,073,079.13 8,230,270,952.04 47,959,589,958.47 6,546,545,938.14 — — — — 5,417,438,300.29 15,638,000,469.13 235,633,912.79 — — 296,725,520.99 151,330,148.04 8,646,782.83 — 270,932,968.81 249,931,786.38 — 2,033,754,685.06 — — — — 2,450,000.00 12,833,731.20 30,454,315,526.41	— 1,414,163,995.37 10,591,715.98 642,832,647.17 88,164,588.63 144,518,448.56 831,579,034.66 215,428,484.66 7,232,315,429.82
		41,725,936,983.43
		3,341,781,790.96 — — — — 6,105,259,920.85 13,725,945,505.02 502,493,842.56 — — 397,802,912.83 255,251,391.65 6,271,278.58 — 182,672,072.24 180,441,820.97 — 1,412,870,963.53 — — — — 2,400,000.00 —
		25,671,227,007.99

3

As at As at 31 March 2011 31 December 2010

Items

Non-current liabilities: Long-term loans Bonds payable Long-term account payable Special accounts payable Projected liabilities Deferred income tax liabilities Other non-current liabilities Including: Special materials reserve fund authorised by government Total non-current liabilities Total liabilities Owner’s equity (or shareholders’ equity): Paid-in capital (or share capital) State-owned capital Collectively-owned capital Capital owned by legal persons Including: Capital attributable to State-owned legal persons Capital attributable to collective legal person Capital attributable to individuals Capital attributable to foreign investors Less: Reverted investment Net paid-in capital (or share capital) Capital public reserve Less: Inventory shares Reasonable reserve Surplus public reserve Including: statutory reserve Discretionary surplus reserve Reserve fund Enterprise expansion fund Return of investment using prof ts Provision for general risk Retained prof t	161,898,212.61 — 43,248,101.71 85,024,424.27 400,426.00 484,788,023.50 783,006,039.92 724,157,034.62 1,558,365,228.01 32,012,680,754.42 2,264,568,474.00 — — 1,574,284,348.70 1,574,284,348.70 — — 690,284,125.30 — 2,264,568,474.00 7,985,354,676.28 — — 130,852,330.80 130,852,330.80 — — — — — 1,818,771,225.37	90,900,000.00 — 42,350,090.30 44,218,863.35 400,426.00 265,651,354.05 762,905,603.76 722,566,988.05
		1,206,426,337.46
		26,877,653,345.45
		2,264,568,474.00 — — 1,574,284,348.70 1,574,284,348.70 — — 690,284,125.30 — 2,264,568,474.00 7,990,616,100.63 — — 130,852,330.51 130,852,330.51 — — — — — 1,410,445,274.16

4

As at As at 31 March 2011 31 December 2010

Items

Balance difference of foreign currency translation -1,334,475.76 -1,198,648.80 Total owner’s equity attributable to parent company 12,198,212,230.69 11,795,283,530.50 Minority interests 3,748,696,973.36 3,053,000,107.48 Total owner’s equity 15,946,909,204.05 14,848,283,637.98 Total liabilities and owner’s equity 47,959,589,958.47 41,725,936,983.43

Total liabilities and owner’s equity

5

Balance Sheet of Parent Company as at 31 March 2011 (All amounts in RMB unless otherwise stated)

Items Current assets: Monetary funds Settlement provisions Capital lent Transaction f nancial asset Notes receivable Accounts receivable Prepayment Insurance premium receivable Reinsurance accounts receivables Contract reserve of reinsurance receivable Interest receivable Other receivables Purchase restituted f nance asset Inventories Including: Raw materials Inventories (Finished goods) Non-current asset due within one year Other current assets Total current assets Non-current assets: Granted loans and advances Financial asset available for sales Held-to-maturity securities Long-term account receivable Long-term equity investment Investment property Fixed assets, at cost Less: Accumulated depreciation Fixed assets, at net book value Less: Provision for impairment loss on f xed assets Fixed assets, net Construction in progress Engineering material Disposal of f xed asset Productive biological asset

