At the 29th Meeting of the 4th Board of Directors, held on 27 Aug 2008, the following proposals were examined and approved:

1. a stake transfer agreement signed on 27 Aug 2008 between Shanghai Fosun Pharmaceutical Industry Co., Ltd., a subsidiary of the company, and Wuhan Mayinglong Chain Drugstore Co., Ltd.
Pursuant to the terms of agreement, Shanghai Fosun Pharmaceutical Industry will transfer its entire 51% stake in Hubei Tianxiaming Pharmaceutical Industry Co., Ltd., with registered capital RMB 51,387,800, to Wuhan Mayinglong Chain Drugstore for RMB 32.69 mln, based on the net asset value of RMB 62.43 mln, including assets, liabilities and shareholders' equity, as of the end of 2007.
2. to provide a joint liability guarantee
As the company's subsidiary, Fosun Industrial Co., Limited, has applied for a USD 10 mln line of credit with Bank of Communications, Hong Kong branch, the company plans to apply to Bank of Communications, Zhabei branch to issue letters of guarantee to the Hong Kong branch. The company will provide a joint liability guarantee on the creditors' rights of the Zhabei branch arising from issuing letters of credit for Fosun Industrial.

Board of Directors
29 Aug 2008


Source: Shanghai Stock Exchange

Date: 29 Aug 2008

CN01/FL/SW/BT/KM