CSPC Pharmaceutical : INSIDE INFORMATION - PRINCIPAL FINANCIAL INFORMATION OF CSPC INNOVATION PHARMACEUTICAL CO., LTD . FOR THE HALF YEAR ENDED 30 JUNE 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

CSPC Pharmaceutical Group Limited

石 藥 集 團 有 限 公 司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 1093)

INSIDE INFORMATION

PRINCIPAL FINANCIAL INFORMATION OF

CSPC INNOVATION PHARMACEUTICAL CO., LTD.

FOR THE HALF YEAR ENDED 30 JUNE 2020

This announcement is made by CSPC Pharmaceutical Group Limited (the "Company") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

CSPC Innovation Pharmaceutical Co., Ltd（. 石藥集團新諾威製藥股份有限公司）("CSPC XNW") is a subsidiary of the Company and its shares are listed on the ChiNext of Shenzhen Stock Exchange (Stock Code: 300765). In compliance with the relevant requirements of Shenzhen Stock Exchange, CSPC XNW published its 2020 Half Yearly Report for the half year ended 30 June 2020 on the information disclosure webpage of Shenzhen Stock Exchange's website at http://www.szse.cn/disclosure/ listed/notice/index.html.

The board of directors of the Company would like to draw the attention of its shareholders and the public investors to the appendices of this announcement (the "Appendices") which set out the principal financial information of CSPC XNW prepared in accordance with the PRC Accounting Standard for Business Enterprises for the half year ended 30 June 2020.

Please note that the information in the Appendices is an extract of the unaudited financial statements prepared by CSPC XNW in Chinese. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

By Order of the Board

CSPC Pharmaceutical Group Limited

CAI Dongchen

Chairman

Hong Kong, 21 August 2020

As at the date of this announcement, the Board comprises Mr. CAI Dongchen, Mr. ZHANG Cuilong, Mr. WANG Zhenguo, Mr. PAN Weidong, Mr. WANG Huaiyu, Dr. LI Chunlei, Dr. WANG Qingxi and Mr. CHAK Kin Man as executive directors; Mr. LEE Ka Sze, Carmelo as non-executive director; and Mr. CHAN Siu Keung, Leonard, Mr. WANG Bo, Prof. LO Yuk Lam, Dr.

YU Jinming and Mr. CHEN Chuan as independent non-executive directors.

APPENDIX I

PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS

			Currency: RMB
			Increase/decrease
			compared with
		Corresponding	the corresponding
	Current	reporting	reporting period of
	reporting period	period of last year	last year
Revenue (Yuan)	687,233,124.89	653,517,491.79	5.16%
Net profit attributable to listed	179,486,412.29	136,988,116.16	31.02%
company's shareholders (Yuan)
Net profit attributable to listed	152,900,412.76	119,175,086.08	28.30%
company's shareholders after
deduction of non-recurring items
(Yuan)
Net cash flows from operating	163,048,839.12	134,408,411.13	21.31%
activities (Yuan)
Basic earnings per share (Yuan/	0.43	0.37	16.22%
share)
Diluted earnings per share (Yuan/	0.43	0.37	16.22%
share)
Weighted average return on net	7.22%	8.40%	-1.18%
assets
			Increase/decrease
	End of the current		compared with the
	reporting period	End of last year	end of last year
Total assets (Yuan)	2,918,360,721.18	2,852,373,126.14	2.31%
Net assets attributable to listed	2,557,971,553.87	2,406,399,708.49	6.30%
company's shareholders (Yuan)

- 1 -

APPENDIX II

NON-RECURRING GAIN/LOSS ITEMS AND AMOUNTs

		Unit: RMB (Yuan)
Items	Amount	Description
Gain/loss from disposal of non-current assets (including the	186,668.63
part offset with the provision for impairment of assets)
Government grants recognised in profit or loss of current
period (excluding those closely related to the company's	18,553,015.00
business and granted under the national policies according
to certain quota of amount or volume)
Gain/loss from entrusted investments or assets management	8,037,643.45
Profit/loss from the change of fair value of financial assets
held for trading, derivative financial assets, financial
liabilities held for trading, derivative financial liabilities
and investment income from the disposal of financial
assets held for trading, derivative financial assets, financial	6,598,399.67
liabilities held for trading, derivative financial liabilities
and other debt investment except for those gain/loss relating
to the hedging transactions under the Company's normal
operating business
Non-operating income and expenses other than the above	-603,659.67
items
Less: Impact of income tax	6,202,940.27
Impact of minority interests (after tax)	-16,872.72
Total	26,585,999.53	-

