常茂生物化学工程股份有限公司

1ChangmaoBiochemicalEngineeringCompanyLimited*(ajointstocklimitedcompanyincorporatedinthePeople’sRepublicofChina)(StockCode:8208)THIRDQUARTERLYRESULTSANNOUNCEMENTFORTHENINEMONTHSENDED30SEPTEMBER2009CharacteristicsoftheGrowthEnterpriseMarket(“GEM”)ofTheStockExchangeofHongKongLimited(the“StockExchange”)GEMhasbeenpositionedasamarketdesignedtoaccommodatecompaniestowhichahigherinvestmentriskmaybeattachedthanothercompanieslistedontheExchange.Prospectiveinvestorsshouldbeawareofthepotentialrisksofinvestinginsuchcompaniesandshouldmakethedecisiontoinvestonlyafterdueandcarefulconsideration.ThegreaterriskprofileandothercharacteristicsofGEMmeanthatitisamarketmoresuitedtoprofessionalandothersophisticatedinvestors.GiventheemergingnatureofcompanieslistedonGEM,thereisariskthatsecuritiestradedonGEMmaybemoresusceptibletohighmarketvolatilitythansecuritiestradedontheMainBoardandnoassuranceisgiventhattherewillbealiquidmarketinthesecuritiestradedonGEM.HongKongExchangesandClearingLimitedandTheStockExchangeofHongKongLimitedtakenoresponsibilityforthecontentsofthisannouncement,makenorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimanyliabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisannouncement.Thisannouncement,forwhichthedirectorsofChangmaoBiochemicalEngineeringCompanyLimited(the“Directors”)collectivelyandindividuallyacceptfullresponsibility,includesparticularsgivenincompliancewiththeRulesGoverningtheListingofSecuritiesonGEM(“GEMListingRules”)forthepurposesofgivinginformationwithregardtoChangmaoBiochemicalEngineeringCompanyLimited.TheDirectors,havingmadeallreasonableenquiries,confirmthat,tothebestoftheirknowledgeandbelief:(1)theinformationcontainedinthisannouncementisaccurateandcompleteinallmaterialrespectsandnotmisleading;(2)therearenoothermatterstheomissionofwhichwouldmakeanystatementinthisannouncementmisleading;and(3)allopinionsexpressedinthisannouncementhavebeenarrivedatafterdueandcarefulconsiderationandarefoundedonbasesandassumptionsthatarefairandreasonable.*Foridentificationpurposeonly2RESULTSTheboardofDirectors(the“Board”)ofChangmaoBiochemicalEngineeringCompanyLimited(the“Company”or“Changmao”)ispleasedtopresenttheunauditedconsolidatedresultsoftheCompanyanditssubsidiaries(the“Group”)forthethreeandtheninemonthsended30September2009togetherwiththeunauditedcomparativefiguresforcorrespondingperiodin2008asfollows:UnauditedUnauditedForthethreemonthsFortheninemonthsended30Septemberended30September2009200820092008NoteRmb’000Rmb’000Rmb’000Rmb’000Turnover291,94593,038283,483333,720Costofsales(67,912)(74,039)(213,429)(260,889)Grossprofit24,03318,99970,05472,831Otherincome2084491,3601,303Otherlosses,net(270)(888)(882)(3,614)Sellingexpenses(2,155)(1,795)(5,727)(5,413)Administrativeexpenses(7,778)(3,184)(23,523)(20,173)Operatingprofit14,03813,58141,28244,934Financecosts,net(1,408)(2,922)(4,980)(8,779)Shareofprofitofanassociate5197031,5691,310Profitbeforeincometax13,14911,36237,87137,465Incometaxexpense3(2,260)(1,982)(6,426)(6,576)Profitandtotalcomprehensiveincomefortheperiod10,8899,38031,44530,889Attributableto:EquityholdersoftheCompany10,9789,45531,71031,133Minorityinterest(89)(75)(265)(244)10,8899,38031,44530,889EarningspershareforprofitattributabletoequityholdersoftheCompany–basicanddiluted4Rmb0.016Rmb0.014Rmb0.046Rmb0.0463Notes:1.BasisofpreparationandaccountingpoliciesTheunauditedconsolidatedresultsoftheGrouphavebeenpreparedinaccordancewithaccountingprinciplesgenerallyacceptedinHongKongandcomplywithHongKongFinancialReportingStandardsissuedbytheHongKongInstituteofCertifiedPublicAccountantsandthedisclosurerequirementsofGEMListingRules.Theyhavebeenpreparedunderhistoricalcostconvention,asmodifiedbytherevaluationoffinancialassetsandfinancialliabilities(includingderivativeinstruments)atfairvaluethroughprofitandloss.2.TurnoverTheGroupisprincipallyengagedintheproductionandsaleoforganicacids.Turnoverrepresentssalesoforganicacidsfortheperiod.3.IncometaxexpensePRCCompanyIncomeTax(“CIT”)isprovidedonthebasisoftheprofitforstatutoryfinancialreportingpurposes,adjustedforincomeandexpenseitemswhicharenotassessableordeductibleforincometaxpurposes.TheCITrateforthefirstthreequartersof2008oftheCompanywas18%.UponobtainingtheNewandHighTechnologyEnterprisecertificateinthefourthquarterof2008,theCompanyisentitledtoapreferentialCITrateof15%withretrospectiveeffectfrom1January2008.TheothersubsidiariesoftheGroupinMainlandChinaaresubjecttoataxrateof25%.Theamountoftaxationchargedtoconsolidatedincomestatementrepresents:ForthethreemonthsFortheninemonthsended30Septemberended30September2009200820092008Rmb’000Rmb’000Rmb’000Rmb’000Currentincometax–ProvisionforCIT1,9641,9675,5326,667Under/(over)-provisioninprioryear2892855(130)Deferredincometax71339392,2601,9826,4266,5764ThetaxationontheGroup’sprofitbeforeincometaxdiffersfromthetheoreticalamountthatwouldariseusingtheweightedaveragetaxrateapplicabletotheresultsoftheconsolidatedentitiesasfollows:ForthethreemonthsFortheninemonthsended30Septemberended30September2009