As at 31 March 2011 As at 31 December 2010 1,720,379,362.06 2,856,923,271.34 — — — — — — 567,152,678.25 401,638,331.40 2,811,847,591.07 2,168,330,331.33 286,701,304.31 253,717,062.15 — — — — — — — — 5,278,708,040.87 3,889,064,071.34 — — 1,226,645,309.39 1,331,192,004.10 — — 1,226,645,309.39 1,331,192,004.10 — — 500,000.00 500,000.00 11,891,934,285.95 10,901,365,071.66 — — — — — — — — 9,584,242,064.09 8,604,572,045.43 5,527,643.66 5,589,322.28 45,038,117.45 42,083,843.14 19,566,834.61 17,810,384.54 25,471,282.84 24,273,458.60 — — 25,471,282.84 24,273,458.60 5,321,959.38 1,614,547.01 — — — — — —

6

As at As at 31 March 2011 31 December 2010

Items

Oil and gas asset Intangible assets Expense on Research and Development Goodwill Long-term expenses to be apportioned Deferred income tax asset Other non-current asset Including: Special materials reserve authorised by government Total non-current asset Total assets Current liabilities: Short-term loans Loan from central bank Absorbing deposit and interbank deposit Capital borrowed Transaction f nancial liabilities Notes payable Accounts payable Accounts received in advance Selling f nancial asset of repurchase Commission charge and commission payable Wage payable Including: Salary payable Benef ts payable Including: Bonus and benef t fund for staff Taxes and Surcharges payable Including: Tax payable Interest payable Other accounts payable Reinsurance payables Insurance contract reserve Client money received for acting as securities trading agent Client money received for acting as securities underwriter Non-current liabilities due within one year Other current liabilities	— 4,722,539.10 — — 875,971.37 11,499,229.69 47,604,918.77 47,604,918.77 9,685,265,608.90 21,577,199,894.85 2,730,000,000.00 — — — — 680,669,427.84 2,806,363,848.69 21,070,373.15 — — 4,260,333.46 — 1,486,015.56 — 14,468,104.69 14,467,911.75 — 4,298,946,148.21 — — — — — —	— 3,685,804.92 — — 853,537.86 24,594,204.27 42,996,037.41 42,996,037.41
		8,708,178,957.78
		19,609,544,029.44
		1,130,000,000.00 — — — — 1,633,647,417.31 1,936,188,848.87 302,195,290.45 — — 42,098,062.13 40,000,000.00 — — -18,594,898.19 -18,597,901.58 — 3,614,168,688.41 — — — — — —

Total current liabilities 10,555,778,236.04 8,639,703,408.98

7

As at As at 31 March 2011 31 December 2010

Items

Non-current liabilities: Long-term loans Bonds payable Long-term account payable Special accounts payable Projected liabilities Deferred income tax liabilities Other non-current liabilities Including: Special materials reserve fund authorised by government Total non-current liabilities Total liabilities Owner’s equity (or shareholders’ equity): Paid-in capital (or share capital) State-owned capital Collectively-owned capital Capital owned by legal persons Including: Capital attributable to State-owned legal persons Capital attributable to collective legal person Capital attributable to individuals Capital attributable to foreign investors Less: Reverted investment Net paid-in capital (share capital) Capital public reserve Less: Inventory shares Special reserve Surplus public reserve Including: Statutory reserve Discretionary surplus reserve Reserve fund Enterprise expansion fund Return of investment using prof ts Provision for general risk Retained prof t Balance difference of foreign currency translation	— — — — — — 205,853,006.30 205,853,006.30 205,853,006.30 10,761,631,242.34 2,264,568,474.00 — — 1,574,284,348.70 1,574,284,348.70 — — 690,284,125.30 — 2,264,568,474.00 7,906,522,376.57 — — 130,852,330.51 — — — — — — 513,625,471.43 —	— — — — — — 205,853,006.30 205,853,006.30
		205,853,006.30
		8,845,556,415.28
		2,264,568,474.00 — — 1,574,284,348.70 1,574,284,348.70 — — 690,284,125.30 — 2,264,568,474.00 7,906,522,376.57 — — 130,852,330.51 — — — — — — 462,044,433.08 —

