Luoxin Pharmaceutical Group Stock Co.,Ltd.

Luoxin Group, a large-scale pharmaceutical manufacturer integrated with medicine R&D, production and trade, is composed of Shandong Luoxin Pharmaceutical Group Stock Co.,Ltd., Shandong Mingxin Pharmaceutical Co., Ltd., Shandong Luosheng Pharmaceutical Co., Ltd. Jinan Luoxin Pharmaceutical Co., Ltd. and other tens of companies. The company has been praised as “AAA” level credit enterprise by State Ministry of Commerce, "AAA Level Credit Enterprise", "Contract Conforming and Credit Valuing Enterprise", "Civilized Unit", "Advanced Unit In Pharmaceutical Industry" and other honorable titles by the state, Shandong Province and Jinan City, and the "Luo Xin" trademark has been recognized as "Chinese Famous Trademark" by the State Administration of Industry and Commerce (SAIC).

Shandong Luoxin Pharmaceutical Group Stock Co.,Ltd., the key enterprise of the group, was established by 11 initiators from restructured Shandong Luoxin Pharmaceutical Factory, holding of Luoxin Pharmaceutical Group Co., Ltd., and United Shenyang Pharmaceutical University. It is a Pharmaceutical enterprise in strict accordance with modern enterprise system and state GMP requirements. The enterprise shares were listed on Hongkong stock market as H share in December, 2005. Since 2006, the company has developed into one of Chinese top 100 enterprises in pharmaceutical industry and one of Chinese top 10 promising pharmaceutical enterprises, and has been a state key hi-tech enterprise. The company has been successively recognized as “Demonstration Enterprise of Technical Platform (Shandong) Industrialization of State Comprehensive New Medicine R & D”, “Best Industrial Enterprise in Chinese Medicine R&D Production Line”, “Top 100 Enterprises of Chinese Enterprise Education Advanced Unit”, “Shandong Star Enterprise of Chinese Patent”, “Chinese Excellent Private Technological Enterprise” and “Shandong Innovation Pilot Enterprise”.

The company adheres to the strategy of “flourishing the enterprise by science and technology”,and established scientific research center in Shanghai Zhangjiang ,by high-end talents of science and technology at home and abroad to form a scientific research team, with the aid of the zhangjiang high-tech park of various advantage resources, to undertake the project group of high-tech research and development and the cultivation of high-tech talent, and the headquarters to form the trinity system of scientific research, stronger to promote the development of new drugs . The company consists of enterprise technology centers recognized by the state, national post-doctoral scientific research workstation, national local joint engineering laboratory, a pharmaceutical distinguished experts "taishan scholar" post, academician workstation in the enterprises of shandong province, shandong province engineering research center for producing injection drug, producing injection drug engineering laboratory of shandong province, shandong province key laboratory of producing injection drugs, Shenyang Pharmaceutical University established flow Luoxin pharmaceutical postdoctoral workstation, teaching training base, practice base and employment base, formed a strong national scientific research and technology center, high speed development for the enterprise injected vitality. There are 6 products of the Group has been listed into the state “key New Medicine Innovation”technological key project, 4 products into “state key and new product plan”, 10 products into “state torch plan”,and 82 products into Shandong Provincial torch plan ,Shandong Provincial technological development plan and Shandong Provincial technological innovation project .Many kinds of products has won “Scientific Technology Advanced Prize”,and pharmaceutical lyophilized powder injection Fushikelin and 101products gained Chinese invention patent certificates for 20 year of patent protection.

At present, the company has three production bases that include Luoxin main workshop，Yuxin preparation branch and Hengxin crude material branch, with powder injection, producing injection, large capacity injection, small volume injection, solid preparation (including cephalosporins), aerosol, spray, chemical pharmaceuticals, potting more than 50 production lines, ten several formulations products have been on the market, more than 300 rules, including 47 national new drugs. The company with an annual output of 1 billion powder injection , 500 million producing injection , 400 million large volume injection/ bottle (bag) and 500 million small capacity injection, 7 billion tablets, capsule 2 billion grains,300 million bags granules, 80 million bags dry suspension agent , 300 tons micro pill, 1,000 tons of active pharmaceutical ingredients, aerosol 30 million irrigation, spray 100 million press, 100 million. Potting

The company implements the strategy of "sales volume originated from enterprise popularity, originated from brand products, originated from the science and technology", which laid a solid foundation for company's further development. In order to put the theory of science technology and innovation into practice, the company increased the budget for science and research. Today, more than 30 research projects and 20 clinical application projects are to be put into practice. Multiple primary new drugs that have self-owned intellectual properties are applied to preclinical and clinical practice.

Luoxin Pharmacy expands its domestic market rapidly to all over the country. Based on the platform of Hongkong stock market, the company enters the international market in a stable pace, and seeks to attain the world level in the two domains of product and marketing.

In order to fasten the development of the company, we are promoting the "five breakthroughs" and "three improvements" strategy with full efforts. The five breakthroughs include: 1. production of dosage forms （natural drugs and biologics）. 2. Production and operation scale (extending the raw material of Hengxin and the branch of Yuxin). 3. science and technology (promote the primary new drugs that are under research and have self-owned intellectual properties to be listed as soon as possible). 4. scaled operation of the group(transform the provincial offices into commercial branch companies step by step, improve the medicine distribution capability, and perfect the distribution network, so as to take full advantage of integrated development of industry and commerce). 5. capital market(Speed up the “H+A” plan, create both the domestic and overseas financing platforms, seek the sustainable financing channels for company’s development). The three improvements include: 1. company brand, build an international brand through improving the company reputation, product brand, and staff performance. 2. company value. Luoxin Group values the philosophy of "rewarding the employees, rewarding the customers, rewarding the shareholders, rewarding the society, strengthening the group". Rewarding the employees: The company provides more development space and awards to its employees. Rewarding the customers: The company creates a maximum value space required by customers. Rewarding the shareholders: The share price and revenue will be increase to a great extent. Rewarding the society: Contribute more taxes to the country, take part in public benefit activities, increase employment opportunities, and provide more high-tech medicines to the patients. Strenghening the group ：Luoxin Group will be a better company of larger scale and stronger capacity3. profit of scale. Intensify and complete seven innovation points, including viewpoint, system, science and technology, management, mechanism, marketing, and human resources.

Luoxin Group will persist in the philosophy of “integrity-oriented, reform and innovation”, create a maximum value space for its customers, and provide high quality products at a favorable price with excellent service to its customers. We are ready to work hand-in-hand with partners in medicine to create a brilliant tomorrow!