Шанхайская компания «Современная фармацевтика» АО — краткое изложение годового отчета за 2025 год

Company Code: 600420 Company Abbreviation: China Pharma Modern

Section 1 Important Notices

1. This annual report summary is extracted from the full annual report. To fully understand the company’s operating results, financial condition, and future development plans, investors should carefully read the full annual report on the www.sse.com.cn website.

2. The company’s board of directors, directors, and senior management personnel guarantee the truthfulness, accuracy, and completeness of the content of the annual report. There are no false records, misleading statements, or material omissions, and they assume individual and joint legal liability.

3. All directors of the company attended the board of directors meeting.

4. Tianqian Certified Public Accountants (Special General Partnership) issued a standard unqualified audit report for the company.

5. Profit distribution plan for the reporting period approved by the board of directors resolution or capital reserve increase plan

After audit by Tianqian Certified Public Accountants (Special General Partnership), the company realized consolidated net profit attributable to listed company shareholders of 941,601,686.09 yuan in 2025. As of the end of the reporting period, the parent company’s retained earnings available for distribution to shareholders was 2,494,355,715.15 yuan.

The company proposes to use the total share capital registered on the equity distribution registration date as the base, and distribute cash dividends of 2.00 yuan (tax-inclusive) per 10 shares to all shareholders. Based on the total share capital of 1,341,172,692 shares as of December 31, 2025, the total cash dividend distribution will be 268,234,538.40 yuan (tax-inclusive).

Relevant information regarding accumulated losses not yet compensated at the parent company as of the end of the reporting period and its impact on the company’s dividend distribution and other matters:

□Applicable √Not applicable

Section 2 Company Basic Information

1. Company Introduction

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2. Main Business Introduction of the Company During the Reporting Period

(1) Main Business and Products of the Company

The company is a pharmaceutical manufacturing enterprise whose main business is pharmaceutical product research and development, production, and sales. It has business segments including pharmaceutical intermediates and raw materials, chemical preparations, animal vaccines, and health products. The products cover full-body anti-infection, cardiovascular, anti-tumor and immune regulation, central nervous system, hormone, urogenital system, gastrointestinal and metabolism, respiratory system and other therapeutic fields, with more than 30 types of dosage forms including tablets, capsules, powder injections, small-volume injections, granules, suspensions, suppositories, and ointments.

As of the end of this reporting period, the company has 1,309 drug approval numbers and 21 veterinary vaccine approval numbers. Among them: 651 drug specifications in production and 20 veterinary vaccine varieties in production. The company’s main products include:

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(2) Company’s Business Model

1. Research and Development Model

The company adheres to implementing an “innovation-driven” development strategy, vigorously promoting scientific and technological innovation, and continuously focusing on “five major core therapeutic fields: anti-infection drugs, cardiovascular drugs, anesthesia and psychiatric drugs, anti-tumor and immune regulation drugs, and metabolism and endocrine drugs.” Through integrating internal research and development resources, it has established an integrated innovation and research and development system coordinated by China Pharma Modern, led strategically and driven by innovation by China Pharma Modern Research Institute, with coordinated efforts from subsidiary companies and cooperative innovation platforms, forming a top-down and synchronized approach.

2. Procurement Model

The company and its subordinate enterprises have formulated relatively sound procurement management systems, employing methods including bid procurement, competitive negotiation, single-source procurement (direct procurement), price inquiries and comparisons, competitive bidding, and other approaches. For production materials, the company has established strict quality standards and qualified supplier catalogs, implementing dynamic admission and exit management mechanisms for suppliers, eliminating the inferior and retaining the superior to ensure the healthy operation of the supplier management system. For bulk material procurement, professional bidding and procurement management is implemented, controlling procurement costs while strictly controlling quality. An electronic procurement management platform has been built, utilizing information technology means to achieve integrated management and full-process traceability of procurement business. Combined with annual procurement plans and actual production needs, procurement inventory is reasonably controlled to reduce capital occupation. At the same time, benchmarking central enterprise procurement management requirements, the company continuously improves and perfects the procurement management system, standardizes procurement guidance, continuously promotes centralized procurement management under industry chain integration, vigorously implements online procurement and centralized procurement work, improves the centralized procurement rate while controlling procurement costs.

