TONG REN TANG<08069> -  Results Announcement (Q3, 2002, Summary)

Tong Ren Tang Technologies Co. Ltd.<08069> - 3rd Quarterly Results Announcement
          
Tong Ren Tang Technologies Co. Ltd. announced on 25/10/2002
(stock code: 08069)
     
Year end date                         :31/12/2002
Currency                              :RMB
Auditors' report                      :N/A
Review of 3rd Quarterly Report by     :Audit Committee
     
Important Note :
     
This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com
     
                                           (Unaudited)       (Unaudited)
                                           Current    Last Corresponding
                                           Period           Period
                                       from 01/01/2002   from 01/01/2001
                                         to 30/09/2002     to 30/09/2001
                                               RMB'000           RMB'000
     
Turnover                              :        551,480           364,021
Profit/(Loss) from Operations         :        110,579            60,099
Finance cost                          :        (2,659)           (5,472)
Share of Profit/(Loss) of Associates  :            N/A               N/A
Share of Profit/(Loss) of Jointly
         Controlled Entites           :            N/A               N/A
Profit/(Loss) after Taxation & MI     :        109,520            65,571
% Change Over the Last Period         :        +67.03%
EPS / (LPS)
          Basic (in dollar)           :      RMB 0.599         RMB 0.359
          Diluted (in dollar)         :      RMB 0.599         RMB 0.359
Extraordinary (ETD) Gain/(Loss)       :            N/A               N/A
Profit (Loss) after ETD Items         :        109,520            65,571
3rd Quarterly Dividends per Share     :            NIL               NIL
(specify if with other options)       :            N/A               N/A
B/C Dates for 3rd Quarterly Dividends :            N/A
Payable Date                          :            N/A
B/C Dates for (-) General Meeting     :            N/A
Other Distribution for Current Period :            NIL
B/C Dates for Other Distribution      :            N/A
                                             (bdi: both days inclusive)
     
                                       For and on behalf of
                                       Tong Ren Tang Technologies Co. Ltd.
                            Signature :
                                 Name :    Edward Choi
                                Title :Company Secretary
     
Responsibility statement
     
The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading. The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard
to the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.
     
Remark:
     
1. Basis of presentation
     
   The accompanying unaudited results are prepared in accordance with
   the International Financial Reporting Standards as published by the
   International Accounting Standards Board. The accounting policies
   adopted are consistent with those followed in the preparation of the
   Group's annual financial statements for the year ended
   31 December 2001.
     
2. Turnover
     
   The Group's turnover is derived principally from the sales of Chinese
   Patent Medicine.
     
   An analysis of the Group's turnover by geographical regions is as
   follows:
     
                                       For the nine months
                                        ended 30 September
                                         2002        2001
                                       RMB'000      RMB'000
     
   Sales of Medicine
     Domestic                          526,774      340,760
     Overseas                           18,043       15,493
     
   Agency fee income - domestic          6,663        7,768
                                      ---------    ---------
                                       551,480      364,021
                                      =========    =========
     
3. Taxation
     
   Pursuant to the relevant income taxation regulations of the People's
   Republic of China (the "PRC"), a high-technology enterprise ("HTE")
   located in a designated area of Beijing Economic and Technological
   Development Zone ("BETDZ") is subject to Enterprise Income Tax
   ("EIT") at a rate of 15%. Moreover, upon approval by the relevant
   local tax bureau, such a HTE is entitled to an exemption from EIT
   for the first three years from its commencement of operations and a
   50% reduction for the three years thereafter. The certification as a
   HTE is subject to an annual review by the relevant government bodies.
   In addition, an amount equal to the EIT exemption or reduction from
   15% has to be appropriated to a non-distributable tax reserve.
   In August 2001, the Company renewed the HTE certification granted by
   Zhongguancun Hi-Tech District Committee for the year of 2001. The
   Company was registered in the BETDZ and has obtained an approval from
   the BETDZ Local Tax Bureau to enjoy an EIT exemption for three years
   commencing from 2000 and a 50% reduction in EIT for the three years
   thereafter.
   For the period ended 30 September 2002, an amount equal to the 15%
   EIT exempted amounting to approximately RMB16,320,,000
   (2001: RMB12,388,000) was transferred to the tax reserve.
     
   The reconciliation of the tax expense of the Group is as follows:
     
                                       For the nine months
                                        ended 30 September
                                         2002        2001
                                       RMB'000      RMB'000
     
   Accounting profit                    113,238       65,571
                                      ---------    ---------
   Tax rate                               15.9%        15.0%
     
   EIT at tax rate                       18,049        9,836
     
   Adjustment on EIT                        -          2,552
     
   Effect on tax benefit of being
     a HTE                              (16,320)     (12,388)
                                       ---------    ---------
   Tax expense                            1,729            -
                                       =========    =========
     
   For the period ended 30 September 2002, the tax expense of the Group
   represented the EIT payable by two subsidiaries of the Company. Both
   subsidiaries are subject to EIT at a rate of 33%. Other than these,
   the Company's other subsidiaries and joint venture had no material
   operating activities nor taxable profits for the period and
   therefore no EIT provision was made.
     
4. Earnings per share
     
   The calculation of the basic earnings per share for the nine months
   ended 30 September 2002 was based on the net profit of approximately
   RMB109,520,000 (2001: RMB65,571,000) divided by the weighted average
   number of shares issued during the period of 182,800,000 shares
   (2001: 182,800,000 shares).
     
   Diluted earnings per share equal basic earnings per share because
   there were no potential dilutive ordinary shares outstanding during
   the period.