上海醫藥集團股份有限公司 Shanghai Pharmaceuticals Holding Co., Ltd.*
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 上海醫藥集團股份有限公司 Shanghai Pharmaceuticals Holding Co., Ltd.* (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 02607) 2019 ANNUAL RESULTS ANNOUNCEMENT The board of directors (the “Board”) of Shanghai Pharmaceuticals Holding Co., Ltd. (the “Company”) is pleased to announce the results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31 December 2019. These annual results are prepared in accordance with the Hong Kong Financial Reporting Standards and audited by PricewaterhouseCoopers. The Audit Committee of the Board has reviewed these annual results. The full content of the Company’s annual report of 2019 is attached to this announcement. The formal annual report will be dispatched to the shareholders of the Company and published on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.sphchina.com) at an appropriate time. By Order of the Board Shanghai Pharmaceuticals Holding Co., Ltd.* ZHOU Jun Chairman Shanghai, the PRC, 28 March 2020 As at the date of this announcement, the executive Directors are Mr. CHO Man, Mr. LI Yongzhong and Mr. SHEN Bo; the non-executive Directors are Mr. ZHOU Jun, Mr. GE Dawei and Ms. LI An; and the independent non-executive Directors are Mr. CAI Jiangnan, Mr. HONG Liang, Mr. GU Zhaoyang and Mr. Manson FOK. * For identification purpose only OUR VISION Become a respectful manufacturer with leading brand medicine and a service provider in healthcare field with industry reputation OUR MISSION Perseverance, committed to enhancing people’s healthy living quality OUR CORE VALUES Innovation, integrity, cooperation, tolerance, responsibility Contents Chapter 1 Definitions 2 Chapter 2 Corporate Information 6 Chapter 3 Financial Highlights 8 Chapter 4 Chairman’s Statement 9 Chapter 5 Management Discussion and Analysis 15 Chapter 6 Report of the Board of Directors 40 Chapter 7 Directors, Supervisors and Senior Management 67 Chapter 8 Corporate Governance Report 81 Chapter 9 Independent Auditor’s Report 89 Definitions In this report, unless the context otherwise requires, the following terms shall have the following meanings: Definitions of Common Terms “the Group”, “Group”, Shanghai Pharmaceuticals Holding Co., Ltd. (上海醫藥集團股份有限公司), “the Company”, “Company” or a joint stock company incorporated in the PRC with limited liability (shares “Shanghai Pharmaceuticals” of which are listed on the Shanghai Stock Exchange with stock code 601607, and on the Main Board of the Hong Kong Stock Exchange with stock code 02607) or Shanghai Pharmaceuticals Holding Co., Ltd. and its subsidiaries, where applicable “Articles of Association” or the articles of association of Shanghai Pharmaceuticals (as amended “Articles” from time to time) “Reporting Period” the 12-month period from 1 January 2019 to 31 December 2019 “YOY” year-on-year “Shares” shares of Shanghai Pharmaceuticals with a nominal value of RMB1.00 each, comprising both A Shares and H Shares “A Shares” domestic shares of the Company, with a nominal value of RMB1.00 each, which are listed on the Shanghai Stock Exchange and traded in RMB “H Shares” overseas shares of the Company, with a nominal value of RMB1.00 each, which are listed on the Hong Kong Stock Exchange and traded in Hong Kong dollars “RMB” or “Renminbi” Renminbi, the lawful currency of the PRC “HK$” or “HK dollars” or Hong Kong dollars, the lawful currency of Hong Kong “Hong Kong dollars” “US$” US dollars, the lawful currency of the United States of America “AUD” Australian dollars, the lawful currency of Australia “NZ$” New Zealand dollars, the lawful currency of New Zealand “PRC” or “China” the People’s Republic of China; unless the context otherwise requires, references to the PRC or China in this report do not include Hong Kong, Macau or Taiwan “Hong Kong” or “HK” the Hong Kong Special Administrative Region of the PRC 2 Shanghai Pharmaceuticals Holding Co., Ltd. Definitions “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “Hong Kong Listing Rules” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (as amended, supplemented or otherwise modified from time to time) “Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Hong Kong Listing Rules (as amended, supplemented or otherwise modified from time to time) “Corporate Governance Code” the Corporate Governance Code as set out in Appendix 14 to the Hong Kong Listing Rules (as amended, supplemented or otherwise modified from time to time) “SFO” the Securities and Futures Ordinance, Chapter 