3. Production Model

The company has complete production lines for various dosage forms. Each subsidiary strictly conducts production activities in accordance with GMP requirements. It comprehensively promotes production automation and quality control informatization upgrades, launching information system upgrades for MES, LIMS, ERP, and other systems at production bases, continuously improving intelligentization and digitalization levels. Optimizing the allocation of production resources, accelerating the integration of “raw material drugs + preparations” industry chain, using the headquarters as a link to connect, coordinate, and oversee, strengthening industry chain coordination within the system. Strengthening professional management of production lines and professional division among production bases, achieving production scale, intensive, and specialized operations to ensure product quality and cost advantages. Comprehensively promoting 6S lean management, continuously implementing cost reduction and organizational streamlining, determining lean manufacturing methods, cost reduction and efficiency improvement, and quality-first lean principles. Where conditions permit, expanding CMO and CDMO business, through external extension and internal coordination of production resources to improve production and manufacturing efficiency.

4. Sales Model

In the field of preparation products business, the company actively participates in national and provincial volume-based procurement to meet clinical medication needs. It has constructed a marketing management organization covering “bid entry, market academics, brand building, commercial channels, and terminal management.” Following national drug bidding policies, it formulates market entry strategies suitable for company development, actively participates in national and provincial drug centralized volume-based procurement, establishes lasting cooperation with most pharmaceutical businesses across the country including mainstream drug distributors, constructs a nationwide distribution network covering terminal types including national county-level and above medical institutions, urban communities, township health centers, chain and independent retail pharmacies, and implements academic promotion. It also explores coverage and promotion in the online retail market to meet consumer needs for online diagnosis and medication purchase.

In the pharmaceutical intermediates and raw materials business, the company directly serves end customers in the domestic market and maintains stable cooperative relationships with overseas pharmaceutical enterprises and traders in the international market.

(3) Operating Conditions of the Company’s Main Business and Products During the Reporting Period

In 2025, amid the continued deep adjustments of the domestic pharmaceutical manufacturing industry, the company’s stock business faced significant adjustment pressure from the normalization of centralized procurement, and both market scale and profit margins were clearly squeezed. Facing severe challenges, the company maintained strategic determination, faced difficulties head-on, and on one hand deeply explored internal potential through lean management to continuously improve operation efficiency; on the other hand accelerated marketing transformation to reshape growth drivers, striving to consolidate core market positions and continuously enhance the overall risk resistance capability of the industry chain.

1. Raw Material Drugs and Pharmaceutical Intermediates Segment

During the reporting period, the company’s raw material drugs and pharmaceutical intermediates segment achieved sales revenue of 4.476 billion yuan, down 13.89% compared with the same period of the previous year, accounting for 47.81% of this period’s operating revenue, up 0.28 percentage points compared with the same period of the previous year.

In 2025, the company’s raw material drugs and pharmaceutical intermediates overall production and sales volume increased year-on-year, with most core products experiencing increased sales. Among them, 7-ACA, urine-derived biochemical products, and ceftriaxone sodium crude salt showed particularly outstanding sales performance, with respective year-on-year growth rates of 114.74%, 44.09%, and 43.69%. Azithromycin and penicillin industrial potassium salt sales growth exceeded 20%. However, affected by market overcapacity and end preparation product centralized procurement, the overall selling price of products within the segment decreased significantly compared with the same period, resulting in the segment’s gross profit margin decreasing by 9.15 percentage points year-on-year.

2. Preparation Segment

During the reporting period, affected by the continued promotion of centralized procurement, changes in marketing models, and intensified market competition, the company’s preparation segment achieved sales revenue of 4.622 billion yuan, down 15.21% compared with the same period of the previous year, accounting for 49.36% of this period’s operating revenue, down 0.48 percentage points compared with the same period of the previous year.

