FUDANZHANGJIANG<08231> - Results Announcement (Q1, 2003, Summary)

Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. announced on 09/05/2003
(stock codes: Ord: 08231)

Year end date                         :31/12/2003
Currency                              :RMB
Auditors' report                      :N/A
Review of 1st Quarterly Report by     :Audit Committee

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

                                           (Unaudited)       (Unaudited)
                                           Current    Last Corresponding
                                           Period           Period
                                       from 01/01/2003   from 01/01/2002
                                         to 31/03/2003     to 31/03/2002
                                               RMB'000           RMB'000

Turnover                              :         1,352             3,831
Profit/(Loss) from Operations         :        (1,802)              443
Finance cost                          :             0                 0
Share of Profit/(Loss) of Associates  :             0               N/A
Share of Profit/(Loss) of Jointly
         Controlled Entites           :           N/A               N/A
Profit/(Loss) after Taxation & MI     :        (1,806)              328
% Change Over the Last Period         :           N/A
EPS / (LPS)
          Basic (in dollar)           :   RMB (0.0025)       RMB 0.0006
          Diluted (in dollar)         :           N/A               N/A
Extraordinary (ETD) Gain/(Loss)       :             0                 0
Profit (Loss) after ETD Items         :        (1,806)              328
1st Quarterly Dividends per Share     :            NIL              NIL
(specify if with other options)       :            N/A              N/A
B/C Dates for 1st Quarterly Dividends :            N/A
Payable Date                          :            N/A
B/C Dates for (-) General Meeting     :            N/A
Other Distribution for Current Period :            NIL
B/C Dates for Other Distribution      :            N/A
                                       

                                       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.

Remarks:

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 RMB 5,295,000 
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, including 18,000,000 H Shares converted from Domestic 
Shares. Therefore, the registered capital of the Company was 
increased to Rmb 71,000,000. 

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. Financial review

The Group is principally engaged in research, development and selling 
of in-house generated bio-pharmaceutical know-how, carrying out 
contracted research for customers, manufacturing and selling of 
diagnostic reagent and the provision of related ancillary services. 

The Groupˇ¦s consolidated turnover for the three months ended 31 March 
2003 amounted to Rmb1.3 million, compared to Rmb3.8 million for the 
corresponding period previous year. 

The shrink in turnover is mainly due to no technology transfer 
throughout the first quarter of 2003 whereas RMB2 millionˇ¦s 
technology transfer revenue was recognised the same period last year.

The total expenses of the Group for the three months ended 31 March
2003 was approximately RMB4.8 million, compared with RMB5.9 million
for the corresponding period in 2002. The curtailment was mainly 
attributed to the decrease of cost of sales.

The Group recorded a loss attributable to shareholders of 
approximately RMB1.8 million for the three months ended 31 March 
2003, compared with a profit attributable to shareholders of 
approximately RMB0.3 million for the corresponding period in 2002. 
The decline was mainly due to the decrease of technology transfer 
revenue as mentioned above. However, the Directors are of the opinion 
that with the commercialization of the Groupˇ¦s self-developed 
bio-pharmaceutical drugs and other R&D projects in 
progress, the revenue and the operating result will grow substantially

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 as it has no taxable income for the 
three months ended 31 March 2003(2002: Nil). 

4. Loss/(earnings) per share

The calculation of the loss/(earnings) per share for the three months 
ended 31 March 2003 and 31 March 2002 were based on the unaudited 
loss of approximately RMB1.8million (three months ended 31 March 
2002: profit attributable to shareholders of approximately RMB0.33 
million) and the weighted average of 710,000,000 shares (three months 
ended 31 March 2002: 530,000,000 shares) in issue during the three 
months ended 31 March 2003.

Diluted loss/(earnings) per share have not been calculated for the 
three months ended 31 March 2002 and 2003 respectively as there were 
no dilutive potential ordinary shares during those periods.