Shanghai Pharmaceuticals Announces 2012 Third Quarterly Report

Operating Revenue & Net Profit Attributable to Shareholders of the Parent Company Surges 27.01% & 12.15% respectively

HONG KONG, Oct. 29, 2012 /PRNewswire/ -- Shanghai Pharmaceuticals Holding Co. Ltd., ("Shanghai Pharmaceuticals" or the "Company" and, together with its subsidiaries, the "Group"; stock code: 601607.SH; 02607.HK), today announced its third quarterly results for the nine months ended 30 September 2012 (the "reporting period").

During the reporting period, the Company recorded operating revenue of RMB51.147 billion, representing an increase of 27.01% as compared with the same period last year. Net profit attributable to shareholders of the parent company was RMB1.547 billion, representing an increase of 12.15% as compared with the same period last year after deducting the one-off investment income arising from the deconsolidation of Techpool Bio-Pharma Co., Ltd.

In the third quarter 2012, the Group maintained healthy and stable growth. During the reporting period, the industrial business, the Group's core business, was up by 9.25% as compared with the same period last year, which was driven by the production and marketing strategy of key products promotion of the company. The increase has risen compared with the first half of 2012. As another core business of the company, the pharmaceutical distribution business achieved a fast growth of 29.82% as compared with the same period last year, and has continued to maintain the advantages of a focused coverage strategy.

The Group recently announced Mr. Shu Chang and Mr. Guo Junyu as Vice Presidents of the Group with the aim to help achieve a better development and adaptation to the current competitive situation in the pharmaceutical industry as well as to strengthen the team's professionalism and rejuvenation. Mr. Shu Chang achieved a masters degree in economics from Graduate School of Economics, New York University in the United States. He was an Assistant to Chairman of CibaGeigy, a Swiss pharmaceuticals company, Director, Director of Strategic Affairs, Finance Director and Director of asset management in SAIC Motor Corporation Limited. Mr. Guo Junyu achieved a masters degree in business administration from Asia (Macau) International Open University, an Executive Master Degree of Business Administration from China Europe International Business School. He was appointed as Deputy General Manager of Shanghai Pharmaceuticals Distribution Co., Ltd. With rich industry operating experience, their joining will be more conducive to the overall healthy development of the Group.

The management of the Group are diligent and prudent, and insist on setting the company's interest as the first priority. Recently, the company published an announcement about management acquiring A Shares of the Group. From the 24th to 26th September 2012, six members of management of the company fulfilled their commitments, acquired a total of 189,400 shares of the Company from the secondary market. They committed to not selling the acquired A Shares until the end of their employment period and 6 months after they left the Company, which greatly enhances market confidence towards Shanghai Pharmaceuticals and its management.

About Shanghai Pharmaceuticals Holding Co., Ltd.

Shanghai Pharmaceuticals is the only integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical product and distribution markets. It was China's second-largest pharmaceutical distributor and third-largest pharmaceutical producer. The Group adopts an integrated vertical business model and provides solutions in pharmaceutical manufacturing, distribution, logistics storage and retail. The Group currently offers more than 800 pharmaceutical products as well as pharmaceutical distribution and supply chain solutions to more than 7,600 hospitals and medical institutions in China. The Group also operates approximately 1,700 self-operated and franchise stores nationwide.

Issued by Porda Havas International Finance Communications Group for and on behalf of Shanghai Pharmaceuticals Holding Co., Ltd.

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Disclaimer:

This Press Release is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities of Shanghai Pharmaceuticals.