Sinopharm : ANNOUNCEMENT

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.

(A joint stock limited company incorporated in the People's Republic of China with limited

liability and carrying on business in Hong Kong as 國控股份有限公司)

(Stock Code: 01099)

ANNOUNCEMENT

Pursuant to the rules of the National Association of Financial Market Institutional Investors and the Shanghai Stock Exchange, Sinopharm Group Co. Ltd. (the "Company") is required to publish the quarterly financial information of the Company and its subsidiaries (the "Group") which consists of consolidated balance sheet, consolidated income statement and consolidated cash flow statement of the Group, and to publish the quarterly financial information of the Company which consists of balance sheet, income statement and cash flow statement of the Company.

This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The board of directors of the Company is pleased to announce the unaudited financial information of the Group and of the Company for the nine months ended 30 September 2019 prepared in accordance with the PRC GAAP.

- 1 -

CONSOLIDATED FINANCIAL INFORMATION OF THE GROUP

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

Consolidated Balance Sheet of the Group as at 30 September 2019

(All amounts in RMB unless otherwise stated)

	As at		As at
Items	30 September 2019		31 December 2018
Current assets:
Cash at bank and on hand	35,121,089,853.34	47,487,528,618.24
Financial assets held for trading	168,810.00	41,198,530.00
Notes receivables	1,594,863,721.24	4,257,138,963.27
Accounts receivables	142,715,762,934.24	96,601,274,662.65
Accounts receivable financing	6,495,466,843.12	5,565,180,501.19
Advances to suppliers	10,804,190,864.00	9,614,287,558.46
Other receivables	5,970,435,930.27	4,656,890,495.68
Inventories	45,478,266,553.45	35,003,521,705.93
Contract assets	256,660,236.28	250,294,490.79
Current portion of non-current assets	30,826,065.47	96,614,226.92
Other current assets	459,573,206.00		693,281,294.86
Total current assets	248,927,305,017.41	204,267,211,047.99
Non-current assets:

Long-term receivables Long-term equity investments

Equity investments designated at fair value through other comprehensive income

Other non-current financial assets Investment properties

Fixed assets Construction in progress Right-of-use assets Intangible assets Development costs Goodwill

Long-term prepaid expenses Deferred tax assets

Other non-current assets

Total non-current assets

1,901,719,978.98 1,928,460,253.20

6,814,005,374.00 6,382,066,834.49

32,233,059.7528,375,306.40

758,953,049.31654,671,911.19

981,992,420.81887,285,223.57

8,371,817,920.45 8,018,091,594.45

2,516,255,750.07 2,363,066,177.66

4,286,746,419.12-

4,078,356,643.03 3,890,900,152.15

60,336,477.5750,046,687.35

5,505,532,804.40 4,850,729,292.44

870,249,623.73767,864,418.15

1,259,334,069.88979,018,141.57

643,364,081.22559,492,165.33

38,080,897,672.32 31,360,068,157.95

Total assets	287,008,202,689.73	235,627,279,205.94

- 2 -

Consolidated Balance Sheet of the Group as at 30 September 2019 (continued)

(All amounts in RMB unless otherwise stated)

Items

Current liabilities: Short-termborrowings Notes payables Accounts payables Contract liabilities Employee benefits payable Taxes payable

