Shanghai Fosun Pharmaceutical : 2019 THIRD QUARTERLY REPORT（H SHARE）

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上 海 復 星 醫 藥（ 集 團 ）股 份 有 限 公 司

Shanghai Fosun Pharmaceutical (Group) Co., Ltd.*

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 02196)

2019 THIRD QUARTERLY REPORT

This announcement is made pursuant to Rule 13.09(2) and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

The following is the third quarterly report for 2019 of Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* (the ''Company'', together with its subsidiaries, collectively the ''Group'') (the ''2019 Third Quarterly Report''). The financial report therein is prepared in accordance with the PRC Accounting Standards for Business Enterprises and has not been audited.

By order of the Board

Shanghai Fosun Pharmaceutical (Group) Co., Ltd.*

Chen Qiyu

Chairman

Shanghai, the People's Republic of China

29 October 2019

As at the date of this announcement, the executive directors of the Company are Mr. Chen Qiyu, Mr. Yao Fang and Mr. Wu Yifang; the non-executive directors of the Company are Mr. Xu Xiaoliang, Mr. Wang Can, Ms. Mu Haining and Mr. Liang Jianfeng; and the independent non-executive directors of the Company are Mr. Jiang Xian, Dr. Wong Tin Yau Kelvin, Ms. Li Ling and Mr. Tang Guliang.

• for identification purposes only

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1. IMPORTANT NOTICE

1. The board of directors (the ''Board'') and the supervisory committee (the ''Supervisory Committee'') of the Company and its directors, supervisors and senior management warrant that the 2019 Third Quarterly Report of the Group does not contain any false information, misleading statements or material omission and severally and jointly accept legal responsibility for the truthfulness, accuracy and completeness of the contents contained herein.
2. All directors of the Company attended the Board meeting to review the 2019 Third Quarterly Report of the Group.
3. Chen Qiyu, the person in charge of the Company, Guan Xiaohui, the Chief Financial Officer, and Chen Zhanyu, the Director of the Accounting Department (Accounting Officer) duly declare that they warrant the truthfulness, accuracy and completeness of the financial statements contained in the 2019 Third Quarterly Report of the Group.
4. The 2019 Third Quarterly Report of the Group has not been audited.

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2. MAJOR FINANCIAL INFORMATION AND CHANGES IN SHAREHOLDERS OF THE GROUP

2.1 Major financial information
		Unit: Yuan	Currency: RMB
	30 September 2019	31 December 2018	Ratio of change (%)
Total assets	78,569,297,725.65	70,551,361,387.48	11.36
Net assets attributable to shareholders of the listed company	30,633,746,877.27	27,977,736,427.49	9.49
			Period-on-period
	Jan - Sept 2019	Jan - Sept 2018	change (%)
Net cash flow generated from operating activities	2,328,355,784.17	2,087,826,458.74	11.52
			Period-on-period
	Jan - Sept 2019	Jan - Sept 2018	change (%)
Operating Revenue	21,227,618,679.11	18,142,384,871.95	17.01
Net profit attributable to shareholders of the listed company	2,063,704,147.99	2,094,152,353.81	-1.45
Net profit attributable to shareholders of the listed company	1,722,388,028.34	1,591,668,096.39	8.21
after deducting extraordinary gain or loss
Weighted average return on net assets (%)	7.21	8.00	Decrease of 0.79
			percentage points
Basic earnings per share (RMB/share)	0.81	0.83	-2.41
Diluted earnings per share (RMB/share)	0.81	0.83	-2.41

Note: In the third quarter of 2019, products such as febuxostat tablets (You Li Tong), pitavastatin calcium tablets (Bang Zhi), enoxaparin injection and daptomycin maintained sound growth in sales volume, and the sales of Intuitive Fosun's Da Vinci robotic equipment began to accelerate. The net profit attributable to shareholders of the listed company after deducting extraordinary gain or loss of the Group for the current quarter was RMB554.7841 million, representing an increase of RMB163.7726 million from the same period of the previous year and a year-on-year increase of 41.88%. The net profit attributable to shareholders of the listed company after deducting extraordinary gain or loss in aggregate during the Reporting Period was RMB1,722.388 million, representing an increase of RMB130.7199 million from the same period of the previous year and a year-on-year increase of 8.21%.

