MIRA INFORM REPORT

Report Date :

13.08.2012

IDENTIFICATION DETAILS

Name :	QINGHAI GELATIN COMPANY LIMITED
Registered Office :	No.18 Weiyi Road Chengbei District(Biological Park) Xining, 810016
Country :	China
Financials (as on) :	31.12.2011
Date of Incorporation :	24.09.1996
Legal Form :	Public Independent
Line of Business :	Manufacture of pharmaceutical preparations
No. of Employees :	1,096

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

Top of Form

Bottom of Form

Qinghai Gelatin Company Limited

No.18 Weiyi Road
Chengbei District(Biological Park)
Xining, 810016
China
Tel:	86-971-8013495
Fax:	86-971-5226338
www.my0606.com.cn

Employees:

1,096

Company Type:

Public Independent

Traded:

Shenzhen Stock Exchange:

000606

Incorporation Date:

24-Sep-1996

Auditor:

Crowe Horwath LLP

Financials in:	USD (mil)
Fiscal Year End:	31-Dec-2011
Reporting Currency:	Chinese Renminbi
Annual Sales:	90.6 ^1
Net Income:	(2.4)
Total Assets:	181.9 ^2
Market Value:	369.4
	(27-Jul-2012)

Business Description

QingHai Gelatin Company Limited is principally engaged in pharmaceutical industry. The Company's major products include traditional Chinese medicines, gelatin series products, hard gelatin capsules and healthcare products, among others. The Company's gelatin series products mainly include photographing gelatin products, pharmaceutical gelatin products and edible gelatin products, among others. The Company distributes its products mainly in China's domestic markets. For the six months ended 30 June 2011, Qinghai Gelatin Company Limited's revenues decreased 66% to RMB394.6M. The Company's net income totaled RMB33.1M, decreased from RMB253.8M. Total revenues reflect an increase in the sales volume from overall business operation as a result of strong market demand. The Company's net income lso suffered from higher selling expense and increased business tax and surcharges.

Industry

Industry	Biotechnology and Drugs
ANZSIC 2006:	1841 - Human Pharmaceutical and Medicinal Product Manufacturing
NACE 2002:	2442 - Manufacture of pharmaceutical preparations
NAICS 2002:	325412 - Pharmaceutical Preparation Manufacturing
UK SIC 2003:	24421 - Manufacture of medicaments
US SIC 1987:	2834 - Pharmaceutical Preparations

Key Executives

Name	Title
Gong Yang	Vice Chairman of the Board, President
Yumin Hua	Secretary of the Board
Haiyong Huang	Vice President
Jun Yuan	Chief Financial Officer
Guiying Liu	Vice President

Significant Developments

Topic	#*	Most Recent Headline	Date
Mergers & Acquisitions	1	Qinghai Gelatin Company Limited Updates Private Placement Plan	24-Aug-2011
Divestitures	1	Qinghai Gelatin Company Limited to Divest Holdings	13-Mar-2012
Other Accounting	1	Qinghai Gelatin Company Limited Takes Accounting Corrections and Restates FY 2011 Semi-annual Report and Q3 Report	15-Feb-2012
Negative Earnings Pre-Announcement	2	Qinghai Gelatin Company Limited Revises FY 2011 Net Profit Outlook	7-Feb-2012
Other Earnings Pre-Announcement	2	Qinghai Gelatin Company Limited Announces FY 2012 H1 Net Profit Outlook	14-Jul-2012

* number of significant developments within the last 12 months

News

Title	Date
1st Ld-Writethru: Chinese stocks close down on Thursday Xinhua News Agency (232 Words)	19-Apr-2012
Mkt Talk: Chinese shares remain weak, losing upward momentum Xinhua News Agency (CEIS) (China) (409 Words)	17-Apr-2012
QingHai Gelatin to Finance for Casing Project SinoCast (189 Words)	8-Feb-2012
Private Placement Plan of Qinghai Gelatin Got Vetoed SinoCast (237 Words)	9-Sep-2011

Financial Summary

As of 31-Mar-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	1.09	2.09
Quick Ratio (MRQ)	0.70	1.48
Debt to Equity (MRQ)	0.50	0.43
Sales 5 Year Growth	26.54	4.13
Net Profit Margin (TTM) %	-3.81	17.06
Return on Assets (TTM) %	-1.54	9.59
Return on Equity (TTM) %	-2.48	18.98

Stock Snapshot

Traded: Shenzhen Stock Exchange: 000606

As of 27-Jul-2012

   Financials in: CNY

Recent Price	5.81	EPS	-0.04
52 Week High	9.56	Price/Sales	4.03
52 Week Low	4.98	Price/Book	3.98
Avg. Volume (mil)	16.96	Beta	1.02
Market Value (mil)	2,358.65

	Price % Change	Rel S&P 500%
4 Week	-6.29%	-2.03%
13 Week	-27.56%	-18.84%
52 Week	-34.87%	-13.38%
Year to Date	0.17%	-1.69%

1 - Profit & Loss Item Exchange Rate: USD 1 = CNY 6.46438
2 - Balance Sheet Item Exchange Rate: USD 1 = CNY 6.294

Corporate Overview

Location
No.18 Weiyi Road
Chengbei District(Biological Park)
Xining, 810016
China

Tel:	86-971-8013495
Fax:	86-971-5226338

www.my0606.com.cn

Quote Symbol - Exchange
000606 - Shenzhen Stock Exchange
Sales CNY(mil):	585.6
Assets CNY(mil):	1,145.1
Employees:	1,096
Fiscal Year End:	31-Dec-2011

Industry:	Biotechnology and Drugs

Incorporation Date:	24-Sep-1996
Company Type:	Public Independent
Quoted Status:	Quoted

Executive President, Director:	Xia Zhao

Company Web Links

Company Contact/E-mail

Home Page

Contents Industry Codes Business Description Financial Data Market Data

Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:
1199	-	Other Food Product Manufacturing Not Elsewhere Classified
1899	-	Other Basic Chemical Product Manufacturing Not Elsewhere Classified
1841	-	Human Pharmaceutical and Medicinal Product Manufacturing

NACE 2002 Codes:
1589	-	Manufacture of other food products not elsewhere classified
2466	-	Manufacture of other chemical products not elsewhere classified
2442	-	Manufacture of pharmaceutical preparations

NAICS 2002 Codes:
325998	-	All Other Miscellaneous Chemical Product and Preparation Manufacturing
325412	-	Pharmaceutical Preparation Manufacturing
311999	-	All Other Miscellaneous Food Manufacturing

US SIC 1987:
2834	-	Pharmaceutical Preparations
2099	-	Food Preparations, Not Elsewhere Classified
2899	-	Chemicals and Chemical Preparations, Not Elsewhere Classified

UK SIC 2003:
2466	-	Manufacture of other chemical products not elsewhere classified
24421	-	Manufacture of medicaments
1589	-	Manufacture of other food products not elsewhere classified

Business Description

QingHai Gelatin Company Limited is principally engaged in pharmaceutical industry. The Company's major products include traditional Chinese medicines, gelatin series products, hard gelatin capsules and healthcare products, among others. The Company's gelatin series products mainly include photographing gelatin products, pharmaceutical gelatin products and edible gelatin products, among others. The Company distributes its products mainly in China's domestic markets. For the six months ended 30 June 2011, Qinghai Gelatin Company Limited's revenues decreased 66% to RMB394.6M. The Company's net income totaled RMB33.1M, decreased from RMB253.8M. Total revenues reflect an increase in the sales volume from overall business operation as a result of strong market demand. The Company's net income lso suffered from higher selling expense and increased business tax and surcharges.

More Business Descriptions

Manufacture of gelatine and healthcare products

Qinghai Gelatin Company Limited (QGCL) is a publicly held pharmaceutical company which is principally engaged in the manufacturing and marketing of gelatin and hard capsules for medicine, industrial, and photography industries. The company provides soft capsule, medicine packaging products, fat, raw material medicines, high phosphorus bone and meat powder, and inedible health care products. Additionally, it provides ancillary materials for pharmaceuticals, pharmaceutical packaging services, the leasing of plants and investment business. Its products are marketed throughout China. QGCL is headquartered in Xining, China.In March 2012, Join-In (Holding) was planned to acquire 55% stake in Tibet Taida Housheng Pharma from the company.The company reported revenues of (Renminbi) CNY 585.57 million during the fiscal year ended December 2011, a decrease of 33.14% from 2010. The operating loss of the company was CNY 31.69 million during the fiscal year 2011, as compared to an operating loss of CNY 41.04 million during 2010. The net loss of the company was CNY 15.22 million during the fiscal year 2011, as against a net profit of CNY 0.55 million during 2010.

Financial Data

Financials in:	CNY(mil)
Revenue:	585.6
Net Income:	-15.2
Assets:	1,145.1
Long Term Debt:	131.8
Total Liabilities:	552.8
Working Capital:	0.2
Date of Financial Data:	31-Dec-2011

1 Year Growth

-33.1%

NA

-8.3%

Market Data

Quote Symbol:	000606
Exchange:	Shenzhen Stock Exchange
Currency:	CNY
Stock Price:	5.8
Stock Price Date:	07-27-2012
52 Week Price Change %:	-34.9
Market Value (mil):	2,358,648.0
SEDOL:	6714059
ISIN:	CNE000000M98
Equity and Dept Distribution:
FY'09 Ann I/S has been RES, Ann&Q4 have been CLA. For FY'04 Q1, Q3, FY'05 Q1, the company has only one reportable business segment. FY'04 Q2 is reclassified. FY'04 Q2=6mths. 09/2001, Scrip Issue, 10 new shares for every 10 shares held. 05/2007, Scrip Issue, 2 new shares for every 10 shares held.FY'07 B/S is CLA.

Key Corporate Relationships

Auditor:	Crowe Horwath LLP
Auditor:	Wulian Fangyuan, Crowe Horwath LLP

Qinghai Gelatin Company Limited

Competitors Report

CompanyName	Location	Employees	Ownership
Beijing Pharmaceutical Group Co Ltd	Beijing, China	17,000	Private
Biomics Biotechnologies Co., Ltd.	Nantong, China	90	Private
Kelun Pharmaceutical	Sichuan, China	1,000	Private
Southwest Pharmaceutical Co., Ltd.	Chongqing, China	1,838	Public
Sundia Meditech Company, Ltd.	Shanghai, China		Private

Executives Report

Board of Directors

Name	Title	Function
Hua Zhao	Chairman of the Board	Chairman
Biography: Mr. Zhao Hua has been Chairman of the Board in Qinghai Gelatin Company Limited since April 11, 2004. He is also Director in a Tianjin-based technology risk investment company. He used to be General Manager in a Tianjin-based food company. Age: 41
Gong Yang	Vice Chairman of the Board, President	Vice-Chairman
Biography: Mr. Yang Gong has been Vice Chairman of the Board and President in Qinghai Gelatin Company Limited since March 31, 2006. He used to be Deputy General Manager in a Tianjin-based group, Assistant General Manager in a Tianjin-based development company, as well as General Manager in a magnetic company. He holds Master of Business Administration (MBA) from University of Nice, France. Age: 53 Education: University of Nice, MBA
Yongfeng Cai	Independent Director	Director/Board Member
Biography: Mr. Cai Yongfeng has been Independent Director in Qinghai Gelatin Company Limited since April 24, 2009. He is also General Manager in a food industry group company. He used to be General Manager in a Tianjin-based biological product company. Age: 48
Chuanmo Han	Independent Director	Director/Board Member
Age: 62
Tianhua Li	Director	Director/Board Member
Biography: Mr. Li Tianhua is Director in Qinghai Gelatin Company Limited. He is also Deputy General Manager in a Xi'an-based machinery technology company. Age: 54
Zhigang Niu	Director	Director/Board Member
Biography: Mr. Niu Zhigang has been Director in Qinghai Gelatin Company Limited since April 25, 2009. He is also General Manager in a Qinghai-based guarantee company which he served as Deputy General Manager. He used to be Deputy General Manager and General Manager in a Qinghai-based machinery manufacturing company. Age: 44
Zhengzhong Xu	Independent Director	Director/Board Member
Biography: Mr. Xu Zhengzhong is Independent Director in Qinghai Gelatin Company Limited. He is also Professor. He holds a Ph.D. He is Part-time Professor in Graduate University of Chinese Academy of Sciences, Nankai University, China, TIANJIN UNIVERSITY, China, Tsinghua University, China, Shandong University, China and Dalian University of Technology, China. Age: 44
Yuanyuan Xu	Director	Director/Board Member
Biography: Ms. Xu Yuanyuan has been Director in Qinghai Gelatin Company Limited since August 24, 2010. She is also Head-Business in another Qinghai-based company. Age: 32
Tao Zhang	Independent Director	Director/Board Member
Biography: Mr. Zhang Tao is Independent Director in Qinghai Gelatin Company Limited. He used to be Deputy General Manager-Nanjing Yangtze River Road Business Department, General Manager-Bond Department, General Manager-International Business Department, General Manager-Shanghai Agency Customer Business Department and Chief Investment Banking Officer in a securities company, as well as Executive President in a Shanghai-based investment management company. He holds Master of Business Administration from Boston University, the United States, his Master's degree in Investment from Nanjing University, China, his Bachelor of Economics in Industrial Management from Southeast University, China and his Bachelor of Science in physics from Soochow University, China. Age: 41 Education: Boston University, MBA Nanjing University, M (Investments) Southeast University, B (Industrial Management)
Xia Zhao	Executive President, Director	Director/Board Member
Biography: Mr. Zhao Xia is Executive President and Director in Qinghai Gelatin Company Limited. He was Deputy General Manager and Vice President in the Company. He used to be Chairman of the Board in a Qinghai-based biological engineering company. He holds Master of Business Administration (MBA) from University of California, the United States. Age: 41 Education: University of California, MBA

