(Hong Kong, 30 March 2010) Dawnrays Pharmaceutical (Holdings) Limited ("Dawnrays Pharma" or the "Group", Stock Code: 2348) announced annual results for the year ended 31 December 2009. Revenue amounted to approximately RMB 1,082,110,000 (2008: RMB 947,710,000), representing an increase of 14.2% compared with the corresponding period of last year. Profit attributable to equity holders of the parent amounted to approximately RMB 118,388,000 (2008: RMB 102,037,000), representing an increase of 16.0% when compared to that of last year. Basic earnings per share was approximately RMB 0.1513 (2008: RMB 0.1290). The Board has resolved to declare a final dividend of HK$ 0.05 per share for the year ended 31 December 2009 (2008: HK$ 0.04). Taking into consideration the interim dividend of HK$ 0.018 per share, the total annual dividend distributed for the year amounted to HK$ 0.068 per share (2008: HK$ 0.058). The dividend payout ratio is approximately 39.9%.

During the period under review, the production and sales volume of bulk medicines of the Group increased by 17.5% and 25.2% respectively as compared to the corresponding period of last year. The production and sales volume of powder for injections increased by 6.7% and 3.7% respectively over the corresponding period of last year. The production and sales volume of solid-dosage-forms also increased by 13.7% and 9.7% respectively over that of last year. Export sales amounted to approximately RMB 99,688,000, increased by 34.5% as compared to RMB 74,103,000 recorded in the corresponding period of last year.

Gross profit was approximately RMB 328,052,000 (2008: RMB 256,663,000), equivalent to an increase of 27.8% compared with the corresponding period of last year, while gross profit margin improved from 27.1% in 2008 to 30.3% this year.

Ms. Li Kei Ling, Chairman of Dawnrays Pharma, said, "In January 2009, the new medical reform of the P.R. China was formally rolled out. Based on the main features of the pharmaceutical industry of China and taking into account the actual conditions of the Group, the Group further rationalized its production procedures and thereby lowering its manufacturing cost. Following the successful commencement of production of Dawnrays (Nantong) Pharmaceutical Science and Technology Co., Ltd. in 2009, the scale of economy created also helped reduce manufacturing cost. In view of the healthcare reform will stimulate an increase in the demand of essential drugs, the Group has fully leveraged the advantages associated with the cephalosporin vertical integration, the matured sales force, and the flexible management model to cover basic healthcare units, including county-level hospitals and community-level hospitals in major cities."

The Group gave a review to its overall performance in 2009. With respect to sales, the bulk medicine and system specific medicine businesses have been the main driver for revenue growth, with sales increased by 16.0% and 18.8% respectively. The Group has been investing in construction of environmentally friendly pollution-control facilities and Good Manufacturing Practice ("GMP") upgrading facilities for a few years already. Hence, both the original and new production capacities of the bulk medicines could still be fully utilized under the Central Government's stringent legal requirements for environmental protection in 2009. From the strategic development perspective, the Group has been enhancing the market penetration actions in the field of cardiovascular system specific medicines and expanding the doctors' expertise network incrementally. Therefore, the market share was further expanded with an increase in the general gross profit margin, as well as optimized the Group's product portfolio. The Group got through to its marketing efforts, "cefepime", its new product launched in 2008, has seen significant increase in sales and expansion of market share in 2009. As the exclusive research partner and designated medicine supplier of the "Chinese Hypertension Intervention Efficacy Study" ("CHIEF" Study) under China's Eleventh Five-year plan, the Group effectively enhanced its corporate image and brand recognition, recording steady increase in sales.

On the research and development front, the Group mainly cooperated with research institutes, focusing on the research and development of new drugs and first generic version drugs with the majority related to the cardiovascular field. In addition, the Group applied to the State and/or Provincial Food and Drug Administration to register a total of 30 products for 32 registrations in 2009. Accordingly, the Group received 17 supplemental production permits and 4 clinical permits. There were 7 products under clinical trials. The clinical trial of system specific medicines for chronic hepatitis B and those for cardiovascular system completed. There are on-going clinical trials for 5 products included system specific medicines for cardiovascular system and anti-infective medicines.

With regarding to technological improvement and key construction projects, the Group has initiated relevant construction projects for the expansion of production facilities for pharmaceutical chemical intermediates, bulk medicines and pharmaceutical preparations respectively, in which civil works of phase II of the project of Dawnrays (Nantong) Pharmaceutical Science and Technology Co., Ltd. commenced and preliminary approvals for projects for new products of Suzhou Dawnrays Chemical Co., Ltd. had been sought from the government and the construction plan was on the way; civil works of the bulk medicine project in Hedong Industrial Park of Suzhou Dawnrays Pharmaceutical Co., Ltd. commenced; furthermore, design of the solid-dosage-form preparation project in Hedong Industrial Park also commenced.

With the implementation of relevant healthcare and industry policies and the upgrade of new GMP standards, the speed for reorganization and restructuring in the pharmaceutical sector is rapid and the industry resources are effectively flowing into strong players in this sector. Looking ahead, the Group believes that its competitive advantage in 2010 will come from the capability of marketing in the drug marketplace and the ability to adapt to the healthcare industry policy in China. The Group will enhance the market research and research and development ("R & D") management for high-end products to increase its knowledge and technology capabilities. In the long term, the strategy of technological leadership and the flexible corporate resource arrangement will allow the Group as a pharmaceutical enterprise to outperform its competitors in an ever-changing emerging market and create value and a desired rate of return for the shareholders.

About Dawnrays Pharmaceutical (Holdings) Limited

Dawnrays Pharmaceutical (Holdings) Limited (Stock Code: 2348) is a leading vertically integrated pharmaceutical group in China with core competencies in the manufacturing of Cephalosporins and system specific medicines. Founded in 1995, the Group was listed on the Main Board of the Stock Exchange of Hong Kong in July 2003.

Dawnrays Pharma is among one of the earliest pharmaceutical companies in China granted the GMP certification. The Group is principally engaged in the development, manufacturing and sales of Cephalosporins and various system specific medicines. Dawnrays Pharma is one of the few comprehensive vertically integrated 3rd generation Cephalosporin manufacturers in China, adopting distinctive production process from pharmaceutical intermediates to bulk medicines and pharmaceutical preparations. Its system specific medicines cover a wide range of therapeutic areas for anti-allergic, cardiovascular system, digestive system, urinary system and endocrine system, etc. The dosage forms of the Group's pharmaceutical preparations include powder for injections, tablets, capsules and granules, etc.