CSPC Pharmaceutical : INSIDE INFORMATION - PRINCIPAL FINANCIAL INFORMATION OF CSPC INNOVATION PHARMACEUTICAL CO., LTD. FOR THE THREE MONTHS ENDED 31 MARCH 2021

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CSPC Pharmaceutical Group Limited

石 藥 集 團 有 限 公 司

(Incorporated in Hong Kong under the Companies Ordinance)

(Stock Code: 1093)

INSIDE INFORMATION

PRINCIPAL FINANCIAL Information OF

CSPC INNOVATION PHARMACEUTICAL CO., LTD.

FOR THE THREE MONTHS ENDED 31 MARCH 2021

This announcement is made by CSPC Pharmaceutical Group Limited (the "Company") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

CSPC Innovation Pharmaceutical Co., Ltd. ("CSPC XNW") is a subsidiary of the Company and its shares are listed on the ChiNext of Shenzhen Stock Exchange (Stock Code: 300765). In compliance with the relevant requirements of Shenzhen Stock Exchange, CSPC XNW published its 2021 First Quarterly Report for the three months ended 31 March 2021 on the information disclosure webpage of Shenzhen Stock Exchange's website at http://www.szse.cn/disclosure/listed/notice/index.html.

The board of directors of the Company would like to draw the attention of its shareholders and the public investors to the appendices of this announcement (the "Appendices") which set out the principal financial information of CSPC XNW prepared in accordance with the PRC Accounting Standard for Business Enterprises for the three months ended 31 March 2021.

Please note that the information in the Appendices is an extract of the unaudited financial statements prepared in Chinese. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

By Order of the Board

CSPC Pharmaceutical Group Limited

CAI Dongchen

Chairman

Hong Kong, 27 April 2021

As at the date of this announcement, the Board comprises Mr. CAI Dongchen, Mr. ZHANG Cuilong, Mr. WANG Zhenguo, Mr. PAN Weidong, Mr. WANG Huaiyu, Dr. LI Chunlei, Dr. WANG Qingxi, Mr. CHAK Kin Man and Dr. JIANG Hao as executive directors; and Mr. WANG Bo, Mr. CHEN Chuan, Prof. WANG Hongguang, Mr. AU Chun Kwok Alan and Mr. LAW Cheuk Kin Stephen as

independent non-executive directors.

APPENDIX I

PRINCIPAL ACCOUNTING DATA AND FINANCIAL INDICATORS

			Unit: RMB (Yuan)
			Increase/decrease
			compared with
		Corresponding	the corresponding
	Current	reporting period	reporting period
	reporting period	of last year	of last year
Revenue	357,139,832.90	355,609,758.11	0.43%
Net profit attributable to	83,862,300.22	73,080,413.05	14.75%
listed company's shareholders
Net profit attributable to listed company's	77,725,407.02	63,653,543.42	22.11%
shareholders less the non-recurring gain/
loss
Net cash flows arising from operating	48,579,724.40	95,461,023.85	-49.11%
activities
Basic earnings per share (RMB/share)	0.1997	0.1740	14.77%
Diluted earnings per share (RMB/share)	0.1997	0.1740	14.77%
Weighted average return on net assets	3.08%	2.99%	0.09%
			Increase/decrease
	End of the current		compared with the
	reporting period	End of last year	end of last year
Total assets	3,057,641,726.32	2,954,902,756.59	3.48%
Net assets attributable to	2,761,508,832.45	2,678,111,938.23	3.11%
listed company's shareholders

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APPENDIX II

NON-RECURRING GAIN/LOSS ITEMS AND AMOUNTS

		Unit: RMB (Yuan)
	Amount from the
	beginning of the year
	to end of current
Items	reporting period	Notes
Gain/loss from disposal of non-current assets (including the part	2,940,731.26
offset with the provision for impairment of assets)
Government grants recognised in profit or loss of current period	2,469,141.84
(excluding those closely related to the Company's business and
granted under the State's policies according to certain quota of
amount or volume)
Gain/loss from entrusted investments or assets management	1,965,853.41
Non-operating income and expenses other than the above items	170,584.75
Less: Impact of income tax	1,404,415.34
Impact of minority interests (after tax)	5,002.72
Total	6,136,893.20	-