Executives

Name	Title	Function
Gong Yang	Vice Chairman of the Board, President	President
Biography: Mr. Yang Gong has been Vice Chairman of the Board and President in Qinghai Gelatin Company Limited since March 31, 2006. He used to be Deputy General Manager in a Tianjin-based group, Assistant General Manager in a Tianjin-based development company, as well as General Manager in a magnetic company. He holds Master of Business Administration (MBA) from University of Nice, France. Age: 53 Education: University of Nice, MBA
Xia Zhao	Executive President, Director	President
Biography: Mr. Zhao Xia is Executive President and Director in Qinghai Gelatin Company Limited. He was Deputy General Manager and Vice President in the Company. He used to be Chairman of the Board in a Qinghai-based biological engineering company. He holds Master of Business Administration (MBA) from University of California, the United States. Age: 41 Education: University of California, MBA
Yumin Hua	Secretary of the Board	Company Secretary
Biography: Mr. Hua Yumin has been Secretary of the Board in Qinghai Gelatin Company Limited since May 27, 2009. He is also Manager-Investment in the Company. He also serves as Deputy General Manager in a Tianjin-based investment management company which he served as General Manager. He holds his Bachelor of Economics in International Accounting from Tianjin University of Finance & Economics, China and his Master's degree in International Economic and Trade Relations from Flinders University, Australia. Age: 32 Education: Flinders University, M Tianjin University of Finance & Economics, B
Jun Yuan	Chief Financial Officer	Finance Executive
Age: 39
Haiyong Huang	Vice President	Other
Biography: Mr. Huang Haiyong is Vice President in Qinghai Gelatin Company Limited. He was Finance Manager in the Company. Age: 41
Guiying Liu	Vice President	Other
Age: 46
Yimin Lu	Director	Other
Age: 50
Yuancheng Wang	Vice President	Other
Age: 49
Haicang Zhang	Vice President	Other
Age: 43
Xiaobin Zhang	Assistant President	Other
Age: 42

Significant Developments

Qinghai Gelatin Company Limited Announces FY 2012 H1 Net Profit Outlook

Jul 14, 2012

Qinghai Gelatin Company Limited announced that it expects its net profit for the first half year of fiscal year (FY) 2012 to be RMB -8.5 million to RMB -8 million, compared to the net profit of the same period in FY 2011 (RMB -0.7637 million). The Company cited the increased business income as the main reason for the forecast.

Qinghai Gelatin Company Limited Announces FY 2012 Q1 Net Loss Outlook

Apr 14, 2012

Qinghai Gelatin Company Limited announced that it expects its net profit for the first quarter of fiscal year (FY) 2012 to be RMB -5 million to RMB -6 million, compared to the net profit of the same period in FY 2011 (RMB -6,388,000). The Company cited the increased production and sales of gelatin products and the changed scope of consolidations as the main reasons for the forecast.

Qinghai Gelatin Company Limited to Apply for Loan

Mar 24, 2012

Qinghai Gelatin Company Limited announced that it will apply for a loan of RMB 30 million for working capital supplement.

Qinghai Gelatin Company Limited to Divest Holdings

Mar 13, 2012

Qinghai Gelatin Company Limited announced that it will transfer all its 55% stake in a Tibet-based pharmaceutical company to Join+In (Holding) Co., Ltd for RMB 5.8 million.

Qinghai Gelatin Company Limited Amends Private Placement

Mar 07, 2012

Qinghai Gelatin Company Limited announced that it has updated its private placement plan of issuing up to 68 million A shares of common stock with par value of RMB 1 per share at RMB 5.13 per share, which was previously announced on February 7, 2012. According to the new plan, the Company will issue up 66.15 million A shares of common stock at RMB 5.13 per share, to raise up to RMB 339,349,500 through private placement. The Company will invest RMB 120 million to acquire a 100% stake in a Liuzhou-based collagen casing company (Company A) from its shareholders including a Tianjin-based and a Guangxi-based venture investment company, and then inject RMB 190 million into Company A.

Qinghai Gelatin Company Limited Announces No Dividend Payment for FY 2011

Feb 15, 2012

Qinghai Gelatin Company Limited announced that it will pay no dividend to shareholders for fiscal year 2011.

Qinghai Gelatin Company Limited Takes Accounting Corrections and Restates FY 2011 Semi-annual Report and Q3 Report

Feb 15, 2012

Qinghai Gelatin Company Limited announced that it has taken corrections for the accounting errors in its semi-annual report and the third quarter report for fiscal year 2011, and restated the two reports.

Qinghai Gelatin Company Limited Revises FY 2011 Net Profit Outlook

Feb 07, 2012

Qinghai Gelatin Company Limited announced that it expects its net profit for fiscal year (FY) 2011 to be RMB -16 million to RMB -15 million, or to decrease by 2986.90%to 2806.47%, compared to the net profit of FY 2010 (RMB 554,200). The Company previously announced that it expected the profit to be RMB 16 million to RMB 18 million. The Company cited the decreased investment income as the main reason for the revision.

Qinghai Gelatin Company Limited to Issue Shares in Private Placement

Feb 07, 2012

Qinghai Gelatin Company Limited announced that it will issue up to 68 million A shares of common stock with par value of RMB 1 per share at RMB 5.13 per share, to raise up to RMB 250 million in private placement. The Company will use the funds to acquire a 100% stake in a Liuzhou-based collagen casing company (Company A) from its shareholders including a Tianjin-based and a Guangxi-based venture investment company, for up to RMB 130 million, and then inject RMB 190 million into Company A.

Qinghai Gelatin Company Limited Revises FY 2011 Net Profit Outlook

Jan 18, 2012

Qinghai Gelatin Company Limited announced that it expects its net profit for fiscal year (FY) 2011 to be RMB 16 million to RMB 18 million, or to increase by 2786.90% to 3147.76%, compared to that of FY 2010 (RMB 554,200). The Company previously announced that it expected the profit to be RMB 28 million. The Company cited the lower-than-expected profit rate, loss on investment and cancelation of project as the main reason for the revision.

Qinghai Gelatin Company Limited Updates Private Placement Plan

Aug 24, 2011

Qinghai Gelatin Company Limited announced that it has updated its private placement plan first announced on May 31, 2011. According to the new plan, the Company will issue up to 60 million new shares with par value of RMB 1 per share at not less than RMB 7.36 per share, to raise up to RMB 380 million. The Company will use partial funds to acquire a 100% stake in a Liuzhou-based collagen casing company, which is valued at RMB 158 million.

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Restated Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.46438	6.768989	6.831007	6.950445	7.605973
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	90.6	129.4	96.8	71.0	38.0
Revenue	90.6	129.4	96.8	71.0	38.0
Total Revenue	90.6	129.4	96.8	71.0	38.0
Cost of Revenue	54.0	75.2	58.5	49.2	25.1
Excise Taxes Payments	1.0	0.9	0.7	0.3	0.3
Cost of Revenue, Total	55.0	76.2	59.1	49.5	25.4
Gross Profit	35.6	53.2	37.7	21.5	12.6
Selling/General/Administrative Expense	41.6	57.2	42.5	21.8	8.7
Total Selling/General/Administrative Expenses	41.6	57.2	42.5	21.8	8.7
Interest Expense - Operating	2.8	1.9	1.9	1.8	0.8
Interest Expense - Net Operating	2.8	1.9	1.9	1.8	0.8
Interest Income - Operating	-0.1	-0.1	-0.1	-0.1	-0.1
Investment Income - Operating	-4.0	-0.1	-0.3	0.0	0.1
Interest/Investment Income - Operating	-4.0	-0.2	-0.4	-0.1	0.0
Interest Expense (Income) - Net Operating Total	-1.2	1.8	1.5	1.7	0.8
Impairment-Assets Held for Use	0.1	0.2	0.5	0.3	0.1
Unusual Expense (Income)	0.1	0.2	0.5	0.3	0.1
Other Operating Expense	0.0	0.0	0.0	0.1	0.0
Other Operating Expenses, Total	0.0	0.0	0.0	0.1	0.0
Total Operating Expense	95.5	135.5	103.6	73.4	35.0
Operating Income	-4.9	-6.1	-6.8	-2.4	3.0
Gain (Loss) on Sale of Assets	-0.1	0.0	0.1	2.4	0.0
Other Non-Operating Income (Expense)	2.8	7.5	4.4	2.1	0.5
Other, Net	2.8	7.5	4.4	2.1	0.5
Income Before Tax	-2.1	1.4	-2.3	2.2	3.5
Total Income Tax	0.6	0.6	1.1	0.4	0.4
Income After Tax	-2.8	0.8	-3.4	1.8	3.1
Minority Interest	0.4	-0.7	0.3	0.2	0.0
Net Income Before Extraord Items	-2.4	0.1	-3.0	2.0	3.1
Net Income	-2.4	0.1	-3.0	2.0	3.1
Income Available to Common Excl Extraord Items	-2.4	0.1	-3.0	2.0	3.1
Income Available to Common Incl Extraord Items	-2.4	0.1	-3.0	2.0	3.1
Basic/Primary Weighted Average Shares	406.0	406.0	398.2	336.1	299.6
Basic EPS Excl Extraord Items	-0.01	0.00	-0.01	0.01	0.01
Basic/Primary EPS Incl Extraord Items	-0.01	0.00	-0.01	0.01	0.01
Dilution Adjustment	0.0	0.0	0.0	-	0.0
Diluted Net Income	-2.4	0.1	-3.0	2.0	3.1
Diluted Weighted Average Shares	406.0	406.0	398.2	336.1	299.6
Diluted EPS Excl Extraord Items	-0.01	0.00	-0.01	0.01	0.01
Diluted EPS Incl Extraord Items	-0.01	0.00	-0.01	0.01	0.01
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.4	0.0
Interest Expense, Supplemental	2.8	1.9	1.9	1.8	0.8
Interest Capitalized, Supplemental	-	-	-	-0.3	-
Depreciation, Supplemental	4.6	4.6	3.9	3.7	2.6
Total Special Items	0.1	0.2	0.4	-2.1	0.1
Normalized Income Before Tax	-2.0	1.6	-1.9	0.0	3.6
Effect of Special Items on Income Taxes	0.0	0.1	0.1	-0.4	0.0
Inc Tax Ex Impact of Sp Items	0.7	0.7	1.2	0.0	0.4
Normalized Income After Tax	-2.7	0.9	-3.1	0.0	3.2
Normalized Inc. Avail to Com.	-2.3	0.2	-2.8	0.2	3.2
Basic Normalized EPS	-0.01	0.00	-0.01	0.00	0.01
Diluted Normalized EPS	-0.01	0.00	-0.01	0.00	0.01
Amort of Intangibles, Supplemental	0.1	0.2	0.2	0.2	0.2
Rental Expenses	0.2	0.1	0.3	-	-
Advertising Expense, Supplemental	1.2	2.1	2.5	-	-
Research & Development Exp, Supplemental	0.1	0.3	0.2	-	-
Normalized EBIT	-6.0	-4.1	-4.8	-0.4	3.9
Normalized EBITDA	-1.3	0.7	-0.8	3.5	6.7
Current Tax - Total	0.7	0.6	1.1	0.5	0.4
Current Tax - Total	0.7	0.6	1.1	0.5	0.4
Deferred Tax - Total	-0.1	0.0	-0.1	-0.1	0.0
Deferred Tax - Total	-0.1	0.0	-0.1	-0.1	0.0
Income Tax - Total	0.6	0.6	1.1	0.4	0.4