Other payables

Current portion of non-current liabilities Other current liabilities

Total current liabilities

Non-current liabilities: Long-termborrowings Bonds payables

Lease liabilities Long-term payables

Long-term employee benefits payable Provisions

Deferred income Deferred tax liabilities Other non-current liabilities

Total non-current liabilities

Total liabilities

As at	As at
30 September 2019	31 December 2018

38,554,757,769.58 31,840,935,666.48

24,153,205,182.13 19,197,920,568.54

80,097,884,386.10 64,485,006,710.90

7,094,777,531.60 6,101,607,127.18

1,155,100,374.99 1,380,337,062.48

1,694,301,060.64 2,061,429,077.23

23,020,834,595.23 16,543,403,811.64

1,525,917,558.85 4,471,456,225.19

21,014,012,886.95 13,993,421,372.39

198,310,791,346.07160,075,517,622.03

574,000,000.00657,310,000.00

8,831,688,486.42 4,293,856,833.50

2,886,452,697.25-

508,809,793.89208,139,938.58

84,064,165.8995,537,599.89

16,206,065.2717,140,427.88

372,443,305.60350,845,836.37

856,473,031.12864,905,946.02

625,709,266.32613,268,601.09

14,755,846,811.76 7,101,005,183.33

213,066,638,157.83167,176,522,805.36

- 3 -

Consolidated Balance Sheet of the Group as at 30 September 2019 (continued)

(All amounts in RMB unless otherwise stated)

		As at		As at
Items	30 September 2019		31 December 2018
Owners' equity (or shareholders' equity):
Paid-in capital (or share capital)	2,971,656,191.00	2,971,656,191.00
Capital surplus	17,174,503,191.67	17,050,886,595.55
Less: treasury shares held for share incentive scheme	135,317,558.39	135,317,558.39
Other comprehensive income	(7,213,992.37)	(3,288,793.12)
Specific reserve	1,090,863.31	1,145,336.11
Surplus reserve	1,071,084,654.97	1,071,084,654.97
Undistributed profits	24,824,430,373.41	21,982,464,277.25
Total shareholders' equity attributable to equity holders
of the Company	45,900,233,723.60	42,938,630,703.37
Minority interest	28,041,330,808.30		25,512,125,697.21
Total owners' equity (or shareholders' equity)	73,941,564,531.90	68,450,756,400.58
Total liabilities and owners' equity
(or shareholders' equity):	287,008,202,689.73	235,627,279,205.94

- 4 -

Consolidated Income Statement of the Group for the Nine Months Ended 30 September 2019

(All amounts in RMB unless otherwise stated)

Items

1. Total operating revenue Including: Operating revenue
2. Total operating cost Including: Operating cost
   Taxes and surcharges
   Selling and distribution expenses General and administrative expenses Research and development expenses Financial expenses
   Add: Other gains (loss shall be stated as "-")

Investment income (loss shall be stated as "-")

Profit arising from changes in fair value (loss

shall be stated as "-")

Credit impairment losses (loss shall be stated as "-")

Asset impairment losses (loss shall be stated as "-")

Gains on disposal of assets (loss shall be stated as "-"）

1. Operating profit (loss shall be stated as "-")

Add: Non-operating income

Less: Non-operating expenses

1. Total profit (total loss shall be stated as "-")
   Less: Income tax expenses
2. Net profit (net loss shall be stated as "-")

Classification according to the continuity of operation Net profit from continuing operations

Net profit from discontinued operations Attributable to:

Net profit attributable to equity holders of the Company Net profit attributable to minority interest

6. Other comprehensive income/(loss), net of tax

Net other comprehensive income/(loss) attributable to equity holders of the company

Other comprehensive income/(loss) that will not be reclassified to profit or loss in subsequent periods

• 5 -

For the nine	For the nine
months ended	months ended
30 September 2019	30 September 2018
312,688,146,247.71	250,820,438,349.45
312,688,146,247.71	250,820,438,349.45
302,994,934,902.26	242,540,236,627.52
285,463,843,093.20	228,242,219,276.03
688,495,855.06	574,038,331.74
8,937,506,759.67	7,408,488,187.88
4,379,505,398.67	3,398,823,671.10
96,783,993.67	74,654,536.67
3,428,799,801.99	2,842,012,624.10
231,162,384.32	193,386,289.87
656,217,825.82	542,179,514.68
3,639,841.58	41,197,530.49
(660,886,641.60)	(549,599,263.60)
(112,742,997.87)	(25,870,123.90)
2,984,655.14	4,386,845.89
9,813,586,412.84	8,485,882,515.37
52,200,009.12	60,235,425.82
47,930,450.10	45,118,892.51
9,817,855,971.86	8,500,999,048.68
2,207,405,668.79	1,916,816,994.40
7,610,450,303.07	6,584,182,054.28
7,610,450,303.07	6,584,182,054.28
-	-
4,595,243,248.85	4,117,328,353.52
3,015,207,054.22	2,466,853,700.76
(2,621,457.62)	(15,385,096.25)
(3,925,199.25)	(13,432,596.14)
800,189.24	(5,436,695.10)