8

As at As at 31 March 2011 31 December 2010

Items

Total owner’s equity attributable to parent company (not applicable) Minority interests (not applicable) Total owner’s equity Total liabilities and owner’s equity

— — 10,815,568,652.51 21,577,199,894.85	— —
	10,763,987,614.16
	19,609,544,029.44

9

Consolidated Income Statement as at 31 March 2011

(All amounts in RMB unless otherwise stated)

			Amount in the
		Amount	corresponding
Items		in this year	period of last year
I.	Total operating income	22,370,219,515.27	15,371,743,905.43
	Including: Operating income	22,370,219,515.27	15,371,743,905.43
	Including: Income from principal
	business activities	22,307,431,566.24	15,324,556,968.62
	Income from
	other business activities	62,787,949.03	47,186,936.80
	Interest income	—	—
	Insurance premium gained	—	—
	Commission charge and
	commission income	—	—
II.	Total operating cost	21,639,915,406.35	14,856,276,182.01
	Including: Operating cost	20,522,544,241.21	14,086,694,434.90
	Including: Operating cost of
	principal business activities	20,509,064,757.19	14,073,872,194.66
	Operating cost of
	other business activities	13,479,484.02	12,822,240.24
	Interest expense	—	—
	Commission charge and commission
	expense	—	—
	Cash surrender value	—	—
	Net amount of expense of compensation	—	—
	Net amount of withdrawal of insurance
	contract reserve	—	—
	Dividend expenditure of insurance policy	—	—
	Reinsurance expense	—	—
	Taxes and surcharges	34,994,113.94	19,600,786.02
	Sales expenses	577,726,545.40	430,415,235.15
	Administration expenses	395,195,048.40	283,888,909.42
	Including: Entertainment
	expense	21,794,695.46	14,362,284.02
	Expense on
	Research and
	Development	12,890,923.00	11,576,358.55
	Financial expenses	109,807,150.41	33,123,943.74
	Including: Interest expense	140,565,223.21	55,619,170.06
	Interest income	20,672,455.05	30,759,742.60
	Net exchange losses
	(net exchange gain is
	listed with “-”)	-7,599,082.59	4,938,714.88

10

			Amount in the
		Amount	corresponding
Items		in this year	period of last year
	Losses of devaluation of asset	-382,656.01	2,552,872.79
	Others	30,963.00	—
	Add: Changing income of fair
	value (Loss is listed with
	“-”)	-11,900.00	—
	Investment income (Loss is listed
	with “-”)	24,689,460.72	10,351,060.54
	Including: Investment
	income on aff liated
	company and joint
	venture	21,210,230.44	20,535,674.71
	Exchange income (Loss is listed
	with “-”)	—	—
**III. **	Operating prof t (Loss is listed with “-”)	754,981,669.64	525,818,783.95
	Add: Non-operating income	20,718,296.01	6,141,135.89
	Including: Gain on disposal of
	non-current asset	314,233.35	134,686.35
	Gain arising from the translation of
	non-monetary assets	—	—
	Governmental subsidy	2,407,201.21	4,781,130.63
	Gain arising from debts
	restructuring	—	—
	Less: Non-operating expense	4,315,597.10	1,444,760.55
	Including: Disposal loss of
	non-current asset	713,837.35	808,122.22
	Losses resulting from the
	translation of non-monetary
	assets	—	—
	Losses resulting from debts
	restructuring	—	—
**IV. **	Total Prof t (Loss is listed with “-”)	771,384,368.55	530,515,159.29
	Less: Income tax	181,279,603.28	111,755,792.91
V.	Net prof t (Net loss is listed with “-”)	590,104,765.28	418,759,366.38
	Net prof t attributable to owner’s equity of
	parent company	401,818,602.28	314,841,370.07
	Minority shareholders’ gains and losses	188,286,163.00	103,917,996.31
**VI. **	Earnings per share	—	—
	Basic earnings per share	0.18	0.14
	Diluted earnings per share	0.18	0.14