The brand advantages of cardiovascular medications gradually emerged. The company adopted a “trading volume for price” strategy to actively explore markets, with products such as nifedipine controlled-release tablets, benzenesulfonic acid amlodipine tablets, and maleic acid enalapril tablets achieving steady sales growth, effectively offsetting price decline risks. Apart from this, products in other fields within the segment saw varying degrees of decline in revenue. During this year, the overall market demand for cephalosporin preparations was weak, causing anti-infection preparation product revenue to decline 17.45% year-on-year. The company practiced a large-variety strategy and “market share priority,” with core varieties of cefuroxime axetil tablets, cefixime granules, ceftriaxone sodium injection, and cefuroxime sodium injection showing increased market share in the terminal market against the trend; in the field of nervous system medications, revenue experienced significant decline affected by market competition in products such as venlafaxine tablets and ropivacaine hydrochloride injection, as well as “four-same policy” and other factors, with year-on-year decline of 18.79%; compound licorice tablets faced volume and price decline due to reduced raw material quota, with respiratory system medication revenue declining 30.11% year-on-year. Although some newly approved products in recent years achieved revenue growth, this is insufficient to completely offset the gap caused by the decline in revenue from the aforementioned large varieties. Affected by the above factors, the gross profit margin of the preparation segment this period declined by 3.66 percentage points to 42.06%.

In the future, the company will anchor steady development goals, vigorously promote innovation breakthroughs, and further deepen brand building. It will continue focusing on integrated coordination and industry chain optimization, deeply cultivate chain supplementation, strengthening and optimization, actively expand external development space, and accelerate transformation and upgrading steps through systematic layout.

(4) Industry Development and Market Competition

In 2025, the pharmaceutical industry, amid the complex background of slowing global economic growth, continuing geopolitical uncertainty, and deepening domestic structural reforms, continued to demonstrate a “steady progress amid challenges” development trend. The domestic pharmaceutical industry is in a critical transition stage from “scale expansion” to “quality improvement.” According to National Bureau of Statistics data, in 2025, large-scale pharmaceutical manufacturing enterprises achieved cumulative operating revenue of 2,487 billion yuan, with a slight year-on-year decline of 1.2%; cumulative profit of 349 billion yuan was achieved, with a counter-trend year-on-year increase of 2.7%. This pattern of “revenue slight decline, profit counter-increase” profoundly reveals the fundamental transformation of the industry’s inherent logic—growth drivers are accelerating transition from past scale expansion and marketing-driven approaches to a high-quality development track centered on research and development innovation and value-based healthcare.

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Focusing on the chemical generic drug field, since the national centralized procurement system was fully implemented, China’s generic drug market has entered a continuous deep adjustment cycle. Industry development shows “intensified challenges and differentiation, opportunities reshaping landscape” dual characteristics, with industry reshuffling accelerating continuously. With the continued normalization of centralized procurement, price reductions have become the norm. The profit margins of common generic drugs continue to be compressed, and enterprise revenue growth is under pressure. As terminal drug prices continue to decline, higher requirements are placed on enterprises’ integrated industry chain layout and lean operation capabilities. Enterprises lacking raw material drug coordination or insufficient scale advantages will see their profitability deteriorated sharply.

According to the “China Generic Drug Development Report (2025),” 70% of approved varieties are concentrated in the hands of 33% of enterprises, with the top 6 enterprises occupying approximately 30% of the market share. Leading enterprises, leveraging cost control capabilities, quality systems, and product pipeline advantages, continue to expand their market share, while a large number of small and medium-sized generic drug enterprises face pressures of market share shrinkage, profit decline, and even elimination and clearance.

While challenges intensify, the generic drug industry is experiencing profound structural transformation, and new growth opportunities are being cultivated. With accelerating industry concentration, the pattern of “leading concentration, small and medium-sized differentiation” is becoming increasingly clear. Leading enterprises with integrated advantages of “raw material drugs + preparations,” lean cost management capabilities, scaled production systems, and enriched product pipelines are expected to continue winning bids in centralized procurement, expand market share, consolidate market position through scale effects, and achieve “scale for space, efficiency for profit.”

As an important component of China’s pharmaceutical industry, the high-quality development of generic drugs is not only related to enhancing industrial competitiveness, but also an important guarantee for reducing drug costs, alleviating patient burden, and enhancing drug accessibility. It is a solid foundation for China’s leap from a pharmaceutical manufacturing powerhouse to a pharmaceutical innovation powerhouse. Currently, the chemical generic drug industry is experiencing fundamental transformation from “scale dividend” to “technology dividend” and “management dividend.” Faced with challenges, enterprises can only firmly pursue the transformation and upgrading path of “high barriers, high difficulty, and high added value” to grasp opportunities and win the future in the industry’s deep restructuring.

