Hengan International Group Company Limited announced that Mr. Xu Shui Shen, currently an executive Director of the company, the Chief Operating Officer and the Director of Business Development Department of the Group, has been appointed as the Deputy Chief Executive Officer of the Group with effect from 26 March 2013. The position of Deputy CEO is a newly created position for assisting the Chief Executive Officer of the Group in the overall management of the Group. Mr. Xu will continue to assume the offices of Chief Operating Officer and the Director of Business Development Department of the Group as well as an executive Director of the company following his appointment as the Deputy CEO. Mr. Xu joined the Group in 1985 and has over 28 years of experience in quality control management and business development. Being the Chief Operating Officer and the Director of Business Development Department of the Group, Mr. Xu is responsible for the development and implementation of the Group's sales strategy, operation and business management. Following his appointment as the Deputy CEO, Mr. Xu will assist the Chief Executive Officer of the Group in the strategic planning and overall management of the Group.

The directors of Hengan International Group Company Limited resolved to recommend the payment of a dividend of HKD 0.95 (2011: HKD 0.75) per share to shareholders, whose names appear in the register of members of the company on May 28, 2013. Subject to the passing of the necessary resolution at the forthcoming annual general meeting to be held on, May 23, 2013, the proposed final dividend will be payable on or before May 31, 2013.

Hengan International Group Company Limited reported group earnings and production results for the year ended December 31, 2012. For the year, the company reported revenue of HKD 18,524,233,000 against HKD 17,050,557,000 a year ago. Profit attributable to shareholders was HKD 3,518,705,000 or HKD 2.861 per diluted share against HKD 2,648,839,000 or HKD 2.156 per diluted share a year ago. Operating profit was HKD 3,293,776,000 against HKD 2,999,700,000 last year. Net cash generated from operating activities was HKD 3,355,901,000 against HKD 2,279,608,000 last year. Purchase of property, plant and equipment, including additions of construction-in-progress was HKD 2,203,945,000 against HKD 1,034,575,000 last year. Net debt was HKD 1,335,879,000 against HKD 1,463,057,000 at December 31, 2010. As at the end of 2012, the Group had an annualized production capacity of approximately 900,000 tonnes, which is sufficient for production in 2013. In 2013, the Group plans to launch a number of upgraded versions of existing products, strengthen distribution network management and increase marketing and brand promotion efforts. After taking these measures, management expects the growth of revenue in 2013 to be better than in 2012. In 2014 and 2015, the Group plans to increase its annualized production capacity by 360,000 tonnes and 120,000 tonnes respectively. The additional capacity involves eight production lines located in Chongqing, Hunan, Shandong and Wuhu, and the total annualized production capacity will reach 1,380,000 tonnes by the end of 2015.