Quarterly Results announcement form Name of listed company :Sino Biopharmaceutical Limited Stock code :8027 Year end date :31 December 2002 Important Note : This result announcement form only contains extracted information from and should be read in conjunction with the detailed results announcement of the issuer, which can be viewed on the GEM website at http://www.hkgem.com Currency: HK$'000 (Unaudited) (Unaudited) Quarterly Results Announcement Current Last Corresponding Period Period from 01/01/2002 from 01/01/2001 to 31/03/2002 to 31/03/2001 HK$'000 HK$'000 Turnover : 138,486 116,647 Profit/(Loss) from Operations : 28,468 28,906 Finance cost : -562 -343 Share of Profit/(Loss) of Associates : 0 0 Share of Profit/(Loss) of Jointly Controlled Entites : 0 0 Profit/(Loss) after Taxation & MI : 12,154 16,852 % Change Over the Last Period : -27.88 % EPS / (LPS) - Basic : HKD4.05Cents HKD5.62Cents - Diluted : HKD3.80Cents HKD5.47Cents Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 12,154 16,852 1st Q Dividend per Share : 0 0 (specify if with other options) : N/A N/A B/C Dates for 1st Q Dividend : N/A to N/A bdi. Payable Date : N/A B/C Dates for AGM/SGM : N/A to N/A bdi. Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A to N/A bdi. (bdi: both days inclusive) For and on behalf of Sino Biopharmaceutical Ltd Signature : Name : Wong Pui Shan Title :Company Secretary Responsibility statement The directors of the Company (the "Directors") as at the date hereof hereby collectively and individually accept full responsibility for the accuracy of the information contained in this results announcement form (the "Information") and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief the Information are accurate and complete in all material respects and not misleading and that there are no other matters the omission of which would make the Information herein inaccurate or misleading. The Directors acknowledge that the Stock Exchange has no responsibility whatsoever with regard to the Information and undertake to indemnify the Exchange against all liability incurred and all losses suffered by the Exchange in connection with or relating to the Information. Remark: (1) Basis of preparation The Group・s financial statements have been prepared in accordance with Hong Kong Statements of Standard Accounting Practice, accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for the periodic remeasurment of certain fixed assets. During the corresponding prior period, the Group adopted certain revised Statements of Standard Accounting Practices ("SSAPs"). To comply with these revised SSAPs, certain comparative figures for the quarter ended 31 March, 2001 have been restated. (2) Turnover Turnover represents the invoiced value of goods sold, net of discounts and returns and dividend income. All significant intra-group transactions have been eliminated on consolidation. The Group・s turnover arose from the following activities: For the three months ended 31 March, Unaudited Unaudited 2002 2001 HK$・000 HK$・000 (restated) Sales of goods 138,486 111,932 Dividend income - 4,715 ________ ________ Total 138,486 116,647 ======== ======== (3) Taxation For the three months ended 31 March, Unaudited Unaudited 2002 2001 HK$・000 HK$・000 Hong Kong - - PRC income tax 2,670 1,761 ________ ________ Total 2,670 1,761 ======== ======== No Hong Kong profits tax has been provided for in the three months ended 31 March, 2002 as there was no assessable profit arising in or derived from Hong Kong during the period.(2001:Nil) PRC income tax is provided at the rates applicable to enterprises in the PRC on the income for statutory reporting purposes, adjusted for income and expenses items which are not assessable or deductible for income tax purposes based on existing PRC income tax regulations, practices and interpretation thereof. Pursuant to the Income Tax Law of the PRC concerning Foreign Investment Enterprises and Foreign Enterprises and various local income tax laws (the "Income Tax Laws"), joint venture companies are subject to the statutory income tax rate of 33% (30% state income taxes plus 3% local income taxes) unless the enterprises is qualified as a "High and New Technology Enterprises" or located in specially designated regions or cities for which more favorable effective tax rates apply. The Group・s principal operating subsidiaries are qualified as "High and New Technology Enterprises" for which a preferential tax rate of 15% applies and are entitled to an income tax exemption for two years commencing from the first profitable year (after deducting losses carried forward), and a 50% reduction for the succeeding three years. As of 31 March, 2002, CTF and JCTT are subject to income tax rate of 10% and 7.5% respectively (2001: both CTF and JCTT: 7.5%). There are no material potential deferred tax liabilities for which provision has not been made (2001:Nil). (4) Dividends The Board does not recommend the payment of an interim dividend for the three months ended 31 March 2002. (2001: Nil) (5) Earnings per share The calculation of the basic earnings per share is based on profit from the ordinary activities attributable to shareholders for the three months ended 31 March, 2002 of HK$12,154,000(three months ended 31 March, 2001:HK$16,852,000) and the 300,000,000 (2001:300,000,000) ordinary shares in issued during the period. Diluted earnings per share for the period is based on 319,897,611 (2001:308,352,751) ordinary shares which is the weighted average number of ordinary shares in issue during the period plus the weighted average number of 19,897,611 (2001: 8,352,751) ordinary shares deemed to be issued at average fair value if all outstanding options had been exercised.