Annual Balance Sheet

Financials in: USD (mil)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Reclassified Normal 31-Dec-2008
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate	6.294	6.5897	6.827	6.823	7.3041
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash & Equivalents	7.7	19.0	21.5	8.5	7.3
Short Term Investments	-	-	0.9	0.0	-
Cash and Short Term Investments	7.7	19.0	22.4	8.5	7.3
Accounts Receivable - Trade, Gross	17.9	26.1	25.7	18.2	13.8
Provision for Doubtful Accounts	-0.5	-0.5	-0.2	-0.2	-0.1
Trade Accounts Receivable - Net	17.5	25.7	25.5	18.0	13.6
Notes Receivable - Short Term	4.7	1.7	4.3	2.1	2.2
Other Receivables	1.9	1.5	2.3	2.0	2.1
Total Receivables, Net	24.1	28.9	32.1	22.1	18.0
Inventories - Finished Goods	8.3	9.9	8.3	10.0	6.5
Inventories - Work In Progress	2.6	4.1	3.0	4.5	1.7
Inventories - Raw Materials	3.2	4.5	2.8	4.7	1.9
Inventories - Other	0.4	0.3	0.3	0.2	-0.2
Total Inventory	14.6	18.7	14.4	19.4	9.9
Prepaid Expenses	4.4	5.7	3.6	8.6	7.5
Total Current Assets	50.8	72.4	72.5	58.6	42.7
Buildings	41.2	42.7	36.0	31.7	24.4
Machinery/Equipment	49.0	48.3	41.8	32.5	27.4
Construction in Progress	3.8	2.3	9.2	12.3	5.0
Property/Plant/Equipment - Gross	93.9	93.3	87.0	76.5	56.8
Accumulated Depreciation	-19.5	-19.3	-14.3	-10.4	-7.4
Property/Plant/Equipment - Net	74.5	74.0	72.8	66.1	49.4
Goodwill, Net	-	0.2	0.2	0.2	0.1
Intangibles - Gross	4.2	7.3	7.0	6.9	4.7
Accumulated Intangible Amortization	-0.5	-1.5	-1.3	-1.1	-0.9
Intangibles, Net	3.7	5.8	5.7	5.8	3.9
LT Investment - Affiliate Companies	41.9	20.6	3.1	-	3.7
LT Investments - Other	10.2	16.1	-	-	13.6
Long Term Investments	52.1	36.7	3.1	-	17.3
Deferred Charges	0.3	0.1	0.1	0.0	0.0
Deferred Income Tax - Long Term Asset	0.5	0.4	0.4	0.3	0.3
Other Long Term Assets, Total	0.8	0.5	0.5	0.3	0.3
Total Assets	181.9	189.5	154.7	131.0	113.7
Accounts Payable	12.6	19.1	16.0	19.0	9.8
Accrued Expenses	4.3	15.8	12.0	6.7	8.2
Notes Payable/Short Term Debt	16.4	6.5	6.6	7.6	4.7
Current Portion - Long Term Debt/Capital Leases	8.7	13.8	5.8	6.0	6.9
Dividends Payable	0.4	0.1	0.4	0.0	0.1
Customer Advances	3.6	6.7	1.9	0.9	0.5
Income Taxes Payable	1.3	1.0	2.6	0.1	1.9
Other Current Liabilities	0.6	1.2	0.6	0.3	0.9
Other Current liabilities, Total	5.9	8.9	5.5	1.4	3.4
Total Current Liabilities	47.9	64.2	45.8	40.7	33.1
Long Term Debt	20.9	10.3	18.4	17.3	15.0
Total Long Term Debt	20.9	10.3	18.4	17.3	15.0
Total Debt	46.0	30.6	30.7	30.9	26.6
Deferred Income Tax - LT Liability	1.8	3.2	-	-	0.0
Deferred Income Tax	1.8	3.2	-	-	0.0
Minority Interest	17.2	17.7	3.5	3.2	3.2
Total Liabilities	87.8	95.4	67.6	61.1	51.2
Common Stock	64.5	61.6	59.5	32.8	30.7
Common Stock	64.5	61.6	59.5	32.8	30.7
Additional Paid-In Capital	25.1	26.0	21.3	23.2	20.8
Retained Earnings (Accumulated Deficit)	4.5	6.6	6.3	13.8	11.0
Total Equity	94.1	94.2	87.1	69.8	62.5
Total Liabilities & Shareholders’ Equity	181.9	189.5	154.7	131.0	113.7
Shares Outstanding - Common Stock Primary Issue	406.0	406.0	406.0	336.1	336.1
Total Common Shares Outstanding	406.0	406.0	406.0	336.1	336.1
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	1,096	1,091	1,164	1,218	1,226
Number of Common Shareholders	57,038	40,265	45,465	36,845	33,735
Accumulated Intangible Amort, Suppl.	0.5	1.5	1.3	1.1	0.9
Deferred Revenue - Current	3.6	6.7	1.9	0.9	0.5
Total Long Term Debt, Supplemental	-	13.8	-	6.0	-
Long Term Debt Maturing within 1 Year	-	13.8	-	6.0	-
Long Term Debt Matur. in Year 6 & Beyond	-	0.0	-	0.0	-

Annual Cash Flows

Financials in: USD (mil)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.46438	6.768989	6.831007	6.950445	7.605973
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash Receipts	109.7	156.0	108.4	75.3	34.6
Cash Payments	-71.7	-102.1	-75.5	-60.3	-25.5
Cash Taxes Paid	-5.8	-7.9	-0.5	-4.5	-3.3
Other Operating Cash Flow	-32.7	-44.0	-31.6	-12.0	-3.4
Changes in Working Capital	-32.7	-44.0	-31.6	-12.0	-3.4
Cash from Operating Activities	-0.5	2.0	0.8	-1.4	2.4
Purchase of Fixed Assets	-7.0	-1.7	-6.5	-10.7	-15.4
Capital Expenditures	-7.0	-1.7	-6.5	-10.7	-15.4
Sale of Business	9.6	-	-	-	-
Sale of Fixed Assets	0.4	0.9	2.3	17.0	0.1
Sale/Maturity of Investment	0.1	1.6	1.0	0.6	0.0
Purchase of Investments	-20.0	-20.5	-4.5	0.0	-2.6
Other Investing Cash Flow	0.4	3.8	0.2	-0.1	-0.1
Other Investing Cash Flow Items, Total	-9.5	-14.2	-1.0	17.4	-2.6
Cash from Investing Activities	-16.5	-15.9	-7.5	6.7	-18.1
Other Financing Cash Flow	-1.0	5.1	18.9	-3.6	15.8
Financing Cash Flow Items	-1.0	5.1	18.9	-3.6	15.8
Total Debt Issued	34.4	21.0	13.5	13.7	8.7
Total Debt Reduction	-28.2	-15.4	-12.7	-14.8	-5.7
Issuance (Retirement) of Debt, Net	6.1	5.6	0.7	-1.1	3.0
Cash from Financing Activities	5.1	10.7	19.7	-4.7	18.8
Net Change in Cash	-11.9	-3.1	13.0	0.7	3.1
Net Cash - Beginning Balance	19.4	21.7	21.5	7.7	3.9
Net Cash - Ending Balance	7.5	18.5	34.5	8.3	7.0
Depreciation	4.6	4.6	3.9	3.7	2.6

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Restated Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.46438	6.768989	6.831007	6.950445	7.605973
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	90.6	129.4	96.8	71.0	38.0
Total Revenue	90.6	129.4	96.8	71.0	38.0
Cost of Sales	54.0	75.2	58.5	49.2	25.1
Business Tax and Surcharges	1.0	0.9	0.7	0.3	0.3
Selling Expense	35.6	51.9	37.8	18.5	6.4
General & Administrative Expenses	6.0	5.4	4.7	3.3	2.3
Interest Expense	2.8	1.9	1.9	1.8	0.8
Interest Income	-0.1	-0.1	-0.1	-0.1	-0.1
Foreign Exchange Gain/Loss	-	0.0	-	-	-
Commission Fees	0.0	0.0	0.0	0.1	0.0
Impairment Loss on Assets	0.1	0.2	0.5	0.3	0.1
Investment Income	-4.0	-0.1	-0.3	0.0	0.1
Total Operating Expense	95.5	135.5	103.6	73.4	35.0
Gain on Sale of Fixed Assets	0.0	0.0	0.1	2.4	0.0
Non - Operating Income	4.0	8.1	4.5	2.4	0.5
Loss on Sale of Fixed Assets	-0.1	0.0	0.0	0.0	0.0
Non - Operating Expense	-1.1	-0.6	-0.1	-0.3	0.0
Net Income Before Taxes	-2.1	1.4	-2.3	2.2	3.5
Provision for Income Taxes	0.6	0.6	1.1	0.4	0.4
Net Income After Taxes	-2.8	0.8	-3.4	1.8	3.1
Minority Interest	0.4	-0.7	0.3	0.2	0.0
Net Income Before Extra. Items	-2.4	0.1	-3.0	2.0	3.1
Net Income	-2.4	0.1	-3.0	2.0	3.1
Income Available to Com Excl ExtraOrd	-2.4	0.1	-3.0	2.0	3.1
Income Available to Com Incl ExtraOrd	-2.4	0.1	-3.0	2.0	3.1
Basic Weighted Average Shares	406.0	406.0	398.2	336.1	299.6
Basic EPS Excluding ExtraOrdinary Items	-0.01	0.00	-0.01	0.01	0.01
Basic EPS Including ExtraOrdinary Items	-0.01	0.00	-0.01	0.01	0.01
Dilution Adjustment	0.0	0.0	0.0	-	0.0
Diluted Net Income	-2.4	0.1	-3.0	2.0	3.1
Diluted Weighted Average Shares	406.0	406.0	398.2	336.1	299.6
Diluted EPS Excluding ExtraOrd Items	-0.01	0.00	-0.01	0.01	0.01
Diluted EPS Including ExtraOrd Items	-0.01	0.00	-0.01	0.01	0.01
DPS-A Share	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.4	0.0
Normalized Income Before Taxes	-2.0	1.6	-1.9	0.0	3.6
Inc Tax Ex Impact of Sp Items	0.7	0.7	1.2	0.0	0.4
Normalized Income After Taxes	-2.7	0.9	-3.1	0.0	3.2
Normalized Inc. Avail to Com.	-2.3	0.2	-2.8	0.2	3.2
Basic Normalized EPS	-0.01	0.00	-0.01	0.00	0.01
Diluted Normalized EPS	-0.01	0.00	-0.01	0.00	0.01
Interest Expense, Supplemental	2.8	1.9	1.9	1.8	0.8
Depreciation, Supplemental	4.6	4.6	3.9	3.7	2.6
Amort of Intangibles, Supplemental	0.1	0.2	0.2	0.2	0.2
Advertising Expense, Supplemental	1.2	2.1	2.5	-	-
Rental Expense, Supplemental	0.2	0.1	0.3	-	-
Research & Development Exp, Supplemental	0.1	0.3	0.2	-	-
Interest Capitalized	-	-	-	-0.3	-
Current Tax	0.7	0.6	1.1	0.5	0.4
Current Tax - Total	0.7	0.6	1.1	0.5	0.4
Deferred Tax	-0.1	0.0	-0.1	-0.1	0.0
Deferred Tax - Total	-0.1	0.0	-0.1	-0.1	0.0
Income Tax - Total	0.6	0.6	1.1	0.4	0.4

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Reclassified Normal 31-Dec-2008
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate	6.294	6.5897	6.827	6.823	7.3041
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Financial Assets - Trading	-	-	0.9	0.0	-
Cash and Cash Equivalent	7.7	19.0	21.5	8.5	7.3
Notes Receivable	4.7	1.7	4.3	2.1	2.2
Accounts Receivable (Gross)	17.9	26.1	25.7	18.2	13.8
Provision for Doubtful Accounts	-0.5	-0.5	-0.2	-0.2	-0.1
Payment in Advance	4.4	5.7	3.6	8.6	7.5
Other Receivables	1.9	1.5	2.3	2.0	2.1
Production Cost	-	-	-	-	1.7
Raw Material	3.2	4.5	2.8	4.7	1.9
Finished Products/Goods in Store	8.3	9.9	8.3	10.0	6.5
Work-in-Process	2.6	4.0	3.0	4.5	-
Semi-finished Product	-	0.1	0.0	0.0	0.0
Packaging Material	0.3	0.2	0.2	0.2	0.1
Low Value Consumable	0.0	0.0	0.0	0.0	0.0
Fuel	0.1	0.1	0.0	-	-
Supplementary Materials	0.0	0.1	0.0	-	-
Purchased Materials	-	-	-	0.0	0.0
Provision/Allowance for Inventory	-	-	-	-	-0.4
Material Cost Difference	-	0.0	-	-	-
Total Current Assets	50.8	72.4	72.5	58.6	42.7
Financial Assets - Available for Sale	10.2	16.1	-	-	-
Long Term Equity Investment	41.9	20.6	3.1	-	3.7
Real Estate Investment	-	-	-	-	13.6
Buildings & Structures	41.2	42.7	36.0	31.7	24.4
Machinery and Equipment	45.1	45.0	39.0	29.7	25.6
Transportation Equipment	2.8	2.1	1.7	1.8	1.3
Electrical Equipment and Other	1.1	1.2	1.0	1.0	0.5
Accumulated Depreciation	-19.4	-19.2	-14.2	-10.4	-7.3
Provision for Impairment of Fixed Assets	0.0	0.0	0.0	0.0	0.0
Construction Materials	-	-	-	0.1	0.2
Construction in Progress	3.8	2.3	9.2	12.2	4.9
Intangible Assets, Gross	4.2	7.3	7.0	6.9	4.7
Accumulated Intangible Amortization	-0.5	-1.5	-1.3	-1.1	-0.9
Goodwill, Net	-	0.2	0.2	0.2	0.1
Long Term Prepaid Expense	0.3	0.1	0.1	0.0	0.0
Deferred Tax Assets	0.5	0.4	0.4	0.3	0.3
Total Assets	181.9	189.5	154.7	131.0	113.7
Short Term Borrowing	16.4	6.5	6.6	6.7	2.7
Notes Payable	-	-	-	0.9	2.0
Accounts Payable	12.6	19.1	16.0	19.0	9.8
Customer Advance	3.6	6.7	1.9	0.9	0.5
Accrued Payroll	0.5	0.6	0.7	0.7	0.5
Tax Payable	1.3	1.0	2.6	0.1	1.9
Interest Payable	0.1	0.1	0.2	0.4	0.3
Dividend Payable	0.4	0.1	0.4	0.0	0.1
Other Creditors	3.7	15.1	11.1	5.6	7.3
Current Portion of LT Debt	8.7	13.8	5.8	6.0	6.9
Other Current Liabilities	0.6	1.2	0.6	0.3	0.9
Total Current Liabilities	47.9	64.2	45.8	40.7	33.1
Long Term Borrowing	20.9	10.3	18.4	17.3	15.0
Total Long Term Debt	20.9	10.3	18.4	17.3	15.0
Deferred Income Tax Liabilities	1.8	3.2	-	-	0.0
Minority Interest	17.2	17.7	3.5	3.2	3.2
Total Liabilities	87.8	95.4	67.6	61.1	51.2
Capital Stock	64.5	61.6	59.5	32.8	30.7
Paid in Capital	25.1	26.0	21.3	23.2	20.8
Surplus Reserve	4.5	3.9	3.8	3.7	3.3
Undistributed Profit	0.0	2.7	2.5	10.1	7.8
Total Equity	94.1	94.2	87.1	69.8	62.5
Total Liabilities & Shareholders' Equity	181.9	189.5	154.7	131.0	113.7
S/O-A Share	406.0	406.0	406.0	336.1	336.1
Total Common Shares Outstanding	406.0	406.0	406.0	336.1	336.1
T/S-A Share	0.0	0.0	0.0	0.0	0.0
Customer Advance	3.6	6.7	1.9	0.9	0.5
Accumulated Amortization of Intangibles	0.5	1.5	1.3	1.1	0.9
Full-Time Employees	1,096	1,091	1,164	1,218	1,226
Number of Shareholders	57,038	40,265	45,465	36,845	33,735
Long Term Debt Maturing within 1 Year	-	13.8	-	6.0	-
Total Long Term Debt, Supplemental	-	13.8	-	6.0	-