(5) Company’s Industry Position

As a chemical pharmaceutical enterprise with diverse varieties, the company comprehensively serves the “Healthy China” national strategy, executes with high quality the strategic layout dominated by chemical pharmaceuticals, adheres to scientific and technological innovation as the core driver, is guided by fulfilling clinical needs and enhancing drug accessibility, and is committed to “becoming an innovation-driven pharmaceutical enterprise that is China-leading and internationally first-class, and an industry leader with vitality, strength, and influence.” It creates integrated product gradient combinations of pharmaceutical intermediates, raw materials, and chemical preparations, continuously focuses on six key areas including anti-infection, cardiovascular, anesthesia and psychiatric, metabolism and endocrine, anti-tumor and immune regulation, and health products.

Many of the company’s products have won national and provincial and municipal key new product awards, and enjoy high market share and brand awareness. In fine-tuning therapeutic fields such as antibiotics, cardiovascular, anesthesia, and psychiatric medicines, the company has formed strong comprehensive strength and market competitive advantages. In the field of pharmaceutical intermediates and raw materials, the company’s clavulanic acid potassium series products, 7-ACA, and 6-APA maintain stable market share rankings in the top three of the industry. In the field of preparation products, according to the IQVIA database, the company’s cefuroxime axetil tablets and methylprednisolone sodium succinate injection maintain the largest domestic market share; cefixime granules’ market share has been further improved, demonstrating good growth momentum; nifedipine controlled-release tablets and venlafaxine tablets maintain the largest market share among generic drug enterprises; ceftriaxone sodium injection, diclofenac sodium sustained-release tablets, and cefdinir dispersible tablets all rank in the top three in terminal market share.

3. Company’s Main Accounting Data and Financial Indicators

3.1 Main Accounting Data and Financial Indicators for the Past 3 Years

Unit: Yuan Currency: Chinese Yuan

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3.2 Main Accounting Data by Quarter for the Reporting Period

Unit: Yuan Currency: Chinese Yuan

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Explanation of Differences Between Quarterly Data and Published Periodic Report Data

□Applicable √Not applicable

4. Shareholder Information

4.1 Total number of common stock shareholders and voting power restored preferred stock shareholders and shareholders holding special voting right shares as of the end of the reporting period and one month before the annual report disclosure, and information on the top 10 shareholders

Unit: Shares

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4.2 Framework Diagram of Ownership and Control Relationship Between the Company and Controlling Shareholders

√Applicable □Not applicable

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4.3 Framework Diagram of Ownership and Control Relationship Between the Company and Actual Controllers

√Applicable □Not applicable

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4.4 Total Number of Preferred Stock Shareholders at the End of the Reporting Period and Information on the Top 10 Shareholders

□Applicable √Not applicable

5. Company Bond Information

□Applicable √Not applicable

Section 3 Important Matters

1. The Company shall, according to the principle of materiality, disclose significant changes in the company’s operating conditions during the reporting period, as well as matters occurring during the reporting period that have significant impact on the company’s operating conditions and are expected to have significant impact in the future.

2025 was a year in which challenges intensified and pressure increased significantly in the company’s operating and development history. Affected by intensified market competition, industry policies, and industrial cyclical adjustments among multiple factors, the company’s overall profitability experienced phase-based decline. Facing external changes brought by pharmaceutical policy adjustments, the impact of continued decline in raw material drug market prices, and multiple impacts brought by marketing transformation and adjustment, the company maintained strategic determination, coordinated the promotion of integrated operations, continuously improved institutional and mechanical support, steadily promoted scientific research and innovation, strived to enhance core competitiveness, and development quality steadily improved, with overall operations maintaining a stable trend.

During the reporting period, the company achieved operating revenue of 9.363 billion yuan, down 14.39% year-on-year; achieved net profit attributable to listed company shareholders of 942 million yuan, down 13.11% year-on-year; net profit attributable to listed company shareholders after deducting non-recurring gains and losses of 849 million yuan, down 18.60% year-on-year. Despite short-term profitability pressure, the company’s asset quality remained stable, with operating resilience continuously demonstrated. During the reporting period, the operational cash collection rate reached 102.53%, inventory turnover rate was 3.09 times, accounts receivable turnover rate was 8.75 times, operational efficiency of assets steadily improved, displaying substantial operating fundamentals and good risk resistance capability.

