2011年06月14日

Alert: Sihuan (460.HK) is cash rich and sees no need to raisecapital in the near term

Dear Madam/Sir

Thank you for your continuous support to Sihuan Pharmaceutical (0460.HK).

In terms of the stock price fluctuation recently, the IR Office of Sihuan would like to state that:

Sihuan has a solid positive cash flow position and is not under any pressure to raise capital. As at 13 June 2011, Sihuan has about RMB4.6 billion in cash, providing us with ample strength to support our day-to-day business operation or any merger & acquisition activities should such opportunities arise;

Our business grew healthily in Q1, with revenue recording a double-digit growth year-on-year. We expected to maintain continuous growth this year, and achieve good results.

We do not have any financing plans in the near term. With our current strong capital foundation, we do not foresee any need to raise capital at least for the coming two years.

We are seeing strong growth in the cardio-cerebral vascular drug market in China. As the leading pharmaceutical company and the largest cardio-cerebral vascular drug franchise in China by market share, we are well positioned to benefit from this growth market. According to IMS, the PRC cardio-cerebral vascular drug market will maintain its high growth rate in the next few years as a result of many factors, including the expansion of the medical insurance coverage, the inclusion in the National Medicine Catalogue of new drugs, the increase of household income and the rising incidence rate of stroke and cardiac diseases such as acute myocardial infarction. The market is expected to grow at a CAGR of 25.8% from 2009 to reach RMB89.9 billion in 2014. Management believes that Sihuan will continue to maintain its leading position in the cardio-cerebral vascular drug market in China, and achieve growth that is above the industry average.

 If you have any questions or concerns, don't hesitate to let us know.

 Sincerely

 IR Office

Sihuan Pharmaceutical Holdings Group Ltd.

Direct:+86 898 6856 0728

　　尊敬的女士/先生：

　　您们好。首先感谢各位长期以来对四环医药（0460.HK）的长期支持。

　　针对近期公司股价的波动，公司声明如下：

　　四环目前的现金流状况稳健，不存在任何集资压力。截至2011年6月13日，四环拥有约人民币46亿元现金，令我们拥有足够的实力来支持日常业务运营，及抓住并购的商机；

　　我们在一季度的业务稳健增长，收入较去年同期录得双位数增长。今年预期仍然保持持续增长，并将取得良好业绩；

　　我们在近期并无任何融资计划。本公司目前资金基础强劲，我们预计至少在未来两年内没有集资需要；

　　我们认为，中国的心脑血管药市场保持强劲增长。四环医药作为中国领先的制药公司，就市场份额而言，已成为全国最大心脑血管药物的供应商，我们必将受惠于这个市场的增长。根据IMS的统计数据，中国心脑血管药市场在未来几年内将继续维持高速增长，主要是因为医疗保险范围扩大、新药获纳入国家药品目录、家庭收入上升、中风率及心脏疾病等发病率上升。从2009年起，预期该市场在2014年可达到人民币899亿元，复合年增长率为25.8%。管理层相信四环未来仍将在心脑血管领域中保持领先地位，并高于行业平均增长水平。

　　如您还有任何问题，欢迎随时与我们联系。

　　顺颂

        商祺！

投资者关系办公室

四环医药控股集团有限公司

电话：+86 898 6856 0728