AGM Statement

Taihua plc

("Taihua" or the "Company") 

Annual General Meeting Statement

 At the Annual General Meeting of the Company, to be held later today, Nicholas Lyth, the Chairman of the Company, will give the following statement:

"I am pleased to present the following update as to Taihua's activities in the year to date:

Sales Revenue

Taihua's sales in the period from January to May 2011, as set out in unaudited management accounts for the period, were RMB13.2million, an increase of RMB1.6 million over the same period last year.

Paclitaxel sales in that period were RMB 4.9million, an increase of RMB 0.3m over the same period as last year (an increase of 6%). Homoharringtonine sales in the same period were RMB 4.2million, a decrease of RMB 1.0m over the same period as last year (a decrease of 24%) which the directors believe is primarily due to some customers renewing their licences to manufacture injectable homoharringtonine which, in turn, has required these customers to upgrade their facilities with consequential disruption in the manufacturing process. The directors expect this period of disruption to end shortly, after which they expect sales to recover.

Sales from the Company's Traditional Chinese Medicine ("TCM") range for the period January to May 2011 were RMB 1.7million, a decrease of RMB0.1million over the same period as last year (a decrease of 6%).

However, Bian Tong Pian sales, in the period were RMB 2.4million. Bian Tong Pian is a new product for 2011 and the sales forecast for the first quarter of 2011 was RMB 1.282million. Sales reported in unaudited management accounts in that first quarter were RMB 1.236million with sales continuing into the second quarter.

Forsythia

Further to the announcement of 12 January 2011, the Company can confirm that the handover of the land in the Luonan region of the Shanxi province has completed and the Company is now responsible for all maintenance and upkeep of the plantation. The approximate cost of this is RMB140,000 per month

Furthermore, the Company has made further investigations into the current wholesale price for Forsythia. From conversations with potential customers, the directors believe that the current price of Forsythia is around RMB34.5/kg, an increase of approximately RMB4.5 over the average price in 2010, however there is no guarantee that this is the price the Company will ultimately achieve for its product.

API Consultant

As announced on 15 March 2011, the Company has appointed Mr David Hopkins as European API consultant. The Directors are encouraged by progress being made in this area and will provide further updates in due course, as required.

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