11

Amount in the Amount corresponding in this year period of last year

Items

**VII. **	Other consolidated income	—	—
**VIII. **	Total consolidated income	590,104,765.28	418,759,366.38
	Total consolidated income attributable to
	owners of parent company	401,818,602.28	314,841,370.07
	Total consolidated income attributable to
	minority shareholders	188,286,163.00	103,917,996.31

12

Income Statement of Parent Company as at 31 March 2011 (All amounts in RMB Yuan unless otherwise stated)

			Amount in the
		Amount	corresponding
Items		in this year	period of last year
I.	Total operating income	4,150,964,531.04	3,560,160,177.75
	Including: Operating income	4,150,964,531.04	3,560,160,177.75
	Including: Income from principal
	business activities	4,150,496,349.83	3,555,732,419.28
	Income from other
	business activities	468,181.21	4,427,758.47
	Interest income	—	—
	Insurance premium gained	—	—
	Commission charge and commission
	income	—	—
II.	Total operating cost	4,080,036,806.39	3,462,888,110.51
	Including: Operating cost	4,013,352,868.38	3,423,592,880.43
	Including: Operating cost of
	principal business activities	4,013,134,098.34	3,423,345,617.23
	Operating cost of other
	business activities	218,770.04	247,263.20
	Interest expense	—	—
	Commission charge and commission
	expense	—	—
	Cash surrender value	—	—
	Net amount of expense of compensation	—	—
	Net amount of withdrawal of insurance
	contract reserve	—	—
	Dividend expenditure of insurance policy	—	—
	Reinsurance expense	—	—
	Taxes and surcharges	554,313.80	1,317,590.82
	Sales expenses	43,070,211.84	44,673,725.90
	Administration expenses	13,854,944.57	21,195,679.29
	Including: Entertainment
	expense	2,811,139.72	1,732,998.35
	Research and
	development
	expense	—	—
	Financial expenses	1,784,366.11	-18,139,404.78
	Including: Interest expense	33,593,576.79	8,209,804.05
	Interest income	34,828,778.14	32,132,683.44
	Net exchange
	losses (Net
	exchange gain is
	listed with “-”)	1,471,170.98	4,842,562.37

13

			Amount in the
		Amount	corresponding
Items		in this year	period of last year
	Losses of devaluation of asset	7,420,101.69	-9,752,361.15
	Others	—	—
	Add: Changing income of fair value
	(Loss is listed with “-”)	—	—
	Investment income (Loss is listed with “-”)	-1,206,782.04	-7,634,029.41
	Including: Investment income
	on aff liated company and
	joint venture	—	—
	Exchange income (Loss is listed with “-”)
**III. **	Operating prof t (Loss is listed with “-”)	69,720,942.61	89,638,037.83
	Add: Non-operating income	763.09	6,308.24
	Including: Gain on disposal of
	non-current asset	—	—
	Gain arising from the translation of
	non-monetary assets	—	—
	Governmental subsidy	—	—
	Gain on debts restructuring	—	—
	Less: Non-operating expense	501.31	115,811.68
	Including: Disposal loss of
	non-current asset	—	15,791.38
	Losses resulting from the
	translation of non-monetary
	assets	—	—
	Losses resulting from debts
	restructuring	—	—
**IV. **	Total Prof t (Loss is listed with “-”)	69,721,204.39	89,528,534.39
	Less: Income tax	18,140,166.04	22,382,883.59
V.	Net prof t (Net loss is listed with “-”)	51,581,038.35	67,145,650.80
	Net prof t attributable to owner’s equity of parent
	company (Not applicable)	—	—
	Minority shareholders’ gains and losses (Not
	applicable)	—	—
**VI. **	Earnings per share	—	—
	Basic earnings per share (Not applicable)	—	—
	Diluted earnings per share (Not applicable)	—	—
**VII. **	Other consolidated income	—	—

