Disclaimer The sole purpose of this Presentation (the “Presentation”) is to assist the recipient in deciding whether it wishes to proceed with a further investigation of Sihuan Pharmaceutical Holdings Group Ltd. (the “Company”) and it is not intended to form the basis of any decision to purchase securities, interests or assets in or of the Company. This Presentation does not constitute or contain an offer or invitation or recommendation or solicitation for the sale or purchase of securities, interests or assets in or of the Company and neither this document nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. Any decision to purchase or subscribe for securities in any offering must be made solely on the basis of the information contained in the prospectus or offering circular issued by the company in connection with such offerings. 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Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdictions. Any prospective purchaser interested in purchasing securities, interests or assets in or of the Company or evaluating the Company is recommended to seek its own financial and other professional advice. 2 CONTENT 1. The Group's Future Value System 2. Results Overview 3. R&D and Innovation 4. Marketing and Sales 5. M&A and International Collaborations 6. Manufacturing Facilities 7. Financial Review 8. Future Prospects 3 Chapter One The Group's Future Value System 4 The Group's overall development strategy Mission： Innovation serves human health Vision: Leading with innovation and R&D, by means of investment, incubation, M&A, spin-offs and other strategic planning and core-value creation methods, to become a leading international pharmaceutical group in China. Take investment, joint Take the Group's wholly- Incubate successful Cooperation with external venture, and equity owned holding subsidiary companies parties to realize value-add participation in other companies as core-value operating independently system companies as extension system as value amplification • Benxi Hengkang systems • Beijing Sihuan system • Changchun Xiangtong • Jilin Sichang • Jilin Suhuan • Xuanzhu Group • Zesheng Environmental • PharmaDax • Jilin Jinsheng • Jilin Huisheng Protection Pharmaceutical • Honghe Pharmaceutical • Jilin Aokang • Tonghua Tianshi • ChemPion • Beijing Aohe • Jilin Kangtong • Chongqing West District • Zhongrui Pharmaceutical • Innovative R&D • Beijing Ruiye Hospital • STRIDES, India • Sihuan Medical Beauty • Huaiyin Hospital • HETERO, India Focus on rapidly developing therapeutic areas: cardiocerebrovascular, oncology, diabetes, metabolic diseases, anti-infection Core Advantages： • Innovation-driven, imitation and creation co-exist, and a number of carefully incubated high-quality product development platforms have achieved good performance progress • Possess a rich and high-quality pipeline of R&D products covering multiple major therapeutic areas • Comprehensive, professional and efficient academic marketing platform • High efficiency, low cost, modern manufacturing facilities covering multiple therapeutic areas • Abundant cash balances and stable financial conditions provide sufficient support for the steady development and rapid expansion of the Group 5 The Group's future value system Xuanzhu Jilin Group Huisheng Beijing Jilin Ruiye Value Kangtong Amplification System Jilin Sihuan Aokang Aesthetic Beijing Sihuan Benxi Jilin Honghe Jilin Hengkang Sichang Pharma Sihuan Core value PharmaD system Changchun ax Xiangtong Beijing Jilin Aohe Jinsheng Value Innovative Value-add Extension External Zesheng ChemPion R&D Environmental System Cooperation Protection Huaiyin Hetero Zhong Hospital Tonghua Rui Chongqing Tianshi Strides West District Hospital 6 Chapter Two Results Overview 7 Results overview Results Review From continuing operations • Revenue decreased by 36.4% year-on-year and 13.6% Revenue R&D expenditure period-to-period, to approximately RMB1.05 billion 1.05 billion 392.7 million • R&D expenditure and related activities increased by 43.9% year-on-year to approximately RMB392.7 million, representing 37.2% of total revenue • Profit attributable to company owners of the Company turned into profit, approximately RMB170.5 million Profit attributable to owners Net cash • The gross profit margin is 74.5% of the Company 4.34 billion • 170.5 million The Group has maintained a strong financial position and has recorded a net cash of over approximately RMB4.34 billion Marketing and Sales Nicotinamide Huineng Mainuokang Shucheng Diprophylline for injection injection +187.2% +137.3% +98.2% +116.2% +162.6% Multiple products maintain rapid growth 1H19 1H20 1H19 1H20 1H19 1H20 1H19 1H20 1H19 1H20 8 Results highlight Major R&D project progress Progress of major cooperation projects Anaprazole sodium, a self-developed innovative patented drug Xuanzhu Biopharmaceutical introduced CMG-SDIC as a for digestive system, commenced phase III clinical trials shareholder of the company with RMB800 million in capital Data from Janagliflozin’s phase III clinical trials has been locked and is currently been analysed Associated company Beijing Ruiye introduced a total of RMB200 million from two investors Insulin Degludec commenced phase III clinical trials Equity investment in Zhongrui Pharmaceutical to increase the Rivastigmine hydrogen tartrate capsule and levetiracetam Group’s API production capacity tablet have been granted production approval Midazolam oromucosal solution has been granted registration Equity investment in Champion to strengthen the Group's approval R&D capabilities in API enzymatic process, continuous flow process technology, etc. Paediatric compound amino acid injection (18AA-II) obtained Signed a cooperation agreement with Hetero to strengthen drug registration approval R&D in the field of cardiovascular, central nervous system and anti-infection Azithromycin capsule was selected