2026 is the opening year of the “15th Five-Year Plan.” The company will closely focus on “innovation-driven, layout optimization, quality improvement and efficiency enhancement” core tasks, concentrate on main responsibility and main business, use deepened reform to resolve development problems, use lean management to hedge external risks, through grasping integration, reducing costs, and exploring potential, make all-out efforts to stabilize operations, ensure growth, and lay foundation, opening a new chapter of development amid overcoming hardships and difficulties.

2. If the company’s annual report is disclosed and there is risk warning of delisting or termination of listing, the reason for the risk warning of delisting or termination of listing should be disclosed.

□Applicable √Not applicable

Shanghai Modern Pharmaceutical Co., Ltd. 2025 Annual Environmental, Social and Corporate Governance (ESG) Report Summary

Securities Code: 600420 Securities Abbreviation: China Pharma Modern

Shanghai Modern Pharmaceutical Co., Ltd. 2025 Annual

Environmental, Social and Corporate Governance (ESG) Report Summary

Section 1 Important Notices

1. This summary is extracted from the full Environmental, Social and Corporate Governance (ESG) Report. To comprehensively understand the company’s relevant impacts, risks, and opportunities on environmental, social, and corporate governance issues, as well as the company’s sustainable development strategy and related matters, investors should carefully read the full Environmental, Social and Corporate Governance (ESG) Report on the www.sse.com.cn website.

2. This Environmental, Social and Corporate Governance (ESG) Report has been reviewed and approved by the company’s board of directors.

Section 2 Basic Report Information

1. Basic Information

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2. Sustainable Development Governance System

(1) Whether a governance body responsible for managing, supervising sustainable development related impacts, risks, and opportunities has been set up: √Yes, the name of this governance body is the company’s board of directors. □No

(2) Whether an internal reporting mechanism for sustainable development information has been established: √Yes, the reporting method and frequency is that the board of directors is responsible for reviewing annual ESG reports, once a year. □No

(3) Whether a sustainable development supervision mechanism has been established, such as internal control systems, supervision procedures, supervision measures, and assessment conditions: □Yes, the related system or measure is ____ √No

3. Stakeholder Communication

Whether the company has conducted stakeholder communication through interviews, discussions, questionnaire surveys, and other methods and disclosed: √Yes □No

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4. Double Materiality Assessment Results

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Explanation: Among the issues specified in the “Shanghai Stock Exchange Listed Company Self-Discipline Management Guidelines No. 14—Sustainable Development Report (Trial)” (hereinafter referred to as “Guidelines No. 14”), the topic of ecosystem and biodiversity protection was identified as not having materiality, and has been explained in the report in accordance with the provisions of Article 7 of “Guidelines No. 14.”

Securities Code: 600420 Securities Abbreviation: China Pharma Modern Announcement Number: 2026-014

Shanghai Modern Pharmaceutical Co., Ltd.

Announcement on 2026 Daily Related Party Transaction Predictions

The company’s board of directors and all directors guarantee that the contents of this announcement do not contain any false records, misleading statements, or material omissions, and assume legal liability for the truthfulness, accuracy, and completeness of its contents.

Important Content Reminders:

● The 2026 daily related party transaction prediction matter still needs to be submitted to the company’s 2025 annual shareholder meeting for review.

● The company’s daily related party transaction matters will not affect the company’s independent operating ability, and the company’s main business will not form significant dependence on related parties due to such related party transaction matters.

1. Prediction and Implementation of 2025 Daily Related Party Transactions

On March 26, 2025, the company’s eighth board of directors, twentieth meeting, reviewed and approved the “Proposal on Predictions of 2025 Daily Related Party Transactions,” making predictions on possible daily related party transactions that may occur in 2025. This proposal was subsequently reviewed and approved by the company’s 2024 annual shareholder meeting.

