Quarterly Results announcement form Name of listed company :CHANGCHUN DA XING PHARMACEUTICAL CO. LTD. Stock code :8067 Year end date :31/12/2002 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: RMB'000 (Unaudited) (Unaudited) Quarterly Results Announcement Current Last Corresponding Period Period from 01/01/2002 from 01/01/2001 to 30/06/2002 to 30/6/2001 RMB'000 RMB'000 Turnover : 38,493 29,452 Profit/(Loss) from Operations : 23,501 12,584 Finance cost : -223 -540 Share of Profit/(Loss) of Associates : 0 0 Share of Profit/(Loss) of Jointly Controlled Entites : 0 0 Profit/(Loss) after Taxation & MI : 20,075 9,726 % Change Over the Last Period : 106.41 % EPS / (LPS) - Basic : 5.0 cents 2.4 cents - Diluted : 5.0 cents N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 20,075 9,726 2nd Q Dividend per Share : Nil Nil (specify if with other options) : N/A N/A B/C Dates for 2nd 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 : Nil B/C Dates for Other Distribution : N/A to N/A bdi. (bdi: both days inclusive) For and on behalf of CHANGCHUN DA XING PHARMACEUTICAL COMPANY LIMITED Signature : Name : Patrick Yau Title :Qualified Accountant 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 presentation The Company was incorporated as a joint stock limited company in the People's Republic of China ("PRC") on 27 December 1993 under the provisions of the PRC Company Law. The Company's H shares were listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited on 28 June 2002. The Company is principally engaged in the manufacture and sale of medicine in the PRC. The principal accounting policies adopted in preparing the unaudited results conform with accounting standards issued by the Hong Kong Society of Accountants. 2.Turnover Turnover represents the invoiced value of goods sold, net of value-added tax, trade discounts and returns. 3. Taxation Six months ended 30 June 2002 2001 RMB'000 RMB'000 Hong Kong 0 0 PRC 3,203 2,318 ------- ------- Tax charge for the period 3,203 2,318 ======= ======== The PRC income tax is computed according to the relevant laws and regulations in the PRC. The applicable income tax rate was 15% (2001:15%). 4. Earnings per share The calculation of basic earnings per share is based on the unaudited net profit attributable to shareholders for the six months ended 30 June 2002 of approximately RMB 20,075,000 (2001: RMB 9,726,000) and on the weighted average of 402,320,442 shares in issue during the period ended 30 June 2002 (2001: 400,000,000 shares) The calculation of diluted earnings per share is based on the unaudited net profit attributable to shareholders for the six months ended 30 June 2002 and on the weighted average of 403,480,663 shares in issue during the period. No dilutive earnings per share is shown for the six months ended 30 June 2002 as there were no diluive potentail shares. 5. Interim dividend The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2002 (2001: nil)