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Page 1 2008 3 27 0755 82130833 1851 Email hepg@guosen.com.cn 0755 82130833 1821 Email dingdan@guosen.com.cn 120% 100% 80% 60% 40% 20% 0% 2007-03-20 2007-06-19 2007-09-11 2007-12-11 2008-03-13 2008/02/13 2008 2007/12/20 2006/03/01 ------- 2006/04/26 2006/07/05 2007/03/09 -------- 2007/06/05 2007/03/01 2007 1~11 5740 23.60 554.24 50.28 2000 14%24% GMP SFDA GMP 2 18 4 GDP 2001 PE 07 11 7 13 PE 20 PE 30 PE 6 PE 25 38 PE 50 3 07 2 1 08 2 08

Page 2 2007... 3... 4... 4... 4 GMP... 5... 5... 6... 7... 9... 9... 10...11...11... 12 600332... 12 002030 :... 13 A 000522... 14 1 1999 2007... 3 2 2003/01 2007/11VCUSD/kg... 7 3 2003/01 2007/11 VB2USD/kg... 8 4 2003/01 2007/11 VAUSD/kg... 8 5 2003/01 2007/11 VEUSD/kg... 9 6 2006/11 2008/02 USD/BOU... 9 7 2001 PE PE... 10 8 2007 PE PE...11 1 2006 2007... 3 2 2007... 4 3 2007 ()... 10 4... 20 5 2008.01... 21

Page 3 2007 2007 1~11 5740 23.60 554.24 50.28 2000 9.65% 1 1999 2007 7000 6000 5000 4000 3000 2000 1000 60% 50% 40% 30% 20% 10% 0 1999 2000 2001 2002 2003 2004 2005 2006 1~11 2007 0% CEIC 07 1.41 15 24 1 2006 2007 2007 1 11 2006 1 11 5740.41 4644.46 23.60% 3986.31 3249.67 22.67% 30.56% 30.03% 0.53% 1175.77 1016.69 15.65% 20.48% 21.89% 1.41% 671.39 582.53 15.25% 11.70% 12.54% 0.84% 415.78 359.78 15.57% 7.24% 7.75% 0.51% 88.61 74.37 19.15% 1.54% 1.60% 0.06% NA NA NA 554.23 368.8 50.28% 9.65% 7.94% 1.71% NA NA NA CEIC NA

Page 4 1 11 28 46 2 2007 574041 151585 134488 44588 118279 23.60% 21.88% 17.16% 28.34% 19.27% 55423 15654.71 9583.02 5578.85 13593 50.28% 49.49% 46.15% 46.44% 51.08% 30.56% 39.09% 20.10% 30.67% 38.54% +0.53% -0.07% +2.26% +0.64% -0.2% 9.65% 10.33% 7.13% 12.51% 11.49% +1.71% +1.91% +1.42% +2.63% +2.42% CEIC 2008 3 11 80%

Page 5 2007 176317 159588 90.6% 3626 2% 35952 7999 22.2% 578 7999 2007 10 1 2 2008 2008 GMP GMP SFDA GMP GMP GMP GMP GMP GMP 2 18

Page 6 6 2010 90% 2010 70% 70% 1600 08 () 2 5 5 8 X - (γ ) 500 GE

Page 7 50 PB 2 2003/01 2007/11VCUSD/kg VC CEIC 07 12 08 1 6800t/ C 10 /kg C 9.00 8.00 8.27 7.00 6.73 6.00 5.81 5.86 5.00 4.00 3.78 3.00 3.30 3.64 2.00 CEIC 07/08 kg usd/kg 1 6336081 3.35-0.94% 0.54% 2 7055327 3.41 0.82% 2.01% 3 6989049 3.64 8.83% 6.78% 4 6536615 3.71 9.17% 1.80% 5 4857327 4.00 19.88% 7.88% 6 6434753 5.09 52.87% 27.24% 7 6392542 5.78 73.52% 13.50% 8 5655280 5.86 78.18% 1.42% 9 3124670 5.75 72.69% -1.88% 10 4685029 5.11 53.94% -11.13% 11 6859092 5.72 71.49% 11.94% 12 6870307 6.28 88.74% 9.77% 08/01 6817921 6.83 101.27% 7.22% VB2 CEIC 07 12 08 1 60 /kg 11 07 07 VB2 200% 200 /

