Shandong Xinhua Pharmaceutical Company Limited (China)

Xinhua Factory , the Predecessor of the Company , wasprincipally engaged in the manufacture & sale of bulkpharmaceuticals, preparations & chemical products. Pursuantto the 1993 Reorganisation , the Company was established on30th Septermber, 1993 as a joint stock limited company inthe PRC with Xinhua Factory as the sole promoter. At thetime of the Company's establishment, its registered capitalwas RMB 27 million divided into 22 million State-ownedshares of RMB 1.00 each, 16720 thousand legal person Sharesof RMB 1.00 each & 33153 thousand employe e shares of RMB1.00 each. In accordance with the 1993 Reorganisation ,productive assets of Xinhua Factory were transferred intothe Company in exchange for the 217440 thousand State-ownedshares issued to Xinhua Factory on the Company'sestablishment. Xinhua Factory retained non-productiveassets such as land & investments in businesses. In June1995, Xinhua underwent a further reorganisation pursuant towhich SXPGC was established on 15th June , 1995 as a whollyState-owned limited liability company pursuant to the PRCCompany Law. All assets, liabilities & businesses of XinhuaFactory were transferred to SXPGC . The Company isprincipally engaged in the development, manufacture & salesof bulk pharmaceuticals, preoparations (such as injections &tablets) and chemical products . The sales of these threetypes of products accounted for 60.0 % B32.1%, and 5.5%respectively of the total turnover of the Company for theyear ended 31st December , 1995 & 57.5%?33.7%, and 7.8%,respectively of the total turnover of the Company for thissix months ended 30th June , 1996 . In 1995 , the Companyproduced approximately 170 types of bulk pharmaceuticals &preparations . The Company was one of the three largestpharmaceutical manufacturers in the PRC in 1995 , both interms of production volume & in terms of turnover.Currently, the Company is the largest producer ofantipyretic & analgesic medicines in the PRC. For the yearended 31st December, 1995, the Company produced in aggregateapproximately 6480 tonnees of antipyretic & analgesicmedicines, representing 18.4%. of the total production ofantipyretic & analgesic medicines in the PRC. The Company'sproducts are sold throughout the PRC & are exported to over40 countries, including Germany, the Netherlands, the UnitedStates, Spain, Japan, and Thailand. The Domestic sales ofthe Company's products accounted for 72.4% of its turnoverfor the year ended 31st December , 1995 and 65.5% of itsturnover for the six months ended 30th June 1996 . TheCompany's H shares were listed on Dec. 31, 1996 on thestock exchange of Hong Kong Limited .