Quarterly Results announcement form Name of listed company : Tong Ren Tang Technologies Co. Ltd. Stock code : 8069 Year end date : 31/12/2002 Important Note: This result announcement form only contains extracted information from and should be read in conjunction with the detailed results announcement of the issuer, which can be viewed on the GEM website at http://www.hkgem.com Currency: RMB'000 (Unaudited) (Unaudited) Current Last Quarterly Results Announcement Corresponding Period Period (dd/mm/yyyy) (dd/mm/yyyy) from 01/01/2002 from 01/01/2001 to 31/03/2002 to 31/03/2001 RMB'000 RMB'000 Turnover : 193,802 122,962 Profit/(Loss) from Operations : 35,206 25,243 Finance cost : -739 -2,807 Share of Profit/(Loss) of Associates : 0 0 Share of Profit/(Loss) of Jointly Controlled Entites : 0 0 Profit/(Loss) after Taxation & MI : 35,645 28,050 % Change Over the Last Period : 27.08 % EPS / (LPS) - Basic : RMB0.19 RMB0.15 - Diluted : RMB0.19 RMB0.15 Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 35,645 28,050 1st Q Dividend per Share : Nil Nil (specify if with other options) : N/A N/A B/C Dates for 1st Q Dividend : N/A to N/A bdi. Payable Date : N/A B/C Dates for AGM/SGM : N/A to N/A bdi. Other Distribution for Current Period: Nil B/C Dates for Other Distribution : N/A to N/A bdi. (bdi: both days inclusive) For and on behalf of Tong Ren Tang Technologies Co. Ltd. Signature : Name : Edward Choi Title : Company Secretary Responsibility statement The directors of the Company (the "Directors") as at the date hereof hereby collectively and individually accept full responsibility for the accuracy of the information contained in this results announcement form (the "Information") and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief the Information are accurate and complete in all material respects and not misleading and that there are no other matters the omission of which would make the Information herein inaccurate or misleading.The Directors acknowledge that the Stock Exchange has no responsibility whatsoever with regard to the Information and undertake to indemnify the Exchange against all liability incurred and all losses suffered by the Exchange in connection with or relating to the Information. Remarks: 1. Basis of presentation The Company was incorporated as a joint stock company with limited liability in the People's Republic of China (the "PRC") on 22 March 2000 and, upon the placing of its H shares, were listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited ("GEM") on 31 October 2000. In preparing for the listing of the Company's H shares on the GEM, Beijing Tongrentang Company Limited underwent a restructuring, details of which are set out in the prospectus of the Company dated 24 October 2000. The accompanying unaudited results are prepared in accordance with International Financial Reporting Standards as published by the International Accounting Standards Board. 2. Turnover The Group's turnover is derived principally from the sales of Chinese Patent Medicine. An analysis of the Group's turnover by geographical regions is as follows: For the three months ended 31 March 2002 2001 RMB'000 RMB'000 Sales of Medicine Domestic 183,525 117,017 Overseas 7,301 2,291 Agency fee income - domestic 2,976 3,654 --------- --------- 193,802 122,962 ========= ========= 3. Taxation Pursuant to the relevant income taxation regulations of the PRC, a high-technology enterprise ("HTE") located in a designated area of Beijing Economic and Technological Development Zone ("BETDZ") is subject to EIT at a rate of 15%. Moreover, upon approval by the relevant local tax bureau, such a HTE is entitled to an exemption from EIT for the first three years from its commencement of operations and a 50% reduction for the three years thereafter. The certification as a HTE is subject to an annual review by the relevant government bodies. In addition, an amount equal to the EIT exemption or reduction from 15% has to be appropriated to a non- distributable tax reserve. In August 2001, the Company renewed the HTE certification granted by Zhongguancun Hi-Tech District Committee for the year of 2001. The Company was registered in the BETDZ and has obtained an approval from the BETDZ Local Tax Bureau to enjoy an EIT exemption for three years commencing from 2000 and a 50% reduction in EIT for the three years thereafter. For the period ended 31 March 2002, an amount equal to the 15% EIT exempted amounting to approximately RMB5,420,000 (2001: RMB4,207,000) was transferred to the tax reserve. The reconciliation of the statutory tax rate to the effective tax rate is as follows: For the three months ended 31 March 2002 2001 RMB'000 RMB'000 Accounting profit 35,945 100.0% 28,050 100.0% --------- ------ --------- ------ Tax at the statutory tax rate 5,648 15.7% 4,207 15.0% Effect of tax benefits of being a HTE (5,420) (15.1%) (4,207) (15.0%) --------- ------ --------- ------ Tax expense 228 0.6% - 0% ========= ====== ========= ====== For the period ended 31 March 2002, the tax expense of the Group represented the EIT payable by a subsidiary of the Company at a rate of 33% on the taxable income. Other than this, the Company's other subsidiaries and joint venture had no material operating activities nor taxable profits for the period and therefore no EIT provision is made. 4. Earnings per share The calculation of the basic earnings per share for the three months ended 31 March 2002 was based on the net profit of approximately RMB35,645,000 (2001: RMB28,050,000) divided by the weighted average number of the weighted average number of shares issued during the period of 182,800,000 shares (2001: 182,800,000 shares). Diluted earnings per share equal basic earnings per share because there were no potential dilutive ordinary shares outstanding during the period.