08:35     SHANDONG XINHUA<00719> - Results Announcement                       

    Shandong Xinhua Pharmaceutical Company Limited announced on 24/03/2005:   
    (stock code: 00719 )                                                      
    Year end date: 31/12/2004                                                 
    Currency: RMB                                                             
    Auditors' Report: Unqualified                                             
                                                            (Audited   )      
                                         (Audited   )       Last              
                                         Current            Corresponding     
                                         Period             Period            
                                         from 01/01/2004    from 01/01/2003   
                                         to 31/12/2004      to 31/12/2003     
                                   Note  ('000      )       ('000      )      
    Turnover                           : 1,524,409          1,341,788         
    Profit/(Loss) from Operations      : (35,030)           75,925            
    Finance cost                       : (15,384)           (14,018)          
    Share of Profit/(Loss) of                                                 
      Associates                       : (1,938)            N/A               
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : N/A                N/A               
    Profit/(Loss) after Tax & MI       : (52,485)           51,794            
    % Change over Last Period          : N/A       %                          
    EPS/(LPS)-Basic (in dollars)       : (0.115)            0.113             
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : (52,485)           51,794            
    Final Dividend                     : NIL                RMB0.04           
      per Share                                                               
    (Specify if with other             : N/A                N/A               
      options)                                                                
    B/C Dates for                                                             
      Final Dividend                   : N/A                                  
    Payable Date                       : N/A                                  
    B/C Dates for Annual                                                      
      General Meeting                  : To Be Announced                      
    Other Distribution for             : N/A                                  
      Current Period                                                          
    B/C Dates for Other                                                       
      Distribution                     : N/A                                  
                                                                              
    Remarks:                                                                  
    1. Basis of preparation                                                   
                                                                              
    The accounts have been prepared in accordance with accounting principles  
    generally accepted in Hong Kong and comply with accounting standards      
    issued by the Hong Kong Institute of Certified Public Accountants         
    ("HKICPA").  They have been prepared under the historical cost convention 
    except that, as disclosed in the accounting policies below, property,     
    plant and equipment are stated at valuation.                              
                                                                              
    HKICPA has issued a number of new and revised Hong Kong Financial         
    Reporting Standards and Hong Kong Accounting Standards ("new HKFRSs")     
    which are effective for accounting periods beginning on or after 1st      
    January 2005.  The Group has not early adopted these new HKFRSs in the    
    accounts for the year ended 31st December 2004.  The Group has already    
    commenced an assessment of the impact of these new HKFRSs but is not yet  
    in a position to state whether these new HKFRSs would have a significant  
    impact on its results of operations and financial position.               
                                                                              
    2. Turnover and loss from operating activities                            
                                                                              
    The turnover and loss from operating activities of approximately          
    RMB1,524,409,000 (2003: RMB1,341,788,000)and RMB35,030,000                
    (2003: profit of RMB75,925,000), respectively, were all generated from    
    continuing operations.                                                    
                                                                              
    3. Finance costs                                                          
                                                        2004           2003   
                                                     RMB'000        RMB'000   
    Interest on bank loans                            15,384         14,824   
    Less: government subsidies                             -           (806)  
                                                ------------    ------------  
                                                      15,384         14,018   
                                                ============   ============   
                                                                              
    4. Dividends                                                              
                                                        2004            2003  
                                                     RMB'000         RMB'000  
    Final, proposed of RMBNil (2003: RMB0.04) per                             
    share on 307,312,830 (2003: 307,312,830) A                                
    shares and 150,000,000 (2003: 150,000,000)                                
    H shares                                               -          18,293  
                                                 ============   ============  
                                                                              
    5. (Loss)/earnings per share                                              
                                                                              
    The calculation of basic (loss)/earnings per share is based on the Group's
    loss attributable to shareholders of RMB52,485,000 (2003: profit of       
    RMB51,794,000) and based on the weighted average of 457,312,830           
    (2003: 457,312,830) shares in issue during the year.                      
                                                                              
    There was no dilution effect on the basic (loss)/earnings per share for   
    the year ended 31st December 2004 and 2003 as there were no dilutive      
    shares outstanding during the years ended 31st December 2004 and 2003.    
                                                                              
    For more details, please refer to the press announcement today.