Consolidated Income Statement of the Group for the Nine Months Ended 30 September 2019 (continued)

(All amounts in RMB unless otherwise stated)

Items

Remeasurements of post-employment benefit obligations

Fair value losses on other equity instrument investments

Other comprehensive income/(loss) that may be reclassified to profit or loss in subsequent periods Other comprehensive income/(loss) using the equity

method that may be reclassified to profit or loss Exchange differences on translation of foreign

operations

Net profit/(loss) of other comprehensive income attributable to minority interest

7. Total comprehensive income

Total comprehensive income attributable to equity holders of the Company

Total comprehensive income attributable to minority interest

8. Earnings per share:

For the nine	For the nine
months ended	months ended
30 September 2019	30 September 2018
(677,904.41)	-
1,478,093.65	(5,436,695.10)
(4,725,388.49)	(7,995,901.04)
391,268.17	(2,282,054.13)
(5,116,656.66)	(5,713,846.91)
1,303,741.63	(1,952,500.11)
7,607,828,845.45	6,568,796,958.03
4,591,318,049.60	4,103,895,757.38
3,016,510,795.85	2,464,901,200.65

Basic earnings per share	1.55	1.49
Diluted earnings per share	1.55	1.49

- 6 -

Consolidated Cash Flow Statement of the Group for the Nine Months Ended 30 September 2019

(All amounts in RMB unless otherwise stated)

Items

1. Cash flows from operating activities:

Cash received from sales of goods or rendering of services Refund of taxes and surcharges

Cash received relating to other operating activities

Sub-total of cash inflows from operating activities

Cash paid for goods and services

Cash paid to and on behalf of employees

Payments of taxes and surcharges

Cash paid relating to other operating activities

For the nine		For the nine
months ended		months ended
30 September 2019		30 September 2018
320,172,856,309.92	256,711,933,157.34
106,271,885.61	105,460,951.08
3,919,445,223.01		2,882,277,669.42
324,198,573,418.54	259,699,671,777.84
317,434,587,320.64	256,225,403,061.46
7,363,701,179.50	6,137,084,353.46
7,537,649,455.23	6,210,668,682.02
7,427,531,547.52		5,150,908,141.03

	Sub-total of cash outflows from operating activities	339,763,469,502.89	273,724,064,237.97
	Net cash flows used in operating activities	(15,564,896,084.35)	(14,024,392,460.13)
2.	Cash flows from investing activities:
	Cash received from disposal of investments	86,153,181.88	58,333,484.68
	Cash received from returns on investments	213,150,827.76	268,708,805.44
	Net cash received from disposals of fixed assets,
	intangible assets and other long-term assets	100,962,150.17	61,541,381.76
	Net cash received from disposal of subsidiaries
	and other business units	(1,472,447.32)	(1,394,218.48)
	Cash received relating to other investing activities	26,740,274.22		-
	Sub-total of cash inflows from investing activities	425,533,986.71	387,189,453.40
	Cash paid to acquire fixed assets, intangible
	assets and other long-term assets	1,406,688,040.11	2,550,239,774.69
	Cash paid to acquire investments	231,259,837.91	368,799,400.00
	Net cash paid to acquire subsidiaries
	and other business units	663,545,837.51	280,577,428.51
	Cash paid relating to other investing activities	849,882,333.84		608,342,361.68
	Sub-total of cash outflows from investing activities	3,151,376,049.37		3,807,958,964.88
	Net cash flows used in investing activities	(2,725,842,062.66)	(3,420,769,511.48)
	- 7 -

Consolidated Cash Flow Statement of the Group for the Nine Months Ended 30 September 2019 (continued)

(All amounts in RMB unless otherwise stated)