Page 8 3 2003/01 2007/11 VB2USD/kg 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 20.87 CEIC 23.64 44.90 74.34 63.18 07/08 kg usd/kg 1 153142 21.31 3.52% 3.93% 2 132144 21.99-3.87% 3.19% 3 142519 23.64 17.75% 7.48% 4 185379 25.31-1.81% 7.09% 5 142519 23.64 15.95% -6.62% 6 132386 36.82 93.15% 55.78% 7 174680 44.90 135.51% 21.93% 8 202750 54.60 180.66% 21.61% 9 141303 74.34 258.54% 36.15% 10 153175 62.01 232.51% -16.59% 11 291500 63.18 184.74% 1.89% 12 172895 58.19 183.79% -7.89% 08/01 193860 61.48 188.51% 5.66% 4 2003/01 2007/11 VAUSD/kg VA07 12 11 08 1 2 DSM 200 /kg 25.00 23.00 21.00 19.00 17.00 15.00 13.00 11.00 9.00 7.00 5.00 11.25 23.58 CEIC 18.97 15.66 10.93 07/08 kg usd/kg 1 298372 13.67 13.44% -8.71% 2 295903 13.81 16.23% 1.01% 3 144572 16.41 28.88% 18.83% 4 235395 12.39 2.71% -24.49% 5 255534 12.98 2.33% 4.76% 6 317348 10.98-11.79% -15.42% 7 183997 14.81 26.11% 34.87% 8 141956 14.94 3.74% 0.92% 9 276305 10.93-28.95% -26.83% 10 112679 18.97 59.18% 73.49% 11 288210 15.66 17.09% -17.46% 12 235749 12.97-13.37% -17.15% 08/01 223298 16.26 18.96% 25.36% VE07 9 VE 2.62% 9.45% 3.17% 8.93% 14.22% VE VE 2007 10 20 120% 200 /kg VA

Page 9 5 2003/01 2007/11 VEUSD/kg 8.00 7.50 7.00 6.50 6.00 5.50 5.00 4.50 6.70 5.31 6.51 5.36 7.75 6.23 5.89 4.94 07/08 kg usd/kg 1 2164535 5.53-5.34% 8.64% 2 2104852 5.64-0.35% 1.98% 3 2819001 5.65-6.54% 0.18% 4 2917008 5.15-13.89% -8.82% 5 2586314 4.94-13.58% -4.07% 6 2563035 5.06-7.98% 2.53% 7 2363962 5.89 4.97% 16.39% 8 2267190 5.38-0.40% -8.78% 9 2362695 5.52 0.44% 2.62% 10 2078210 6.04 11.96% 9.45% 11 2488063 6.23 17.75% 3.17% 12 2448086 6.78 33.40% 8.93% CEIC 08/01 2556315 7.75 40.24% 14.22% 11 1 2 8 9USD/BOU 17-18USD/BOU 50 6 2006/11 2008/02 USD/BOU 19 17 15 13 15 17.54 17.32 18.08 17.72 14 16 11 11.03 9 7 7.74 8.25 8.24 8.48 8.51 8.66 8 8 9 5 2 13 08 PE 50 08 09 50 50 PE A

Page 10 3 2007 () 2007 Page1 PE 1 50 32 7 5.30 07.1.1~07.5.30 5.30 07.5.30~07.12.31 07.11.1~08.1.20 08.1.21 08.3.19 188.73 146.47 17.74 22.33% 20.80% A 122.32 60.21 41.77 8.79% 27.63% 300 123.28 53.7 46.76 10.28% 28.65% wind 2001 2002 6 PE 25 PE 38 52PE GDP 2006 PE 2006 2006 2007 PE 2006 7 2001 PE PE 80 PE() PE PE 100% 70 60 PE 50 90% 80% 70% 2001 12% 31% 2002 33% 38% 50 60% 2003 25%~64% 40 50% 30 40% 30% 20 20% 10 PE 20 10% 0 0% 2001-01-05 2002-01-11 2003-01-17 2004-01-16 2005-01-14 2006-01-20 2007-01-26 2008-01-25 2004 58%~79% 2005 56%~73% 2006 29%~91% 2007 13%~71% 2008 38%~59% WIND 2001~2006 PE 2007 PE /3 4 08 PE wind

