CSPC Pharmaceutical : UNAUDITED RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016

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CSPC PharmaCeutiCal GrouP limited

石 藥 集 團 有 限 公 司

(Incorporated in Hong Kong under the Companies Ordinance)

(Stock code: 1093) QuarterlY reSultS For the NiNe moNthS eNded 30 SePtemBer 2016 FiNaNCial hiGhliGhtS For the nine months ended 30 September 2016 2015

Change in %

Change in % excluding foreign currency effects

HK$'000 HK$'000 (Note)

(unaudited) (Unaudited)

Revenue by business units: Finished drugs

Innovative drugs	3,506,071	2,728,471	28.5%	35.2%
Common generic drugs	3,126,321	3,014,394	3.7%	9.1%
Bulk drugs
Antibiotics	1,020,182	1,342,536	-24.0%	-20.0%
Vitamin C	1,020,580	908,569	12.3%	18.2%
Caffeine and others	577,230	508,986	13.4%	19.3%
Total revenue	9,250,384	8,502,956	8.8%	14.5%
Gross profit	4,640,768	3,856,836	20.3%	26.6%
Operating profit	1,985,901	1,620,847	22.5%	28.9%
Profit attributable to shareholders	1,567,758	1,243,093	26.1%	32.7%
Note: Majority of the Group's sales are	conducted in the PRC	and are denominated	in Renminbi.	Results stated on	a

constant currency basis are calculated by applying the average exchange rate of the same period in the prior year to current period local currency results.

reSultS

The Board of Directors of CSPC Pharmaceutical Group Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the nine months ended 30 September 2016 as follows:

CoNSolidated StatemeNt oF ProFit or loSS aNd other ComPreheNSive iNCome

For the nine months ended 30 September 2016

2016 HK$'000 (unaudited)	2015 HK$'000 (Unaudited)
Revenue	9,250,384	8,502,956
Cost of sales	(4,609,616)	(4,646,120)
Gross profit	4,640,768	3,856,836
Other income	62,502	75,127
Selling and distribution expenses	(2,010,784)	(1,659,165)
Administrative expenses	(419,429)	(403,695)
Other expenses	(287,156)	(248,256)
Operating profit	1,985,901	1,620,847
Finance costs	(33,125)	(42,756)
Loss on disposal of an associate Share of results of - a joint venture	- 20,474	(8,873) 7,028
- an associate	-	141
Profit before tax	1,973,250	1,576,387
Income tax expenses	(395,714)	(321,457)
Profit for the period	1,577,536	1,254,930

For the nine months ended 30 September

2016 HK$'000 (unaudited)		2015 HK$'000 (Unaudited)
other comprehensive expense: Items that will not be reclassified to profit or loss:
Exchange differences arising on translation of financial statements to presentation currency	(282,142)		(225,140)
Share of exchange differences of a joint venture	(932)		(572)
Other comprehensive expense for the period, net of income tax	(283,074)		(225,712)
Total comprehensive income for the period	1,294,462		1,029,218
Profit for the period attributable to:
Owners of the Company	1,567,758	1,243,093
Non-controlling interests	9,778	11,837

For the nine months ended 30 September

Total comprehensive income for the period attributable to:

1,577,536 1,254,930

Owners of the Company	1,286,822	1,019,453
Non-controlling interests	7,640	9,765

1,294,462 1,029,218

Earnings per share

HK cents HK cents

- Basic 26.44 21.04

- Diluted 26.20 20.81

Notes:

1. Principal accounting Policies

   The principal accounting policies used in the preparation of the financial date for the nine months ended 30 September 2016 are consistent with those followed in the preparation of the Group's interim financial statements for the six months ended 30 June 2016.

2. Profit Before tax For the nine months ended 30 September

   2016 HK$'000 (unaudited)	2015 HK$'000 (Unaudited)
   Profit before tax has been arrived at after charging (crediting):
   Amortisation of other intangible assets (included in cost of sales)	14,000	15,199
   Amortisation of prepaid lease payments	11,080	11,093
   Depreciation of property, plant and equipment	412,731	419,398
   Research and development expenditure (included in other expenses)	269,690	240,796
   Government grant income (included in other income)	(12,781)	(32,658)

3. earnings Per Share

The calculation of the basic and diluted earnings per share attributable to the owners of the Company is based on the following data:

For the nine months ended 30 September

2016 HK$'000 (unaudited)	2015 HK$'000 (Unaudited)
earnings Earnings for the purposes of basic and diluted earnings per share	1,567,758	1,243,093