09:08     EVERPRIDE PHAR<08019> - Quarterly Results Announcement (2)          

                                                                              
    2. Turnover and segment information                                       
                                                                              
       The Company is an investment holding company and the Group             
       is principally engaged in the manufacture and sales of                 
       medicines in Mainland China.                                           
                                                                              
       Turnover represents the sales value of goods supplied to               
       customers (which excludes value added tax) and is stated               
       after deduction of all goods returns and trade discounts.              
                                                                              
       Segment information is presented in respect of the Group's             
       business and geographical segments. Business segment                   
       information is chosen as the primary reporting format                  
       because this is more relevant to the Group in making                   
       operating and financial decisions.                                     
                                                                              
       (a) Business segment                                                   
                                                                              
           Throughout the Period, the Group has been operating                
           in a single business segment, i.e. the manufacture                 
           and sales of medicines. Accordingly, no business                   
           segment information is presented.                                  
                                                                              
       (b) Geographical segment                                               
                                                                              
           As the Group's revenue and results were substantially              
           derived from Mainland China and its operating assets               
           and liabilities are also based in Mainland China,                  
           no geographical segment information is presented.                  
                                                                              
    3. Taxation                                                               
                                                                              
       a. The Company is exempted from taxation in the Cayman Islands         
       until 2020. Its subsidiaries established in the British Virgin         
       Islands are incorporated under the International Business              
       Companies Acts of the British Virgin Islands and, accordingly,         
       are exempted from payment of the British Virgin Islands                
       income taxes.                                                          
                                                                              
       b. No provision for Hong Kong profits tax has been made as             
          the Group had no estimated assessable profit in Hong Kong           
          during the Period.                                                  
                                                                              
                                                                              
       c. Shanxi Everpride Pharmaceutical Co., Ltd. ("Shanxi Everpride"),     
          a wholly-owned subsidiary established and operating in Shanxi       
          Province, Mainland China, is subject to Mainland China              
          enterprise income tax at a rate of 33% (state income tax:           
          30% and local income tax: 3%). However, it is exempted from         
          state income tax and local income tax for two years starting        
          from the first year of profitable operations after offsetting       
          prior years' losses, followed by a 50% reduction on the state       
          income tax for the next three years. The tax exemption period       
          of Shanxi Everpride expired on 31 December 2000 and it is           
          subject to Mainland China enterprise income tax at an effective     
          rate of 18% from 1 January 2001 to 31 December 2003. No provision   
          for Mainland China enterprise income tax has been made as Shanxi    
          Everpride had prior years' losses brought forward to offset the     
          estimated assessable profit in Mainland China during the Period.    
                                                                              
    4. (Loss) / earnings per share                                            
       The calculation of basic (loss)/ earnings per share is based on        
       the loss attributable to shareholders of approximately                 
       RMB 1,286,000 (2004: profit of approximately RMB 1,439,000)            
       and on the weighted average number of 600,000,000                      
       (2004: 600,000,000) ordinary shares in issue during the Period.        
                                                                              
       Diluted (loss)/ earnings per share for the three months ended          
       31 March 2005 and 2004 are not presented as there were no              
       dilutive potential ordinary shares in existence during both            
       periods.                                                               
                                                                              
    5. Reserves                                                               
                                                                              
       There were no movements in reserves of the Group during the            
       Period other than loss attributable to shareholders of                 
       approximately RMBl,286,000 (2004: profit of approximately              
       RMB 1,439,000).                                                        
                                                                              
    6. Dividend                                                               
                                                                              
       The Directors do not recommend the payment of any interim              
       dividend for the Period (2004: Nil).