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.46438	6.768989	6.831007	6.950445	7.605973
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash Received from Sale of Goods/Svcs	109.7	156.0	108.4	75.3	34.6
Cash Paid for Goods and Services	-71.7	-102.1	-75.5	-60.3	-25.5
Refund of Taxes	3.9	6.3	0.4	2.0	0.3
Other Cash from Operating Activities	0.1	1.3	1.6	2.4	2.1
All Taxes Paid	-9.7	-14.2	-0.9	-6.4	-3.6
Other Cash Paid for Operating Activities	-32.8	-45.3	-28.8	-14.4	-5.5
Adjustment	-	-	-4.4	-	-
Cash from Operating Activities	-0.5	2.0	0.8	-1.4	2.4
Sale/Maturity/Redemption of Investments	0.1	1.6	1.0	0.6	0.0
Cash from Return on Investments	0.4	0.1	0.2	0.0	0.0
Sale of FA/Intangibles/Other Assets	0.4	0.9	2.3	17.0	0.1
Net cash received from disposal of subsi	9.6	-	-	-	-
Other Cash from Investing Activities	-	3.7	-	-	0.0
Capital Expenditure	-7.0	-1.7	-6.5	-10.7	-15.4
Cash Paid for Purchase of Investments	-20.0	-20.5	-4.5	0.0	-2.6
Other Cash Paid for Investing Activities	-	-	-	-0.1	-0.1
Cash from Investing Activities	-16.5	-15.9	-7.5	6.7	-18.1
Cash from Investors	2.5	7.4	22.0	-0.5	17.2
Cash from Borrowings	34.4	21.0	13.5	13.7	8.7
Other Cash from Financing Activities	-	-	0.3	-	-
Repayment of Borrowings	-28.2	-15.4	-12.7	-14.8	-5.7
Cash Paid for Dividend and Interest	-3.0	-2.3	-2.2	-2.6	-1.4
Other Cash Paid for Financing Activities	-0.6	-	-1.2	-0.5	0.0
Cash from Financing Activities	5.1	10.7	19.7	-4.7	18.8
Net Change in Cash	-11.9	-3.1	13.0	0.7	3.1
Net Cash - Beginning Balance	19.4	21.7	21.5	7.7	3.9
Net Cash - Ending Balance	7.5	18.5	34.5	8.3	7.0
Depreciation	4.6	4.6	3.9	3.7	2.6
Amortization of Intangibles	0.1	0.2	0.2	0.2	0.2

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 31-Mar-2012	Quarter Ending Yr Ago	Annual Year End 31-Dec-2011	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1	11.9	-61.11%	90.6	-33.14%	5.87%	26.54%
Operating Income1	-1.1	-	-4.9	-	-	-
Income Available to Common Excl Extraord Items1	-0.9	-	-2.4	-	-	-
Basic EPS Excl Extraord Items1	0.00	-	-0.01	-	-	-
Capital Expenditures2	1.0	781.12%	7.0	292.84%	-15.17%	-11.84%
Cash from Operating Activities2	-0.5	-	-0.5	-	-	-
Free Cash Flow	-1.5	-	-7.7	-	-	-
Total Assets3	171.2	-12.18%	181.9	-8.33%	8.62%	12.27%
Total Liabilities3	78.3	-23.86%	87.8	-12.03%	9.84%	10.63%
Total Long Term Debt3	21.9	77.56%	20.9	94.95%	3.80%	2.63%
Employees3	-	-	1096	0.46%	-3.46%	7.37%
Total Common Shares Outstanding3	406.0	0.00%	406.0	0.00%	6.50%	8.25%
1-ExchangeRate: CNY to USD Average for Period	6.309123	Â	6.464380	Â	Â	Â
2-ExchangeRate: CNY to USD Average for Period	6.309123	Â	6.464380	Â	Â	Â
3-ExchangeRate: CNY to USD Period End Date	6.303024	Â	6.294000	Â	Â	Â

Utility Industry Specific USD (mil)
Â	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Deferred Charges3	0.3	0.1	0.1	0.0	0.0
3-ExchangeRate: CNY to USD Period End Date	6.294000	6.589700	6.827000	6.823000	7.304100

Key Ratios
Â	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Profitability
Gross Margin	39.31%	41.12%	38.91%	30.34%	33.21%
Operating Margin	-5.41%	-4.69%	-7.02%	-3.32%	7.83%
Pretax Margin	-2.36%	1.08%	-2.37%	3.04%	9.22%
Net Profit Margin	-2.60%	0.06%	-3.15%	2.78%	8.25%
Financial Strength
Current Ratio	1.06	1.13	1.58	1.44	1.29
Long Term Debt/Equity	0.22	0.11	0.21	0.25	0.24
Total Debt/Equity	0.49	0.32	0.35	0.44	0.43
Management Effectiveness
Return on Assets	-1.49%	0.45%	-2.36%	1.42%	3.21%
Return on Equity	-2.51%	0.09%	-3.89%	2.94%	6.24%
Efficiency
Receivables Turnover	3.42	4.28	3.58	3.50	2.85
Inventory Turnover	3.30	4.65	3.50	3.36	2.64
Asset Turnover	0.49	0.76	0.68	0.57	0.39

Market Valuation USD (mil)
Enterprise Value2	428.5	.	Price/Sales (TTM)	5.04
Enterprise Value/Revenue (TTM)	5.77	.	Price/Book (MRQ)	4.03
Market Cap as of 27-Jul-20121	369.4	.
1-ExchangeRate: CNY to USD on 27-Jul-2012	6.385087
2-ExchangeRate: CNY to USD on 31-Mar-2012	6.303024

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Financial Strength
Current Ratio	1.06	1.13	1.58	1.44	1.29
Quick/Acid Test Ratio	0.66	0.75	1.19	0.75	0.76
Working Capital1	2.9	8.2	26.7	17.9	9.6
Long Term Debt/Equity	0.22	0.11	0.21	0.25	0.24
Total Debt/Equity	0.49	0.32	0.35	0.44	0.43
Long Term Debt/Total Capital	0.15	0.08	0.16	0.17	0.17
Total Debt/Total Capital	0.33	0.25	0.26	0.31	0.30
Payout Ratio	0.00%	0.00%	0.00%	17.89%	0.00%
Effective Tax Rate	-	45.32%	-	18.31%	11.46%
Total Capital1	140.1	124.8	117.8	100.7	89.1
Efficiency
Asset Turnover	0.49	0.76	0.68	0.57	0.39
Inventory Turnover	3.30	4.65	3.50	3.36	2.64
Days In Inventory	110.45	78.56	104.32	108.69	138.18
Receivables Turnover	3.42	4.28	3.58	3.50	2.85
Days Receivables Outstanding	106.65	85.30	102.01	104.29	128.19
Revenue/Employee2	84,887	121,822	83,232	59,388	32,300
Operating Income/Employee2	-4,593	-5,708	-5,846	-1,970	2,530
EBITDA/Employee2	-206	-1,181	-2,352	1,258	4,923
Profitability
Gross Margin	39.31%	41.12%	38.91%	30.34%	33.21%
Operating Margin	-5.41%	-4.69%	-7.02%	-3.32%	7.83%
EBITDA Margin	-0.24%	-0.97%	-2.83%	2.12%	15.24%
EBIT Margin	-5.41%	-4.69%	-7.02%	-3.32%	7.83%
Pretax Margin	-2.36%	1.08%	-2.37%	3.04%	9.22%
Net Profit Margin	-2.60%	0.06%	-3.15%	2.78%	8.25%
COGS/Revenue	60.69%	58.88%	61.09%	69.66%	66.79%
SG&A Expense/Revenue	45.92%	44.25%	43.89%	30.77%	22.98%
Management Effectiveness
Return on Assets	-1.49%	0.45%	-2.36%	1.42%	3.21%
Return on Equity	-2.51%	0.09%	-3.89%	2.94%	6.24%
Valuation
Free Cash Flow/Share2	-0.02	0.00	-0.01	-0.04	-0.04
Operating Cash Flow/Share 2	0.00	0.01	0.00	0.00	0.01
1-ExchangeRate: CNY to USD Period End Date	6.294	6.5897	6.827	6.823	7.3041
2-ExchangeRate: CNY to USD Average for Period	6.294	6.5897	6.827	6.823	7.3041

Current Market Multiples
Market Cap/Earnings (TTM)	-163.29
Market Cap/Equity (MRQ)	4.03
Market Cap/Revenue (TTM)	5.04
Market Cap/EBIT (TTM)	-79.01
Market Cap/EBITDA (TTM)	-79.01
Enterprise Value/Earnings (TTM)	-186.99
Enterprise Value/Equity (MRQ)	4.61
Enterprise Value/Revenue (TTM)	5.77
Enterprise Value/EBIT (TTM)	-90.47
Enterprise Value/EBITDA (TTM)	-90.47

