CSPC Pharmaceutical : INSIDE INFORMATION - PRINCIPAL FINANCIAL INFORMATION OF CSPC INNOVATION PHARMACEUTICAL CO., LTD. FOR THE YEAR ENDED 31 December 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

CSPC PharmaCeutiCal GrouP limited ͩᖹණྠϞࠢʮ̡

(Incorporated in Hong Kong under the Companies Ordinance)

(Stock Code: 1093)

iNSide iNFormatioN

PriNCiPal FiNaNCial iNFormatioN oF CSPC iNNoVatioN PharmaCeutiCal Co., ltd.

For the Year eNded 31 deCember 2020

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 has published its 2020 Annual Report ("annual report") on the information disclosure webpage of Shenzhen Stock Exchange's website athttp://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 year ended 31 December 2020.

Please note that the information in the Appendices is an extract of the Annual Report 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, 4 March 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, Dr. YU Jinming, Mr. CHEN Chuan, Prof. WANG Hongguang and Mr. AU Chun Kwok Alan as independent non-executive directors.

aPPeNdiX i

PriNCiPal aCCouNtiNG data aNd FiNaNCial iNdiCatorS

Unit: RMB (Yuan)

2020	2019	increase/decrease compared with the last year	2018
Revenue	1,317,414,122.08	1,256,502,359.88	4.85%	1,240,098,691.33
Net profit attributable to listed company's shareholders	299,835,756.44	273,197,126.61	9.75%	223,840,143.77
Net profit attributable to listed company's shareholders less the non-recurring gain/loss	263,188,500.07	238,465,715.95	10.37%	212,837,369.00
Net cash flows arising from operating activities	349,071,664.26	315,384,186.07	10.68%	159,727,619.61
Basic earnings per share (Yuan/ share)	0.714	0.694	2.88%	0.711
Diluted earnings per share (Yuan/ share)	0.714	0.694	2.88%	0.711
Weighted average return on net assets	11.82%	13.77%	-1.95%	25.47%
end of 2020	end of 2019	increase/decrease compared with the end of last year	end of 2018
Total assets	2,954,902,756.59	2,852,373,126.14	3.59%	1,390,799,205.46
Net assets attributable to listed company's shareholders	2,678,111,938.23	2,406,399,708.49	11.29%	990,767,205.16

aPPeNdiX ii

NoN-reCurriNG GaiN/loSS itemS aNd amouNtS

Unit: RMB (Yuan)

items	amounts in 2020	amounts in 2019	amounts in 2018	description
Gain/loss from disposal of non-current assets (including the part offset with the provision for impairment of assets)	-430,725.37	-1,993,792.46	-299,607.08
Government grants recognised in profit or loss of current period (excluding those closely related to the company's business and granted under the State's policies according to certain quota of amount or volume)	23,098,080.33	23,815,570.94	14,521,070.87
Gain/loss from entrusted investments or assets management	22,978,112.40	21,808,271.60
Non-operating income and expenses other than the above items	-435,965.16	71,723.10	1,145,461.02
Less: Impact of income tax	8,567,097.89	8,910,323.87	3,724,199.83
Impact of minority interests (after tax)	-4,852.06	60,038.65	639,950.21
Total	36,647,256.37	34,731,410.66	11,002,774.77	-

aPPeNdiX iii

SiGNiFiCaNt ChaNGeS iN aSSetS

Unit: RMB (Yuan)

major assets	description on significant changes
Equity assets	No significant changes
Fixed assets	No significant changes
Intangible assets	No significant changes
Construction in progress	Closing balance is RMB154,828,065.57 and opening balance is RMB108,134,496.09, representing an increase of 43.18%, mainly due to the increase in the investment in investment projects.
Bank balances and cash	Closing balance is RMB1,138,744,787.20 and opening balance is RMB475,141,505.60, representing an increase of 139.66%, mainly due to the growth in the business scale of the Company, increase in sales receipts and redemption upon maturity of cash management using idle proceeds.
Financial assets held for trading	Closing balance is RMB321,943,412.99 and opening balance is RMB960,086,125.04, representing a decrease of 66.47%, mainly due to the redemption upon maturity of cash management using idle proceeds.
Long-term equity investments	Closing balance is RMB235,874,486.64 and opening balance is RMB156,285,100.38, representing an increase of 50.93%, mainly due to the acquisition of 9.77% interest in Guoxinhuijin held by NBP Pharmaceutical.
Other current assets	Closing balance is RMB26,031,698.78 and opening balance is RMB14,881,297.50, representing an increase of 74.93%, mainly due to the increase in deductible value-added tax.