Harbin Pharmaceutical Co., Ltd.: First-half net profit decreased by 83.98% year-on-year to 130 million.

The previous year's indicators were calculated on a comparable basis. In the first half of 2012, the company achieved operating income of 9.087 billion yuan, a year-on-year decrease of 5.88%, and net profit attributable to shareholders of listed companies was 130 million yuan, a year-on-year decrease of 83.98%. Among them, bio-engineering company realized operating income of 220 million yuan, attributable to the parent company's net profit of 71,941,400 yuan, Sanjing Pharmaceutical achieved operating income of 2.13 billion yuan, attributable to the parent company's net profit of 223 million yuan.

During the reporting period, the company completed a major asset reorganization of the company by issuing shares to Harbin Pharmaceutical Group Co., Ltd., and acquired the 100% equity of Harbin Pharmaceutical Group Bioengineering Co., Ltd. (hereinafter referred to as "Bioengineering Corporation") and Harbin Pharmaceutical Group. Sanjing Pharmaceutical Co., Ltd. (hereinafter referred to as "Sanjing Pharmaceutical") has a 44.82% stake. At present, the company holds 100% equity of Bioengineering Co., Ltd. and 74.82% equity of Sanjing Pharmaceutical Co., Ltd. respectively. The above two subsidiaries have been included in the consolidation scope of the report.