Annual Income Statement

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Restated Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.46438	6.768989	6.831007	6.950445	7.605973
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	90.6	129.4	96.8	71.0	38.0
Revenue	90.6	129.4	96.8	71.0	38.0
Total Revenue	90.6	129.4	96.8	71.0	38.0
Cost of Revenue	54.0	75.2	58.5	49.2	25.1
Excise Taxes Payments	1.0	0.9	0.7	0.3	0.3
Cost of Revenue, Total	55.0	76.2	59.1	49.5	25.4
Gross Profit	35.6	53.2	37.7	21.5	12.6
Selling/General/Administrative Expense	41.6	57.2	42.5	21.8	8.7
Total Selling/General/Administrative Expenses	41.6	57.2	42.5	21.8	8.7
Interest Expense - Operating	2.8	1.9	1.9	1.8	0.8
Interest Expense - Net Operating	2.8	1.9	1.9	1.8	0.8
Interest Income - Operating	-0.1	-0.1	-0.1	-0.1	-0.1
Investment Income - Operating	-4.0	-0.1	-0.3	0.0	0.1
Interest/Investment Income - Operating	-4.0	-0.2	-0.4	-0.1	0.0
Interest Expense (Income) - Net Operating Total	-1.2	1.8	1.5	1.7	0.8
Impairment-Assets Held for Use	0.1	0.2	0.5	0.3	0.1
Unusual Expense (Income)	0.1	0.2	0.5	0.3	0.1
Other Operating Expense	0.0	0.0	0.0	0.1	0.0
Other Operating Expenses, Total	0.0	0.0	0.0	0.1	0.0
Total Operating Expense	95.5	135.5	103.6	73.4	35.0
Operating Income	-4.9	-6.1	-6.8	-2.4	3.0
Gain (Loss) on Sale of Assets	-0.1	0.0	0.1	2.4	0.0
Other Non-Operating Income (Expense)	2.8	7.5	4.4	2.1	0.5
Other, Net	2.8	7.5	4.4	2.1	0.5
Income Before Tax	-2.1	1.4	-2.3	2.2	3.5
Total Income Tax	0.6	0.6	1.1	0.4	0.4
Income After Tax	-2.8	0.8	-3.4	1.8	3.1
Minority Interest	0.4	-0.7	0.3	0.2	0.0
Net Income Before Extraord Items	-2.4	0.1	-3.0	2.0	3.1
Net Income	-2.4	0.1	-3.0	2.0	3.1
Income Available to Common Excl Extraord Items	-2.4	0.1	-3.0	2.0	3.1
Income Available to Common Incl Extraord Items	-2.4	0.1	-3.0	2.0	3.1
Basic/Primary Weighted Average Shares	406.0	406.0	398.2	336.1	299.6
Basic EPS Excl Extraord Items	-0.01	0.00	-0.01	0.01	0.01
Basic/Primary EPS Incl Extraord Items	-0.01	0.00	-0.01	0.01	0.01
Dilution Adjustment	0.0	0.0	0.0	-	0.0
Diluted Net Income	-2.4	0.1	-3.0	2.0	3.1
Diluted Weighted Average Shares	406.0	406.0	398.2	336.1	299.6
Diluted EPS Excl Extraord Items	-0.01	0.00	-0.01	0.01	0.01
Diluted EPS Incl Extraord Items	-0.01	0.00	-0.01	0.01	0.01
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.4	0.0
Interest Expense, Supplemental	2.8	1.9	1.9	1.8	0.8
Interest Capitalized, Supplemental	-	-	-	-0.3	-
Depreciation, Supplemental	4.6	4.6	3.9	3.7	2.6
Total Special Items	0.1	0.2	0.4	-2.1	0.1
Normalized Income Before Tax	-2.0	1.6	-1.9	0.0	3.6
Effect of Special Items on Income Taxes	0.0	0.1	0.1	-0.4	0.0
Inc Tax Ex Impact of Sp Items	0.7	0.7	1.2	0.0	0.4
Normalized Income After Tax	-2.7	0.9	-3.1	0.0	3.2
Normalized Inc. Avail to Com.	-2.3	0.2	-2.8	0.2	3.2
Basic Normalized EPS	-0.01	0.00	-0.01	0.00	0.01
Diluted Normalized EPS	-0.01	0.00	-0.01	0.00	0.01
Amort of Intangibles, Supplemental	0.1	0.2	0.2	0.2	0.2
Rental Expenses	0.2	0.1	0.3	-	-
Advertising Expense, Supplemental	1.2	2.1	2.5	-	-
Research & Development Exp, Supplemental	0.1	0.3	0.2	-	-
Normalized EBIT	-6.0	-4.1	-4.8	-0.4	3.9
Normalized EBITDA	-1.3	0.7	-0.8	3.5	6.7
Current Tax - Total	0.7	0.6	1.1	0.5	0.4
Current Tax - Total	0.7	0.6	1.1	0.5	0.4
Deferred Tax - Total	-0.1	0.0	-0.1	-0.1	0.0
Deferred Tax - Total	-0.1	0.0	-0.1	-0.1	0.0
Income Tax - Total	0.6	0.6	1.1	0.4	0.4

Interim Income Statement

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
Period Length	3 Months	3 Months	3 Months	3 Months	3 Months
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.309123	6.359548	6.417282	6.501206	6.583076
Net Sales	11.9	13.9	16.0	31.1	29.2
Revenue	11.9	13.9	16.0	31.1	29.2
Total Revenue	11.9	13.9	16.0	31.1	29.2
Cost of Revenue	9.2	11.2	11.4	15.8	15.4
Excise Taxes Payments	0.1	0.1	0.3	0.3	0.3
Cost of Revenue, Total	9.3	11.3	11.7	16.2	15.7
Gross Profit	2.6	2.6	4.3	14.9	13.6
Selling/General/Administrative Expense	2.7	3.2	5.8	17.2	15.1
Total Selling/General/Administrative Expenses	2.7	3.2	5.8	17.2	15.1
Investment Income - Operating	0.0	5.4	-	-9.3	-
Interest/Investment Income - Operating	0.0	5.4	-	-9.3	-
Interest Expense (Income) - Net Operating	0.9	0.8	1.0	0.5	0.5
Interest Expense (Income) - Net Operating Total	0.9	6.3	1.0	-8.8	0.5
Impairment-Assets Held for Use	0.0	0.0	-1.1	1.1	0.0
Unusual Expense (Income)	0.0	0.0	-1.1	1.1	0.0
Total Operating Expense	12.9	20.9	17.5	25.7	31.2
Operating Income	-1.1	-7.0	-1.5	5.4	-2.0
Other Non-Operating Income (Expense)	0.0	0.2	0.1	1.4	1.0
Other, Net	0.0	0.2	0.1	1.4	1.0
Income Before Tax	-1.0	-6.7	-1.4	6.9	-1.0
Total Income Tax	0.0	0.1	-0.1	0.6	0.0
Income After Tax	-1.1	-6.9	-1.3	6.3	-1.0
Minority Interest	0.2	0.2	0.3	-0.2	0.1
Net Income Before Extraord Items	-0.9	-6.7	-0.9	6.1	-1.0
Net Income	-0.9	-6.7	-0.9	6.1	-1.0
Income Available to Common Excl Extraord Items	-0.9	-6.7	-0.9	6.1	-1.0
Income Available to Common Incl Extraord Items	-0.9	-6.7	-0.9	6.1	-1.0
Basic/Primary Weighted Average Shares	406.0	406.0	406.0	406.0	406.0
Basic EPS Excl Extraord Items	0.00	-0.02	0.00	0.01	0.00
Basic/Primary EPS Incl Extraord Items	0.00	-0.02	0.00	0.01	0.00
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	-0.9	-6.7	-0.9	6.1	-1.0
Diluted Weighted Average Shares	406.0	406.0	406.0	406.0	406.0
Diluted EPS Excl Extraord Items	0.00	-0.02	0.00	0.01	0.00
Diluted EPS Incl Extraord Items	0.00	-0.02	0.00	0.01	0.00
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Total Special Items	0.0	0.0	-1.1	1.1	0.0
Normalized Income Before Tax	-1.0	-6.7	-2.5	7.9	-1.0
Effect of Special Items on Income Taxes	0.0	0.0	-0.4	0.1	0.0
Inc Tax Ex Impact of Sp Items	0.0	0.1	-0.5	0.7	0.0
Normalized Income After Tax	-1.1	-6.8	-2.0	7.2	-1.0
Normalized Inc. Avail to Com.	-0.9	-6.6	-1.6	7.0	-0.9
Basic Normalized EPS	0.00	-0.02	0.00	0.02	0.00
Diluted Normalized EPS	0.00	-0.02	0.00	0.02	0.00
Normalized EBIT	-0.1	-0.7	-1.5	-2.3	-1.5
Normalized EBITDA	-0.1	-0.7	-1.5	-2.3	-1.5

Annual Balance Sheet

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Reclassified Normal 31-Dec-2008
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate	6.294	6.5897	6.827	6.823	7.3041
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash & Equivalents	7.7	19.0	21.5	8.5	7.3
Short Term Investments	-	-	0.9	0.0	-
Cash and Short Term Investments	7.7	19.0	22.4	8.5	7.3
Accounts Receivable - Trade, Gross	17.9	26.1	25.7	18.2	13.8
Provision for Doubtful Accounts	-0.5	-0.5	-0.2	-0.2	-0.1
Trade Accounts Receivable - Net	17.5	25.7	25.5	18.0	13.6
Notes Receivable - Short Term	4.7	1.7	4.3	2.1	2.2
Other Receivables	1.9	1.5	2.3	2.0	2.1
Total Receivables, Net	24.1	28.9	32.1	22.1	18.0
Inventories - Finished Goods	8.3	9.9	8.3	10.0	6.5
Inventories - Work In Progress	2.6	4.1	3.0	4.5	1.7
Inventories - Raw Materials	3.2	4.5	2.8	4.7	1.9
Inventories - Other	0.4	0.3	0.3	0.2	-0.2
Total Inventory	14.6	18.7	14.4	19.4	9.9
Prepaid Expenses	4.4	5.7	3.6	8.6	7.5
Total Current Assets	50.8	72.4	72.5	58.6	42.7
Buildings	41.2	42.7	36.0	31.7	24.4
Machinery/Equipment	49.0	48.3	41.8	32.5	27.4
Construction in Progress	3.8	2.3	9.2	12.3	5.0
Property/Plant/Equipment - Gross	93.9	93.3	87.0	76.5	56.8
Accumulated Depreciation	-19.5	-19.3	-14.3	-10.4	-7.4
Property/Plant/Equipment - Net	74.5	74.0	72.8	66.1	49.4
Goodwill, Net	-	0.2	0.2	0.2	0.1
Intangibles - Gross	4.2	7.3	7.0	6.9	4.7
Accumulated Intangible Amortization	-0.5	-1.5	-1.3	-1.1	-0.9
Intangibles, Net	3.7	5.8	5.7	5.8	3.9
LT Investment - Affiliate Companies	41.9	20.6	3.1	-	3.7
LT Investments - Other	10.2	16.1	-	-	13.6
Long Term Investments	52.1	36.7	3.1	-	17.3
Deferred Charges	0.3	0.1	0.1	0.0	0.0
Deferred Income Tax - Long Term Asset	0.5	0.4	0.4	0.3	0.3
Other Long Term Assets, Total	0.8	0.5	0.5	0.3	0.3
Total Assets	181.9	189.5	154.7	131.0	113.7
Accounts Payable	12.6	19.1	16.0	19.0	9.8
Accrued Expenses	4.3	15.8	12.0	6.7	8.2
Notes Payable/Short Term Debt	16.4	6.5	6.6	7.6	4.7
Current Portion - Long Term Debt/Capital Leases	8.7	13.8	5.8	6.0	6.9
Dividends Payable	0.4	0.1	0.4	0.0	0.1
Customer Advances	3.6	6.7	1.9	0.9	0.5
Income Taxes Payable	1.3	1.0	2.6	0.1	1.9
Other Current Liabilities	0.6	1.2	0.6	0.3	0.9
Other Current liabilities, Total	5.9	8.9	5.5	1.4	3.4
Total Current Liabilities	47.9	64.2	45.8	40.7	33.1
Long Term Debt	20.9	10.3	18.4	17.3	15.0
Total Long Term Debt	20.9	10.3	18.4	17.3	15.0
Total Debt	46.0	30.6	30.7	30.9	26.6
Deferred Income Tax - LT Liability	1.8	3.2	-	-	0.0
Deferred Income Tax	1.8	3.2	-	-	0.0
Minority Interest	17.2	17.7	3.5	3.2	3.2
Total Liabilities	87.8	95.4	67.6	61.1	51.2
Common Stock	64.5	61.6	59.5	32.8	30.7
Common Stock	64.5	61.6	59.5	32.8	30.7
Additional Paid-In Capital	25.1	26.0	21.3	23.2	20.8
Retained Earnings (Accumulated Deficit)	4.5	6.6	6.3	13.8	11.0
Total Equity	94.1	94.2	87.1	69.8	62.5
Total Liabilities & Shareholders’ Equity	181.9	189.5	154.7	131.0	113.7
Shares Outstanding - Common Stock Primary Issue	406.0	406.0	406.0	336.1	336.1
Total Common Shares Outstanding	406.0	406.0	406.0	336.1	336.1
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	1,096	1,091	1,164	1,218	1,226
Number of Common Shareholders	57,038	40,265	45,465	36,845	33,735
Accumulated Intangible Amort, Suppl.	0.5	1.5	1.3	1.1	0.9
Deferred Revenue - Current	3.6	6.7	1.9	0.9	0.5
Total Long Term Debt, Supplemental	-	13.8	-	6.0	-
Long Term Debt Maturing within 1 Year	-	13.8	-	6.0	-
Long Term Debt Matur. in Year 6 & Beyond	-	0.0	-	0.0	-