14

Amount in the Amount corresponding in this year period of last year

Items

**VIII. **	Total consolidated income	51,581,038.35	67,145,650.80
	Total consolidated income attributable to owners of
	parent company (Not applicable)	—	—
	Total consolidated income attributable to minority
	shareholders (Not applicable)	—	—

15

Consolidated Cash Flow Statement As at 31 March 2011

(All amounts in RMB unless otherwise stated)

Items I. Cash f ows arising from operating activities: Cash received from selling commodities and providing labor services Net increase of customer deposit and interbank deposit Net increase of loan from central bank Net increase of capital borrowed from other f nancial institution Cash received from original insurance contract fee Net cash received from reinsurance business Insured savings and net increase of investment Net increase of disposal of transaction f nancial asset Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Tax refund received Other cash received concerning operating activities Subtotal of cash inf ow arising from operating activities Cash paid for purchasing commodities and receiving labor service Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers

Amount in this year Amount in the corresponding period of last year 20,664,634,658.18 14,872,657,674.11 — — — — — — — — — — — — — — — — — — — — 90,904.98 202,386.37 1,262,433,202.01 473,215,056.68 21,927,158,765.17 15,346,075,117.16 21,710,170,218.13 15,299,943,878.48 — — — — — — — — — — 598,870,584.95 409,992,740.78

16

Amount in the Amount corresponding in this year period of last year

Items

Taxes paid Other cash paid concerning operating activities Subtotal of cash outf ow arising from operating activities Net cash f ows arising from operating activities II. Cash f ows arising from investing activities: Cash received from recovering investment Cash received from investment income Net cash received from disposal of f xed, intangible and other long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inf ow from investing activities Cash paid for purchasing f xed, intangible and other long-term assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units Other cash paid concerning investing activities Subtotal of cash outf ow from investing activities Net cash f ows arising from investing activities III. Cash f ows arising from f nancing activities Cash received from capital contribution Including: Cash received from absorbing minority shareholders’ investment by subsidiaries	530,382,748.95 1,626,761,990.18 24,466,185,542.21 -2,539,026,777.04 10,318,427.34 12,287,760.51 45,695,957.30 — 867,751.59 69,169,896.74 221,703,662.89 597,050,638.28 — -26,301,327.18 404,706,289.08 1,197,159,263.07 -1,127,989,366.33 136,130,000.00 136,130,000.00	273,549,361.06 852,526,871.62
		16,836,012,851.94
		-1,489,937,734.78
		— 5,196,770.00 5,179,816.50 — 8,267,952.60
		18,644,539.10
		934,206,949.39 219,681,853.78 — 11,337,750.63 54,009,419.59
		1,219,235,973.39
		-1,200,591,434.29
		9,000,000.00 9,000,000.00

17

Items Cash received from loans Cash received from issuing bonds Other cash received concerning f nancing activities Subtotal of cash inf ow from f nancing activities Cash paid for settling debts Cash paid for dividend and prof t distributing or interest paying Including: Dividend and prof t of minority shareholder paid by subsidiaries Other cash paid concerning f nancing activities Subtotal of cash outf ow from f nancing activities Net cash f ows arising from f nancing activities IV. Inf uence on cash due to f uctuation in exchange rate V. Net increase of cash and cash equivalents Add: Balance of cash and cash equivalents at the beginning of the period VI. Balance of cash and cash equivalents at the period-end

Amount in this year Amount in the corresponding period of last year 4,962,229,272.82 536,916,017.30 — — 344,197,526.64 521,205,812.27 5,442,556,799.46 1,067,121,829.57 1,756,711,852.08 584,865,503.85 125,918,013.05 45,583,934.75 — — 697,864,501.49 673,856,758.30 2,580,494,366.62 1,304,306,196.89 2,862,062,432.84 -237,184,367.33 — — -804,953,710.53 -2,927,713,536.40 8,206,796,116.33 10,680,968,483.05 7,401,842,405.80 7,753,254,946.65

