Profit of Pharmaceutical Manufacturing and R&D Segment
Increases 30.2% to Approximately RMB969 Million

Adheres to Its Business Philosophy of 'Innovation for Good Health'

Pharmaceutical Manufacturing and R&D Segment
Continues to Witness Rapid Development
Further Improves Its Financing Structure

Audited financial summary

[27March2013, Hong Kong] Shanghai Fosun Pharmaceutical (Group) Co., Ltd.(“Fosun Pharma” or the “Company” ; stock code: 02196; and, together with its subsidiaries, the “Group”), a leading healthcare company in the PRC, announced its audited annual results for the year ended 31 December 2012 (the “year under review”).

During the year under review, the principal businesses of the Company grew rapidly as it adhered to its business philosophy of 'Innovation for Good Health’, focused on its core pharmaceutical business, continued to develop the product innovation and management improvement, and promoted the strategies of organic growth, external expansion and integrated development. During the year under review, the revenue of the Company amounted to RMB7,278 million, representing an increase of 13.14% over 2011, with some changes in the scope of the consolidated statements in 2011 as a result of the disposal of Zhejiang Fosun Pharmaceutical Co., Ltd. And Shanghai Science and Technology Imp & Exp Co., Ltd. The increase in revenue was mainly due to the contribution from the growth of major products, such as products in therapeutic areas of cardiovascular system, central nervous system, blood system, metabolism and alimentary tract, and anti-infection. The final dividend for the year ended 31 December 2012 as proposed by the Board, inclusive of tax, amounted to RMB0.21(2011: RMB0.10 per share).

Mr. Chen Qiyu, Executive Director and Chairman of Fosun Pharma, said, “In 2012, the healthcare industry of the PRC continued to witness rapid development as the domestic per capita disposable income has been rising continuously and the PRC government has continued to increase its spending on healthcare programs. Furthermore, the overall market environment of the PRC pharmaceutical industry has been improving driven by the government’s efforts to further standardize the quality of pharmaceutical products and healthcare services, control prices of pharmaceutical products and overhaul the pharmaceutical distribution channels. Moreover, the year of 2012 was also an important year for the company's development. In October 2012, the Company has completed the offering and listing of overseas listed foreign shares (H shares),which raised approximately HK$3,965 million.The offering and listing of H shares has further broadened the financing channels for the Company and enabled the Company to continually to increase mergers and acquisitions of domestic and overseas pharmaceutical companies, enhance the construction of international R&D platform, and strengthen the development of its principal businesses.”

During the year under review, pharmaceutical manufacturing and R&D segment of the Company recorded a revenue of RMB4,633 million, representing an increase of 20.93% from 2011;and segment results of RMB694 million, representing an increase of 57.37% from 2011,which was mainly due to the changes in the scope the consolidated statements as well as an increase in operating profit of the core pharmaceutical subsidiaries. During the year under review, pharmaceutical manufacturing business of the Company grew rapidly and the development of its professional operational team was further strengthened. In 2012, the Company’s major products in therapeutic areas such as cardiovascular system, central nervous system, blood system, metabolism and alimentary tract, and anti-infection recorded growth. Sales of products including Atomolan, Artesunate series, Ao De Jin, Bang Ting, Shaduolika, EPO experienced rapid growth and sales volumeof new products such as You Di Er grew significantly. In 2012, the Company has 11 formulation items and series with sales revenue over RMB100 million,among which sales of Xin Xian An and EPO exceeded RMB100 million for the first time and the sales of Atomolan exceeded RMB500 million.

In addition, as of 31 December 2012, there were approximately 110 pipeline drugs and vaccines, and five products, including pemetrexed discodium, have been granted with production approvals; and the Company has applied for 70 patents in the pharmaceutical manufacturing segment. Moreover, the Company was named one of the ‘Top 10 Most Innovative Companies in China' in a survey on the ‘Top 100 Enterprises in Pharmaceutical Manufacturing Industry in China’. Furthermore, the construction of the amino acid production lines of Shine Star (Hubei) Biological Engineering Company Limited was completed and the production lines were put into production in the second half of 2012. The Company also continued its efforts in improving product quality based on international quality standards. During the year under review, it obtained another PreQualificaiton (‘PQ’) from the World Health Organisation for the combined medication of its Artesunate series, which is the fifth PQ for its anti-malaria medicines received by the Company from the World Health Organisation.

