Shandong Xinhua Pharmaceutical Co. Ltd. provided group earnings guidance for the first quarter ending March 31, 2015. For the period, the company expects net profit attributable to the shareholders to be in the range of RMB 14,200,000 to RMB 15,800,000, representing an approximate increase of 340%-390% as compared with that during the corresponding period of last year of RMB 3,230,000 and basic earnings per share to be in the range of RMB 0.031 to RMB 0.034 compared to RMB 0.007 a year ago. Based on the information currently available, the expected increase in profit is mainly
attributable to the following initiatives adopted by the Company: significant adjustment to the product structure, increase in marketing efforts, expansion of the sales scale of major products, and implementation of in depth research on product technology, leading to reduction of production costs.