LOS ANGELES, May 12, 2004 (PRIMEZONE) -- China Pharmaceuticals Corporation (OTCBB:CPCL) today announces that it has successfully completed its acquisition of controlling interest in Zhejiang University Pharmaceutical Co., Ltd. ("Zheda Pharmacy"), a company incorporated in China. China Pharmaceuticals Corporation believes that it will then be positioned to become a leader in China's fast growing pharmaceutical industry. For more information on the company you can refer to www.chinapharmaceuticals.com.
The acquisition which was completed with China Merchants DICHAIN Investment Holdings Limited and as of today China Pharmaceuticals Corporation and Zheda Pharmacy, as its subsidiary, will consolidate all financial information from this date forward.
Overview of the Chinese medicine industry since 2000; Among the 12 key state-superintended industries, the growth rate of medicine industry was above the national average growth rate from 2000 to 2003, ranked as third in the list, only next to machinery and coal mining, and equal to IT industry. The annual total output value of medicine industry from the year 2000 to 2003 were RMB 233.2 billion (US$28.2 billion), RMB 270 billion (US$32 billion) RMB 323.8 billion (US$39 billion) and RMB 389.1 billion (US$47 billion) respectively, with an average annual growth rate of 19.5%. And the annual market sales volume from 2000 to 2003 were RMB 108.45 billion (US$13 billion), RMB 126 billion (US$15 billion), RMB 150.7 billion (US$18 billion) and RMB 183.5 billion (US$22 billion) respectively, with an average annual growth rate of 21.7%. The total output value of medicine industry of 2003 was RMB 389.1 billion (US$47 billion), with a growth margin of 21.02%, about 10% higher than that of the national economy.
Based on the following background the Chinese medical industry is set to continue double digit growth based on the following two factors:
1. Chinese population to reach 1.33 billion by 2005, with 150 million of aged people, taking up to 11.52% of the market.
2. Progressive improvement of people's life standards encourages impetus to pharmaceuticals consumption.
About China Merchants DICHAIN Investment Holdings Limited:
Headquartered in Hong Kong, DICHAIN Holdings (www.dichain.com) is a fast growing business conglomerate with its main business portfolio focusing on mainland China. DICHAIN is a member of China Merchants Group, one of the largest companies in China.
DICHAIN's business portfolio includes businesses in the following industry segments: Technology, Bio-Pharmaceutical, Logistics, Consumer Products, Investment and Financial Services.
China Merchants Group (www.cmhk.com) is one of the largest business conglomerates in China with 132 years history, the longest among the Chinese enterprises. As of 2003, China Merchants Group has total assets value over US$ 7 billion. Other related companies traded on the US stock markets include DF China Technology, Inc. (Nasdaq:DFCT)
Statements in this release are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties including, without limitation, continued acceptance of the Company's services, increased levels of competition for the Company and dependence on the performance of the management of the Company.