Page 11 5.30 PE 705.30 PE 7 2007 PE 07 3 18 PE 20 PE 30 PE 6 PE 25 38 PE 50 8 2007 PE PE 70 60 50 40 5.30 A PE 5.30 71.41% PE 7 59.26% 80% 70% 60% 50% 40% 2007 30 20 13.37% 30% 20% 10% PE 07 10 2007-01-05 2007-03-02 2007-04-20 2007-06-08 2007-07-27 2007-09-14 2007-11-09 2007-12-28 2008-02-15 0% PE2007 PE /3 4 08 PE wind WIND 07/12/16 08/01/16 14.65% 8.49% 2 08

Page 12 08 3 600332 1 3 5 15% 20 10 No.1 07 5.3 15 06 30 07 2 3 10 09 10 2007 10 50 05 8000 07 7 09 10 15 08 15 07 2.3 49 4100 EPS 0.05 / 8300 A H 2007 2009 EPS 0.40 0.48 0.56 / 432117 EPS 0.43 0.55 0.56 / 2008 2009 A PE 27 23 105

Page 13 155 140 3 PB PS A H QDII H 002030 : 07 2003 & 2005 2006 2003 80 2006 3000 3 2007 4000 40 40 15 30 400 3 700 1)76 2 400 07 5 1 2 3 08 1 2 08 5009 3 3 5 5 07 12 20 20 07

Page 14 089 1007 092166510.28 0.47 0.70 08 093322 A 000522 07 0729.6 51.44 950.31 7000 4700 2500 400007 500 08 09 0791 0750 10830 40 08 40 50 1 7114 78000 08 091513 0.35 0.40 1208 093329 2007 07 EPS 0.37 2007 27.9 15.29 1.78 14.92 0.37 0.38 0.45 58 9.8%

Page 15 10 3 07 08 1 07 07 1 1 38-2 5400 37 07 07 28 08 1 07 12.34 5 71 07 08 07 08 2 07 09 07 3 08 08 09 EPS 0.53 0.704530 17.7 PE 32 2508 2 21.13 08 2007 EPS 0.32 2007 5.3 27 1.8 43 1.05 2.5% EPS 0.31 EPS 0.32 EPS 0.33 0.47 ROE 16.5% 10 2 5 07 06 9 51 07 06 1507 1.76 67 9105 200 52 44 07 2008 2007 07 3.5 8 2.6 15 20 36 2008 08 08 3.98 13 22 39 08

Page 16 08 09 EPS 0.45 0.56 08 09 EPS 0.16 0.18 09 08 09 1.47 1.81 41 22EPS 0.45 0.56 08 2 07 2007 GMP 08 39 5.3 40 08 08 08 07 EPS 0.54 07 27.02 12 2.32 48% 0.54 EPS 0.52 0.61 0.28 ROE 8.8% 10 1 2 2007 05 50.6% 07 43 49 70 07 2.4 39 18 40 0707 2.36 194 3.39 27 07 1.21 68 07 05 08 09 06 48 07 07

Page 17 05 OTC 08 08 09 0.61 0.68 1512 25.2 08 09PE 42 38 59 20073.99 17.27% 1.18 58.57%EPS0.56 / EPS0.1 /1633 EPS0.07 /06222644 EPS0.03 /0626939.86 37 0.54 / 4.51 1813 60.843.49 24 20.8819.08 20.12% 2007 4 4 1.1 11.6620 61.33 6.16 8.65 53.62%15.73 2.58 16.671.85 0.48103 1.2816.9834.88.52 40CE

Page 18 08 09 EPS0.74 /0.93 /08 09PE5443 & 18210 10 2007 2.37 62.55%13480 181.71%EPS1.09 / +9836 EPS0.79 0.02 / 06 122 0.71 / 10 10 10 1 2.25 5666.483.39 799933 23 55 90 19% 7 20071259 637 700 2008 2008 1 0860 087.5% 2 1000 50003 4)9