In the aspect of healthcare services, the Company continued to increase its investment in the healthcare services segment and substantially completed the deployment of our healthcare services business by combining the brand of "united family", the high-end healthcare services institutions in the more developed coastal cities and specialty and general hospitals in second-tier and third-tier cities in the PRC during the year under review. Meanwhile, the Company actively endeavoured to strengthen the operating capabilities of the healthcare institutions controlled by the Company, increased efforts in cultivating and recruiting medical staff, and facilitate the regional development of our healthcare services business. During the year under review, the healthcare services entities controlled by the Company recorded a total revenue of RMB159 million. Moreover, the Company continued to support and facilitate the development and deployment of the hospital and clinic network under ‘United Family Hospitals’, a leading premium healthcare services brand of Chindex. In2012, there were significant increase and positive growth momentum in the United Family Hospital’s businesses in Beijing, Shanghai and Tianjin. Revenue of the United Family Hospital in 2012 increased by 33.33% over 2011 toUS$152 million, reflecting the growing market demand for premium healthcare services and the strong brand recognition of ‘United Family Hospital’.

In the aspects of pharmaceutical distribution and retail business, as of 31 December 2012, For Me Pharmacy and Golden Elephant Pharmacy, had a total of over 660 retail pharmacies, maintaining leading position in their respective regional markets. Sales of For Me Pharmacy and Golden Elephant Pharmacy in 2012 amounted to RMB780 million, with a leading market share inthe pharmaceutical retail markets in Shanghai and Beijing. Meanwhile, the Comp any actively explored the transformation of the pharmaceutical retail business model and tried new business models. Furthermore, Sinopharm continued to accelerate its efforts on industry consolidation and maintained rapid growth in business, further consolidating its leading position as the largest distributor and supply chain services provider of pharmaceutical and healthcare products in the PRC.

In the medical diagnosis and medical devices segment, during the year under review, the Company has furthered the development of this segment by increasing investments and enhancing business cooperation. In addition, the company has obtained 2 product patents in its blood treatment operation and the market share of the blood virus inactivation products has reached over 50%, ranking first in the PRC. Furthermore, a digital processing center for dentistry jointly developed by the company and Bego, a German company, has been successfully launched for operation. Moreover, the Company has also acquired 17.65% equity interests in SD Biosensor Inc., which is a Korean company that engages in the research and development and manufacturing of rapid diagnostic products. The acquisition enables Fosun Pharma to enter the area of rapid teston blood glucose and lipid with global competitive advantage.

During the year under review, Fosun Pharma has further improved its financing structure and optimized its debt structure. During the year under review, the Company has completed the first phase of issuance of corporate bonds with an aggregate amount of RMB1,500 million and the first tranche of issuance of short term commercial papers with an amount of RMB500 million, and obtained credit facilities from International Finance Corporation (IFC) in an amount of RMB300 million. In October 2012, the Company has completed the offering and listing of overseas listed foreign shares (H shares), raising approximately HK$3,965 million, further broadening the financing channels.

Mr. Chen concluded, “Looking ahead, the pharmaceutical industry in PRC will be presented with numerous opportunities. Being a leading healthcare company in the PRC, Fosun Pharma will benefit from the current government policies for the pharmaceutical market and industry. The Company will continue to be committed to improve public health as its mission, and adhere its company philosophy 'Innovation for Good Health’, so as to capture the opportunities presented by the rapid development of the pharmaceutical market in China as well as rapid growth of the generic drugs in mainstream markets such as Europe and the United States. It will adhere to the development strategy of organic growth, external expansion and integrated development, and further its efforts in acquiring quality companies in the pharmaceutical industry. By continuing to optimize and integrate various resources in the pharmaceutical industry, strengthening development of product innovation and product marketing system, and enhancing the core competence of the Company, the Company strives to further enhance its operating results. Meanwhile, the Company will continue to actively explore the financing channels domestically and internationally, which creates favorable conditions for the continuous development of the Company, bringing satisfactory returns to our shareholders.”
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About Shanghai Fosun Pharmaceutical (Group) Co., Ltd.
Fosun Pharma is a leading healthcare company in the PRC. The Group was established in 1994 with headquarters located in Shanghai and listed on the Shanghai Stock Exchange since 1998. In October 2012, though the international financial environment was unfavorable, the Company has successfully completed offering and listing H shares in Hong Kong. As a result, the Company is listing both in the A share market and the H share market. The Group further strengthened corporate governance and investor relationship management, and therefore achieved significant outcome. Besides SSE 180Index, CSI 300 Index, SSE Dividend Index, SSE Corporate Governance Index, Fosun Pharma has also been successfully included in the SSE Private Enterprise 50 Index and SSE Social Responsibility Index. According to IMS Health Incorporated (“IMS”),the Group was one of the top five domestic pharmaceutical companies in the PRC by revenue from the pharmaceutical manufacturing segment in2011.The Group’s business operations strategically cover multiple important segments in the healthcare industry value chain, with business segments include pharmaceutical manufacturing, pharmaceutical distribution and retail, healthcare services, and diagnostic products and medical devices.

Remarks and Attachment:
1. Fosun Pharma Annual Results Announcement For The Year Ended 31 December 2012(Hong Kong H Shares)

http://www.hkexnews.hk/listedco/listconews/SEHK/2013/0327/LTN20130327073.pdf

Additional information about Fosun Pharmais available at http://www.fosunpharma.com.