Guangzhou Pharmaceutical Company (HKG:0874) announced that as at 20 January 2012, Guangzhou Pharmaceutical Holdings Limited (GPHL), the controlling shareholder of the company, has obtained the pre-approval to the proposed major assets reorganization (the event) from the State-owned Assets Supervision and Administration Commission of Guangdong Province. Guangzhou Pharmaceutical and the relevant parties involving in the event will continue to further demonstrate the event and consult the relevant authorities.

During the period of suspension in the dealing of its shares, Guangzhou Pharmaceutical will make further announcements regarding the progress of the event every five trading days.