Page 19 085 08 11 08~097732EPS1.40 1.85 / 1.65EPS0.06 /08 EPS 1.46 / 08 0720 2.07 20% 3504 22%EPS0.28 / EPS0.24 /39 59.9 2.64 0.07 /2007 1.9795 0710 1.3 10 2 10 4 12 10 1 22007 20 203 12.21 46 121 2168392 2 46 2123 1520% 50 07 07 128

Page 20 08& 7 PCR 07 07 1208 1 3 PCR5 08 3 PCRCE 07 08 07 1 2 50 7000 08 09 EPS0.47 0.70 /6650 PE34X 23X 4 EPS PB PE PEG 08/03/26 07E 08E 09E 10E 07E 08E 09E 10E [600535] 17.78 0.37 0.53 0.70 0.84 4.77 48 34 25 21 2.29 87 [000423] 26.50 0.40 0.50 0.62 0.74 12.65 66 53 43 36 3.19 139 [600085] 25.15 0.54 0.62 0.69 0.83 4.10 47 40 36 30 2.89 109 [600252] 13.69 0.17 0.35 0.53 0.69 8.17 81 39 26 20 1.89 30 [000538] 29.00 0.62 0.68 0.79 0.95 13.29 47 43 37 31 4.44 140 [600557] 31.46 0.58 0.78 1.02 1.22 9.58 54 40 31 26 2.13 52 [600332] 13.42 0.43 0.55 0.56 0.64 3.90 33 31 25 22 2.02 109 [600436] 32.68 0.65 0.75 0.86 0.99 7.66 50 44 38 33 4.08 46 [600161] 26.03 0.32 0.45 0.56 0.67 13.07 81 58 46 39 3.86 85 [002038] 53.21 1.09 1.46 1.85 2.22 11.99 49 36 29 24 1.99 66 [002030] 16.90 0.28 0.47 0.70 0.85 6.95 60 36 24 20 1.63 21 [002022] 34.70 0.56 0.74 0.93 1.07 15.90 62 47 37 32 2.58 73 [000661] 13.61 0.05 0.38 0.50 0.64 5.45 272 36 27 21 2.57 18 [002007] 42.44 0.55 0.74 0.93 1.11 14.40 77 57 46 38 3.18 92 [600276] 45.76 0.91 0.97 1.13 1.36 12.21 50 47 40 34 2.89 197 [600829] 19.25 0.65 0.75 0.85 1.00 7.53 29 26 23 19 2.33 74 [600521] 22.61 0.57 0.68 0.92 1.15 5.42 40 33 24 20 1.93 52 [600267] 19.21 0.32 0.42 0.56 0.67 6.33 60 46 34 29 2.31 86 [000522] 11.59 0.31 0.35 0.40 0.46 6.87 37 33 29 25 2.01 54 [600511] 58.67 0.97 1.40 1.90 2.28 13.52 60 42 31 26 2.10 78 [000028] 19.80 0.45 0.55 0.71 0.78 14.20 44 36 28 25 1.91 57 [600849] 10.16 0.18 0.21 0.24 0.29 3.60 56 48 42 35 3.27 58