APPENDIX IIi

SIGNIFICANT CHANGES IN MAJOR ASSETS

	Unit: RMB (Yuan)
Major assets	Description on significant changes
Equity assets	No significant change
Fixed assets	No significant change
Intangible assets	No significant change
Construction in progress	No significant change
Prepayments	Closing balance is RMB15,439,229.24 and opening balance is
	RMB11,440,920.36, representing a decrease of 34.95%, mainly
	due to increase in the company's prepayment for materials.
Other non-current assets	Closing balance is RMB27,479,532.26 and opening balance is
	RMB6,986,665.51, representing an increase of 293.31%, mainly
	due to the increase of prepayment for construction projects

- 2 -

APPENDIX Iv

YEAR-ON-YEAR CHANGES IN PRINCIPAL FINANCIAL DATA

				Unit: RMB (Yuan)
			Year-
		Corresponding	on-year
	Current	reporting period	increase/
	reporting period	of last year	decrease	Reasons for changes
Revenue	687,233,124.89	653,517,491.79	5.16%
Cost of sales	295,430,313.74	315,829,320.02	-6.46%
Selling expenses	174,109,424.12	150,328,323.39	15.82%
Administrative	22,320,895.98	25,199,200.63	-11.42%
expenses
Finance cost	-5,354,142.15	-330,598.42	-1,519.53%	Mainly due to increase in
				foreign exchange gain
Income tax expenses	39,091,518.16	33,206,069.75	17.72%
Research and	5,585,580.07	5,661,320.03	-1.34%
development expenses
Net cash flows from	163,048,839.12	134,408,411.13	21.31%
operating activities
				Mainly because cash
				management carried out
				during the corresponding
				period of last year has not
Net cash flows from	-115,905,773.12	-1,035,720,902.54	-88.81%	yet been due for redemption,
investment activities				resulting in "Cash received
				from investment" for the
				corresponding period of last
				year being less than that of the
				current reporting period
				Mainly due to the receipt of
Net cash flows from	-28,000,000.00	1,120,444,517.71	-102.50%	proceeds from public offering
financing activities	of shares in the corresponding
				period of last year.
				Mainly due to the receipt of
Net increase in cash	22,396,790.30	220,279,820.68	-89.83%	proceeds from public offering
and cash equivalents	of shares in the corresponding
				period of last year.
Receipts in advance	0.00	24,218,746.60	-100.00%	Mainly due to the impact of
				new standard of revenue
Tax payables	25,028,595.79	17,536,159.05	42.73%	Mainly due to business volume
				growth

- 3 -

APPENDIX v

SIGNIFICANT CHANGES IN ASSETS COMPONENTS

						Unit: RMB (Yuan)
	End of current	End of corresponding
	reporting period	reporting period of last year
		Proportion to		Proportion to	Increase/decrease	Description of
	Amount	total assets	Amount	total assets	in proportion	significant changes
Bank balances and	496,672,295.90	17.02%	377,313,364.33	14.21%	2.81%
cash
Trade receivables	195,387,590.69	6.70%	185,636,613.22	6.99%	-0.29%
Inventories	110,260,503.85	3.78%	124,154,432.92	4.68%	-0.90%
Investment properties		0.00%		0.00%	0.00%
Long-term equity	158,399,759.57	5.43%		0.00%	5.43%	Due to the investment in Guoxinhuijin
investments						by the Company in December 2019
Fixed assets	571,808,505.96	19.59%	518,830,617.74	19.54%	0.05%
Construction in	124,631,820.85	4.27%	138,506,692.13	5.22%	-0.95%
progress
Short-term		0.00%		0.00%	0.00%
borrowings
Long-term borrowings		0.00%		0.00%	0.00%
Financial assets held	956,598,399.67	32.78%	1,004,500,687.67	37.83%	-5.05%
for trading

- 4 -