Dawnrays Pharmaceuti : Dawnrays Pharmaceutical (Holdings) Limited Announced Annual Results for the Year Ended 31 December 2011, Net Profit after Tax Dropped 12.3% to RMB 146.31 Million, A Final Dividend of HK$ 0.068 per Share was Declared

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Dawnrays Pharmaceutical (Holdings) Limited

(Incorporated in the Cayman Islands with limited liability ??????????????)

Suites 3212-13, Tower Two, Times Square, 1 Matheson Street, Hong Kong

Tel: [phone] Fax: [phone]

FOR IMMEDIATE RELEASE PRESS RELEASE Attn: Business Editor

Dawnrays Pharmaceutical (Holdings) Limited

Announced Annual Results For The Year Ended 31 December 2011
Net profit after tax dropped 12.3% to RMB 146.31 million
A final dividend of HK$ 0.068 per share was declared
(Hong Kong, 23 March 2011) Dawnrays Pharmaceutical (Holdings) Limited
("Dawnrays Pharma" or the "Group", The Stock Exchange of Hong Kong Stock Code:
2348) announced annual results for the year ended 31 December 2011. Turnover amounted to approximately RMB 1,081,044,000 (2009: RMB 1,286,683,000), representing an decrease of 16% compared with the corresponding period of last year. Profit attributable to owners of the parent amounted to approximately RMB 146,307,000 (2009: RMB 166,840,000), representing an decrease of 12.3% when compared to that of last year. Basic earnings per share was approximately RMB 0.1834 (2009: RMB 0.2104). The Board recommends the payment of a final dividend of HK$ 0.068 per share for the year ended 31 December 2011 (2010: HK$ 0.078). Taking into consideration the interim dividend of HK$ 0.02 per share, the total annual dividend distributed for the year is HK$ 0.088 per share (2010: HK$ 0.098). The dividend payout ratio is approximately 39.1%.
Ms. Li Kei Ling, Chairman of Dawnrays Pharma, said, "2011 marks the third year into the in-depth medical reforms pushed forward by the Central Government and is also under the "12th Five-Year Development Plan". During the year, the government introduced a number of substantial policies, plans, guidance and measures in connection with the pharmaceutical industry. As regards the policies which might have immediate effect on the pharmaceutical industry, in addition to the 2 notices issued by the National Development and Reform Commission concerning adjustment to the retail price of pharmaceuticals, the stringent requirements stipulated in both the
"Good Manufacturing Practice of Pharmaceuticals (revised in 2010)(????????

??? (2010 ??? ) ? )" ("New GMP") promulgated by the State Food and Drug

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Administration and the "Administrative Measures regarding Clinical Application of Antibacterial Medicines (Consultation Paper)(?????????????(???? ?)?)" issued by the Ministry of Health also have a bearing on the pharmaceutical
industry to some extent.
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Looking back at 2011, With the Company's success in implementing various plans under its development strategies, the Group recorded impressive return on its investments in system specific medicines for cardiovascular diseases, etc. Market share has become bigger and sales continued to post considerable growth while gross margins maintained at a satisfactory level. The increasingly strong product structure of the Group's system specific medicines warrants the profitability of the Company and has partially offset the effect of the declining revenue from cephalosporin products. Besides, the Group adheres to its business policy of healthy development and its financial principle of strict cost control. Cash flows from operating activities for 2011 were RMB82,986,000 (2010: RMB252,344,000).
In 2011, the Group has obtained from the State Food and Drug Administration (SFDA)
1 new drug certificate for Potassium Citrate Extended-release Tablets; and 4 production approvals, 2 for cephalosporin antibiotics (Cefprozil Tablets and Cefodizime Sodium for Injection) and 2 for specific medicines (Levamlodipine Besylate Tablets and Potassium Citrate Extended-release Tablets). We have completed clinical studies for 3 types of medicine, 2 for specific medicines treating cardio-cerebrovascular diseases and 1 for oral cephalosporin antibiotic. Proposals for
2 new products were approved and 1 patent was granted. On-site inspection by the Certification Centre for Drugs under SFDA in respect of the registration and production of Prulifloxacin and its tablet form was completed.
Since 2010, the huge population base in China, rising national income, aging population, urbanization, improvement in social security system and so on have become the driving force behind the rapid development of the pharmaceutical industry. The pharmaceutical industry of China is moving towards another decade of significant developments. We may witness the introduction by the Chinese authorities of various policies to optimize the medical resources. By committing more resources and perfecting the system, the coverage and popularity of medical service will be enhanced and a rapid growth will also be seen in China's pharmaceutical market. With the Company's strategic objective in mind, the management of Dawnrays will ride on the general trend of the nation's industrial development. Optimization of resource allocation will be materialized by leveraging on the strengths of the capital markets. Management standard and operating efficiency will also be raised so as to strengthen risk management and keep the Company on the right track of healthy development. In achieving these goals, we are committed to: 1) putting more efforts to R&D, optimizing resource allocation, and expediting the launching process of products under development to enrich our array of specific medicines encompassing various areas; 2)obtaining GMP certification for newly-built workshops as planned, implementing the construction of new facilities and manufacturing bases as well as application for international recognition in an orderly fashion so as to raise the