Interim Balance Sheet

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate	6.303024	6.294	6.3859	6.464	6.5485
Cash & Equivalents	8.1	7.7	12.5	14.7	13.0
Cash and Short Term Investments	8.1	7.7	12.5	14.7	13.0
Trade Accounts Receivable - Net	9.9	17.5	27.4	35.1	30.4
Notes Receivable - Short Term	3.6	4.7	2.6	1.3	0.6
Other Receivables	3.2	1.9	2.9	8.1	1.7
Total Receivables, Net	16.7	24.1	32.8	44.6	32.7
Total Inventory	15.0	14.6	14.4	15.3	17.0
Prepaid Expenses	2.1	4.4	4.1	6.2	5.4
Total Current Assets	41.9	50.8	63.9	80.8	68.1
Construction in Progress	4.7	3.8	5.1	2.3	1.9
Property/Plant/Equipment - Gross	4.7	3.8	5.1	2.3	1.9
Property/Plant/Equipment - Net	74.0	74.5	73.7	70.1	69.8
Intangibles, Net	3.6	3.7	2.5	2.4	2.3
LT Investment - Affiliate Companies	41.8	41.9	33.4	26.4	30.8
LT Investments - Other	9.1	10.2	11.8	12.9	16.2
Long Term Investments	50.8	52.1	45.2	39.4	47.0
Deferred Charges	0.2	0.3	0.1	0.1	0.1
Deferred Income Tax - Long Term Asset	0.5	0.5	0.6	0.5	0.4
Other Long Term Assets, Total	0.8	0.8	0.7	0.6	0.5
Total Assets	171.2	181.9	186.0	193.2	187.7
Accounts Payable	5.9	12.6	15.0	19.2	20.0
Accrued Expenses	5.1	4.3	11.5	18.0	17.6
Notes Payable/Short Term Debt	16.4	16.4	11.7	3.6	6.6
Current Portion - Long Term Debt/Capital Leases	7.7	8.7	-	1.7	12.4
Dividends Payable	0.1	0.4	0.8	0.8	0.1
Customer Advances	1.8	3.6	3.2	2.9	7.0
Income Taxes Payable	0.7	1.3	0.9	1.6	1.4
Other Current Liabilities	0.6	0.6	1.2	1.2	1.2
Other Current liabilities, Total	3.2	5.9	6.1	6.4	9.6
Total Current Liabilities	38.4	47.9	44.4	48.9	66.2
Long Term Debt	21.9	20.9	27.5	30.2	11.9
Total Long Term Debt	21.9	20.9	27.5	30.2	11.9
Total Debt	46.0	46.0	39.2	35.5	30.8
Deferred Income Tax - LT Liability	1.6	1.8	2.1	2.4	3.2
Deferred Income Tax	1.6	1.8	2.1	2.4	3.2
Minority Interest	16.4	17.2	17.3	16.9	17.7
Total Liabilities	78.3	87.8	91.4	98.4	99.0
Common Stock	64.4	64.5	63.6	62.8	62.0
Common Stock	64.4	64.5	63.6	62.8	62.0
Additional Paid-In Capital	24.9	25.1	24.7	24.8	25.6
Retained Earnings (Accumulated Deficit)	3.6	4.5	6.3	7.2	1.0
Total Equity	92.9	94.1	94.6	94.8	88.6
Total Liabilities & Shareholders’ Equity	171.2	181.9	186.0	193.2	187.7
Shares Outstanding - Common Stock Primary Issue	406.0	406.0	406.0	406.0	406.0
Total Common Shares Outstanding	406.0	406.0	406.0	406.0	406.0
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Number of Common Shareholders	54,091	57,038	55,722	52,289	37,522
Accumulated Intangible Amort, Suppl.	-	0.5	-	0.4	-
Deferred Revenue - Current	1.8	3.6	3.2	2.9	7.0
Total Long Term Debt, Supplemental	-	-	-	1.7	12.4
Long Term Debt Maturing within 1 Year	-	-	-	1.7	12.4
Long Term Debt Matur. in Year 6 & Beyond	-	-	-	0.0	0.0

Annual Cash Flows

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.46438	6.768989	6.831007	6.950445	7.605973
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash Receipts	109.7	156.0	108.4	75.3	34.6
Cash Payments	-71.7	-102.1	-75.5	-60.3	-25.5
Cash Taxes Paid	-5.8	-7.9	-0.5	-4.5	-3.3
Other Operating Cash Flow	-32.7	-44.0	-31.6	-12.0	-3.4
Changes in Working Capital	-32.7	-44.0	-31.6	-12.0	-3.4
Cash from Operating Activities	-0.5	2.0	0.8	-1.4	2.4
Purchase of Fixed Assets	-7.0	-1.7	-6.5	-10.7	-15.4
Capital Expenditures	-7.0	-1.7	-6.5	-10.7	-15.4
Sale of Business	9.6	-	-	-	-
Sale of Fixed Assets	0.4	0.9	2.3	17.0	0.1
Sale/Maturity of Investment	0.1	1.6	1.0	0.6	0.0
Purchase of Investments	-20.0	-20.5	-4.5	0.0	-2.6
Other Investing Cash Flow	0.4	3.8	0.2	-0.1	-0.1
Other Investing Cash Flow Items, Total	-9.5	-14.2	-1.0	17.4	-2.6
Cash from Investing Activities	-16.5	-15.9	-7.5	6.7	-18.1
Other Financing Cash Flow	-1.0	5.1	18.9	-3.6	15.8
Financing Cash Flow Items	-1.0	5.1	18.9	-3.6	15.8
Total Debt Issued	34.4	21.0	13.5	13.7	8.7
Total Debt Reduction	-28.2	-15.4	-12.7	-14.8	-5.7
Issuance (Retirement) of Debt, Net	6.1	5.6	0.7	-1.1	3.0
Cash from Financing Activities	5.1	10.7	19.7	-4.7	18.8
Net Change in Cash	-11.9	-3.1	13.0	0.7	3.1
Net Cash - Beginning Balance	19.4	21.7	21.5	7.7	3.9
Net Cash - Ending Balance	7.5	18.5	34.5	8.3	7.0
Depreciation	4.6	4.6	3.9	3.7	2.6

Interim Cash Flows

Standardized

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
Period Length	3 Months	12 Months	9 Months	6 Months	3 Months
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.309123	6.46438	6.500043	6.541904	6.583076
Cash Receipts	15.2	109.7	80.9	56.9	28.8
Cash Payments	-13.5	-71.7	-47.5	-33.1	-21.4
Cash Taxes Paid	-1.6	-5.8	-5.4	-4.3	-1.8
Other Operating Cash Flow	-0.6	-32.7	-29.2	-20.6	-4.8
Changes in Working Capital	-0.6	-32.7	-29.2	-20.6	-4.8
Cash from Operating Activities	-0.5	-0.5	-1.1	-1.1	0.9
Purchase of Fixed Assets	-1.0	-7.0	-5.1	-2.9	-0.1
Capital Expenditures	-1.0	-7.0	-5.1	-2.9	-0.1
Sale of Business	-	9.6	10.8	10.7	-
Sale of Fixed Assets	0.0	0.4	0.0	0.0	0.0
Sale/Maturity of Investment	0.6	0.1	-	-	-
Purchase of Investments	-	-20.0	-11.9	-11.9	-5.3
Other Investing Cash Flow	-0.2	0.4	-1.0	-0.9	-1.2
Other Investing Cash Flow Items, Total	0.4	-9.5	-2.1	-2.1	-6.5
Cash from Investing Activities	-0.6	-16.5	-7.1	-5.0	-6.7
Other Financing Cash Flow	1.4	-1.0	1.1	1.3	-0.2
Financing Cash Flow Items	1.4	-1.0	1.1	1.3	-0.2
Total Debt Issued	1.0	34.4	27.6	23.1	-
Total Debt Reduction	-1.0	-28.2	-27.5	-23.0	-0.2
Issuance (Retirement) of Debt, Net	0.0	6.1	0.2	0.1	-0.2
Cash from Financing Activities	1.4	5.1	1.2	1.5	-0.4
Net Change in Cash	0.4	-11.9	-7.0	-4.6	-6.1
Net Cash - Beginning Balance	7.7	19.4	19.3	19.2	19.1
Net Cash - Ending Balance	8.1	7.5	12.3	14.5	12.9
Depreciation	-	4.6	-	2.2	-

Annual Income Statement

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Restated Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.46438	6.768989	6.831007	6.950445	7.605973
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Net Sales	90.6	129.4	96.8	71.0	38.0
Total Revenue	90.6	129.4	96.8	71.0	38.0
Cost of Sales	54.0	75.2	58.5	49.2	25.1
Business Tax and Surcharges	1.0	0.9	0.7	0.3	0.3
Selling Expense	35.6	51.9	37.8	18.5	6.4
General & Administrative Expenses	6.0	5.4	4.7	3.3	2.3
Interest Expense	2.8	1.9	1.9	1.8	0.8
Interest Income	-0.1	-0.1	-0.1	-0.1	-0.1
Foreign Exchange Gain/Loss	-	0.0	-	-	-
Commission Fees	0.0	0.0	0.0	0.1	0.0
Impairment Loss on Assets	0.1	0.2	0.5	0.3	0.1
Investment Income	-4.0	-0.1	-0.3	0.0	0.1
Total Operating Expense	95.5	135.5	103.6	73.4	35.0
Gain on Sale of Fixed Assets	0.0	0.0	0.1	2.4	0.0
Non - Operating Income	4.0	8.1	4.5	2.4	0.5
Loss on Sale of Fixed Assets	-0.1	0.0	0.0	0.0	0.0
Non - Operating Expense	-1.1	-0.6	-0.1	-0.3	0.0
Net Income Before Taxes	-2.1	1.4	-2.3	2.2	3.5
Provision for Income Taxes	0.6	0.6	1.1	0.4	0.4
Net Income After Taxes	-2.8	0.8	-3.4	1.8	3.1
Minority Interest	0.4	-0.7	0.3	0.2	0.0
Net Income Before Extra. Items	-2.4	0.1	-3.0	2.0	3.1
Net Income	-2.4	0.1	-3.0	2.0	3.1
Income Available to Com Excl ExtraOrd	-2.4	0.1	-3.0	2.0	3.1
Income Available to Com Incl ExtraOrd	-2.4	0.1	-3.0	2.0	3.1
Basic Weighted Average Shares	406.0	406.0	398.2	336.1	299.6
Basic EPS Excluding ExtraOrdinary Items	-0.01	0.00	-0.01	0.01	0.01
Basic EPS Including ExtraOrdinary Items	-0.01	0.00	-0.01	0.01	0.01
Dilution Adjustment	0.0	0.0	0.0	-	0.0
Diluted Net Income	-2.4	0.1	-3.0	2.0	3.1
Diluted Weighted Average Shares	406.0	406.0	398.2	336.1	299.6
Diluted EPS Excluding ExtraOrd Items	-0.01	0.00	-0.01	0.01	0.01
Diluted EPS Including ExtraOrd Items	-0.01	0.00	-0.01	0.01	0.01
DPS-A Share	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.4	0.0
Normalized Income Before Taxes	-2.0	1.6	-1.9	0.0	3.6
Inc Tax Ex Impact of Sp Items	0.7	0.7	1.2	0.0	0.4
Normalized Income After Taxes	-2.7	0.9	-3.1	0.0	3.2
Normalized Inc. Avail to Com.	-2.3	0.2	-2.8	0.2	3.2
Basic Normalized EPS	-0.01	0.00	-0.01	0.00	0.01
Diluted Normalized EPS	-0.01	0.00	-0.01	0.00	0.01
Interest Expense, Supplemental	2.8	1.9	1.9	1.8	0.8
Depreciation, Supplemental	4.6	4.6	3.9	3.7	2.6
Amort of Intangibles, Supplemental	0.1	0.2	0.2	0.2	0.2
Advertising Expense, Supplemental	1.2	2.1	2.5	-	-
Rental Expense, Supplemental	0.2	0.1	0.3	-	-
Research & Development Exp, Supplemental	0.1	0.3	0.2	-	-
Interest Capitalized	-	-	-	-0.3	-
Current Tax	0.7	0.6	1.1	0.5	0.4
Current Tax - Total	0.7	0.6	1.1	0.5	0.4
Deferred Tax	-0.1	0.0	-0.1	-0.1	0.0
Deferred Tax - Total	-0.1	0.0	-0.1	-0.1	0.0
Income Tax - Total	0.6	0.6	1.1	0.4	0.4

Interim Income Statement

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
Period Length	3 Months	3 Months	3 Months	3 Months	3 Months
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.309123	6.359548	6.417282	6.501206	6.583076
In Operating Income	11.9	13.9	16.0	31.1	29.2
Total Revenue	11.9	13.9	16.0	31.1	29.2
Cost of Sales	9.2	11.2	11.4	15.8	15.4
Business Tax and Surcharges	0.1	0.1	0.3	0.3	0.3
Selling Expense	1.1	1.3	4.6	15.7	13.8
General & Administrative Expenses	1.7	2.0	1.2	1.5	1.3
Finance Expense	0.9	0.8	1.0	0.5	0.5
Assets depreciation loss	0.0	0.0	-1.1	1.1	0.0
Investment Income	0.0	5.4	-	-9.3	-
Total Operating Expense	12.9	20.9	17.5	25.7	31.2
Non - Operating Income	0.1	0.4	1.1	1.5	1.0
Non - Operating Expense	-0.1	-0.1	-1.0	0.0	0.0
Net Income Before Taxes	-1.0	-6.7	-1.4	6.9	-1.0
Provision for Income Taxes	0.0	0.1	-0.1	0.6	0.0
Net Income After Taxes	-1.1	-6.9	-1.3	6.3	-1.0
Minority Interest	0.2	0.2	0.3	-0.2	0.1
Net Income Before Extra. Items	-0.9	-6.7	-0.9	6.1	-1.0
Net Income	-0.9	-6.7	-0.9	6.1	-1.0
Income Available to Com Excl ExtraOrd	-0.9	-6.7	-0.9	6.1	-1.0
Income Available to Com Incl ExtraOrd	-0.9	-6.7	-0.9	6.1	-1.0
Basic Weighted Average Shares	406.0	406.0	406.0	406.0	406.0
Basic EPS Excluding ExtraOrdinary Items	0.00	-0.02	0.00	0.01	0.00
Basic EPS Including ExtraOrdinary Items	0.00	-0.02	0.00	0.01	0.00
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	-0.9	-6.7	-0.9	6.1	-1.0
Diluted Weighted Average Shares	406.0	406.0	406.0	406.0	406.0
Diluted EPS Excluding ExtraOrd Items	0.00	-0.02	0.00	0.01	0.00
Diluted EPS Including ExtraOrd Items	0.00	-0.02	0.00	0.01	0.00
DPS-A Share	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	-1.0	-6.7	-2.5	7.9	-1.0
Inc Tax Ex Impact of Sp Items	0.0	0.1	-0.5	0.7	0.0
Normalized Income After Taxes	-1.1	-6.8	-2.0	7.2	-1.0
Normalized Inc. Avail to Com.	-0.9	-6.6	-1.6	7.0	-0.9
Basic Normalized EPS	0.00	-0.02	0.00	0.02	0.00
Diluted Normalized EPS	0.00	-0.02	0.00	0.02	0.00

