The board of directors of Shandong Xinhua Pharmaceutical Co. Ltd. announced that the group is expected to record a gain in the net profit attributable to the Shareholders for the period from January 1, 2014 to March 31, 2014 as compared to a net loss recorded for the corresponding period in 2013. Net profit attributable to the Shareholders expected to be in the range of RMB 2,000,000 to ­ RMB 6,000,000 compared to a loss of RMB 8,120,000 for the same period a year ago.

Basic earnings per share expected to be in the range of RMB 0.004 to RMB 0.013 compared to a loss of RMB 0.0178 a year ago.