09:47     WEIGAO GROUP<08199> - Quarterly Results Announcement (2)            

                                                                              
    All significant intra-group transactions and balances have                
    been eliminated upon consolidation.                                       
                                                                              
    2. Turnover                                                               
                                                                              
    Turnover represents the amounts received and receivable from              
    the Group's goods sold to external customers, net of sales tax            
    and returns during the period.                                            
                                                                              
    3. Taxation                                                               
                                                                              
    Income taxes were verified and calculated on accrual basis.               
    Income taxes are calculated on the basis of the assessable                
    income computed in accordance with the relevant tax laws from             
    the accounting income of this period, after making corresponding          
    adjustment.                                                               
                                                                              
    The Company was listed on GEM in Hong Kong on 27th February 2004.         
    264,500,000 H Shares were issued, representing 30.6% of the total         
    registered capital. Upon the approval obtained from the Ministry          
    of Commerce of the PRC in July 2004, the Company was approved as          
    a foreign invested enterprise. According to the tax laws and              
    regulations in the PRC, the Company was entitled to the                   
    preferential tax treatment of exemption for the first two years           
    and 50% reduction for three years thereafter, commencing from 1st         
    July 2004. Therefore, no income tax is payable for the quarter.           
                                                                              
    According to the "Notice of Recognition of Weihai Jierui Medical          
    Products Company Limited as a Social Welfare Entity" Lu Min Han           
    1999 No. 25 issued by the Civil Administration Bureau of the              
    Shangdong Province, it was confirmed that Weihai Jierui Medical           
    Products Company Limited ("Jierui Subsidiary") was entitled to the        
    preferential tax treatment for a social welfare enterprise.               
    Jierui Subsidiary has applied to the Torch Hi-tech Industrial             
    Development Zone sub-bureau of Weihai Local Tax Bureau for                
    exemption of enterprise income tax ("EIT") for the previous year.         
                                                                              
    Weihai Weigao Blood Purified Product Co., Ltd.                            
    is subject to an EIT rate of 33%.                                         
                                                                              
    Under the approval document Shen He Guo Shui Deng Zi (2005)               
    No. 0049 "Notice of Tax Reduction and Exemption Approval" issued          
    by Shenyang State Tax Bureau Shenhe Branch, Shenyang Weigao Jinbao        
    Trading Co., Ltd. is exempted from EIT in 2005.                           
                                                                              
    4. Dividend                                                               
                                                                              
    The Directors do not recommend distribution of interim dividend           
    for the three months ended 31st March 2005 (2004: Nil).                   
                                                                              
    5. Earnings per share                                                     
                                                                              
    Basic earnings per share for the three months ended 31st March 2005       
    was calculated based on net profit attributable to shareholders of        
    RMB16,562,000 (corresponding period in 2004: RMB12,155,000)               
    and the weighted average total number of shares of                        
    864,500,000 shares (corresponding period in 2004: 688,166,667 shares).