18

Cash Flow Statement of Parent Company As at 31 March 2011

(All amounts in RMB unless otherwise stated)

Items I. Cash f ows arising from operating activities: Cash received from selling commodities and providing labor services Net increase of customer deposit and interbank deposit Net increase of loan from central bank Net increase of capital borrowed from other f nancial institution Cash received from original insurance contract fee Net cash received from reinsurance business Insured savings and net increase of investment Net increase of disposal of transaction f nancial asset Cash received from interest, commission charge and commission Net increase of capital borrowed Net increase of returned business capital Tax refund received Other cash received concerning operating activities Subtotal of cash inf ow arising from operating activities Cash paid for purchasing commodities and receiving labor service Net increase of customer loans and advances Net increase of deposits in central bank and interbank Cash paid for original insurance contract compensation Cash paid for interest, commission charge and commission Cash paid for bonus of guarantee slip Cash paid to/for staff and workers Taxes paid Other cash paid concerning operating activities

Amount in this year Amount in the corresponding period of last year 5,361,995,156.88 3,001,338,173.99 — — — — — — — — — — — — — — — — — — — — — — 419,904,712.62 207,534,709.34 5,781,899,869.50 3,208,872,883.33 5,506,500,964.47 3,443,846,072.88 — — — — — — — — — — 48,673,452.61 40,694,955.77 17,856,375.66 22,689,288.38 732,822,248.63 334,603,119.33

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Items Subtotal of cash outf ow arising from operating activities Net cash f ows arising from operating activities II. Cash f ows arising from investing activities: Cash received from recovering investment Cash received from investment income Net cash received from disposal of f xed, intangible and other long-term assets Net cash received from disposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inf ow from investing activities Cash paid for purchasing f xed, intangible and other long-term assets Cash paid for investment Net increase of mortgaged loans Net cash received from subsidiaries and other units Other cash paid concerning investing activities Subtotal of cash outf ow from investing activities Net cash f ows arising from investing activities III. Cash f ows arising from f nancing activities Cash received from capital contribution Including: Cash received from absorbing minority shareholders’ investment by subsidiaries Cash received from loans Cash received from issuing bonds Other cash received concerning f nancing activities Subtotal of cash inf ow from f nancing activities Cash paid for settling debts Cash paid for dividend and prof t distributing or interest paying

Amount in this year Amount in the corresponding period of last year 6,305,853,041.37 3,841,833,436.36 -523,953,171.87 -632,960,553.03 18,922,800.00 — 11,045,974.80 — — — — — 53,950,081.25 353,789,585.00 83,918,856.05 353,789,585.00 13,601,284.83 2,075,476.91 1,277,550,809.00 452,162,151.40 — — — — 100,000,000.00 400,000,000.00 1,391,152,093.83 854,237,628.31 -1,307,233,237.78 -500,448,043.31 — — — — 2,250,000,000.00 1,185,333,254.37 — — 5,850,556,730.30 532,991,595.40 8,100,556,730.30 1,718,324,849.77 650,000,000.00 419,443,011.41 30,673,305.58 7,126,734.34

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Amount in the Amount corresponding in this year period of last year

Items

Including: Dividend and prof t of minority shareholder paid by subsidiaries Other cash paid concerning f nancing activities Subtotal of cash outf ow from f nancing activities Net cash f ows arising from f nancing activities IV. Inf uence on cash due to f uctuation in exchange rate V. Net increase of cash and cash equivalents Add: Balance of cash and cash equivalents at the beginning of the period VI. Balance of cash and cash equivalents at the period-end	— 6,725,240,924.35 7,405,914,229.93 694,642,500.37 — -1,136,543,909.28 2,856,923,271.34 1,720,379,362.06	— 719,728,311.08
		1,146,298,056.83
		572,026,792.94
		— -561,381,803.40 4,177,981,967.04 3,616,600,163.64

VI. Balance of cash and cash equivalents at the period-end

By order of the Board of Sinopharm Group Co. Ltd. She Lulin Chairman

Shanghai, the PRC

3 May 2011

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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