LEE'S PHARM.

Business Operation

Currently, the Group has the following products in the market:

Country of origin

Market

PRC

Hong Kong

Medical application

Proprietary products

Livaracine®

PRC

Heart & other cardiovascular disease

Yallaferon®

PRC

Vira-infected disease

Slounase®

PRC

Shortening bleeding time & reducing loss of blood

Eyprotor®

PRC

Cornea ulcer

License-in products

Carnitene®

Italy

Cardiac disease

Iron Proteinsuccinylate Oral Solution

Spain

Sideropenic Anaemias

Aloxi®

France

Prevention of nausea and vomiting associated with emetogenic cancer chemotherapy

Gelclair®

Italy

Mucositis induced by chemo radiotherapy

Zanidip®

Italy

Hypertension

Dafnegin®

Italy

Candiadis

Veloderm®

Italy

Burns and wounds healing

Research & development
Market focused development
Expansion through licensing
Building intellectual property portfolio

Clinical development
Established network of opinion leaders in multi-discipline areas
A clinical development team composed of 15 professionals with
4 trained physicians
Local and global trials focus on targeted therapies

Manufacturing
Wholly-owned subsidiary Zhaoke Pharmaceutical (Hefei) Co., Ltd located in Hefei, China, comprising 4 GMP-compliantworkshops for the production of topical gel, lyophilized powderfor injection, small volume parenteral solutions and eye gel

Regulatory
5 professionals fully devoted to dossier translation and preparation
More than 25 years of combined experience

Sales & marketing
Extensive network covering every province in the PRC with
600 partnerships covering all of China, including Hong Kong and Macau.
Detailing team covering 25 major cities in China.
Headquarters in Hong Kong.
Regional offices in Beijing, Shanghai and Guangzhou

Trading Information

Listed:	Main Board of HKEX
Sector:	Pharmaceutical
Stock code:	950
Listing date:	15 July 2002 (Transferred from GEM on 14 May 2010)
Board Lot:	5,000
Issued capital:	450,582,437 shares
Market Cap:	HK$ 1,640,120,070 (at 6/5/2010)
P/E ratio:	33.55 (at 6/5/2010)

Financial Highlights

HK$'000	For the six months ended 30 June		Changes (%)
HK$'000	2010	2009	Changes (%)
Turnover	105,287	76,613	+37.4
Gross profit	75,351	55,445	+35.9
Gross profit margin (%)	71.6%	72.4%	-0.8pt
Profit from operations	32,035	22,384	+43.1
EBITDA	35,642	24,861	+43.4
Profit attributable to shareholders	26,280	20,086	+30.8
Earnings per share - Basic	HK 5.83 cents	HK 4.84 cents	+20.5

Key Indicators

	2010 1H	2009
New Profit Margin	25%	26.7%
Liquidity Analysis Ratios (X)
Current Ratio	3.6	2.3
Quick Ratio	2.8	1.8
Return on Capital Employed Ratios (%)
Return on Assets	12%	22%
Return on Equity	16%	32%
Activity
Stock Turnover Days	170	125
Trade Debtor Turnover Days	31	28
Capital Structure Analysis Ratios (X)
Debt/Equity	0.31	0.44

Competitive Advantages

	Strong R&D capabilities

Outstanding clinical development capabilities

	Strong & experienced team with successful track records:
	~ 10 studies completed
	~ 5 ongoing studies
	~ 4 studies under preparation

Regulatory capabilities for international products

	Strong & experienced team with more than 15 years regulatory experience in the PRC
	Possess expertise in clinical pharmacology and other relevant areas
	Successful track records with SFDA as to:
	~ Import Drug Licenses obtained
	~ Clinical Study Approvals obtained

Distinguished sales and marketing capabilities with established sales and distribution network in the PRC

	A team of more than 200 professional promoters, business development people and medical representives.
	3 management offices in major cities Beijing, Shanghai and Guangzhou plus the Hong Kong headquarters
	An established network of more than 600 local distributors
	Covering more than 5000 hospitals and every province in the PRC
	Successful in portfolio management
	More than 100,000 patients treated monthly
	A win-win partnership between Lee's Pharm and local distributors