09:09     FUDANZHANGJIANG<08231> - Quarterly Results Announcement (2)         

                                                                              
    Of the total turnover of the Group for the first quarter of 2005,         
    approximately RMB3,219,000 (or 73% of total turnover) was derived from    
    the sale of medical diagnostic products and the provision of related      
    ancillary services, and RMB1,200,000 (or 27% of total turnover)           
    represented the income of technology transfer. In contrast, out of        
    the total turnover for the same period last year, RMB2,760,000 (or        
    93% of total turnover) came from the sales of medical diagnostic          
    products, and RMB200,000 (or 7% of total turnover) represented the        
    income of technology transfer.                                            
                                                                              
    Comparing with the correspondent period last year, turnover of the        
    Group for the first quarter 2005 enhanced by 49%, of which, sales of      
    the diagnostic products raised by 17% over that of last year. This        
    is because the new product, Down's Syndrome antenatal screening system    
    launched by the Group, has accomplished initial market entry wherein      
    some sales revenues have been realized, and has been gradually stepping   
    into its growth stage. Besides, pursuant to the contract entered into     
    by Shanghai Morgan-Tan International Center for Life Sciences, Co.,       
    Ltd. ("Morgan-Tan"), a subsidiary of the Group, to transfer the           
    technology Mycophenolate Mofetil to a pharmaceutical company based        
     in Shandong, the economic benefits flowed into the Group as a result     
    of the completion of certain stages of the contract amounted to           
    RMB1,200,000 was also recognized within the period under review.          
                                                                              
    Cost of sales of the Group for the three months ended 31 March 2005       
    amounted to approximately RMB3,858,000, compared to RMB2,072,000 for      
    the same period in 2004. The increase in cost of sales was mainly caused  
    by the increased expenditure on product quality control, with an aim      
    to safeguard company image, so as to obtain a bigger market share for     
    the products in the future.                                               
                                                                              
    Operating loss of the Group within the period under review was            
    approximately RMB5,540,000, whereas the figure for the corresponding      
    period last year was 4,262,000. The reasons for the increased loss        
    are, in addition to the above mentioned risen cost of sales, research     
    and development (R&D) costs and distribution costs have also increased    
    by 13% and 113 respectively over those of the same period of last year.   
    The new aggressive marketing strategy calls for more resources to be      
    devoted into market expansion and sales team sustaining, resulting        
    in an increase of the distribution costs. On the other hand, efficient    
    control has reduced the administrative expenses by 29% from that of       
    the same period last year.                                                
                                                                              
    For the three months ended 31 March 2005, the Group recorded a loss       
    attributable to shareholders of approximately RMB4,950,000, compared      
    to a loss of approximately RMB4,098,000 for the same period in 2004.      
                                                                              
    3. Loss per share                                                         
                                                                              
    The calculation of the loss per share for the three months ended 31       
    March 2005 was based on the unaudited loss of approximately               
    RMB4,950,000 (unaudited loss attributable to shareholders for the         
    three months ended 31 March 2004 of approximately RMB4,098,000) and       
    total shares issued of 710,000,000 shares as at 31 March 2005 (as at      
    31 March 2004: 710,000,000 shares).                                       
                                                                              
    Diluted loss per share has not been calculated for the three months       
    ended 31 March 2005 and 31 March 2004 as there were no dilutive potential 
    ordinary shares during those periods.