The company’s 2025 daily related party transactions and prediction and actual occurrence reporting with China National Pharmaceutical Group Co., Ltd. and its subsidiary companies and joint ventures (hereinafter referred to as related parties) are as follows:

Unit: 10,000 Yuan

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Based on the market operating environment in 2025, the company selected, according to market principles, the most favorable cooperation partners for business development. Transaction prices were all determined based on market prices. Based on changes in actual business, the actual amounts of various daily related party transactions between the company and related parties under the same control all remained within 2025 predicted ranges. The proportion of related party transactions between the company and each related party in the same type of business is relatively low and will not form significant dependence on related parties or affect the company’s independence.

2. 2026 Daily Related Party Transaction Prediction

(1) Approval Procedures Implemented for Daily Related Party Transactions

On March 26, 2026, the company convened the first independent director special meeting for 2026, reviewing and approving the company’s “Proposal on Predictions of 2026 Daily Related Party Transactions,” with 3 approvals, 0 oppositions, and 0 abstentions. Agreeing to submit this proposal to the board of directors for review.

On March 26, 2026, the company convened the ninth board of directors, third meeting, reviewing and approving the company’s “Proposal on Predictions of 2026 Daily Related Party Transactions,” with 6 approvals, 0 oppositions, 0 abstentions, and 3 recusals (related party directors recused from voting). According to the relevant provisions of the “Shanghai Stock Exchange Stock Listing Rules” and “Company Articles of Association,” this related party transaction proposal still needs to be submitted to the company’s 2025 annual shareholder meeting for review, with relevant related party shareholders required to recuse from voting.

(2) Amount and Category of Daily Related Party Transactions Predicted to Occur in This Period

Based on the actual occurrence of daily related party transactions in 2025, considering the company’s 2026 operating development needs, the following predictions are made for 2026 daily related party transactions:

Unit: 10,000 Yuan

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The company’s 2026 daily related party transaction predictions may differ from actual circumstances. According to the relevant provisions of “Shanghai Stock Exchange Listed Company Self-Discipline Management Guidelines No. 5—Transactions and Related Party Transactions,” the company may, based on actual transaction circumstances, make amount allocation among the same related party transaction category within each related party under the same control by China National Pharmaceutical Group Co., Ltd.

3. Introduction of Related Parties and Related Relationships

4. China National Pharmaceutical Group Co., Ltd.

Registered Address: 20 Zhichun Road, Haidian District, Beijing

Legal Representative: Bai Zhongquan

Registered Capital: 255,065,793.51 Million Yuan People’s Currency

Company Type: Limited Liability Company (State-owned Holding)

Business Scope: Wholesale of Chinese patent medicines, Chinese herbal medicine pieces, Chinese herbal medicines, chemical raw materials, chemical drug preparations, antibiotics, biochemical drugs, biological pharmaceuticals (drug business license valid until May 12, 2020); entrustment management of pharmaceutical enterprises, asset restructuring; pharmaceutical enterprise investment and consulting services; hosting exhibitions and sales of medical devices; providing consultation services related to main business; import and export of goods; import and export of technology; agency for import and export.

Related Relationship: Indirect controlling shareholder

2. Shanghai Pharmaceutical Industry Research Institute Co., Ltd.

Registered Address: 1320 Beijing West Road, Shanghai

Legal Representative: Feng Jun

Registered Capital: 22,000 Million Yuan People’s Currency

Company Type: Limited Liability Company (Non-natural Person Invested or Controlled Corporate Sole Proprietorship)

Business Scope: General items: Medical research and experimental development; sales of bio-based materials; sales of pharmaceutical specialized equipment; sales of specialized chemical products (excluding hazardous chemicals); sales of chemical products (excluding specialized chemical products requiring permission); technical services, technical development, technical consulting, technical exchange, technical transfer, technical promotion; advertising publication; digital advertising production; digital advertising publication; digital advertising design and agency; advertising production; advertising design and agency; import and export of goods; import and export of technology; sales of health food (pre-packaged); rental of non-residential real estate; property management; conference and exhibition services. Licensed items: Inspection and testing services; drug import and export; laboratory animal production.

