Shandong Xinhua Pharmaceutical : UNAUDITED QUARTERLY RESULTS ANNOUNCEMENT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

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.

山東新華製藥股份有限公司

Shandong Xinhua Pharmaceutical Company Limited

（a joint stock company established in the People's Republic of China with limited liability）

（Stock Code：0719）

UNAUDITED QUARTERLY RESULTS ANNOUNCEMENT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

This announcement is made pursuant to rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'') and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the "Board") of Shandong Xinhua Pharmaceutical Company Limited (the "Company") hereby announces the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the 9 months ended 30 September 2019. All financial information set out in this announcement has been prepared in accordance with the CASBE (as defined under the Listing Rules).

This announcement was prepared in both Chinese and English. In the event of any inconsistencies between the two versions, the Chinese version shall prevail.

1. KEY ACCOUNTING AND FINANCIAL DATA

Total assets

Net assets attributable to the shareholders of the Company

Operating income

Net profit attributable to the shareholders of the Company

Net profit attributable to the shareholders of the Company after deduction of non-recurring profit and loss

Net cash flow from operating activities

As at 30 Sep 2019	As at 31 Dec 2018	Change
(Unaudited)	(Audited)
RMB Yuan	RMB Yuan
6,049,248,030.04	5,916,156,319.63	2.25%
2,893,341,218.13	2,687,248,318.01	7.67%
Jan - Sep 2019	Jan - Sep 2018	Change as compared
(Unaudited)	(Unaudited)	with the same period
RMB Yuan	RMB Yuan	last year
4,399,154,718.03	3,959,689,652.51	11.10%
238,601,004.25	193,331,201.60	23.42%
210,027,579.59	175,768,108.93	19.49%
293,388,996.13	142,837,402.06	105.40%

1

Basic earnings per share	0.38
(RMB Yuan / Share)
Diluted earnings per share	0.38
(RMB Yuan / Share)
Ratio of weighted average return on	8.53%
net assets (%)
2. PROFIT AND LOSS ACCOUNT
	Consolidated Income Statement

0.31		22.58%
0.31		22.58%
7.57%	Increased	by	0.96
percentage	points

Item

I. Gross revenue

Including: Operating revenue

1. Total operating costs Including: Operating costs
   Taxes and surcharges Selling expenses Administration expenses R&D cost
   Financial expenses Including: Interest expense

Interest income

Add: Other income

Investment income (losses to be listed with

brackets)

Including: Income from investment in affiliates and joint ventures (losses to be listed with brackets)

Credit impairment loss (losses to be listed with brackets)

Assets impairment loss (losses to be listed with brackets)

Gains from assets disposal (losses to be listed with brackets)

III. Operating profits (losses to be listed with brackets)

Add: non-operating income

Less: non-operating expenditure

IV. Total profits (total loss to be listed with brackets)

Less: income tax expense

V. Net profits (net loss to be listed with brackets)

（I）According to operation continuity

1. Net profit from continued operations (net losses to be listed in brackets)
2. Net profit from discontinued operations (net losses to be
   listed in brackets)

（II） According to ownership

Nine months ended 30 September 2019 (unaudited)

RMB Yuan

4,399,154,718.03

4,399,154,718.03

4,107,064,726.14

3,014,723,211.62

44,025,808.04

623,083,834.03

212,285,104.52

181,969,905.53

30,976,862.40

41,512,426.12

2,640,236.13

31,938,980.45

5,356,375.27

(2,157,681.82)

(1,590,062.98)

(14,360,552.94)

311,032.08

313,745,763.77

2,017,497.98

6,202,738.33

309,560,523.42

54,062,094.60

255,498,428.82

255,498,428.82

-

Nine months ended 30

September 2018

(unaudited)

RMB Yuan

3,959,689,652.51

3,959,689,652.51

3,718,663,853.40

2,853,788,047.81

44,562,279.87

499,602,320.20

162,712,184.70

140,140,599.58

17,858,421.24

41,053,588.68

2,535,850.16

13,598,508.82

7,154,674.51

-

-

(3,697,535.57)

3,464,044.76

261,545,491.63

1,723,751.86

6,233,885.10

257,035,358.39

45,738,530.45

211,296,827.94

211,296,827.94

-

2

1. Net profit attributable to the shareholders of parent
   company
2. Minority interest income or loss

VI. Net amount of other comprehensive income after tax

Net amount of other comprehensive income after tax attributable to the shareholders of parent company

（ I ） Other comprehensive income not subject to reclassification into profit or loss

1.Changes in fair value of other equity instruments investment

（II）Other comprehensive income to be reclassified into profit or loss

1.Conversion difference of foreign currency statement

Net amount of other comprehensive income after tax attributable to the minority shareholders

VII. Total comprehensive income

Total comprehensive income attributable to the shareholders of parent company

Total comprehensive income attributable to the minority shareholders

VIII. Earnings per share:

1. Basic earnings per share

1. Diluted earnings per share

238,601,004.25	193,331,201.60
16,897,424.57	17,965,626.34
26,087,754.61	（26,303,163.83）
25,879,688.72	（26,541,502.26）
24,994,651.20	（27,702,438.40）
24,994,651.20	（27,702,438.40）
885,037.52	1,160,936.14
885,037.52	1,160,936.14
208,065.89	238,338.43
281,586,183.43	184,993,664.11
264,480,692.97	166,789,699.34
17,105,490.46	18,203,964.77
0.38	0.31
0.38	0.31

By order of the Board of Directors

Shandong Xinhua Pharmaceutical Company Limited

Zhang Daiming

Chairman

28 October 2019, Zibo, PRC

As at the date of this announcement, the Board comprises:

Executive Directors:	Independent Non-executive Directors:
Mr. Zhang Daiming (Chairman)	Mr. Du Guanhua
Mr. Du Deping	Mr. Li Wenming
Non-executive Directors:	Mr. Lo Wah Wai
Mr. Ren Fulong
Mr. Xu Lie

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