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APPENDIX III

DETAILS AND REASONS FOR SIGNIFICANT CHANGES IN

MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS

1.	Consolidated Balance Sheet Items		Unit: RMB (Yuan)
		End of the		Percentage
	Items	reporting period	End of last year	change	Analysis on the reasons for changes
Other receivables	2,367,776.99	1,797,748.58	31.71%	Mainly due to the time lag for receipt
					of social insurance premium invoices.
Right-of-use assets	1,440,518.81	0.00	N/A	Due to the adoption of the new
					accounting standard on lease.
Tax payables	21,446,456.83	11,217,534.75	91.19%	Mainly due to the increase in income
					tax and value-added tax payables at
					the end of the reporting period as
					compared to the beginning of the
					reporting period.
Contract liabilities	12,234,024.06	25,270,340.67	-51.59%	Mainly due to the decrease in receipts
					in advance received by the company
					at the end of the reporting period
					as compared to the beginning of the
					reporting period.
Other current liabilities	1,538,082.07	3,022,485.75	-49.11%	Mainly due to the change in the amount
					of pending output value-added tax
					resulting from the change in contract
					liabilities.
Lease liabilities	1,448,224.56	0.00	N/A	Due to the adoption of the new
					accounting standard on lease.

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APPENDIX III

DETAILS AND REASONS FOR SIGNIFICANT CHANGES IN

MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS

2.	Consolidated Income Statement Items		Unit: RMB (Yuan)
			Corresponding
		Current	reporting period	Percentage
	Items	reporting period	of last year	change	Analysis on the reasons for changes
Other income	2,469,141.84	709,067.71	248.22%	Mainly due to the increase in
					government grants received by
					the company as compared to the
					corresponding reporting period of last
					year.
Investment income	2,746,155.76	10,989,737.36	-75.01%	Mainly due to the decrease in
					investment income resulting from the
					decrease in the amount of structured
					deposits purchased by the company
					using proceeds as compared to the
					corresponding reporting period of last
					year.
Profit from change in	3,932,830.86	-3,049,571.97	-228.96%	Mainly due to the change in the gain
fair value				on structured deposits not yet due
					purchased by the company using
					proceeds.
Credit impairment loss	-2,186,811.00	-1,360,715.99	-60.71%	Mainly due to the increase in the
					provision for bad debts resulting from
					the increase in the balance of trade
					receivables of the company.
Non-operating income	303,390.99	3,067,585.33	-90.11%	Mainly due to the receipt of RMB3
					million as a reward for going public
					for the corresponding reporting period
					of last year.

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APPENDIX III

DETAILS AND REASONS FOR SIGNIFICANT CHANGES IN

MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS

3.	Consolidated Cash Flow Statement Items		Unit: RMB (Yuan)
			Corresponding
		Current	reporting period	Percentage
	Items	reporting period	of last year	change	Analysis on the reasons for changes
Net cash flows	48,579,724.40	95,461,023.85	-49.11%	Mainly due to the tightened credit
generated from				policy on suppliers, increase in the
operating activities				stock level of raw materials, increase in
					the cost of raw materials, and decrease
					in cash received by the company for
					goods sold caused by the spread of
					COVID-19 in Shijiazhuang.
Net cash flows	105,255,652.62	631,883,600.08	-83.34%	Mainly due to the decrease in amount
generated from				of the "cash receipts from investment"
investment activities				for the current reporting period as
					compared to that of the corresponding
					reporting period of last year. It was
					because the cash management has not
					yet matured for the current reporting
					period.

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