Due to the progress of the disposal of assets intended to be disposed of and the changes in the fair value of certain financial assets held, the extraordinary gain or loss for the current quarter was RMB-7.1998 million, representing a decrease of RMB149.8699 million from the same period of the previous year; the extraordinary gain or loss in aggregate during the Reporting Period was RMB341.3161 million, representing a decrease of RMB161.1681 million from the same period of the previous year and a year-on-year decrease of 32.07%.

Based on the above factors, the net profit attributable to shareholders of the listed company during the Reporting Period decreased by RMB30.4482 million as compared to the same period of the previous year, representing a year- on-year decrease of 1.45%.

During the Reporting Period, the accumulated investment in research and development of the Group amounted to RMB2,253.454 million, representing an increase of RMB386.4802 million from the same period of the previous year and a year-on-year increase of 20.70%; the cash flow from operating activities further increased, and the net cash flow generated from operating activities amounted to RMB2,328.3558 million, representing an increase of 11.52% as compared to the corresponding period of 2018.

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Extraordinary gain or loss items and amounts
	Unit: Yuan	Currency: RMB
Items	Jul - Sept 2019	Jan - Sept 2019
Gain or loss on disposal of non-current assets	6,698,974.15	54,877,229.54
Government grant included in profit or loss for the current period (excluding	64,610,828.53	123,804,343.06
government grant closely related to the Company's normal operation, and entitled in
fixed amounts or quantities on a continuous basis according to national standards)
Profit or loss arising from changes in the fair value of holding held-for-trading financial	-95,402,673.43	231,996,093.58
assets, derivative financial assets, held-for-trading financial liabilities and derivative
financial liabilities, and investment income from disposal of held-for-trading financial
assets, derivative financial assets, held-for-trading financial liabilities, derivative
financial liabilities and other debt investments, except effective hedging business
related to the Company's normal operations
Non-operating income and expenses other than those stated above	48,756,541.22	27,391,712.25
Impact on minority interests (after tax)	-15,445,568.08	-33,058,160.48
Effect of income tax	-16,417,943.49	-63,695,098.30
Total	-7,199,841.10	341,316,119.65

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2.2 Total number of shareholders, the shareholding status of the Top 10 shareholders and the Top 10 tradable shareholders (or unrestricted shareholders) of the Company at the end of the Reporting Period

						Unit: Share
Total number of shareholders						127,272
The shareholding status of the Top 10 shareholders
	Shareholding	Percentage	Number of	Shares pledged or
Name of shareholders	at the end of	restricted	locked up	Capacity
(%)
	the period	shares held	Status	Number
SHANGHAI FOSUN HIGH	938,095,290	36.60	0	None	0	Domestic non-
TECHNOLOGY (GROUP)						state owned legal
COMPANY LIMITED*						entity
HKSCC NOMINEES LIMITED (Note 1)	551,255,448	21.51	0	Unknown	-	Unknown
CHINA LIFE INSURANCE COMPANY	52,401,746	2.04	52,401,746	None	0	Others
LIMITED - TRADITIONAL -
ORDINARY INSURANCE PRODUCT
- 005L - CT001 SHANGHAI*
CHINA SECURITIES FINANCE	38,736,157	1.51	0	None	0	Others
CORPORATION LIMITED*
HONG KONG SECURITIES CLEARING	36,199,707	1.41	0	None	0	Unknown
COMPANY LIMITED (Note 2)
NATIONAL SOCIAL SECURITY FUND	28,066,210	1.10	0	None	0	Others
113 PORTFOLIO*
BASIC PENSION INSURANCE FUND	25,824,892	1.01	0	None	0	Others
802 PORTFOLIO*
CENTRAL HUIJIN ASSET	24,067,700	0.94	0	None	0	State owned legal
MANAGEMENT LTD.*						entity
TAIKANG LIFE INSURANCE CO., LTD.	15,692,501	0.61	15,692,445	None	0	Others
- DIVIDEND - INDIVIDUAL
DIVIDEND - 019L - FH002
SHANGHAI*
NATIONAL SOCIAL SECURITY FUND	15,358,518	0.60	0	None	0	Others
110 PORTFOLIO*

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