09:06     VENTUREPHARM<08225> - Quarterly Results Announcement (2)            

    The accounts have been prepared on a consolidated basis and include       
    the financial statements of the Company and its subsidiaries.             
    All inter-company transactions, balances and unrealized gains             
    on transactions eliminated.                                               
                                                                              
    2. Turnover and revenue                                                   
                                                                              
    The Group is principally engaged in the research, development             
    and commercialization of drug products.                                   
                                                                              
    Revenues recognized during the periods were as follows:                   
                                               three months ended 31 March    
                                                  2005             2004       
                                                RMB'000          RMB'000      
    Transfer of technology for new drug            1,710              350     
    and new drug development                                                  
    Contracted pharmaceutical development          3,419            2,047     
    and clinical research services associated                                 
    with technology transfer                                                  
    Contracted pharmaceutical development          1,882            1,280     
    and clinical research services                                            
    outsourced by customers                                                   
    Import registration services                     170                0     
    Royalty income                                   264                0     
    Active pharmaceutical ingredient                  43                0     
                                                  --------         --------   
                                                   7,488            3,677     
                                                  ========       ========     
    3. Taxation                                                               
                                                                              
    No Hong Kong Profits Tax has been provided for, as the Group had no       
    estimated assessable profits in Hong Kong for the three months ended      
    31 March 2005 (2004: nil). The Company's subsidiaries are subject to      
    PRC income tax on their assessable profits.                               
                                                                              
    4. Earning per share                                                      
                                                                              
    The calculation of basic earnings per share for the three months          
    ended 31 March 2005 is based on the unaudited net profit of               
    approximately RMB700,603 , and the weighted average                       
    number of approximately 360,000,000 ordinary shares in issue              
    during the period.                                                        
                                                                              
    The calculation of the diluted earnings per share for the three           
    months ended 31 March 2005 is based on the unaudited net profit           
    of approximately RMB700,603 and the weighted average of 363,635,815       
    shares (after adjusting for the effect of the outstanding dilutive        
    options of 3,635,815 shares under the share option schemes of             
    the Company).                                                             
                                                                              
    The calculation of basic earnings per share for the three months ended    
    31 March 2004 is based on the unaudited net prof it of approximately      
    RMB734,000, and the weighted average number of approximately              
    360,000,000 ordinary shares in issue during the period.                   
                                                                              
    The calculation of the diluted earnings per share for the three months    
    ended 31 March 2004 is based on the unaudited net profit of               
    approximately RMB734,000 and the weighted average of 363,008,000 shares   
    (after adjusting for the effect of the outstanding dilutive options       
    of 3,008,000 shares under the share option schemes of the Company).