Annual Balance Sheet

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Reclassified Normal 31-Dec-2008
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate	6.294	6.5897	6.827	6.823	7.3041
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Financial Assets - Trading	-	-	0.9	0.0	-
Cash and Cash Equivalent	7.7	19.0	21.5	8.5	7.3
Notes Receivable	4.7	1.7	4.3	2.1	2.2
Accounts Receivable (Gross)	17.9	26.1	25.7	18.2	13.8
Provision for Doubtful Accounts	-0.5	-0.5	-0.2	-0.2	-0.1
Payment in Advance	4.4	5.7	3.6	8.6	7.5
Other Receivables	1.9	1.5	2.3	2.0	2.1
Production Cost	-	-	-	-	1.7
Raw Material	3.2	4.5	2.8	4.7	1.9
Finished Products/Goods in Store	8.3	9.9	8.3	10.0	6.5
Work-in-Process	2.6	4.0	3.0	4.5	-
Semi-finished Product	-	0.1	0.0	0.0	0.0
Packaging Material	0.3	0.2	0.2	0.2	0.1
Low Value Consumable	0.0	0.0	0.0	0.0	0.0
Fuel	0.1	0.1	0.0	-	-
Supplementary Materials	0.0	0.1	0.0	-	-
Purchased Materials	-	-	-	0.0	0.0
Provision/Allowance for Inventory	-	-	-	-	-0.4
Material Cost Difference	-	0.0	-	-	-
Total Current Assets	50.8	72.4	72.5	58.6	42.7
Financial Assets - Available for Sale	10.2	16.1	-	-	-
Long Term Equity Investment	41.9	20.6	3.1	-	3.7
Real Estate Investment	-	-	-	-	13.6
Buildings & Structures	41.2	42.7	36.0	31.7	24.4
Machinery and Equipment	45.1	45.0	39.0	29.7	25.6
Transportation Equipment	2.8	2.1	1.7	1.8	1.3
Electrical Equipment and Other	1.1	1.2	1.0	1.0	0.5
Accumulated Depreciation	-19.4	-19.2	-14.2	-10.4	-7.3
Provision for Impairment of Fixed Assets	0.0	0.0	0.0	0.0	0.0
Construction Materials	-	-	-	0.1	0.2
Construction in Progress	3.8	2.3	9.2	12.2	4.9
Intangible Assets, Gross	4.2	7.3	7.0	6.9	4.7
Accumulated Intangible Amortization	-0.5	-1.5	-1.3	-1.1	-0.9
Goodwill, Net	-	0.2	0.2	0.2	0.1
Long Term Prepaid Expense	0.3	0.1	0.1	0.0	0.0
Deferred Tax Assets	0.5	0.4	0.4	0.3	0.3
Total Assets	181.9	189.5	154.7	131.0	113.7
Short Term Borrowing	16.4	6.5	6.6	6.7	2.7
Notes Payable	-	-	-	0.9	2.0
Accounts Payable	12.6	19.1	16.0	19.0	9.8
Customer Advance	3.6	6.7	1.9	0.9	0.5
Accrued Payroll	0.5	0.6	0.7	0.7	0.5
Tax Payable	1.3	1.0	2.6	0.1	1.9
Interest Payable	0.1	0.1	0.2	0.4	0.3
Dividend Payable	0.4	0.1	0.4	0.0	0.1
Other Creditors	3.7	15.1	11.1	5.6	7.3
Current Portion of LT Debt	8.7	13.8	5.8	6.0	6.9
Other Current Liabilities	0.6	1.2	0.6	0.3	0.9
Total Current Liabilities	47.9	64.2	45.8	40.7	33.1
Long Term Borrowing	20.9	10.3	18.4	17.3	15.0
Total Long Term Debt	20.9	10.3	18.4	17.3	15.0
Deferred Income Tax Liabilities	1.8	3.2	-	-	0.0
Minority Interest	17.2	17.7	3.5	3.2	3.2
Total Liabilities	87.8	95.4	67.6	61.1	51.2
Capital Stock	64.5	61.6	59.5	32.8	30.7
Paid in Capital	25.1	26.0	21.3	23.2	20.8
Surplus Reserve	4.5	3.9	3.8	3.7	3.3
Undistributed Profit	0.0	2.7	2.5	10.1	7.8
Total Equity	94.1	94.2	87.1	69.8	62.5
Total Liabilities & Shareholders' Equity	181.9	189.5	154.7	131.0	113.7
S/O-A Share	406.0	406.0	406.0	336.1	336.1
Total Common Shares Outstanding	406.0	406.0	406.0	336.1	336.1
T/S-A Share	0.0	0.0	0.0	0.0	0.0
Customer Advance	3.6	6.7	1.9	0.9	0.5
Accumulated Amortization of Intangibles	0.5	1.5	1.3	1.1	0.9
Full-Time Employees	1,096	1,091	1,164	1,218	1,226
Number of Shareholders	57,038	40,265	45,465	36,845	33,735
Long Term Debt Maturing within 1 Year	-	13.8	-	6.0	-
Total Long Term Debt, Supplemental	-	13.8	-	6.0	-

Interim Balance Sheet

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate	6.303024	6.294	6.3859	6.464	6.5485
Cash and Cash Equivalent	8.1	7.7	12.5	14.7	13.0
Notes Receivable	3.6	4.7	2.6	1.3	0.6
Accounts Receivable, Net	9.9	17.5	27.4	35.1	30.4
Payment in Advance	2.1	4.4	4.1	6.2	5.4
Other Receivables	1.6	1.9	2.9	8.1	1.5
Dividend receivable	1.6	-	-	-	0.2
Inventory, Net	15.0	14.6	14.4	15.3	17.0
Total Current Assets	41.9	50.8	63.9	80.8	68.1
Financial Assets - Available for Sale	9.1	10.2	11.8	12.9	16.2
Long Term Equity Investment	41.8	41.9	33.4	26.4	30.8
Fixed Assets, Net	69.4	70.7	68.6	67.8	67.9
Project materials	0.0	-	-	-	-
Construction in Progress	4.7	3.8	5.1	2.3	1.9
Intangible Assets, Net	3.6	3.7	2.5	2.4	2.3
Long Term Prepaid Expense	0.2	0.3	0.1	0.1	0.1
Deferred Tax Assets	0.5	0.5	0.6	0.5	0.4
Total Assets	171.2	181.9	186.0	193.2	187.7
Short Term Borrowing	16.4	16.4	11.7	3.6	6.6
Accounts Payable	5.9	12.6	15.0	19.2	20.0
Customer Advance	1.8	3.6	3.2	2.9	7.0
Accrued Payroll	0.4	0.5	0.5	0.6	0.5
Tax Payable	0.7	1.3	0.9	1.6	1.4
Interest payable	0.2	0.1	0.1	0.1	0.1
Dividend Payable	0.1	0.4	0.8	0.8	0.1
Other Creditors	4.6	3.7	10.9	17.3	17.1
Current Portion of LT Debt	7.7	8.7	-	1.7	12.4
Other Current Liabilities	0.6	0.6	1.2	1.2	1.2
Total Current Liabilities	38.4	47.9	44.4	48.9	66.2
Long Term Borrowing	21.9	20.9	27.5	30.2	11.9
Total Long Term Debt	21.9	20.9	27.5	30.2	11.9
Deferred Income Tax Liabilities	1.6	1.8	2.1	2.4	3.2
Minority Interest	16.4	17.2	17.3	16.9	17.7
Total Liabilities	78.3	87.8	91.4	98.4	99.0
Paid-up capital	64.4	64.5	63.6	62.8	62.0
Paid in Capital	24.9	25.1	24.7	24.8	25.6
Surplus Reserve	4.4	4.5	4.0	4.0	3.9
Undistributed Profit	-0.9	0.0	2.3	3.2	-2.9
Total Equity	92.9	94.1	94.6	94.8	88.6
Total Liabilities & Shareholders' Equity	171.2	181.9	186.0	193.2	187.7
S/O-A Share	406.0	406.0	406.0	406.0	406.0
Total Common Shares Outstanding	406.0	406.0	406.0	406.0	406.0
T/S-A Share	0.0	0.0	0.0	0.0	0.0
Customer Advance	1.8	3.6	3.2	2.9	7.0
Accumulated Amortization of Intangibles	-	0.5	-	0.4	-
Number of Shareholders	54,091	57,038	55,722	52,289	37,522
Current maturities	-	-	-	1.7	12.4
Total Long Term Debt, Supplemental	-	-	-	1.7	12.4

Annual Cash Flows

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Updated Normal 31-Dec-2007
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.46438	6.768989	6.831007	6.950445	7.605973
Auditor	Crowe Horwath LLP	Crowe Horwath LLP	Crowe Horwath LLP	Wulian Fangyuan CPA	Wulian Fangyuan CPA
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified
Cash Received from Sale of Goods/Svcs	109.7	156.0	108.4	75.3	34.6
Cash Paid for Goods and Services	-71.7	-102.1	-75.5	-60.3	-25.5
Refund of Taxes	3.9	6.3	0.4	2.0	0.3
Other Cash from Operating Activities	0.1	1.3	1.6	2.4	2.1
All Taxes Paid	-9.7	-14.2	-0.9	-6.4	-3.6
Other Cash Paid for Operating Activities	-32.8	-45.3	-28.8	-14.4	-5.5
Adjustment	-	-	-4.4	-	-
Cash from Operating Activities	-0.5	2.0	0.8	-1.4	2.4
Sale/Maturity/Redemption of Investments	0.1	1.6	1.0	0.6	0.0
Cash from Return on Investments	0.4	0.1	0.2	0.0	0.0
Sale of FA/Intangibles/Other Assets	0.4	0.9	2.3	17.0	0.1
Net cash received from disposal of subsi	9.6	-	-	-	-
Other Cash from Investing Activities	-	3.7	-	-	0.0
Capital Expenditure	-7.0	-1.7	-6.5	-10.7	-15.4
Cash Paid for Purchase of Investments	-20.0	-20.5	-4.5	0.0	-2.6
Other Cash Paid for Investing Activities	-	-	-	-0.1	-0.1
Cash from Investing Activities	-16.5	-15.9	-7.5	6.7	-18.1
Cash from Investors	2.5	7.4	22.0	-0.5	17.2
Cash from Borrowings	34.4	21.0	13.5	13.7	8.7
Other Cash from Financing Activities	-	-	0.3	-	-
Repayment of Borrowings	-28.2	-15.4	-12.7	-14.8	-5.7
Cash Paid for Dividend and Interest	-3.0	-2.3	-2.2	-2.6	-1.4
Other Cash Paid for Financing Activities	-0.6	-	-1.2	-0.5	0.0
Cash from Financing Activities	5.1	10.7	19.7	-4.7	18.8
Net Change in Cash	-11.9	-3.1	13.0	0.7	3.1
Net Cash - Beginning Balance	19.4	21.7	21.5	7.7	3.9
Net Cash - Ending Balance	7.5	18.5	34.5	8.3	7.0
Depreciation	4.6	4.6	3.9	3.7	2.6
Amortization of Intangibles	0.1	0.2	0.2	0.2	0.2

Interim Cash Flows

As Reported

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Mar-2012	31-Dec-2011	30-Sep-2011	30-Jun-2011	31-Mar-2011
Period Length	3 Months	12 Months	9 Months	6 Months	3 Months
UpdateType/Date	Updated Normal 31-Mar-2012	Updated Normal 31-Dec-2011	Updated Normal 30-Sep-2011	Updated Normal 30-Jun-2011	Updated Normal 31-Mar-2011
Filed Currency	CNY	CNY	CNY	CNY	CNY
Exchange Rate (Period Average)	6.309123	6.46438	6.500043	6.541904	6.583076
Cash Received from Sale of Goods/Svcs	15.2	109.7	80.9	56.9	28.8
Cash Paid for Goods and Services	-13.5	-71.7	-47.5	-33.1	-21.4
Refund of Taxes	0.0	3.9	3.6	2.5	1.0
Other Cash from Operating Activities	0.6	0.1	4.3	3.4	2.7
All Taxes Paid	-1.6	-9.7	-9.0	-6.8	-2.8
Other Cash Paid for Operating Activities	-1.2	-32.8	-33.5	-24.0	-7.6
Cash from Operating Activities	-0.5	-0.5	-1.1	-1.1	0.9
Sale/Maturity/Redemption of Investments	0.6	0.1	-	-	-
Cash from Return on Investments	-	0.4	0.3	0.3	-
Sale of FA/Intangibles/Other Assets	0.0	0.4	0.0	0.0	0.0
Other Cash from Investing Activities	-0.2	-	-	-	-
Capital Expenditure	-1.0	-7.0	-5.1	-2.9	-0.1
Cash Paid for Purchase of Investments	-	-20.0	-11.9	-11.9	-5.3
Net cash received from disposal of subsi	-	9.6	10.8	10.7	-
Other Cash Paid for Investing Activities	-	-	-1.2	-1.2	-1.2
Cash from Investing Activities	-0.6	-16.5	-7.1	-5.0	-6.7
Cash from Investors	-	2.5	2.1	0.9	-
Cash from Borrowings	1.0	34.4	27.6	23.1	-
Other Cash from Financing Activities	2.9	-	1.9	1.8	0.2
Repayment of Borrowings	-1.0	-28.2	-27.5	-23.0	-0.2
Cash Paid for Dividend and Interest	-0.9	-3.0	-1.9	-0.9	-0.4
Other Cash Paid for Financing Activities	-0.5	-0.6	-0.9	-0.5	-
Cash from Financing Activities	1.4	5.1	1.2	1.5	-0.4
Net Change in Cash	0.4	-11.9	-7.0	-4.6	-6.1
Net Cash - Beginning Balance	7.7	19.4	19.3	19.2	19.1
Net Cash - Ending Balance	8.1	7.5	12.3	14.5	12.9
Depreciation	-	4.6	-	2.2	-
Amortization of Intangibles	-	0.1	-	0.0	-

