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. |