Quarterly Results announcement form Name of listed company :Shanghai Fudan Zhangjiang Bio-Pharmaceutical Co., Ltd. Stock code :8231 Year end date :31/12/2002 Auditors' report : Modified Qualified Unqualified X N/A Important Note : This result announcement form only contains extracted information from and should be read in conjunction with the detailed results announcement of the issuer, which can be viewed on the GEM website at http://www.hkgem.com Currency: RMB$'000 (Unaudited) (Unaudited) Quarterly Results Announcement Current Last Corresponding Period Period from 01/01/2002 from 01/01/2001 to 30/06/2002 to 30/06/2001 RMB$'000 RMB$'000 Turnover : 11,290 3,227 Profit/(Loss) from Operations : 1,068 -2,291 Finance cost : 0 0 Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entites : N/A N/A Profit/(Loss) after Taxation & MI : 1,082 -1,919 % Change Over the Last Period : N/A % EPS / (LPS) - Basic : RMB0.0020 RMB-0.0036 - Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 1,082 -1,919 2nd Q Dividend per Share : NIL NIL (specify if with other options) : N/A N/A B/C Dates for 2nd Q Dividend : N/A to N/A bdi. Payable Date : N/A B/C Dates for AGM/SGM : N/A to N/A bdi. Other Distribution for Current Period : NIL B/C Dates for Other Distribution : N/A to N/A bdi. (bdi: both days inclusive) For and on behalf of Shanghai Fudan Zhangjiang Bio-Pharmaceutical Co., Ltd. Signature : Name : Xu Yunlan Title :Company Secretary Responsibility statement The directors of the Company (the "Directors") as at the date hereof hereby collectively and individually accept full responsibility for the accuracy of the information contained in this results announcement form (the "Information") and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief the Information are accurate and complete in all material respects and not misleading and that there are no other matters the omission of which would make the Information herein inaccurate or misleading. The Directors acknowledge that the Stock Exchange has no responsibility whatsoever with regard to the Information and undertake to indemnify the Exchange against all liability incurred and all losses suffered by the Exchange in connection with or relating to the Information. Remark: 1. General Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. was established in the PRC on 11 November, 1996 as a limited liability company with an initial registered capital of RMB5,295,000. Pursuant to a series of capital injections on 10 November, 1997, 11 May, 2000, and 12 September, 2000 from the existing or the then existing shareholders of the Company and the capitalisation of reserves of the Company on 11 December, 1997 and 20 October, 2000, the registered capital of the Company was increased from RMB5,295,000 to RMB53,000,000. On 8 November, 2000, the Company was transformed into a joint stock company with limited liability. On 20 January, 2002, all of the shares of the Company, being 53,000,000 ordinary shares with a par value of RMB1.00 each, were subdivided into 530,000,000 ordinary shares with a par value of RMB0.10 each. On 13 August, 2002, the Company commenced the trading of the newly issued 198,000,000 ordinary shares of Rmb0.1 each on the GEM of the Stock Exchange. As at the date of this report, the Company has a direct interest of 62.5% in a subsidiary, Shanghai Morgan-Tan International Center for Life Sciences, Co., Ltd. 2. Turnover & business segemental information The Group are principally engaged in research, development and selling of self-developed bio-pharmaceutical know-how, carrying out contracted research for customers, and manufacturing and selling of diagnostic reagent and the provision of related ancillary services. Unaudited Unaudited Six months ended Six months ended 30 June, 2002 30 June, 2001 Research Sales of Total Research Sales of Total and diagnostic and diagnostic development reagent development reagent activities and the activities and the provision provision of of related related ancillary ancillary services services RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 Turnover 7,000 4,290 11,290 - 3,227 3,227 Segment profit/ (loss) 2,515 344 2,859 (1,419) 198 (1,221) Unallocated income 536 1,261 Unallocated costs (2,327) (2,331) Profit/ (loss) before taxation 1,068 (2,291) Taxation (charge)/ credit (184) 338 Profit/ (loss) after taxation 884 (1,953) Minority interests 198 34 Profit/ (loss) attributable to shareholders 1,082 (1,919) 3 Taxation The Company is subject to the Income Tax of the PRC and the normal income tax rate applicable is 33%. As the Company is recognised as a New and High Technology Enterprise, it is entitled to a reduced Income Tax rate of 15%. Accordingly, the Company is subject to Income Tax at a rate of 15%. The subsidiary is subject to the Income Tax Law of the PRC and the income tax rate applicable is 33%. No provision for income tax has been made for the subsidiary for the three months and six months respectively ended 30 June, 2002 and the corresponding periods as it has no taxable income. 4 Earning per share The calculation of the earnings/(loss) per share for the three months ended 30 June, 2002 was based on the unaudited profit/(loss) attributable to shareholders of approximately RMB1,410,000 (2001: loss of RMB2,022,000) and the weighted average of 530,000,000 shares in issue during the three months ended 30 June, 2002 as if the sub-division of the Company's shares as described in note 1 to the accounts had taken place at the beginning of the periods. The calculation of the earnings/(loss) per share for the six months ended 30 June, 2002 was based on the unaudited profit/(loss) attributable to shareholders of approximately RMB1,082,000 (2001: loss of RMB1,919,000) and the weighted average of 530,000,000 shares in issue during the six months ended 30 June, 2002 as if the sub-division of the Company's shares as described in note 1 to the accounts had taken place at the beginning of the periods. Diluted earnings/(loss) per share has not been calculated for the three months and six months respectively ended 30 June, 2002 and the corresponding periods as there were no dilutive potential ordinary shares during the periods.