	For the nine	For the nine
	months ended	months ended
Items	30 September 2019	30 September 2018
3. Cash flows from financing activities:
Cash received from capital contributions	800,667,517.00		612,613,632.00
Cash received from borrowings	73,150,363,093.59		68,161,449,787.61
Cash received relating to other financing activities	1,196,797,279.64		4,787,189,118.58
Sub-total of cash inflows from financing activities	75,147,827,890.23		73,561,252,538.19
Cash repayments of borrowings	62,689,632,933.62		50,749,845,891.22
Cash payments for interest expenses and distribution of
dividends or profits	6,076,968,396.63		4,752,562,930.30
Cash payments relating to other financing activities	1,372,795,288.82		5,790,528,474.97
Sub-total of cash outflows from financing activities	70,139,396,619.07		61,292,937,296.49
Net cash flows from financing activities	5,008,431,271.16		12,268,315,241.70
4. Effect of foreign exchange rate changes on cash and
cash equivalents	5,985,777.11		(23,923,392.09)
5. Net decrease in cash and cash equivalents	(13,276,321,098.74)		(5,200,770,122.00)
Add: Cash and cash equivalents at the beginning of the
reporting period	40,298,985,123.85		32,249,947,148.88
6. Cash and cash equivalents at the end of the reporting
period	27,022,664,025.11		27,049,177,026.88

- 8 -

FINANCIAL INFORMATION OF THE COMPANY
FOR THE NINE MONTHS ENDED 30 SEPTEMBER	2019
Balance Sheet of the Company as at 30 September 2019
(All amounts in RMB unless otherwise stated)
		As at 30		As at 31
Items		September 2019		December 2018
Current assets:
Cash at bank and on hand	5,719,766,824.54	14,688,606,790.90
Notes receivables	59,462,324.02	50,970,458.62
Accounts receivables	3,066,347,886.29	1,999,942,234.96
Advances to suppliers	47,138,387.16	62,935,702.07
Other receivables	27,947,668,704.73	20,799,012,603.04
Inventories	912,375,974.39	814,944,833.12
Total current assets
37,752,760,101.13	38,416,412,622.71
Non-current assets:

Long-term equity investments Other non-current financial assets Investment properties

Fixed assets Construction in progress Intangible assets Long-term prepaid expenses Deferred tax assets

Other non-current assets

Total non-current assets

Total assets

30,882,198,549.30 30,156,315,186.29

597,409,092.96598,377,954.84

23,940,351.3524,688,738.70

44,137,747.3047,980,362.47

1,909,739,158.92 1,891,580,663.18

186,344,974.33211,445,280.12

2,159,873.103,078,480.36

72,516,958.6775,521,975.61

90,147,632.7260,880,747.55

33,808,594,338.65 33,069,869,389.12

71,561,354,439.78 71,486,282,011.83

- 9 -

Balance Sheet of the Company as at 30 September 2019 (continued)

(All amounts in RMB unless otherwise stated)

Items

Current liabilities:

Short-term borrowings Notes payables Accounts payables Contract liabilities Employee benefits payable Taxes payable

Other payables

Current portion of non-current liabilities Other current liabilities

As at	As at
30 September 2019	31 December 2018

• 900,000,000.00
  474,949,173.39 669,011,736.52

2,201,492,752.98 2,079,440,824.65

3,105,814.6631,407,888.47

46,599,933.4945,752,322.41

14,006,462.5128,541,176.25

12,462,214,112.59 18,506,583,343.96

• 3,997,636,558.98
  20,491,132,642.91 13,992,337,000.89

Total current liabilities	35,693,500,892.53		40,250,710,852.13
Non-current liabilities:
Bonds payables	8,831,688,486.42		4,293,856,833.50
Deferred income	172,225.96		459,891.07
Deferred Tax Liabilities	22,796,546.27		23,241,371.27
Other non-current liabilities	864,072,542.23		181,990,864.14
Total non-current liabilities	9,718,729,800.88		4,499,548,959.98
Total liabilities	45,412,230,693.41		44,750,259,812.11