571, Laws of Hong Kong, as amended from time to time “Controlling Shareholders” unless otherwise stated, has the meaning ascribed to it under the Hong Kong Listing Rules, including SIIC, Shanghai Shangshi and Shanghai Pharmaceutical (Group) “WHO” World Health Organization “FDA” Food and Drug Administration of the United States “MOF” Ministry of Finance of the People’s Republic of China “NMPA” National Medical Products Administration of the People’s Republic of China (中華人民共和國國家藥品監督管理局) “NHSA” National Healthcare Security Administration of the People’s Republic of China (中華人民共和國國家醫療保障局) “CDE” Center For Drug Evaluation of NMPA (中華人民共和國國家藥品監督管理 局藥品評審中心) “CSRC“ China Securities Regulatory Commission (中國證券監督管理委員會) “Shanghai SASAC” Shanghai State-owned Assets Supervision and Administration Commission (上海市國有資產監督管理委員會) “NHC” National Health Commission of the People’s Republic of China (中華人 民共和國國家衛生健康委員會) Annual Report 2019 3 Definitions “SIIC” Shanghai Industrial Investment (Holdings) Co., Ltd. (上海實業(集團)有限 公司) “Shanghai Shangshi” Shanghai Shangshi (Group) Co., Ltd. (上海上實(集團)有限公司) “Shanghai Pharmaceutical (Group)” Shanghai Pharmaceutical (Group) Co., Ltd. (上海醫藥(集團)有限公司) “Shanghai Guosheng” Shanghai Guosheng Group Co., Ltd. (上海國盛(集團)有限公司) “Shanghai Shengrui” Shanghai Shengrui Investment Co., Ltd. (上海盛睿投資有限公司) “Shenergy Group” Shenergy (Group) Co., Ltd. (申能(集團)有限公司) “HISUN“ Zhejiang Hisun Pharmaceutical Co., Ltd. “NCPC“ North China Pharmaceutical Company Ltd “HPGC“ Harbin Pharmaceutical Group Co., Ltd. “MediTrust Health“ Shanghai MediTrust Health Co., Ltd. (上海鎂信健康科技有限公司) “Cardinal Health” Cardinal Health (Shanghai) Pharmaceutical Co., Ltd. (上藥康得樂(上海) 醫藥有限公司) “Liaoning Foreign Trading” Liaoning Medical Foreign Trading Co., Ltd. (遼寧省醫藥對外貿易有限 公司) “Sichuan Guojia” Sichuan Guojia Pharmaceutical Science & Technology Co., Ltd. (四川省 國嘉醫藥科技有限責任公司) “China Isotope & Radiation” China Isotope & Radiation Corporation (中國同輻股份有限公司) “Hansoh Pharmaceutical” Hansoh Pharmaceutical Group Company Limited (翰森製藥集團) “Lumosa Therapeutics” Lumosa Therapeutics Co., Ltd. (順天醫藥生技股份有限公司) “Takeda China” Takeda (China) International Trading Co., Ltd. (武田(中國)國際貿易有限 公司) “Astellas” Astellas Pharmaceuticals (China) Co., Ltd. (安斯泰來製藥(中國)有限公司) “Adia“ Adia (Shanghai) Pharmaceuticals Co., Ltd. (埃地亞(上海)醫藥有限公司) “Alembic“ Alembic Pharma, an Indian pharmaceutical company “Oncternal” Oncternal Therapeutics Inc, a medical group from the United States 4 Shanghai Pharmaceuticals Holding Co., Ltd. Definitions “BIOCAD” BIOCAD, a biopharmaceutical company from Russia “4+7” the 11 pilot cities in which the state organized the centralized procurement of drugs with target quantity “Alliance Region(s)” provincial administrative regions participating the centralized procurement of drugs with target quantity organized by the state “Double Hundred Action” the “Double Hundred Action” work plan for state-owned enterprise reform “DTP” Direct To Patient “MES” Manufacturing Execution System “LIMS” Laboratory Information Management System “GMP” Good Manufacturing Practice “GSP” Good Supply Practice “ANDA” the Abbreviated New Drug Application “BE” bioequivalence “IND” investigational new drug “DMF” Drug master file “DRGs” (disease) diagnosis related groups “license-in” introduction of drug license “first-in-class” first new drug target or mechanism of action discovered “best-in-class” best in class in comparison to its peers “BD” expanded introduction of new drugs “PBM” pharmacy benefit management Annual Report 2019 5 Corporate Information DIRECTOR AUTHORISED REPRESENTATIVES Executive Directors Mr. CHO Man Ms. CHEN Jinzhu Mr. CHO Man (President) Mr. LI Yongzhong (Vice President) Mr. SHEN Bo (Vice President and Chief Financial STRATEGY COMMITTEE Officer) Mr. ZHOU Jun (Convener) Non-executive Directors Mr. CAI Jiangnan Mr. Manson FOK Mr. ZHOU Jun (Chairman) Mr. GE Dawei (Vice Chairman) Ms. LI An AUDIT COMMITTEE Mr. GU Zhaoyang (Convener) Independent non-executive Directors Mr. Manson FOK Mr. CAI Jiangnan Mr. HONG Liang Mr. HONG Liang Mr. GU Zhaoyang Mr. Manson FOK NOMINATION COMMITTEE Mr. CAI Jiangman (Convener) SUPERVISORS Mr. CHO Man Mr. HONG Liang Mr. Xu Youli Mr. HUAN Jianchun Mr. Xin Keng REMUNERATION AND ASSESSMENT COMMITTEE JOINT COMPANY SECRETARIES Mr. HONG Liang (Convener) Mr. GE Dawei Ms. CHEN Jinzhu Mr. Gu Zhaoyang Ms. Leung Suet Wing 6 Shanghai Pharmaceuticals Holding Co., Ltd. Corporate Information COMPANY NAME STOCK ABBREVIATION Shanghai Pharmaceuticals Holding Co., Ltd. SH PHARMA REGISTERED ADDRESS STOCK EXCHANGE ON WHICH