TONG REN TANG<08069> - Results Announcement (Q3, 2004, Summary)

Tong Ren Tang Technologies Co. Ltd. announced on 21/10/2004:
(stock code: 08069 )

Year end date                         :31/12/2004
Currency                              :RMB
Auditors' report                      :N/A
3rd Quarterly Report Reviewed 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

                                           (Unaudited)       (Unaudited)
                                              Current Last Corresponding
                                               Period            Period
                                       from 01/01/2004   from 01/01/2003
                                         to 30/09/2004     to 30/09/2003
                                               RMB'000           RMB'000

Turnover                              :        820,275           711,178
Profit/(Loss) from Operations         :        178,528           143,232
Finance cost                          :          2,553            (2,569)
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     :        161,744           133,835
% Change Over the Last Period         :         +20.85%
          Basic (in dollar)           :      RMB 0.885         RMB 0.732
          Diluted (in dollar)         :            N/A               N/A
Extraordinary (ETD) Gain/(Loss)       :            N/A               N/A
Profit (Loss) after ETD Items         :        161,744           133,835
3rd Quarter Dividends per Share       :            NIL               NIL
(specify if with other options)       :            N/A               N/A
B/C Dates for 3rd Quarter 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.

1. Basis of presentation
   The Company was incorporated as a joint stock company with
   limited liability in the People's Republic of China (the "PRC")
   on 22 March 2000 and upon the placing of its H shares, was
   listed on the GEM on 31 October 2000. Its ultimate holding
   company is China Beijing Tong Ren Tang Group Co. Ltd.,
   incorporated in Beijing, the PRC.
   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 2003.
2. Turnover
   The Group's turnover is derived principally from the sales of
   Chinese Patent Medicine.
   An analysis of the Group's turnover is as follows:
                                        For the nine months
                                         ended 30 September
                                         2004        2003
                                       RMB'000      RMB'000
   Sales of medicine:
     Domestic                          791,629      675,862
     Overseas                           28,621       29,189
   Agency fee income - domestic             25        6,127
                                      ---------    ---------
                                       820,275      711,178
                                      =========    =========
3. Taxation
   Pursuant to the relevant regulations of 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 June 2004, the Company renewed its HTE certification granted
   by Beijing Science Technology Committee for the next two years.
   The Company was registered in the BETDZ and has obtained an
   approval from the BETDZ Local Tax Bureau ("BETDZ LTB")
   (Document Jingdishuikaijianmianfa [2000] No.23) to enjoy an
   EIT exemption for three years commencing from 2000 and a 50%
   reduction in EIT for the three years thereafter. In October
   2002, Beijing Administration of Taxation issued a circular,
   namely Jingguoshuihan [2002] No. 632, stating that a HTE can
   enjoy the preferential tax treatment only if both the
   registration and operation are in the designated area. However,
   BETDZ LTB has also verbally confirmed to the Company that the
   above EIT preferences should be available to the Company as
   long as the Company's registered address is in BETDZ and it
   remains as a HTE.
   For the period ended 30 September 2004, an amount equal to
   the 7.5% EIT exempted amounting to approximately RMB13,084,000
   (2003: RMB10,782,000) was transferred to the tax reserve.
   The reconciliation of the tax expense of the Group is as
                                        For the nine months
                                         ended 30 September
                                         2004        2003
                                       RMB'000      RMB'000
   Accounting profit                   175,975      145,801
                                      ---------    ---------
   Tax rate                             15.02%       14.36%
   EIT at tax rate                      26,434       20,934
   Effect of tax benefits of being
    a HTE                               (13,084)    (10,782)
                                       ---------    ---------
   Tax expense                           13,350      10,152
                                       =========    =========
   The provision for PRC current income tax is based on the
   statutory rate of 33% of the assessable income of each of
   the companies and enterprises now comprising the Group as
   determined in accordance with the relevant PRC income tax
   rules and regulations for the periods ended 30 September 2004
   and 2003, except for Beijing Tong Ren Tang Hebei Chinese
   Medicinal Raw Materials Technologies Co., Limited which is
   taxed at rate of 2.31% of total revenue.
   Foreign entities are subject to income tax as required by tax
   laws of countries where those entities operate, respectively,
   at rates ranging from 2.00% to 39.96%.
4. Earnings per share
   The calculation of the basic earnings per share for the
   nine months ended 30 September 2004 was based on the net
   profit of approximately RMB161,744,000 (2003: RMB133,835,000)
   divided by the weighted average number of shares issued
   during the period of 182,800,000 shares (2003: 182,800,000
   The Company had no dilutive potential shares for the nine
   months ended 30 September 2004 (2003: Nil).