- 10 -

Balance Sheet of the Company as at 30 September 2019 (continued)

(All amounts in RMB unless otherwise stated)

Items

Owners' equity (or shareholders' equity):

Paid -in capital (or share capital) Capital surplus

Less: treasury shares held for share incentive scheme Other comprehensive income

Surplus reserve Undistributed profits

Total owners' equity (or shareholders' equity)

Total liabilities and owners' equity (or shareholders' equity)

As at 30 September	As at
2019	31 December 2018

2,971,656,191.00 2,971,656,191.00

20,994,494,034.83 20,988,670,493.54

135,317,558.39 135,317,558.39

5,088,075.475,863,991.89

1,072,928,171.82 1,072,928,171.82

1,240,274,831.64 1,832,220,909.86

26,149,123,746.37 26,736,022,199.72

71,561,354,439.78 71,486,282,011.83

- 11 -

Income Statement of the Company for the Nine Months Ended 30 September 2019

(All amounts in RMB unless otherwise stated)

Items

1. Total operating revenue Including: Operating revenue
2. Total operating cost Including: Operating cost
   Taxes and surcharges
   Selling and distribution expenses General and administrative expenses Research and development expenses Financial expenses
   Add: Other gains (loss shall be stated as "-")
   Investment income (loss shall be stated as "-") Profit arising from changes in fair value (loss
   shall be stated as "-")
   Credit impairment losses (loss shall be stated as "-")
   Asset impairment losses (loss shall be stated as "-")
   Gains on disposal of assets (loss shall be stated as "-")
3. Operating profit (loss shall be stated as "-")
   Add: Non-operating income
   Less: Non-operating expenses
4. Total profit (total loss shall be stated as "-")
   Less: Income tax expenses
5. Net profit (net loss shall be stated as "-")

Classification according to the continuity of operation

For the nine	For the nine
months ended	months ended
30 September 2019	30 September 2018

12,182,565,592.96 10,380,476,076.53

12,182,565,592.96 10,380,476,076.53

12,251,129,947.07 10,462,860,360.36

11,559,271,920.07 9,798,453,409.36

21,129,024.7517,737,071.21

187,318,166.03 144,286,377.17

287,441,371.64 186,941,176.60

-

-

195,969,464.58 315,442,326.02

22,749,391.8542,251,984.39

1,205,039,897.64 1,031,503,415.85

3,779,561.5841,314,500.49

(10,425,755.06) (11,370,619.85)

12,644,215.427,037,997.18

-

-

1,165,222,957.32 1,028,352,994.23

203,547.0928,673.76

145,064.452,574,630.91

1,165,281,439.96 1,025,807,037.08

3,950,365.494,455,516.03

1,161,331,074.47 1,021,351,521.05

Net profit from continuing operations	1,161,331,074.47	1,021,351,521.05
Net profit from discontinued operations	-	-

- 12 -

Income Statement of the Company for the Nine Months Ended 30 September 2019 (continued)

(All amounts in RMB unless otherwise stated)

		For the nine	For the nine
		months ended	months ended
Items	30 September 2019	30 September 2018
6.	Other comprehensive income/(loss), net of tax	(775,916.42)	(1,564,027.97)
	Other comprehensive income/(loss) that will not be
	reclassified to profit or loss in subsequent periods	-	-
	Other comprehensive income/(loss) that may be
	reclassified to profit or loss in subsequent periods	(775,916.42)	(1,564,027.97)
	Other comprehensive income using the equity method
	that may be reclassified to profit or loss	(775,916.42)	(1,564,027.97)
7.	Total comprehensive income	1,160,555,158.05	1,019,787,493.08

- 13 -

Cash Flow Statement of the Company for the Nine Months Ended 30 September 2019

(All amounts in RMB unless otherwise stated)

Items

1. Cash flows from operating activities:

Cash received from sales of goods or rendering of services Refund of taxes and surcharges

