10:05     SHANDONG XINHUA<00719> - Announcement (6)                           

    "Hong Kong" Hong Kong Special Administrative Region of the PRC            
                                                                              
    "HK$" Hong Kong dollars, the lawful currency of Hong Kong                 
                                                                              
    "Independent Board  the independent board committee of the Company        
    constituted                                                               
    Committee" for the purpose of the Ongoing Connected Transactions,         
    comprising four independent non-executive directors                       
                                                                              
    "Independent  shareholders of the Company other than SXPGC and its        
    Shareholders" respective associates (as defined in the Listing Rules)     
                                                                              
    "Listing Rules" the Rules Governing the Listing of Securities on the      
    Stock Exchange                                                            
                                                                              
    "Ongoing Connected  the connected transactions entered into between       
    the Company                                                               
    Transactions" and SXPGC on a continuing basis pursuant to the terms of    
    the SXPGC Agreements                                                      
                                                                              
    "PRC" or "China" the People's Republic of China                           
                                                                              
    "RMB" or "Renminbi" Renminbi, the lawful currency of the PRC for the      
    time being                                                                
                                                                              
    "Stock Exchange" The Stock Exchange of Hong Kong Limited                  
                                                                              
    "SXPGC" * (Shandong Xinhua Pharmaceutical                                 
    Group Company Limited), a wholly-state owned company which holds and      
    owns 46.89% of the total issued share capital of the Company and is       
    currently the largest shareholder of the Company                          
                                                                              
    "SXPGC Agreements" the 2002 Agreement, and the Trademark Licence          
    Agreement;                                                                
                                                                              
    "Trademark Licence  the trademark licence agreement entered into          
    between the                                                               
    Agreement" Company and SXPGC on 7th December, 1996;                       
                                                                              
    By Order of the Board                                                     
    Shandong Xinhua Pharmaceutical Company Limited                            
    Mr. He Duanshi                                                            
    Chairman                                                                  
                                                                              
    Zibo, Shandong PRC, 20 April 2005                                         
                                                                              
    As at the date hereof, the executive Directors of the Company are Mr.     
    He Duanshi, Mr. Lu Shengmin, Mr. Liu Congde, Ms. Guo Qin, and Mr. Gao     
    Qinggang; and the independent non-executive directors are Mr. Dai Qingjun,
    Mr. Xiao Yu, Mr. Sun Hua and Mr. Stephen Mok.                             
                                                                              
    * For the Chinese name, please refer to the press announcement today.