Page 21 [600587] 15.75 0.23 0.41 0.56 0.65 2.78 68 38 28 24 1.93 16 [600055] 12.74 0.27 0.34 0.41 0.48 4.09 47 37 31 27 2.35 18 [600529] 11.70 0.44 0.56 0.72 0.81 2.31 27 21 16 14 1.26 30 EPS 5 2008.01 PE PB EV/EBITDA EPS 08-01-16 2006 2007E 2008E 2006 2007E 2008 BARR PHARMA INC 55.83 17.45 18.46 15.25 3.42 11.73 3.20 3.02 3.66 MYLAN LABS INC 15.35 19.19 12.38 24.29 2.02 7.12 0.80 1.24 0.63 WATSON PHARMACEUTCLS 27.78 na 21.09 14.38 1.59 9.16 (4.37) 1.32 1.93 PHARMACUTICAL CO 21.66 108.30 14.78 26.26 1.60 7.24 0.20 1.47 0.83 HI-TECH PHARMACAL 11.05 na na na 1.59 na (0.17) (0.25) na ALPHARMA INC-CLA 18.61 16.62 20.29 55.89 1.04 7.79 1.12 0.92 0.33 TEVA PHARMACEUTICAL IND 176.50 23.95 20.38 17.83 2.79 13.78 7.37 2.32 2.65 RANBAXY LABORATORIES 382.90 27.95 22.80 20.93 5.53 20.80 13.70 16.85 18.3 35.57 18.60 24.97 2.45 11.09 21.57 20.29 20.93 1.81 9.16 JOHNSON AND JOHNS 68.31 18.17 16.56 15.52 4.50 10.80 3.76 4.13 4.40 PFIZER INC 23.40 15.39 9.97 9.49 2.40 7.77 1.52 2.35 2.47 GLAXOSMITHKLINE PLC 23.40 24.63 13.50 12.87 7.49 8.98 0.95 0.98 1.03 NOVARTIS AG-REG 61.25 20.55 17.32 15.16 2.58 10.81 2.98 3.22 3.68 ASTRAZENECA PLC 61.25 15.87 11.08 10.47 4.55 8.12 3.86 4.08 4.31 MERCK CO INC 58.35 28.60 18.59 17.29 6.13 15.68 2.04 3.14 3.38 LILLY ELI CO 56.07 22.89 15.87 14.52 4.91 11.78 2.45 3.53 3.86 ABBOTT LABORATORIES 60.50 54.02 21.38 18.73 5.99 14.81 1.12 2.83 3.23 WYETH 46.14 14.79 13.11 12.05 3.63 8.65 3.12 3.52 3.83 BRISTOL MYERS SQIBB 25.82 31.88 17.63 15.05 4.57 14.14 0.81 1.47 1.72 ROCHE HOLDING 197.70 21.40 17.63 15.52 4.02 N.A 9.24 11.21 12.7 24.38 15.69 14.24 4.62 11.15 22.14 17.47 15.10 4.56 11.78 GENENTECH INC 69.94 26.59 20.72 18.40 6.33 13.52 2.63 3.38 3.80 AMGEN 47.49 18.92 11.16 11.03 3.05 10.37 2.51 4.26 4.31 GILEAD SCIENCES 47.62 na 27.04 23.95 14.8 17.66 (1.29) 1.76 1.99 SERONO SA ADS 1096.00 21.92 17.82 16.48 #N/A 13.62 50.01 61.51 66.5 GENZYME CORPORATION 79.73 na 23.04 19.95 3.37 15.49 (0.06) 3.46 4.00 BIOGEN IDEC INC 59.99 95.22 22.66 18.31 3.52 17.22 0.63 2.65 3.28 CEPHALON INC 74.2 31.05 19.001 16.322 3.33 10.54 2.39 3.905 4.54 MEDIMMUNE INC 57.97 289.85 0.00 0.00 #N/A 38.06 0.20 0.91 1.28 MILLIPORE CORP 69.52 38.20 20.53 17.71 3.50 17.21 1.82 3.39 3.93 INVITROGEN CORP 94.44 na 23.57 21.53 2.55 22.82 (3.72) 4.01 4.39 74 54 18 55 16 37 506 17 65