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standard of product quality and competitiveness in the market; 3) adjusting and optimizing product mix according to government policies and market demand as well as developing markets for new products and structuring the sales team as planned; and 4)further lowering cost while enhancing product quality of our existing cephalosporin products and even exploring opportunities to cooperate with enterprises at home and abroad to ensure the product line maintains profit contribution.

About Dawnrays Pharmaceutical (Holdings) Limited Dawnrays Pharmaceutical (Holdings) Limited (Stock Code: 2348) is a leading vertically integrated pharmaceutical group in China with core competencies in the manufacturing of cephalosporins and system specific medicines. Founded in 1995, the Group was listed on the Main Board of the Stock Exchange of Hong Kong in July 2003.

Dawnrays Pharma is among one of the earliest pharmaceutical companies in China granted the GMP certification. The Group is principally engaged in the development, manufacturing and sales of cephalosporins and various system specific medicines. Dawnrays Pharma is one of the few comprehensive vertically integrated
3rd generation cephalosporin manufacturers in China, adopting distinctive production
process from pharmaceutical intermediates to bulk medicines and pharmaceutical preparations. Its system specific medicines cover a wide range of therapeutic areas for cardiovascular system, anti-viral, anti-allergic, digestive system, urinary system and endocrine system, etc. The dosage forms of the Group's pharmaceutical preparations include powder for injections, tablets, capsules and granules, etc.
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This press release is issued by Dawnrays Pharmaceutical (Holdings) Limited. For further enquiries, please contact:
Vanessa Yeung / Michelle Li Corporate Communications Tel : [phone]
Fax : [phone]
Email : [e-mail]

Financial Highlights

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Dawnrays Pharmaceutical (Holdings) Limited

Announced Annual Results For The Year Ended 31 December 2011
For the year ended 31 December

2011 (Audited) RMB '000

2010 (Audited) RMB '000

Revenue 1,081,044 1,286,683

Cost of sales (718,292) (910,526)

Gross profit 362,752 376,157

Other income and gains 16,601 9,145
Selling and distribution costs (100,861) (95,673) Administrative expenses (55,777) (48,884) Other expenses (41,369) (31,317) Finance costs (2,159) (549)

Profit before tax	179,187	208,879
Income tax expense	(32,880)	(42,041)
Profit for the year	146,307	166,838
Attributable to :
Owners of the parent	146,307	166,840
Non-controlling interest	-	(2)

146,307 166,838

Dividends :
Interim	13,070	13,726
Proposed final	44,127	52,472

Earnings per share attributable to ordinary
equity holders of the parent - basic, for profit for the year	RMB0.1834		RMB0.2104
- diluted, for profit for the year	RMB0.1826		RMB0.2093

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