China NT Pharma Group Company Limited announced audited consolidated net cash used in operating activities for the year ended December 31, 2012. Net cash used in operating activities was RMB 6,842,000 against RMB 249,025,000 last year.

China NT Pharma Group Company Limited announced audited consolidated earnings results for the year ended December 31, 2012. For the period, the company reported loss from operations of RMB 1,117,190,000, loss before taxation of RMB 1,117,288,000, loss of RMB 1,109,316,000 and loss attributable to equity shareholders of the company of RMB 1,109,316,000 or 102.53 cents loss per diluted share on turnover of RMB 739,132,000 against profit from operations of RMB 365,552,000, profit before taxation of RMB 307,469,000, profit of RMB 234,377,000 and profit attributable to equity shareholders of the company of RMB 234,377,000 or 23.22 cents per diluted share on turnover of RMB 2,758,142,000 a year ago. The decrease in revenue was primarily due to the decrease in revenue from the third-party vaccines and other pharmaceuticals business as well as the third-party pharmaceutical promotion and sales business. The decrease in loss attributable to equity shareholders was primarily due to the substantial decrease in sales and increase in charges and provisions in respect of the business restructuring. Total capital expenditure increased by RMB 21.9 million or 50.2% to RMB 65.5 million for the year ended 31 December 2012, as compared to RMB 43.6 million for the year ended 31 December 2011. The capital expenditure was mainly used for the purchase of the office space of the Hong Kong headquarters, the construction of a warehouse in Taizhou, Jiangsu, the purchase of machinery by Suzhou First and prepayment for an intangible asset.

China NT Pharma Group Company Limited board of directors announced that based on a review of the Group's unaudited management accounts for the year ended December 31, 2012 and the information currently available to the Board, it is of the view that the Group will record a substantial loss for the year ended December 31, 2012. The expected loss is principally attributable to the Company's business restructuring measures introduced during the year ended December 31, 2012 in order to enhance its competitiveness and to improve cash flow, which involved a gradual exit from its vaccine and pharmaceutical supply chain business and downsizing of its vaccine sales and promotion team. Furthermore, after conducting a thorough review of its business units and product portfolio, the Group made the decision to terminate its over-the-counter promotion business as well as its dermatological products around the end of 2012 in order to focus on its pharmaceutical promotion business in the key therapeutic areas of oncology, anti-infectives and central nervous systems. As a result of these business restructuring measures, the Group will report substantially decreased sales revenue and significant impairment of accounts receivable, write-down of inventories, impairment of distribution rights, prepayments and deposits as well as staff retrenchment, leading to a substantial loss for the whole year.