Quarterly Results announcement form Name of listed company :Sino Biopharmaceutical Limited Stock code :8027 Year end date :31 December 2002 Auditors' report : Modified Qualified Unqualified X N/A 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$'000 (Unaudited) (Unaudited) Quarterly Results Announcement Current Last Corresponding Period Period from 01/01/2002 from 01/01/2001 to 30/06/2002 to 30/06/2001 HK$'000 HK$'000 Turnover : 310,616 252,621 Profit/(Loss) from Operations : 74,084 60,786 Finance cost : -752 -1,168 Share of Profit/(Loss) of Associates : 0 0 Share of Profit/(Loss) of Jointly Controlled Entites : 0 0 Profit/(Loss) after Taxation & MI : 34,389 32,973 % Change Over the Last Period : 4.29 % EPS / (LPS) - Basic : 11.5cents 11.0cents - Diluted : 10.8cents 10.5cents Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 34,389 32,973 2nd Q Dividend per Share : 5.0cents 4.0cents (specify if with other options) : N/A N/A B/C Dates for 2nd Q Dividend : 22/08/2002 to 26/08/2002 bdi. Payable Date : 02/09/2002 B/C Dates for AGM/SGM : N/A to N/A bdi. Other Distribution for Current Period: NIL B/C Dates for Other Distribution : N/A to N/A bdi. (bdi: both days inclusive) For and on behalf of Sino Biopharmaceutical Limited 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. Remarks: (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. (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 Groupˇ¦s turnover arose from the following activities: 2002 2001 HK$'000 HK$'000 Sales of goods 310,616 247,906 Dividend income - 4,715 ________ ________ 310,616. 252,621 ======== ======== (3) Taxation 2002 2001 HK$'000 HK$'000 Hong Kong - - PRC income tax 6,746 4,281 ________ ________ 6,746 4,281 ======== ======== No Hong Kong profits tax has been provided for the six months ended 30 June, 2002 as there was no assessable profit arising in or derived from Hong Kong During the year.(2001:Nil) PRC income tax is provided as 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 per cent. (30 per cent state income taxes plus 3 per cent. local income taxes) unless the enterprises is qualified as an "Advanced Technology Enterprises" or located in specially designed regions or cities for which more favorable effective tax rates apply. The Groupˇ¦s principal operating subsidiaries are qualified "Advanced Technology Enterprise" for which preferential tax rate of 15 per cent. 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 per cent. reduction for the succeeding three years. As of 30 June,2002, JCTT and CTF are subject to income tax rate of 7.5% and 10% respectively (2001 JCTT and CTF:7.5%). There are no significant potential deferred tax liabilities for which provision has not been made. (4) Dividends The Board of Directors recommended an interim dividend of HK$5.0 cents per ordinary shares for the six months ended 30 June 2002. The dividend will be paid to shareholders whose names appeared on the Register of Members of the Company on 26 August 2002(Monday). Register of the members of the Company will be closed from 22 August 2002(Thrusday) to 26 August 2002(Monday) both days inclusive during which period no transfer of share will be effective. In order to qualify for the interim dividend, all transfers accompanied by relevant share certificates must be lodged with the Companyˇ¦s branch share registrar, Tengis Limited, 4th Floor, Hutchison House, 10 Harcourt Road, Central, Hong Kong by 4:00pm on 21 August 2002 (Wednesday). (5) Earnings per share The calculation of the basic earnings per share is based on profit from the ordinary activities attributable to shareholders for the three months and the six months ended 30 June, 2002 of HK$ HK$22,235,000 (2001:HK$16,121,000) and HK$34,389,000 (2001: HK$32,973,000) respectively and the 300,000,000 (2001: 300,000,000 shares) ordinary shares in issue during the respectively periods. Diluted earnings per share for the three months and six months ended 30 June, 2002 is based on 300,000,000 ordinary shares which is the weighted average number of ordinary shares in issue during the period plus the weighted average number of 19,793,103 shares (2001: 16,706,587 shares) and 19,844,465 shares (2001: 13,480,663 shares) deemed to be issued at average fair value if all outstanding options had been exercised during the respective periods.