Cash received relating to other operating activities

Sub-total of cash inflows from operating activities

Cash paid for goods and services

Cash paid to and on behalf of employees Payments of taxes and surcharges

Cash paid relating to other operating activities

For the nine months ended 30 September 2019

12,636,019,211.46

-

619,676,223.88

13,255,695,435.34

13,141,199,405.07

212,571,500.38

155,689,746.86

688,552,642.90

For the nine

months ended 30 September 2018

11,255,430,893.43

41,459,118.88

648,719,265.48

11,945,609,277.79

11,492,315,029.82

224,219,871.59

113,518,378.99

592,585,476.61

	Sub-total of cash outflows from operating activities	14,198,013,295.21		12,422,638,757.01
	Net cash flows used in operating activities	(942,317,859.87)	(477,029,479.22)
2.	Cash flows from investing activities:

Cash received from disposal of investments Cash received from returns on investments

Net cash received from disposals of fixed assets, intangible assets and other long-term assets

Net cash received from disposal of subsidiaries and other business units

Cash received relating to other investing activities

Sub-total of cash inflows from investing activities

Cash paid to acquire fixed assets, intangible assets and other long-term assets

Cash paid to acquire investments

Cash paid relating to other investing activities

Sub-total of cash outflows from investing activities

65,453,503.8858,333,485.68

1,019,279,987.76 1,038,268,309.12

-44,775.60

(1,472,447.32)-

2,121,953,511.88637,142,899.78

3,205,214,556.20 1,733,789,470.18

41,342,820.51 1,341,851,645.94

693,162,622.40 1,223,942,400.00

8,069,140,963.44 7,627,225,524.56

8,803,646,406.35 10,193,019,570.50

Net cash flows used in investing activities	(5,598,431,850.15)	(8,459,230,100.32)

- 14 -

Cash Flow Statement of the Company for the Nine Months Ended 30 September 2019 (continued)

(All amounts in RMB unless otherwise stated)

	For the nine		For the nine
	months ended		months ended
Items	30 September 2019		30 September 2018
3. Cash flows from financing activities:
Cash received from borrowings	28,773,134,783.19	27,679,365,800.00
Cash received relating to other financing activities	210,692,714,773.14		165,889,989,156.53
Sub-total of cash inflows from financing activities	239,465,849,556.33		193,569,354,956.53
Cash repayments of borrowings	22,665,355,483.19	17,529,990,011.50
Cash payments for interest expenses and distribution of
dividends or profits	2,279,444,693.88	2,268,608,027.15
Cash payments relating to other financing activities	216,950,174,850.13		169,442,678,495.71
Sub-total of cash outflows from financing activities	241,894,975,027.20		189,241,276,534.36
Net cash flows (used in)/from financing activities	(2,429,125,470.87)	4,328,078,422.17
4. Effect of foreign exchange rate changes on cash
and cash equivalents	1,035,214.53	1,791,989.90
5. Net decrease in cash and cash equivalents	(8,968,839,966.36)	(4,606,389,167.47)
Add: Cash and cash equivalents at the beginning of the
reporting period	14,688,606,790.90	9,680,575,167.32
6. Cash and cash equivalents at the end of the reporting
period	5,719,766,824.54	5,074,185,999.85

By order of the Board

Sinopharm Group Co. Ltd.

Li Zhiming

Chairman

Shanghai, the PRC

25 October 2019

As at the date of this announcement, the executive directors of the Company are Mr. Li Zhiming, Mr. Yu Qingming and Mr. Liu Yong; the non-executive directors of the Company are Mr. Chen Qiyu, Mr. Ma Ping, Mr. Hu Jianwei, Mr. Deng Jindong, Mr. Wen Deyong, Ms. Guan Xiaohui and Ms. Dai Kun; and the independent non-executive directors of the Company are Mr. Yu Tze Shan Hailson, Mr. Tan Wee Seng, Mr. Liu Zhengdong, Mr. Zhuo Fumin and Mr.Chen Fangruo.

• The Company is registered as a non-Hong Kong company under the Hong Kong Companies Ordinance under its Chinese name and the English name "Sinopharm Group Co. Ltd."
• • 15 -