Page 22 31.05 20.62 18.01 3.44 16.35 CARDINAL HEALTH INC 60.74 28.52 15.22 13.09 3.12 9.85 2.13 3.99 4.64 MCKESSON CORP 67.92 20.90 20.34 17.83 3.01 9.29 3.25 3.34 3.81 AMERISOURCEBERGEN CP 46.95 17.58 16.35 14.21 2.57 8.44 2.67 2.87 3.30 CELESIO AG 37.14 14.92 14.83 13.48 2.28 12.32 2.49 2.50 2.76 UNITED DRUG PLC 3.95 18.81 15.86 14.31 2.71 11.16 0.21 0.25 0.28 WALGREEN CO 33.24 16.29 15.13 13.38 2.87 na 2.04 2.20 2.49 CVS CP 37.10 22.48 19.38 16.03 1.69 13.27 1.65 1.91 2.31 LONGS DRUG STRS INC 44.03 22.02 16.24 14.14 1.93 8.74 2.00 2.71 3.11 SUZUKEN CO LTD 3910.00 20.39 19.24 19.37 1.35 8.27 191.72 205.4 201. ALFRESA HOLDINGS CORP 6870.00 22.75 17.49 24.48 1.69 7.67 301.93 396.9 280. MEDICEO PALTAC HOLDING 1583.00 19.10 16.59 18.41 1.36 8.63 82.86 96.60 86.0 20.34 16.85 16.70 1.99 10.01 19.75 16.42 15.17 1.81 8.74 TOWA PHARMACEUTICAL 4350.00 28.75 21.22 16.74 2.18 12.05 151.33 206.7 262. SAWAI PHARMACEUTICAL 4050.00 25.69 40.17 25.71 1.68 11.01 157.67 101.9 159. CHUGAI PHARMACEUTICAL 1640.00 23.65 22.62 20.70 2.39 13.27 69.35 73.60 80.4 ONO PHARMACEUTICAL 5070.00 16.75 17.48 17.24 1.31 10.09 302.73 293.8 297. SHIONOGI&CO LTD 1932.00 35.38 28.69 27.52 1.90 11.60 54.61 68.30 71.2 ASTELLAS PHARMA INC 4710.00 19.30 15.44 13.73 2.12 7.47 244.07 308.3 346. DAIICHI SANKYO CO LTD 3420.00 31.74 24.09 20.32 1.94 9.95 107.75 143.5 170. EISAI CO LTD 4530.00 18.28 15.77 15.82 2.28 9.83 247.85 291.0 290. 24.94 23.18 19.72 1.98 10.66 24.67 21.92 18.78 2.03 10.55 RANBAXY LABORATORIES 382.90 27.95 22.80 20.93 5.53 20.80 13.70 16.85 18.3 CIPLA LIMITED 208.20 24.18 24.51 20.46 5.01 #N/A N.A. 8.61 8.51 10.2 SUNPHARMACEUTICALS 1104.95 26.48 23.67 20.02 7.68 27.61 41.73 46.50 54.9 GLAXOSMITHKLINE 1051.50 24.44 21.91 19.65 7.39 17.80 43.03 48.00 53.5 DR.REDDY'S LABORATORIES 671.05 11.02 19.11 16.02 2.82 7.53 60.92 35.11 41.9 NICHOLAS PIRAMAL INDIA 349.00 33.85 22.25 18.30 6.70 16.77 10.31 15.64 19.0 WOCKHARDT LIMITED 409.00 20.95 14.31 11.33 4.69 13.59 19.52 28.65 36.1 MATRIX LABORATORIES LTD 221.00 44.56 19.75 16.74 3.21 21.29 4.96 11.16 13.1 AVENTIS PHARMA LTD 1026.00 13.96 12.01 10.30 3.89 11.27 73.51 85.41 99.5 CADILA HEAL THCARE LTD 290.05 15.59 13.32 11.21 4.21 13.13 18.61 21.77 25.8 LUPIN LTD 605.00 15.74 15.59 14.54 5.57 14.66 38.43 38.81 41.6 23.52 19.02 16.32 5.15 16.45 24.18 19.75 16.74 5.01 15.72 13.30 16.42 11.14 9.75 N/A N.A. 0.81 1.19 1.36 6.34 23.48 18.27 13.87 1.59 12.41 0.27 0.35 0.46 1.01 16.83 13.29 9.81 2.71 8.08 0.06 0.08 0.10 5.30 13.25 11.33 19.93 2.18 8.02 0.40 0.47 0.27 1.45 24.17 21.32 17.26 1.72 9.54 0.06 0.07 0.08

Page 23 2.42 242.00 9.34 11.36 1.35 8.59 0.01 0.26 0.21 1.11 37.00 27.07 19.14 4.70 27.27 0.03 0.04 0.06 53.31 15.97 14.45 2.38 12.32 23.52 18.27 16.32 2.45 10.98 Bloomberg

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