Business Segments

Financials in: As Reported (mil)

Annual

External Revenue   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08		31-Dec-07
Medicine Supplemental	42.9	47.4 %	35.2	27.2 %	31.2	32.2 %	28.6	40.3 %	19.6	48.6 %
Health Care	1.7	1.9 %	2.0	1.6 %	1.6	1.7 %	1.6	2.2 %	18.7	46.3 %
Drugs Sales	45.2	49.9 %	91.6	70.8 %	63.8	65.9 %	40.7	57.3 %	0.1	0.1 %
Investment Management	-	-	0.1	0 %	-	-	-	-	-	-
Other Operations	0.5	0.6 %	0.5	0.4 %	0.2	0.2 %	0.2	0.2 %	0.0	0 %
Rent Income	-	-	-	-	-	-	-	-	0.0	0 %
Lease	-	-	-	-	-	-	-	-	1.9	4.8 %
Water & Electricity	-	-	-	-	-	-	0.1	0.1 %	-	-
Other	0.2	0.3 %	-	-	-	-	-	-	-	-
Segment Total	90.6	100 %	129.4	100 %	96.8	100 %	71.0	100 %	40.3	100 %
Intercompany Elimination	-	-	-	-	-	-	-9.3	-13 %	-2.3	-5.6 %
Consolidated Total	90.6	100 %	129.4	100 %	96.8	100 %	71.0	100 %	38.0	94.4 %
Exchange Rate: CNY to USD	6.464380		6.768989		6.831007		6.950445		7.605973
Total Revenue   USD (mil)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08		31-Dec-07
Medicine Supplemental	42.9	47.4 %	35.2	27.2 %	31.2	32.2 %	28.6	40.3 %	19.6	48.6 %
Health Care	1.7	1.9 %	2.0	1.6 %	1.6	1.7 %	1.6	2.2 %	18.7	46.3 %
Drugs Sales	45.2	49.9 %	91.6	70.8 %	63.8	65.9 %	40.7	57.3 %	0.1	0.1 %
Investment Management	-	-	0.1	0 %	-	-	-	-	-	-
Other Operations	0.5	0.6 %	0.5	0.4 %	0.2	0.2 %	0.2	0.2 %	0.0	0 %
Rent Income	-	-	-	-	-	-	-	-	0.0	0 %
Lease	-	-	-	-	-	-	-	-	1.9	4.8 %
Water & Electricity	-	-	-	-	-	-	0.1	0.1 %	-	-
Other	0.2	0.3 %	-	-	-	-	-	-	-	-
Segment Total	90.6	100 %	129.4	100 %	96.8	100 %	71.0	100 %	40.3	100 %
Intercompany Elimination	-	-	-	-	-	-	-9.3	-13 %	-2.3	-5.6 %
Consolidated Total	90.6	100 %	129.4	100 %	96.8	100 %	71.0	100 %	38.0	94.4 %
Exchange Rate: CNY to USD	6.464380		6.768989		6.831007		6.950445		7.605973

Cost of Revenue   USD (mil)
	31-Dec-11			31-Dec-10				31-Dec-09			31-Dec-08		31-Dec-07
Medicine Supplemental	36.5	67.6 %		29.4		39 %		27.7		47.4 %	23.0	46.8 %	15.2	55.7 %
Health Care	1.3	2.4 %		1.3		1.8 %		1.3		2.3 %	1.3	2.7 %	11.6	42.4 %
Drugs Sales	16.0	29.5 %		44.1		58.6 %		29.2		50 %	24.6	50.1 %	0.1	0.2 %
Other Operations	0.2	0.4 %		0.4		0.6 %		0.2		0.3 %	0.2	0.3 %	0.0	0 %
Lease	-	-		-		-		-		-	-	-	0.5	1.7 %
Water & Electricity	-	-		-		-		-		-	0.1	0.2 %	-	-
Segment Total	54.0	100 %		75.2		100 %		58.5		100 %	49.2	100 %	27.4	100 %
Intercompany Elimination	-	-		-		-		-		-	-9.3	-18.8 %	-2.3	-8.3 %
Consolidated Total	54.0	100 %		75.2		100 %		58.5		100 %	49.2	100 %	25.1	91.7 %
Exchange Rate: CNY to USD	6.464380			6.768989				6.831007			6.950445		7.605973
Gross Profit   USD (mil)
	31-Dec-11				31-Dec-10				31-Dec-09		31-Dec-08		31-Dec-07
Medicine Supplemental	6.4		17.4 %		5.9		10.8 %		3.5	9 %	5.6	25.6 %	4.4	33.7 %
Health Care	0.4		1.2 %		0.7		1.3 %		0.3	0.7 %	0.2	0.9 %	7.1	54.7 %
Drugs Sales	29.2		79.9 %		47.5		87.6 %		34.6	90.2 %	16.0	73.4 %	0.0	0 %
Investment Management	-		-		0.1		0.1 %		-	-	-	-	-	-
Other Operations	0.3		0.8 %		0.1		0.2 %		0.0	0.1 %	0.0	0.1 %	0.0	0.1 %
Rent Income	-		-		-		-		-	-	-	-	0.0	0.1 %
Lease	-		-		-		-		-	-	-	-	1.5	11.4 %
Other	0.2		0.7 %		-		-		-	-	-	-	-	-
Segment Total	36.6		100 %		54.2		100 %		38.4	100 %	21.9	100 %	12.9	100 %
Consolidated Total	36.6		100 %		54.2		100 %		38.4	100 %	21.9	100 %	12.9	100 %
Exchange Rate: CNY to USD	6.464380				6.768989				6.831007		6.950445		7.605973

Gross Margin (%)
	31-Dec-11		31-Dec-10		31-Dec-09		31-Dec-08		31-Dec-07
Medicine Supplemental	14.9	-	16.6	-	11.1	-	19.5	-	22.2	-
Health Care	24.4	-	33.6	-	16.6	-	13.4	-	37.9	-
Drugs Sales	64.7	-	51.8	-	54.2	-	39.4	-	-2.8	-
Investment Management	-	-	100.0	-	-	-	-	-	-	-
Other Operations	57.3	-	19.2	-	12.7	-	6.7	-	95.2	-
Rent Income	-	-	-	-	-	-	-	-	100.0	-
Lease	-	-	-	-	-	-	-	-	75.9	-
Other	100.0	-	-	-	-	-	-	-	-	-
Segment Total	40.4	-	41.9	-	39.6	-	30.8	-	32.1	-
Consolidated Total	40.4	-	41.9	-	39.6	-	30.8	-	34.0	-

Business Segments

Financials in: As Reported (mil)

Interim

External Revenue   USD (mil)
	31-Dec-11		30-Jun-11		31-Dec-10		30-Jun-10		31-Dec-09
Medicine Supplemental	22.3	74.5 %	20.6	34.2 %	15.7	23.2 %	19.5	31.5 %	16.6	30.6 %
Health Care	0.8	2.8 %	0.9	1.5 %	1.0	1.5 %	1.0	1.6 %	0.8	1.4 %
Drugs Sales	6.3	21.1 %	38.5	63.8 %	50.5	74.7 %	41.2	66.5 %	36.8	67.8 %
Other	0.2	0.7 %	0.1	0.1 %	0.1	0.1 %	-	-	-	-
Other Operations	0.3	0.9 %	0.2	0.4 %	0.3	0.4 %	0.2	0.4 %	0.1	0.2 %
Segment Total	29.9	100 %	60.3	100 %	67.5	100 %	61.9	100 %	54.3	100 %
Consolidated Total	29.9	100 %	60.3	100 %	67.5	100 %	61.9	100 %	54.3	100 %
Exchange Rate: CNY to USD	6.388429		6.541904		6.713124		6.825839		6.829140
Total Revenue   USD (mil)
	31-Dec-11		30-Jun-11		31-Dec-10		30-Jun-10		31-Dec-09
Medicine Supplemental	22.3	74.5 %	20.6	34.2 %	15.7	23.2 %	19.5	31.5 %	16.6	30.6 %
Health Care	0.8	2.8 %	0.9	1.5 %	1.0	1.5 %	1.0	1.6 %	0.8	1.4 %
Drugs Sales	6.3	21.1 %	38.5	63.8 %	50.5	74.7 %	41.2	66.5 %	36.8	67.8 %
Other	0.2	0.7 %	0.1	0.1 %	0.1	0.1 %	-	-	-	-
Other Operations	0.3	0.9 %	0.2	0.4 %	0.3	0.4 %	0.2	0.4 %	0.1	0.2 %
Segment Total	29.9	100 %	60.3	100 %	67.5	100 %	61.9	100 %	54.3	100 %
Consolidated Total	29.9	100 %	60.3	100 %	67.5	100 %	61.9	100 %	54.3	100 %
Exchange Rate: CNY to USD	6.388429		6.541904		6.713124		6.825839		6.829140

Cost of Revenue   USD (mil)
	31-Dec-11		30-Jun-11		31-Dec-10		30-Jun-10		31-Dec-09
Medicine Supplemental	18.2	80.2 %	18.3	58.7 %	13.3	32.4 %	16.1	46.8 %	15.0	52.9 %
Health Care	0.6	2.8 %	0.7	2.2 %	0.7	1.7 %	0.7	1.9 %	0.8	2.7 %
Drugs Sales	3.8	16.7 %	12.1	38.7 %	26.8	65.4 %	17.4	50.6 %	12.5	44.1 %
Other Operations	0.1	0.4 %	0.1	0.4 %	0.2	0.5 %	0.2	0.6 %	0.1	0.3 %
Segment Total	22.7	100 %	31.2	100 %	41.0	100 %	34.3	100 %	28.3	100 %
Consolidated Total	22.7	100 %	31.2	100 %	41.0	100 %	34.3	100 %	28.3	100 %
Exchange Rate: CNY to USD	6.388429		6.541904		6.713124		6.825839		6.829140
Gross Profit   USD (mil)
	31-Dec-11		30-Jun-11		31-Dec-10		30-Jun-10		31-Dec-09
Medicine Supplemental	4.1	56.6 %	2.3	7.9 %	2.4	9 %	3.5	12.5 %	1.6	6.3 %
Health Care	0.2	2.9 %	0.2	0.7 %	0.4	1.4 %	0.3	1.1 %	0.0	0 %
Drugs Sales	2.5	35.1 %	26.4	90.8 %	23.7	89.1 %	23.8	86.3 %	24.4	93.6 %
Other	0.2	2.8 %	0.1	0.2 %	0.1	0.2 %	-	-	-	-
Other Operations	0.2	2.5 %	0.1	0.4 %	0.1	0.3 %	0.0	0.1 %	0.0	0.1 %
Segment Total	7.2	100 %	29.1	100 %	26.6	100 %	27.6	100 %	26.0	100 %
Consolidated Total	7.2	100 %	29.1	100 %	26.6	100 %	27.6	100 %	26.0	100 %
Exchange Rate: CNY to USD	6.388429		6.541904		6.713124		6.825839		6.829140

Gross Margin (%)
	31-Dec-11		30-Jun-11		31-Dec-10		30-Jun-10		31-Dec-09
Medicine Supplemental	18.3	-	11.2	-	15.3	-	17.7	-	9.9	-
Health Care	25.4	-	23.5	-	35.1	-	32.0	-	0.9	-
Drugs Sales	40.2	-	68.6	-	46.9	-	57.8	-	66.1	-
Other	100.0	-	100.0	-	100.0	-	-	-	-	-
Other Operations	67.1	-	46.3	-	28.9	-	7.2	-	12.5	-
Segment Total	24.1	-	48.2	-	39.3	-	44.6	-	47.9	-
Consolidated Total	24.1	-	48.2	-	39.3	-	44.6	-	47.9	-

Bottom of Form

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.34
UK Pound	1	Rs.86.45
Euro	1	Rs.68.04

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions