2018 Annual Results Presentation

Sihuan Pharmaceutical Holdings Group Ltd. 四环医药控股集团有限公司

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1 目录 1 Performance Review

Sales Performance 2

3 R&D Progress

4 R&D Platform 5 Financial Review

6 Future Strategies

7 Appendix

2 1 Performance Review Maintaining Healthy Financial Standing

Profit Net Cash R&D Revenue Attributable to Flows Expenditure RMB2,917.4 Owners RMB1,792.8 RMB533.2 million RMB1,620.0 million million million

• Revenue of the Group increased by 6.2% to RMB2,917.4 million in 2018

• Profit attributable to owners of the Company increased by 11.8% to RMB1,620.0 million in 2018

• R&D expenditure increased by 48.3% to RMB533.2 million, accounting for 18.3% of total revenue

• Net Cash Flows reached RMB1,792.8 million

• Gross profit margin increased from 72.4% to 81.5%; Net profit margin increased from 53.9% to 57.6%

• Proposed final cash dividend per share is RMB1.3 cents

4 Efficient Market Management to Realize Product Potential

Mature Products Fast-growth Products

+39.3% +53.7% +71.4% +131.2%

Troxerutin and Cerebroprotein Danshen Chuanxiongqin Injection Roxatidine Acetate Hydrochloride Monoammonium Glycyrrhizinate Hydrolysate Injection (Wei'Ao) for Injection and Sodium Chloride Injection (Yuanzhijiu/Xingwei/Xinshengtong) (Jie'Ao) (Huineng)

A number of major products, which includes Oudimei, Yuanzhijiu/Xingwei, Jie’ao, Huineng and Mainokang, have been included in the Clinical Pathways Interpretation and the Interpretation of Clinical Pathways for Therapeutic Drugs. Huineng has been included in the Rheymatology Section in the guideline’s 2018 edition. Breakthroughs of Multiple R&D Projects

The Group’s first anti-diabetic innovative patented new drug Janagliflozin commenced Phase Ⅲ clinical trials in China.

Commenced Phase Ⅱ clinical trials in China of three innovative drugs, which includes 1）digestive system drug Anaprazole Sodium 2）China’s first independently patented innovative cabapenem antibiotic Benapenem 3） innovative oncology targeted drug Pirotinib.

Antihypertensive drug Tylerdipine Hydrochloride has finished Phase Ⅰ studies in healthy invididuals and has initiated trials in patients. Besides, another three innovative drugs have commenced Phase Ⅰ clinical trials respectively. They are 1) selective CDK4/6 inhibitor Birociclib 2) a third generation irreversible tyrosine kinase inhibitor XZP-3621 3) PDE-5 inhibitor Fadanafil.

Metformin Hydrochloride Tablets obtained consistency evaluation approval.

Exclusive product and paediatric medicine Midazolam Oromucosal Solution has been included in the Priority Review Process.

The Company is the first in China with the drug registration approval for Compound Electropyte Injection (Ⅱ) (500mL). Compound Amino Acid Injection (20AA) granted approval for drug registration.

Production approval has been obtained for Octreotide Acetate Injection, Ambroxol Hydrochloride Injection and Buflomedil Hydrochloride Injection.

“Non-PVC solid-liquid double chamber infusion soft bag”(including Ceftazidine,Cefuroxime, Cefodizime has passed on-site assessment.

6 Global BD Expansion —Established to Enrich Product Portfolio

• Global Business Development Department is established with offices located in China and US. • Team is comprised of experts with extensive experience in domestic and overseas pharmaceutical industry. • Focus on the development of cutting-edge drugs in oncology and other major therapeutic areas. M&A and International Collaborations

Company Initiation Partnership Other Information Date Croma-Pharma 2017 Set up joint • Expanded to aesthetic medicine business GmbH venture • First product Princess® VOLUME dermal filler was granted approval and has been launched to market PharmaDax 2017 Staged • Subscribe for 19.99% equity interests and corporate Foshan investment bonds issued by PharmaDax Foshan at the consideration of RMB200 M • Equipped with FDA approved production line

Medifood 2017 Acquisition • Acquired 50% equity in U.S. Foods for Special GmbH Medical Purposes (FSMP) manufacturer Medifood GmbH • Obtained exclusive manufacture, marketing and distribution rights in Greater China Medtrition Inc. 2017 Acquisition • Acquired FSMP manufacturer Meditrition Inc. • Obtained exclusive distribution rights in Greater China Covance 2015 Reached joint • Reached long-term partnership agreement to support agreement the pre-clinical and clinical development of new drug pipeline Hugel Inc. 2014 Reached joint • Joint R&D of Botulinum toxin and Hyaluronic acid agreement • Clinical trials in China have been completed

重庆派金生物 Chong Qing 2014 Reached joint • Reached agreements on 5 projects including Insulin 科技有限公司 Paijin Biotech agreement Degludec and Insulin Aspart

Ambest 2017 Acquisition • Acquired 100% equity at a consideration of RMB1.1B Pharmaceutical • Sales of “Huienng” and “Mainuokang” have recorded high growth rate

8 2 Sales Performance Leading Market Position

Top 5 Coporations Sihuan 8.30% in China’s CCV Pfizer 6.96% Prescription Drug Sanofi 5.89%

Market in 2018 AstraZeneca 4.81%

（Market Share) CSPC 3.34%

Ranking Corporations Market Share in 2018

1 Pfizer Group 3.04% 2 AstraZeneca Group 2.82%

Top 10 Corporations 3 YangZiJiang FTY 2.80% in Domestic Hospital 4 JS. HengRui 2.19% 5 Sanofi Group 1.89% Market in 2018 6 Bayer Schering Pharma 1.65% 7 Qilu Pharm Group 1.64% 8 ChiaTai TianQing 1.62% 9 Roche 1.59% 10 Fosun Pharma 1.51%

Source：IMS 11 Sihuan Pharmaceutical 1.42%

10 Sales & Marketing

Conduct evidence-based research on main Deepen penetration in existing first-tier market of products to extend their life span mature products and accelerate development in • Conducted evidence-based research to reinforce low-end market the clinical efficacy, safety and indications of • Dedicated efforts in deepening penetration of major products; mature products in first-tier markets where there is • Promoted inclusion of major products in official extensive coverage, targeting at exploiting clinical guidelines, expert consensus and untapped hospital resources, with the aim to interpretation of clinical pathways. All major stabilize sales and achieve stable growth; products have been successfully listed in the • Concentrated effort on directing resource to county-level Interpretation of Clinical Pathways primary healthcare institutions, while accelerating and the Interpretation of Therapeutic Drugs for the development in small- and medium-sized Clinical Pathways. hospitals and community medical institutions in third- and fourth-tier cities.

Promote high-growth products Strengthened academic promotions to enhance • Increased the number of hospital coverage for marketing capabilities products that have been included in the medical • Sped up national academic promotions, resulting in insurance catalogue; improved market recognition and coverage; • Achieved further growth winning bids to • Enhanced the efficiency of sales system by incorporate more provincial medical insurance providing systematic trainings to sales specialists catalogues and distributors, so that marketing activities are more efficient at all level.

11 Sales Performance of Main Products *Exclusive Product

Revenue of Key CCV Products

Year of 2017 Year of 2018 Product Names Change （RMB’000） （RMB’000） Cerebroside-kinin Injection 686,909 749,710 9.1% （Oudimei/Aofutai/Weitong/Jielixin) * Troxerutin and Cerebroprotein Hydrolysate Injection 463,879 645,958 39.3% (Yuanzhijiu/Xingwei/Xinshengtong) * Danshen Chuanxiongqin Injection 216,549 332,880 53.7% (Wei’Ao) Cinepazide Maleate Injection 389,969 314,547 -19.3% （Kelinao/Anjieli） Alprostadil Lipid Emulsion Injection 216,460 154,056 -28.8% (Yimaining/Yikangning) Compound Trivitamin B for 126,487 141,865 12.2% Injection(II)(Yeduojia) *

GM1 Injection(Aogan/Xiangtong） 151,400 153,516 1.4% Floium Ginkgo Extract and Tertram Ethypyrazine Sodium Chloride Injection 65,774 59,667 -9.3% (Mainuokang) * Cerebroprotein Hydrolysate 78,909 29,076 -63.2% （Qu’Ao） Nicotinamide Injection 9,458 42,284 347.1%

▪ Revenue of CCV products increased by 4.0% to RMB2,685.7 millions, accounting for 92.1% of the total revenue. The increase was mainly attributable to effective targeted market management. ▪ Main products won 25 to 30 provincial tenders with stable bidding prices. ▪ Yuanzhijiu/Xingwei/Xinshengtong and Wei’Ao achieved sustainable growth since the increasing nationwide hospital coverage. 12 Sales Performance of Main Products

Revenue of Key Non-CCV Products

Therapeutic Year of 2017 Year of 2018 Product Names Change Area （RMB’000） （RMB’000）

Roxatidine Acetate Hydrochloride for Gastroinestinal 35,269 60,457 71.4% Injection (Jie’Ao) Monoammonium Glycyrrhizinate and Hepatitis Cysteine and Sodium Chloride Injection 19,289 44,604 131.2% （Huineng）*

Vitamins Nicotinic Acid Injection 989 27,866 2,718.0%

CNS Oxcarbazepine（Ren’Ao） 28,079 22,436 -20.1%

Anti-infection Clindamycin Injection（Xinnuoao） 17,534 15,324 -12.6%

▪ Revenue from non-CCV products increased 42.2% to RMB231.7 million, accounted for 7.9% of the Group’s total revenue.

▪ By the end of 2018, Jie’Ao and Huineng have won tenders in 29 and 28 provinces, respectively. Both of the products have been included in 11 Provincial Reimbursement Drug Lists (PRDL). ▪ Along with the tender progress, chances are the new products get included in the updated version of PRDLs, leading to more shares and generating more revenue.

*Exclusive Product

13 New Products Seizing Opportunities in the Drug Reimbursement Reform The following recently launched products are expected to be included in more PRDLs and win more tenders.

Mainuokang Launching Year 2015 (Floium Ginkgo Extract and • Floium ginko and Tertram Ethypyrazine Sodium Therapeutic Area CCV ligustrazine are included in Chloride Injection) NRDL and has been widely PRDL 10 used in clinical practice. Tenders Won 24 Provinces • Exclusive Product Hospital Coverage 423（ 176）

Huineng Launching Year 2015 • Rheumatology section of the 2018 (Monoammonium Glycyrrhizinate national-level edition of the and Cysteine and Sodium Therapeutic Area Liver Disease Interpretation of Clinical Pathway Chloride Injection) • Digestive disease section of the PRDL 11 2018 national-level edition of the Tenders Won 28 Provinces Interpretation of Clinical Pathway

Hospital Coverage 471（ 322） • Exclusive Product • Surgery section of the 2017 edition of the Jie’Ao Launching Year 2015 (Roxatidine Acetate Hydrochloride Interpretation of Clinical Pathway for Injection) Therapeutic Area Gastraintestinal Disease • General medicine section of the 2017 edition of the Interpretation ofClinical PRDL 11 Pathway and Therapeutic Drugs (county- level) Tenders Won 29 Provinces • Digestive disease section of the 2018 national-level edition of the Interpretation Hospital Coverage 477（ 314） of Clinical Pathway

14 Lower-end Market Expansion - Outstanding Performance in Expansion in County-level Market

RMB/100 millions

60 55.3 MAT 2018Q4 Ranking of County-level Hospital Exploiting Status

50 47.5

40.6 38.7 40 38.3 33.8

29.2 28.8 28.1 30 27.4 25.5 24.9 22.2 20.8 20 17.5 15.1 14.7 14.2 14.1 13.2

10

0

Source: IQVIA China’s Hospital Prescription Drug Data Report (>=100beds), MAT2018Q4

15 Post-launching Re-evaluation of Key Products

▪ Clinical Research: 1 completed, 1 in progress • Randomized double-blind multi-centered clinical studies on Cinepazide Maleate Injection in acute ischemic stroke Cinepazide • Leading institute: Beijing Union Medical College Hospital Maleate • 65 clinical centers Injection • Completion of recruitment of 1301 patients (Kelin’ao/ • Currently at the stage of assorting data, results are expected to come out in 2019 Anjieli) • Safety Research：ADR automatic monitoring and evaluation on 19487 patients treated with Cinepazide Maleate Injection across 5 hospitals；to prove the safety and reliability of Cinepazide Maleate Injection’s clinical use. （With as leading institute, 5 clinical centers, 19487 patients) ▪ Publications: 1 published • ADR automatic monitoring and evaluation on 19487 patients treated with Cinepazide Maleate Injection across 5 hospitals. Drug Application and Surveillance in China 2017(4)

▪ Fundamental Research：3 completed, 1 in progress Cerebroside- • Research on cerebroside-kinin as treatment for cerebral infarction and inhibition of neuronal apoptosis in rats kinin Injection （Tiantan Hospital） (Oudimei/ • Study of cerebroside-kinin’s neuroprotective effect on cerebral trauma in rats（The Army’s General Hospital） Aofutai/ • Fundamental research on cerebroside-kinin as treatment of brain/subarachnoid hemorrhage（The Army’s Weitong/ General Hospital） Jielixin) • Fundamental research on cerebroside-kinin’s effect on regeneration of neurons（Tiantan Hospital）(Undergoing） ▪ Clinical Research：1 completed, 2 in progress • Cerebroside-kinin as treatment of hypertensive intracerebral hemorrhage • Led by The Army’s General Hostpital, 14 centers nationwide, planning to recruite 422 patients and completed in 2022 • Curative effect index includes degree of white matter fiber bundle damage under MRI; to prove the effectiveness of cerebroside-kinin in clinical use • Cerebroside-kinin as treatment for acute cerebral infarction (319 patients) (Beijing University Third Hospital, 16 clinical center, publication submitted) • Cerebroside-kinin as treatment of cognitive impairment after acute cerebral infarction（60 patients）(The First Affiliated Hospital of Anhui Medical University，planning to be completed in 2022) ▪ Publications：4 published, 3 submitted • Cattle encephalon glycoside and ignotin injection promoted synthesis of glial cellline-derived neurotrophic factor by astrocytes that protected against neuronal damage induced by AAPH. Int J Clin Exp Med 2016;9(2):1794-1800 • Cattle encephalon glycoside and ignotin reduced white matter injury and prevented post-hemorrhagic hydrocephalus in a rat model of intracerebral hemorrhage. Sci Rep.2016 Oct 26;6:35923 • Cattle Encephalon Glycoside and Ignotin Reduce Early Brain Injury and Cognitive Dysfunction after Subarachnoid Hemorrhage in Rats. Neuroscience 2018 Sep 15;388:181-190 • Systematic Evaluation and Meta Analysis of Cerebroside-kinin Injection as treatment for cerebral hemorrhage. Clinical Medicine of China 2017(33)4:317-323. 16 Post-launching Re-evaluation of Key Products ▪ Foundamental Research: 4 completed, 1 in progress • Troxerutin and Troxerutin and cerebroprotein hydrolysate’s protective effect on neurovascular unit in rats after middle cerebral Cerebroprotein artery embolization（The Army’s General Hospital） Hydrolysate • Research on troxerutin and cerebroprotein hydrolysate’s protective effect on neurovascular units deprived of Injection oxyglucose（The Army’s General Hospital） (Yuanzhijiu/ • Xingwei/ Research on troxerutin and cerebroprotein hydrolysate’s protective effect on neurovascular unit in traumatic Xinshengtong) brain injury (The Army’s General Hospital) • Research on troxerutin and cerebroprotein hydrolysate’s neuroprotection and restoration of spinal cord injury in rats (The Second Affiliated Hospital of Harbin Medical University) • Research on mechanism of troxerutin and cerebroprotein hydrolysate injection as treatment of cerebral hemorrhage（Tiantan Hospital） ▪ Clinical Research：3 completed • Troxerutin and cerebroprotein hydrolysate as treatment of acute cerebral infarction（Beijing Hospital as leading institute, 13 clinical centers, publication released) • Research on troxerutin and cerebroprotein hydrolysate as treatment of craniocerebral injury (Beijing Hospital, 10 clinical centers, publication released) • Research on troxerutin and cerebroprotein hydrolysate’s protective effect on children’s neurological injury induced by febrile convulsion in children（Zhejiang University Children’s Hospital，publication submitted） ▪ Publications：7 published, 1 submitted • Randomized, single-blind, placebo controlled research on troxerutin and cerebroprotein hydrolysate as treatment for acute cerebral infarction [J].Chinese Journal of Immunology and Neurology, 2016,7(23)4:251-255 • Randomized multicenter controlled clinical study on troxerutin and cerebroprotein hydrolysate as treatment of craniocerebral trauma[J].Chinese Journal of Neurosurgery, 2017,7(33):669-672 • Protective effect of troxerutin and cerebroprotein hydrolysate neurovascular unit in rat after middle cerebral artery embolization[J]. Chinese Journal of Stroke, 2017,12(12):1097-1103 • Systematic evaluation on troxerutin and cerebroprotein hydrolate as treatment of acute cerebral infarction. World Clinical Drugs, 2017,38(1),28-35 • Research on troxerutin and cerebroprotein hydrolysate protective and restoring effect of rat’s neural function after spinal cord injury [J]. Chinese Journal of Neurotrauma Surgery, 2018,4(6) • Troxerutin and Cerebroprotein Hydrolysate Injection Protects Neurovascular Units from Oxygen-Glucose Deprivation and Reoxygenation-Induced Injury In Vitro. Evidence-Based Complementary and Alternative Medicine. Volume 2018 May 2,10 pages • Troxerutin Cerebroprotein Hydrolysate Injection Ameliorates Neurovascular Injury Induced by Traumatic Brain Injury – via Endothelial Nitric Oxide Synthase Pathway Regulation. Int J Neurosci. 2018 Dec;128(12):1118-1127.

▪ Clinical Research： Exploratory clinical trial on efficacy and safety of Danshen Chuanxiongqin Injection in randomized, Danshen double-blind, controlled, multicentered research Chuanxiongqin • Initiated on April, 2017 Injection • Leading institute: Beijing University First Hospital (Wei’Ao) • 22 clinical centers, 240 patients are expected to be recruited • Expected to be completed in 2021 17 3 R&D Progress R&D Progress and Strategies

Established a clear R&D pipeline, increased R&D investment and allocated resources in therapeutic areas with major unmet clinical needs, such as oncology/immuno-oncology, diabetes Innovative Drug and non-alcoholic steatohepatitis(NASH). Dedicated in Patented innovative diabetic drug Janagliflozin has commenced Phase Ⅲ clinical trial. Commenced Phase Ⅱ clinical trials in China of three innovative drugs, which includes digestive system drug Major Therapeutic Anaprazole Sodium, China’s first independently patented innovative cabapenem antibiotic Benapenem and innovative oncology targeted drug Pirotinib. Areas Three innovative drugs initiated their Phase Ⅱ clinical trial：Anaprazole Sodium, Benapenem and Pirotinib. Four innovative drugs have commenced their Phase Ⅰ clinical trial-antihypertensive drug Tylerdipine Hydrochloride, selective CDK4/6 inhibitor Birociclib, a third generation irreversible tyrosine kinase inhibitor XZP-3621and PDE-5 inhibitor Fadanafil.

The generic drug R&D platform have the first-mover advantage. Bioequivalent test project has been Generic Drugs deployed for 8 products and is progressing as scheduled. Metformin Hydrochloride Tablet has obtained consistency evaluation approval. A number of products in the generic drug pipeline are Achieved expected to be the first to pass or be considered to pass consistency evaluation in the second half of 2019. This include Capraplatin Tartaric Acid Capsule, Azithromycin Capsule; Ibuprofen Injection and Progress Octraotide Acetate Injection. Pediatric medicine Midazolam Oromucosal Solution has been Included in the Priority Review Process.

Business One of the subsidiaries – PharmaDax Foshan, equipped with manufacture and quality control system certified by U.S. FDA, in synergy with the R&D Centre in San Francisco, have become a Expension significant component in our strategic layout and will drive the frontier of market globalization. Beijing Ruiye Drugs Manufacture Co. Ltd. (“Beijing Ruiye”), in which Sihuan Pharmaceutical M&A holds a 44% stake, is dedicated to the R&D of the “non-PVC solid-liquid double chamber BD Overseas infusion soft bag” (including Ceftazidime, cefuroxime, cefodizime. The product is expected to launch in the first half of 2019.

19 Innovative Drug Pipeline Project at Therapeutic PhaseⅠClinical Trial Phase Ⅱ Clinical Trial Phase Ⅲ Clinical Trial Clinical Stage Area Janagliflozin Diabetes * Monotherapy * Combined CP001 Long-acting Regiment with Diabetes Basal Insulin Metformin Insulin Aspart Diabetes Insulin Aspart 30 Diabetes Insulin Aspart 50 Diabetes Birociclib Oncology Pirotinib* Oncology XZP-3621 Oncology Benapenem Anti-infective Gastrointestinal Anaprazole Sodium Disease Anti- Tylerdipine hypertension * Fadanafil BPH-LUTS/ED Project at Therapeutic Target Validation LI/LO Preclinical IND Preclinical Stage Area XZP-5809 Oncology XZP-P009 NASH XZP-P135 NASH XZP-P118 Oncology XZP-P179 Oncology XZP-P183 NASH XZP-P107 Oncology XZP-P215 Oncology

*哌罗替尼在美国和中国的XZP-P223 I期临床试验已完成，并获得中国食品药品监督管理局Oncology I/II/III期临床试验批件，国内Ⅱ期临床试验已启动 20 Innovative Drug—Diabetic Drug SGLT-2 Inhibitor

Diagnosed/ Janagliflozin—Anti-diabetic Blockbuster No Treatment ▪ Category 1 innovative drug； Diagnosed/ 4% ▪ Highly potent and selective SGLT-2 inhibitor. Based Under on data from preclinical in-vitro research, Treatment Janagliflozin demonstrates better SGLT-2 receptor 26% selectivity than marketed Canagliflozin and DM Diagnosis and Dapagliflozin; Treatment in China ▪ Pronounced anti-hyperglycemic effect and dosage- 10.6% efficacy correlation, proved by clinical research； Prevalence in China ▪ Based on the clinical research, the new drug features RMB44 billion good safety profile, good pharmacokinetics data, a Domestic long half-life, convenience (oral regiment once a Market Potential day), good bioavailability, and is not easily affected by food consumption;

Undiagnosed ▪ Two separate Phase Ⅲ clinical trial currently 70% undergoing (monotherapy/combined regiment with Metformin), with Ji Linong from Beijing Source: IMS, IDF 7th Edition People’s Hospital leading the research;

▪ Targeting to be amongst the country’s top two domestically-produced SGLT-2 inhibitors. 21 Innovative Drug—Long Acting Basal Insulin Insulin Degludec Biosimilar Product

▪ The first domestic enterprise that submitted application and granted approval for clinical trials (Category 7 Biological Products);

▪ Filled in the blank of biological products line and established the foundation of subsequent products development;

▪ Global basal insulin market has great growth potential. This product could become a blockbuster with the fastest growth rate.

Advantages of Insulin Degludec

▪ The first type of basal Insulin that can be injected anytime Mechanism of Insulin Degludec during the day with adjustable injection time;

▪ Lower risk of hypoglycemia compared with Insulin Glargine,

especially during the night; Subcutaneous Polymers Tissue ▪ Features the half-time of appx. 25h, which doubled that of Monomer Insulin Glargine, making it a super long-acting basal insulin Binds to Insunlin Degludec Albumin Blood in the Blood with stable control of blood glucose; Capillary

▪ Flexible to pair with rapid-effect insulin and Liraglutide— Cyto- membrane Insulin Biphasic Insulin (Insulin Degludec/Insulin Aspart), and Receptor Liraglutide/Insulin Degludec premixed preparation. 22 Innovative Drug —Insulin Aspart potentially become the biosimilar product with market volume over RMB1 billion

Sihuan Pharm ranks in top 5 in domestic Insulin Aspart Clinical Research Progress

Sales（RMB10k） Growth rate Market Trend of Insulin Aspart in China’s Public Hospital Market 600,000 27.72% 30% 503,349 443,731 417,623 400,000 359,826 20% 13.44%

16.06% 200,000 6.25% 10%

0 0% 2014 2015 2016 2017 Sales of original Patented Insulin Aspart reached RMB5 billion in 2017

Annual Sales Volume (RMB 10k) Product Name Company 2014 2015 2016 2017

Insulin Aspart 30 Novo Nordisk 297,183 338,078 350,418 397,508 Injection

Insulin Aspart Novo Nordisk 61,069 75,700 88,781 100,612 Injection

Insulin Aspart 50 Novo Nordisk 1,576 3,844 4,531 5,227 Injection

23 Innovative Drug —CDK4/6 Inhibitors Combetting Breast Cancer Birociclib – CDK4/6 Inhibitor

▪ Category 1 innovative drug；

▪ Highly selective CDK4/6 inhibitor for ER+ breast cancer；

▪ PhaseⅠclinical trial in progress, POM(proof of Mechanism) has been proved in research conducted on cancer patients, the new drug demonstrates inhibiting activity on CDK4/6 with good pharmacokinetics attributes based on current clinical research;

▪ Compared with globally marketed Palbociclib and Ribociclib, Birociclib has potential advantages—1) effective Blood Brain Barrier (BBB) penetration, potential to treat malignant brain cancer or malignant brain metastasis, 2) single-agent activity, can be used as monotherapy, 3) better safety profile with lower myelosuppression rate;

▪ Targeting to be amongst the country’s top two domestically manufactured product. Market Demand

▪ Breast cancer has highest prevalence among all types of malignant tumor in female in China, with appx. 70% of breast cancer patients exhibit ER+ status, and one of the most promising target therapies – CDK4/6 inhibitor has no domestic manufacturer yet;

▪ In 2016, breast cancer treatment drugs recorded a total revenue of USD12.6 billion globally, and the number is expected to double USD25 billion in 2024.

来源：Datamonitor，Sammons SL, Topping DL, Blackwell KL. HR+, HER2– Advanced Breast Cancer and CDK4/6 Inhibitors: Mode of Action, Clinical Activity, and Safety Profiles. Current Cancer Drug Targets.；Nature Reviews Molecular Cell Biology 24 Innovative Drugs —EGFR-TKI Combatting NSCLC (Non-Small Cell Lung Cancer)

Pirotinib – NSCLC Patiens with EGFR Mutation

▪ Category 1 innovative drug；

▪ A novel irreversible tyrosine kinase inhibitor (TKI) targeting EGFR mutation, effectively inhibiting targeting receptors resistant to current marketed EGFR TKI;

▪ Demonstrated potential treating activity to squamous cell lung carcinoma (no treatment method accessible currently), potentially to be first-in-class drug

▪ International multi-centered PhaseⅠclinical trials have already been completed in China and US. Phase Ⅱ clinical trials in progress in China.

Market Performance

▪ Sales volume of EGFR-TKI increase from RMB1.03 billion in 2013 to RMB 1.17billion in 2016，Sales volume of EGFR-TKI is predicted to reach RMB1.56 billion.

Source：IMS CHPA ; EGFR Diagnostic Navigator

25 Innovative Drug—Proton Pump Inhibitor Category Anaprazole Sodium – Acid Suppressant of PPI Category

▪ Category 1 Innovative Drug；

▪ Inhibits gastric acid secretion and eliminates Helicobacter pylori rapidly and with high efficiency；

▪ Preclinical studies have demonstrated distinctive features including rapid onset and longer duration of acid suppression. Composed of singer isomers, the new drug also features enzyme-free metabolism and multi-enzyme metabolism, which mitigates the risk of drug-drug interactions. Thus the drug is potentially to be the best-in-class attributable to its good safety properties and efficiency;

▪ Phase Ⅱ clinical trial progressing well, conducted in multiple clinical institutions across China.

Market Prospect

▪ Prevalence of digestive system diseases accounts for 10%-20% of the population with the recurrence rate of digestive ulcers exceeding 75%;

▪ The market volume of PPIs reached RMB18.8 billion in 2017, demonstrating the extensive demand and promising market potential.

图片来源：Mount Sinai Health System

26 Innovative Drug—Broad-spectrum Antibiotics

Benapenem – Carbapenem, Broad-spectrum Antibiotics

▪ Category 1 Innovative Drug；

▪ Carbapenem antibiotic which has strong antibacterial activity against G+/G- and anaerobic bacteria that it can be widely used in patients with severe infection；

▪ Features longer half-life period and safety profiles compared with other drugs in the same category；

▪ Commenced Phase Ⅱ clinical trial for complicated urinary tract infections is being conducted in multiple clinical institutions in China and progressing well. Market Review

▪ Market volume of anti-infective drugs has reached RMB192.0 billion in 2017, with the growth rate of 4.0%;

▪ Carbapenem ranked as the 5th in the antibacterial drugs with the sales volume of almost RMB9.7 billion, with its market share increased from 4.4% in 2013 to 6.2% in 2017.

27 Innovative Drug —L-/T- Dual Calcium Channel Blocker Anti-hypertension Drug

Tylerdipine – L/T Dual Calcium Channel Blocker

▪ Category 1 innovative drug；

▪ Innovative dual inhibition of L-/T-type calcium channels；

▪ Compared with marketed CCB, pre-clinical study suggests that Tylerdipine not only effectively lowers blood pressure, but also reduces the incidence of edema and provides additional organ protection like kidney and heart protection；

▪ PhaseⅠclinical trial on healthy volunteers is completed and that on patients is currently being conducted. Clinical trial data demonstrated that the anti-hypertensive effect of Tylerdipine was comparable to the marketed CCB drugs. Current Market 11% CCB ▪ The blood pressure control rate of hypertensive 3% 31% ARB patients after treatment is 29.6%, among which 50% 7%

of patients are often accompanied with certain β receptor inhibitor organ damage and 49% of patients accompanied 11% ACEI with hypertension-related symptoms ； Diuretic ▪ CCB has the highest prescription rate for Asian 37% patients among other anti-hypertension drugs. Others

▪ Existing CCB drugs are associated with side-effect Domestic Market Share of Anti-hypertension Chemical Drugs in 2015 such as renal failure and peripheral edema. 28 Generic Drug R&D Progress

▪ By the end of 2018, there are 99 projects ongoing on the generic drug R&D platform with 31 projects under review by CFDA/CDE. Involving therapeutic areas include CNS, endocrine system, digestive system, anti-viral and anesthesia. ▪ Bioequivalence Test for 7 products have been deployed while 3 of them have the application submitted according to the bioequivalence test application requirement. 1 consistency evaluation approval has been acquired.

Bioequivalence Generic Drugs Products Potential First-to Test and post- Submitted for submitted to both market Generic launching re- Production CFDA and FDA Drug in China evaluation Approval Bioequivalent Test • Capraplatin Tartaric Acid Capsule • Entecavir Tablet • Metformin Hydrochloride • Midazolam Oromucosal • Ibuprofen Injection • Metoprolol Succinate ER Tablet Solution • Levetiracetam Injection Tablet • Azithromycin Capsule • Eslicarbazepine Acetate Concentrated Solution • Olanzepine Orally • Octreotide Acetate Injection Tablet • Levamlodipine Besylate Tablet Disintegrating Tablet • Oxcarbazepine Tablet • Roxatidine Acetate • Levetiracetam Tablet • Esomeprazole Magnesium • Roxatidine Hydrochloride Hydrochloride Sustained- • Eslicarbazepine Acetate Tablet (Pellet) Tablet Injection release Capsule • Ticagrelor Tablet • Venlafaxine • Pantoprazole Sodium Injection • Tedizolid Phosphate Tablet • Clopidogrel Hydrogen Sulphate Hydrochloride Sustained- • Alprostadil Injection Tablets Release Tablet • Ozagrel Sodium Injection • Gabapentin Capsule • Nifedipine Controlled Post-launching Re-evaluation Released Tablets • Cinepazide Maleate Injection 【Priority Review】 • Sitagliptin Phosphate/ • Salviae Miltiorrhizae and • Midazolam Oromucosal Solution Metformin Hydrochloride Ligustrazine Hydrochloride • Quetiapine Fumarate ER Tab Tablet Injection (PharmaDax) ▪ Cerebroside-kinin Injection • Glyburide Tablet (PharmaDax) ▪ Troxerutin Cerebroprotein Hydrolysate Injection 29 Key Generic Drugs

▪ Treatment of partial epileptic seizures in patients aged 4 years and above； ▪ Currently the first and the only domestic enterprise that submitted application and received acceptance applied for production Anti-epileptic Drug approval for this drug in China; Eslicarbazepine ▪ Features good tolerance with higher efficacy and safety for long-term Acetate Tablet treatment, the drug is expected to be the first-line clinical drug in the future; ▪ Epilepsy is one of the three major CNS diseases. There are currently appx. 9 million epilepsy patients in China, with more than 400 thousand newly diagnosed epilepsy patients every year. According to IMS, the domestic antiepileptic drug market reached RMB2.42 billion in 2017.

▪ The first manufacturer to pass the Consistency Evaluation through supplementary application in China; ▪ As primary therapy to patients with diabetes , this drug is characterized Anti-diabetic Drug with various beneficial effects, other than hypoglycemic effect, including cardiovascular protection and alleviating non-alcoholic fatty Metformin liver diseases； Hydrochloride Tablets ▪ Acknowledged as a first-line medication for diabetes in guidance for Type 2 diabetes prevention and treatment; ▪ The total revenue of metformin tablets in city- and county-level public hospitals in China reached RMB2.59 billion in 2017.

30 4 R&D Platform

31 Driving the Innovative Frontier—R&D Bases

Innovative Drug R&D center-Shandong Xuanzhu Small molecule innovative drug development Center. Focuses on major disease areas with significant clinical needs, including diabetes, oncology, anti-infective and non-alcoholic hepatitis, with appx. 200 experienced personnel with over 10 years of experiences working in multinational pharmaceutical companies. Its Clinical Development Center is responsible for clinical procedures including project management, clinical testing, data management, biostatistics, medical science, registration, quality assessment and quality control.

R&D Centre, CS-Bay Therapeutics Beijing Aohe Research Institute Primarily focuses on the development of Focuses on the development of first-to-market first-in-class immuno-oncology drugs, including generic drugs, in relation to which we have small molecule drugs and large molecule developed intellectual property rights concerning biologics such as antibodies and fusion protein formulation, production process, improved drugs. chemical attributes or drug delivery system.

32 5 Financial Review Financial Highlights

Key Income Statements Items 2018 2017 Change (RMB’000) (RMB’000)

Revenue 2,917,405 2,745,809 6.2%

Gross profit 2,379,088 1,986,853 19.7%

Operating profit 2,025,943 1,688,256 20.0%

Profit attributable to 1,619,956 1,448,935 11.8% owners of the Company Key Financial Ratios 2018 2017

Gross profit margin 81.5% 72.4%

Net profit margin 57.6% 53.9%

Basic EPS (RMB cents) 17.1 15.3

Receivable Turnover (days） 58 69

Inventory Turnover (days) 177 102 Proposed final cash dividend 1.3 1.3 per share (RMB cents）

34 Overall Revenue Statistics

Revenue （RMB million） 7.9%

+6.2% 92.1%

2,917.4 2,745.8 CCV Non-CCV

2017 2018

▪ Revenue of the Group increased by 6.2% to RMB2,917.4 million in 2018.

▪ Revenue from CCV products increased 4.0% to RMB2,685.7 million.

▪ Revenue from non-CCV products increased 42.2% to RMB231.7 million.

35 Profit Margin

Profit attributable to Gross profit （RMB million） owners of the Company （RMB million） Gross profit margin Net profit margin 2500.0 100% 2000.0 81.5%

72.4% 57.6%

2000.0 60% 53.9% 1500.0 1,986.9 2,379.1 1,448.9 1,620.0

1500.0 20% 1000.0 2017 2018 2017 2018 ▪ Gross profit increased by 19.7% to RMB2,379.1 million, and gross profit margin rose from 72.4% to 81.5%. This was mainly attributable to the implementation of production cost control procedures of the Group and higher sales from products with better profit margin during the year.

▪ Profit attributable to owners of the Company increased by 11.8% to RMB1,620.0 million, and net profit margin rose from 53.9% to 57.6%.

36 R&D Expenditure

R&D expenditure （RMB million） Percentage of revenue

600 20.0% 18.3% 18.0% 500 16.0% 13.1% 14.0% 400 12.0%

300 10.0%

8.0% 359.6 533.2 200 6.0%

4.0% 100 2.0%

0 0.0% 2017 2018 R&D expenditure Percentage of revenue

37 Net Cash Flows from Operating Activities —Solid Financial Standing

（RMB million） 2014-2018 net cash from operating activities 2500.0

2,018.0 1,917.6 2000.0 1,792.8 1,760.9 2,062.4

1500.0 1,708.2 1,671.3 1,568.6 1,620.0 1,448.9

1000.0

500.0

0.0 2014 2015 2016 2017 2018

net profit operating cash flow

38 Distribution Expenses

Distribution expenses （RMB million） Percentage of revenue

300 10.0% 9.3%

8.3% 9.0%

200 8.0%

227.6 271.1 7.0% 100

6.0%

0 5.0% 2017 2018 Distribution expenses Percentage of revenue

Distribution expenses of 2018 increased to RMB271.1 million compared with 2017, which was mainly attributable to the Group’s enhanced academic promotion across the nation aiming for brand strengthening.

39 Capital Expenditure

（RMB million） 900 837.9 19.7 800 107.4 700 487.1 600

500 22.2 58.6 400 710.8 300

200 406.3

100

0 2017 2018

Purchase or in-house development of intangible assets

Acquisition of land use rights

Property, plant, equipment & investment property

40 6 Future Strategies Growth Engines for Current and Future Stage

2022 and onwards

Innovative new drugs Janagliflozin, Birociclib, 2020-2022 Benapenem, Anaprazole Sodium Aesthetic medicine Generic drugs Metformin, Ibuprofen Injection, Rivastigmine Hydrogen Tartrate Capsules, Levetiracetam 2019-2020 Concentrated Solution for Injection, Levamlodipine Besylate Growth stage products Specialty medicine Mainuokang, Roxatidine, Huineng (PharmaDax) Quetiapin Fumarate ER Tablet, Aesthetic medicine Princess Hyaluronic Acid Glyburide Tablet （Croma-Pharma GmbH ） Aesthetic medicine Medical insurance of class A and B Hyaluronic Acid（Hugel Inc.) Nicotinamide for Injection, Nicotinic Acid for Injection, Dopamine for Botulinum Toxin（Hugel Inc.） Injection, Diprophylline for Injection

The Group will continue M&A activity as a strategy to optimize product portfolio, providing additional growth drive to the Group.

42 Future Strategies & Outlook Strategies

On its extensive experience builds Sihuan Pharmaceutical’s leadership position in the CCV drug market. With strong and stable fundamentals and excellent financial capability, the Group also seeks to increase the revenue from non-CCV drugs and the strategy is working out remarkably. Optimize product portfolio In the future, the Group will be investing significant resources into developing a sustainable pipeline of innovative and generic products, through in-house R&D, mergers and acquisitions and international cooperation.. Strengthen marketing competency The Group will maintain a diversified product portfolio and a sustainable product resources in the mid- to long-run. In terms of marketing, the Group will continue to increase penetration in lower-end markets for its mature products, and boost market coverage of its growth stage products by tender wins and inclusion in more provincial RDLs. Outlook Going ahead, Sihuan Pharmaceutical’s vision in sales and marketing and business operation is precise, clear and determined. Eyeing the next page of development, the Group implemented a series of internal adjustments with the aim to “strengthen R&D capabilities, optimize product resources and accelerate market expansion”. the Group will strive for the sustainable development and better returns for its shareholders

43 7 Appendix Company Overview

Founded in 2001

• Ranks 1st in CCV drug market Leading manufacturer and • Over 40 products marketed distributor of cardio- • Best-selling products Yuanzhijiu, Wei’Ao and maintain rapid cerebral vascular growth prescription drug in China

Non-CCV drug Digestive system drug Roxatidine and hepatitis drug Huineng portfolio exhibits high achieved over 50% growth in revenue growth potential

• Over 18 innovative drug projects and 100 ongoing generics projects; first Integrated NDA to be submitted in 2021 conglomerate with well- • GMP certified production bases in Jilin and Liaoning established R&D, • Over 410 in-house sales managers and 3000 distributors with established manufacturing and hospital network distribution platform

• Industry-leading gross profit margin; net profit margin stood at ~ 50%; Strong financial • Stable operating cash flow standing • Low debt ratio (<1%) Robust environmental, social and governance system

45 Core Management Team With an average of 20 years experience in the industry, our core management lead the company with expertise and dedication

✓ Proven entrepreneurship ✓ In-depth understanding of domestic pharmaceutical industry ✓ Expertise in managing growth-stage companies ✓ Proven R&D and drug acquisition track record ✓ High standard of corporate governance ✓ Extensive clinical experience

Dr. Che Fengsheng Dr. Guo Weicheng Mr. Choi Yiau Chong Dr. Guo Feng Dr. Shih Chengkon Co-founder, Co-founder, Deputy Executive Director & Vice President (R&D) Head of Xuanzhu Chairman & Chairman, Chief Chief Financial Officer Executive Director Executive Officer & Executive Director

8 years of clinical 6 years of clinical Extensive finance and Nearly 20 years of Well-known Pharmacologist experience as a experience as a general accounting experience experiences in innovative with extensive research neurologist surgeon gained from a publicly- drug R&D and management leadershipexperiences in listed company and especially in oncology drug Over 20 years of Over 20 years of therapeuticareas of Deloitte & Touche R&D strategy making, clinical experience in sales and cardiovascular,immunological, experience in sales and development, registration etc. marketing of marketing of Member of the Chartered anti-viral,etc. pharmaceutical products pharmaceutical products Institute of Management A member of Merck Over 20 years of innovative and managing Accountants (UK) and the Healthcare Global Clinical R&D experience in Boehringer pharmaceutical Institute of Certified Public Development Executive IngelheimPharmaceutical Inc., companies Accountants of Singapore Leadership team; led team conducted clinical Taishan Scholar Overseas development and registration Specialist, Jinan Hight-level of multiple well-known drugs Talents in China and Asia

46 • 2015 Acquired 39% interest of Beijing Ruiye; Xuanzhu and Covance signed long-term partnership • 2018 Establishment of Global Business Development Centre agreement; Category 1 Innovative Drug Benapenem Commenced Entered into a research collaboration agreement in novel Phase II Clinical Trial in China analgesic drugs and ion channel technology development Innovative Digestive System Drug Anaprazole Sodium Our History Commenced Phase II Clinical Trial in China • 2016 Inovative patent drug Imigliptin Dihydrochloride obtained Innovative Oncology Drug Pirotinib Commenced Phase • approval for Phase II/III clinical trials granted by the CFDA, II Clinical Trial in China • 2006 Acquired 100% interest of Beijing Sihuan,; • and entered phase II clinical trials; Metformin Hydrochloride Tablets Obtained Consistency Hainan Sihuan was awarded “National Category 1.1 innovative drug granted approvals for Phase Evaluation Approval high-tech enterprise” I/II/III clinical trials : Janagliflozin, Fadanafil, and Sirotinib Pediatric Medicine Midazolam Oromucosal Solution to be Listed in the Priority Review Process • 2007 Listed on the main board of the SGX-ST on 23 March; 2017 Acquisition of Ambest Pharmaceutical (Jilin Changchun) Rapid-acting Insulin Analogue Insulin Aspart Granted Acquired 100% interest of Shenzhen Sihuan Approval for Clinical Trials Long-acting Insulin Degludec Granted Approval for • 2008 Acquired 100% interest of Shandong Xuanzhu; Clinical Trials Aogan was launched Compound Electrolyte Injection (II) Granted Drug Beijing Sihuan was awarded “National high-tech enterprise” Registration Approval Hainan Sihuan was awarded “National high-tech enterprise”

• 2009 Qingtong was launched; Established Langfang Gaobo, engaged in the production of APIs and pharmaceutical intermediates; Delisted from the SGXST

• 2010 Ranked No. 4 in the Forbes 2010 list of the most promising enterprises in the PRC and No. 1 among pharmaceutical companies Listed on the Hong Kong Stock Exchange • 2012 The group won the top 100 listed companies in Aquisition of Changchun Xiangtong and Duofei Pharm Hong Kong in 2012； Alprostadil, Oudimei, Yuanzhijiu First generic drug Roxatidine obtained new drug Compound trivitamin B for injection (II) was launched certificate and production approval; Acquired remaining 40% equity interest of Xuanzhu Pharma; • 2001 Hainan Sihuan was founded • 2011 Acquisition of Wansheng, and cooperation with Shandong Partnered with NeuroVive, the world's leading mitochondrial buchang technology pharmaceutical company • 2002 Exclusive drug Kelinao and Chuanqing were launched • 2013 3 Category 1.1 innovative drug were approved for clinica trials; • 2003 Acquired 28% equity share of Beijing First-to-market generic drug Roxatidine was launched • Sihuan • 2014 Langfang Gaobo Jingbang received report from the US FDA; • 2004 Kelinao's synthetic process a 20-year Anti-hypertensive innovative drug “Telodipine Hydrochloride” patent protection period; established obtained clinical trial approval medical evaluation committee

• 2005 Cerebrovascular Medicine Research Institute of Hainan Sihuan was founded

47 Business Structure Consists of over ten pharmaceutical companies and research institutes, the Group has established a complete industry chain encompassing R&D, manufacturing, and marketing & sales.

Sihuan Pharmaceutical Group

R&D Production Sales & Marketing

BeiJing Siuan JiLin Sihuan Pharm Pharm

AoHe Business Business BenXi Department 1 Department 2 XuanZhu Pharmaceutical LangFang HengKang Pharma Research Gaobo Pharm Pharm (Innovative drug) Institute (Generic drug) JiLin SiChang ChangChun Shenzhen JiLin JinSheng XiangTong marketing Pharm Sihuan Pharm Pharm center CS-Bay Therapeutics JiLin JinSheng JiLin Zhen’Ao (Innovative Drug Pharm Pharm HongHe R&D Centre) marketing center JiLin Sihuan JiLin HuiKang Aokang Pharm Pharm

JiLin ShengTong Chem Pharm 48 Drug R&D

M i c r o s o f t P o w e r P o i n t ➢ 2003Domestic优team 化 模： 板We have two leading R&D teams that focus on innovative and generic drug R&D respectively ➢ Foreign team：We established the U.S Innovative Drug R&D Centre which is a key component of the Group’s global planning. The Centre primarily focuses on first-in-class immuno-oncology drugs, including small molecule drugs and large molecules such as antibodies and fusion protein drugs.

Among the 654 research Over 117 projects under We dedicated appx. 18.3% of personnel, 33 have obtained development, including 18 the revenue to R&D, which is their Ph.D. while over 196 have innovative patent drugs and 99 above the domestic industry Master degree. generic drugs. average.

49 Drug R&D

Innovative  We have submitted IND applications for 12 innovative patent drugs, and all of them obtained approvals for clinical trials and have entered into different stages of clinical trial. drugs

Science/Tech  Innovative patent drugs—Benapenem, Tylerdipine Projects-New Hydrochloride and Pirotinib have been entitled the Strong Drug R&D National Science/Tech Projects-New Drug R&D (Major National Science and Technology Projects). R&D Foundation State  The first-to-market generic drug Kelinao was Torch granted“State Torch Program”by the Science and Program Technology Ministry, in addition to several national and regional awards.

 We have applied for over 760 patents among which 235 Patent were granted. The number of PCT granted over 50.

50 Unique and Outstanding Sales & Marketing Structure The sales & marketing network operates at high efficiency by specialization and a close cooperation between over 600 professional sales & product managers and 3000 distributors.

Our Group  Sihuan’s in-house marketing & sales team: Over 100 product managers Sales managers Product managers – devising marketing strategies Academic promotion Selecting and managing distributors – organizing national, provincial and municipal conferences, as well as hospital departmental seminars – providing product knowledge training for distributors Distributor Distributor Distributor • • • Distributor Over 500 sales managers  • • •  – responsible for tendering, provincial RDL, EDL or NRCMSL – screening/selecting distributors, and setting sales targets for them Hospitals and physicians – closely monitoring distributors' performance – providing necessary support and services for distributors  Over 3,000 distributors and their sales force:

– have deep understanding of the local markets, established sales Patients channels and good relationship with local hospitals

– responsible for hospital market development and sales to Product/marketing support; distributor hospitals screening/selection and management – responsible for the maintenance of the relationship with Organizing and supporting various types of pharmaceutical hospitals academic conferences, visiting senior experts and key opinion leaders

Our unique sales model has proved to be very successful, highly productive and cost-effective, and enable us to develop and penetrate the markets rapidly.

51 Product Portfolio of Abundance and Diversity

Gastrointestinal Therapeutic areas CCV CNS Anti-infective Others system Number of 39 9 6 15 30+ Products

Main products Kelinao, Oudimei, Ren’ao Roxatidine Clindamyein Huineng Yuanzhijiu, Yeduojia Azithromycin

2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 2015 2016 2017

Salivae Huineng Dopamine Kelinao Kanglixin Ren’Ao Anjieli Anjiejian GM1 Pojia Oudimei Miltiorrhizae Nalmefene Liguspyragine hydrochloride injection Hydrochloride and Glucose Nicotinic acid Injection Clindamycin injection Qingtong Yuanzhijiu Nicotinamide Chuanqing Zhuo’Ao/Bi ’Ao Roxatidine Dyphylline Danshen Cerebroprotein injection Yeduojia Chuanxiongqin Qu’Ao hydrolysate

Floium Ginkgo Extract and Tertram Yimaining Ethypyrazine Verapamil

52 Main Products Introduction

Product Product Specifications

• Generic Name: Cinepazide Maleate Injection • Active Ingredients: Cinepazide Maleate • Mechanisms of Action: • Ca2+ blocker：dilates vessels and restores blood flow to the ischemic regions • Stimulation of endogenous adenosine effects: blocks pathological cascades involved in the stroke at various pathways by inhibiting the metabolism and uptake of adenosine, which is an endogenous protector secreted in response to ischemia and hypoxia, thereby, protecting neurons from the ischemic injury • Improvements of hemorheological parameters：enhances the red blood cell deformability and reduces Kelinao/Anjieli blood viscosity, thereby improving microcirculation ◼ Mature key product • Indications: • Cerebrovascular diseases: cerebral arteriosclerosis, transient ischemic attack, cerebral thrombosis, ◼ Therapeutic area: CCV sequelae of subarachnoid hemorrhage, intracerebral hemorrhage, and traumatic cerebral injuries ◼ Entered NRDL • Cardiovascular diseases: coronary artery diseases, angina pectoris; combination therapies with other ◼ Number of provincial tenders medicines are necessary for myocardial infarction won by Kelinao and Anjieli are • Peripheral vascular diseases: lower extremity arteriosclerosis, thromboangiitis obliterans, arteritis, 29 and 30 Raynaud’s disease

• Generic Name: Cerebroside-kinin Injection • Active Ingredients: GM1 0.24 mg/mL, polypeptide 3.2 mg/mL、amino acids 1.65 mg/mL、hypoxanthine ≥12 μg • Mechanisms of Action: • Neuroregeneration: stimulates neural stem cell differentiation, axon growth, and synapse formation; modulates activities of enzymes including adenylyl cyclase, ATPases, protein kinases, etc., and therefore preserves neural metabolism and repairs nervous system Oudimei /Aofutai • Neuroprotection: prevents Ca2+ overload, and maintains the integrity of neuron membrane; inhibits lipids peroxidation that generates free radicals, and therefore alleviates cerebral edema and neuron damage ◼ Relatively mature exclusive • Nutrients supplementation：polypeptides, amino acids, etc. are able to cross the blood-brain barrier, product and stimulate protein synthesis. Also, they supply specific nutrients for neuron metabolism and recovery ◼ Therapeutic area: CCV • Indications: ◼ Entered 24 provincial RDLs • To treat central nerve injuries caused by stroke, Alzheimer’s disease, hypoxic-ischemic encephalopathy, ◼ Number of provincial tenders craniocerebral injury, spinal cord injury, and other relevant conditions won by Oudimei and Aofutai • To treat peripheral neuropathies including traumatic peripheral neuropathy, diabetic peripheral are 27 and 23 neuropathy, and compression neuropathy, etc. 53 Main Products Introduction

Product Product Specifications • Generic Name: Troxerutin and Cerebroprotein Hydrolysate Injection • Active Ingredients: Troxerutin 40 mg/mL, polypeptides 1.91 mg/mL, amino acids, and nucleic acids ≥0.8 mg • Mechanisms of Action: • Promotes neural protein synthesis and nucleic acids metabolism, stimulates synapse formation and neuron regeneration • Enhance the glucose utility and improves metabolism, protects the brain from ischemia. • Increases cAMP expressed in platelets, and thus inhibits platelet aggregation and prevents thrombosis Yuanzhijiu /Xiongwei • Modifies red blood cell deformability and enhances microcirculation ◼ Promising exclusive product • Decreases capillary permeability and alleviates edema • Indications: ◼ Therapeutic area: CCV • Acute and chronic cerebrovascular diseases such as cerebrothrombosis, cerebral hemorrhage, ◼ Entered 21 provincial RDLs cerebral vasospasm, etc. ◼ Number of provincial tenders • Sequelae of traumatic cerebral injury and cerebrovascular diseases (eg. insufficient cerebral blood won by Yuanzhijiu and Xingwei supply, stroke, and cerebral hemorrhage) are 29 and 28 • Occlusive peripheral vascular diseases, thrombophlebitis, and edema caused by capillary bleeding and increased vascular permeability

• Generic Name: Salvia Miltiorrhiza and Ligustrazine Hydrochloride Injection • Active Ingredients: Salvia Miltriorrhiza 0.36-0.44 mg/mL、Ligustrazine Hydrochloride 18-22 mg/mL • Mechanisms of Action: inhibits platelet aggregation, dilates coronary arteries, reduce blood viscosity, accelerates blood flow, improves microcirculation, and also prevents cardiac ischemia and myocardial infarction Weiao • Indicatiosn: ⚫ Promising product • Treat occlusive cerebrovascular diseases, such as cerebral dysfunction, cerebrothrombosis, and

◼ Therapeutic area: CCV stroke ◼ Entered 19 provincial RDLs • Treat other ischemic cardiovascular diseases, such as coronary artery diseases, angina pectoris, ◼ Number of provincial tenders is myocardial infarction, thromboangiitis obliterans, etc. 27

54 Main Products Introduction

Product Product Specifications

• Generic Name: Compound Trivitamin B For Injection (II) • Active Ingredients: Vitamin B1, B6, and B12 • Mechanism of Action: protects peripheral nerves via a synergistic action of these three compounds • Promotes aerobic metabolisms of carbohydrates and provide energy for injured nerves • Promotes the synthesis of GABA and the metabolism of homocysteinaemia, and improves the Yeduojia microcirculation around peripheral nerves ◼ Promising exclusive product at • Participates in the transition of the methyl group, and maintains the integration of myelin sheath, earlier stage of development thereby promoting the recovery of damaged nerves ◼ Therapeutic area: nervous system • Indications: and metabolism • Peripheral nerve injury, polyneuritis, trigeminal neuralgia, and sciatica ◼ Entered DRL of 16 provinces • Prevents vomiting caused by isoniazid poisoning, gestation, radiation, and antineoplastic drugs ◼ Entered NRCMSL of 3 provinces • pernicious anemia and nutritional anemia; can also be used as nutrition supplements for patients with Vitamin B intake disorders

• Generic Name: Floium Ginkgo Extract and Tertram Ethypyrazine Sodium Chloride Injection • Active Ingredients: Floium Ginkgo Extract, Tertram Ethylpyrazine • Mechanisms: Active ingredients of floium ginkgo (ginkgo flavone glycoside and ginkgolides) and tertram ethylpyrazine generate synergy effects: • Inhibit lipid peroxidation, suppress production of free radicals and accelerate free radical removal, and prevent ischemia/reperfusion injury; improve microcirculation and promote energy supply; • Anti-hyperlipidemia, reduce cholesterol level, prevent platelet aggregation, and reduce blood Floium Ginkgo Extract and viscosity Tertram Ethypyrazine • Prevent release of allergic mediators and mast cell degranulation, antagonize contraction of ◼ Promising exclusive product at smooth muscle cells, therefore alleviate adverse effects related to solely use of tertram earlier stage of development ethypyrazine such as rash and asthma ◼ Therapeutic area: CCV ◼ Entered DRL of 10 provinces • Indications: ◼ Number of provincial tenders is • Treat ischemic cardio-cerebral vascular diseases, e.g. blood supply insufficient, cerebral 24 thrombosis, cerebral embolism, coronary heart diseases, angina, heart attack • Cerebral dysfunction, Alzheimer’s disease

55 Main Products Introduction

Product Product Specifications

• Generic Name: Roxatidine Acetate Hydrochloride For Injection • Active Ingredients: Roxatidine Acetate Hydrochloride • Mechanisms of Action: Roxatidine • As a new generation of H2 receptor antagonist, it suppresses gastric acid secretion, prevents the upper gastrointestinal bleeding, and moreover, protects gastric mucosa ◼ First-to-market generic product newly launched to the market • Indications: ◼ Therapeutic area: digestive • upper gastrointestinal hemorrhage caused by peptic ulcer, stress ulcer, and hemorrhagic gastritis, system especially for patients at low risks ◼ Entered 11 provincial RDL • H2 antagonists are recommended for stress ulcer prevention by the American Society of Health- ◼ Number of provincial tenders is System Pharmacist (ASHP) guidelines with a recommendation degree of A 29

• Generic Name: Monoammonium Glycyrrhizinate and Cysteine and Sodium Chloride Injection • Active Ingredients: ammonium glycyrrhizinate 0.6 mg/mL, Cysteine and Sodium Chloride 0.3 mg/mL • Mechanisms of Action: Huineng • Preserves hepatocyte membrane integrity, possesses abilities of anti-oxidation, anti-inflammation, and anti-fibrosis; modifies immune function ◼ Exclusive product newly launched to the market • Inhibits virus proliferation and achieves virus inactivation ◼ Therapeutic area: hepatitis • Indications: chronic persistent hepatitis, chronic active hepatitis, acute hepatitis, hepatotoxicity, early- ◼ Entered 11 provincial RDLs stage cirrhosis, allergic diseases, etc. ◼ Number of provincial tenders is 28

56