Shanghai Pharmaceutical

Shanghai Pharmaceuticals Holding Co., Ltd.(hereinafter as Shanghai Pharma, SSE stock code 601607 and HKEx stock code 02607) is a national pharmaceutical group headquartered in Shanghai, China. The Company’s principal business covers the whole industrial value chain ranging from pharmaceutical R&D, manufacturing, distribution and retailing. In 2013, the Company had reportedly the business revenues of RMB 78.2 billion，ranking No. 2 in the Chinese pharmaceutical industry in terms of the composite capabilities among the top 500 Chinese enterprises according to Chinese Enterprise Conferdation, The company is the one of the few listed pharmaceutical companies which holds a leading position in both pharmaceutical manufacturing and distribution in China. It is selected into the sample stocks of both the SSE 180 Index and CSI 300 Index, with its H shares selected into the Hang Seng Index Compositional Stocks and MSCI.

Adhering to innovation, Shanghai Pharma’s Research and development is dedicated to providing safe and effective drugs against the grave and chronic diseases. In 2013, the total investment in the R&D accounted for 4.25% of the Company’s manufacturing sales revenue. The Company has built up the R&D systems comprising both the Group’s general institute and the sub-institutes, with the Central Research Institute acting as the technical core. Undertaking over 10 State-level scientific and technological R&D projects of “The development of Major New Drugs”, the Company owns 1 State-level corporate technology center and 10 provincial/city-level corporate technology centers. Shanghai Pharma has accumulated 189 invention patents in total. The Company adopts an open mode of R&D, under which the Company has built up the strategic alliance of innovative drug R&D in collaboration with Shanghai Institute of Materia Medica, built up the joint labs in collaboration with China Pharmaceutical University and Shenyang Pharmaceutical University etc. and has been working together with the Mitsubishi Tanabe Pharma Corporation and Shanghai Fudan Zhangjiang Biopharm etc. in the R&D of innovative drugs. Meanwhile, by means of introducing projects and joint-venture development programs etc., the Company has entered into the area of therapeutic antibodies.

Shanghai Pharma’s manufacturing business provides products ranging from chemical and bio-pharms, modern Chinese medicine, healthcare products and medical devices etc., focusing on five major therapeutic areas as cardiovascular, systemic anti-infections, digestive system and immune-metabolism, neuropsychiatric as well as antineoplastic. The products are made in over 20 dosage forms, including the tablets, capsules, powder (incl. lyophilized form), mini-volume injections, eye-drops, inhalants and coagulants etc. Over 20 products have sales revenue over RMB 100 million. The Company runs a number of brands, such as SINE, Leishi, Dragon & Tiger, Cangsong, Guofeng and Shengxiang, all of which are the renowned Chinese trademarks, and is authorized to use the well-known trademarks of Qingchunbao and Huqingyutang. The Company maintains its pharmaceutical production in strict conformity with the latest version of the Chinese GMP, and carries out Lean Six Sigma management projects，having a number of APIs and preparations passed the quality authentication imposed by WHO, FDA, EU and other developed countries.

Shanghai Pharma’s distribution networks focus on the Eastern China, Northern China and Southern part of China, which are the most developed areas in China, and radiates out to other areas in the country. The Company is ranked No. 3 out of Top100 China’s Pharmaceutical Wholesale Distributors announced by MOC in 2013 in terms of main business revenue. The Company has its distribution business dominated by direct sales to hospitals and works strategically with over 40 multinational pharmaceutical companies around the world. The Company boasts to hold a leading position in new business development in China in respect of vaccines, high-end consumables, DTP and SPD. The Company’s distribution services have been gradually upgraded to rendering the modern hospital service solutions focusing on both the extended supply chain services and clinical supportive services, providing the hospital customers with ultimate solutions, specified logistics and information technology services.