Related Relationship: Controlling shareholder

3. National Pharmaceutical Holdings Co., Ltd.

Registered Address: Layer 1, Layers 11-15, 385 Longhua East Road, Huangpu District, Shanghai

Legal Representative: Lian Wanyong

Registered Capital: 31,206,561.91 Million Yuan People’s Currency

Company Type: Joint Stock Company (Listed, State-owned Holding)

Business Scope: General items: Industrial investment and control, pharmaceutical enterprise entrustment management and asset restructuring, wholesale of Chinese patent medicines, Chinese herbal medicine pieces, chemical drug preparations, chemical raw materials, antibiotics, biochemical drugs, biopharmaceuticals, anesthetic drugs, psychotropic drugs, medical toxic drugs (corresponding to business scope), drug-type in vitro diagnostic reagents, vaccines, anabolic agents, peptide hormones, medical device operations, food sales management (non-physical methods), technology development, technology transfer, technology consulting, technology services in the medical technology field, chemical raw materials and products (excluding hazardous chemicals, controlled chemicals, fireworks and firecrackers, civil explosives, flammable and explosive materials), enterprise management consulting, business consulting, market information consulting and investigation (shall not conduct social surveys, social investigations, public opinion surveys, public opinion polls), data processing services, e-commerce (shall not engage in value-added telecommunications financial services), disinfectant products, daily sundries, textiles and knitted goods, medical personnel protective equipment wholesale, labor protection equipment sales, daily face masks (non-medical) sales, sports equipment, home appliances, electronic products, furniture, toys, food and agricultural products, cosmetics, cultural and sports equipment sales, design, production agency, release of domestic and foreign various types of advertising, domestic trade (except special permits), logistics distribution and related consulting services, import and export of various goods and technology (without additional import and export commodity catalog), except goods and technology prohibited by the state from import and export or limited import and export.

Related Relationship: Invested shareholder, under the same group company control

4. Shenzhen Wanwei Pharmaceutical Trade Co., Ltd.

Registered Address: 303 Comprehensive Plant Building 1, Kuzai Street Jinsha Community, Pingshan District, Shenzhen, Qinling Second Road 2, Wanle Pharmaceutical Production Plant Area

Legal Representative: Yu Yugen

Registered Capital: 3 Million Yuan People’s Currency

Company Type: Limited Liability Company (Sole Proprietorship by Natural Person Investor or Controller)

Business Scope: International trade operations (items prohibited by law, administrative regulations, State Council decisions are exempt, restricted items must be permitted before operation); information consulting; technical services, technology transfer, technology consulting for pharmaceutical products; pharmaceutical technology development, introduction and promotion of drug technology, enterprise management consulting, pharmaceutical product marketing planning and consulting services, pharmaceutical product promotion; operation of pharmaceutical adjuvants, cosmetics, etc.; sales of electronic specialized equipment; sales of measuring instruments; retail of electronic components. Wholesale of Chinese patent medicines, chemical drug preparations, chemical raw materials, antibiotic raw materials, antibiotic preparations, biopharmaceuticals (excluding vaccines); wholesale of pharmaceutical companies operation of health food (excluding vaccines); operation of first, second, and third-class medical devices; operation of pre-packaged food and health food.

Related Relationship: Joint venture of China National Pharmaceutical Group Co., Ltd.

5. Shenzhen Wanle Pharmaceutical Co., Ltd.

Registered Address: Wanle Pharmaceutical Building, National Biotechnology and Pharmaceutical Industrial Base, Lanzhu East Road, Pinshan New District, Shenzhen

Legal Representative: Yu Yugen

Registered Capital: 1,954.455 Million US Dollars

Company Type: Limited Liability Company (Sino-foreign Joint Venture)

Business Scope: Development, research, production and operation of raw materials, small-volume injections (including anti-tumor types), freeze-dried powder injections (including anti-tumor types), tablets, capsules (all including anti-tumor types), import of pharmaceutical products external packaging (tablets), import and export of goods and technology business; pharmaceutical production; drug contract production.

Related Relationship: Joint venture of China National Pharmaceutical Group Co., Ltd.

6. National Pharmaceutical Group Finance Co., Ltd.

Registered Address: 20 Zhichun Road, Haidian District, Beijing

Legal Representative: Wang Peng

Registered Capital: 22,000 Million Yuan People’s Currency

Company Type: Other Limited Liability Company

Business Scope: Licensed items: Enterprise group finance company services.

Related Relationship: Invested company, under the same group company control

7. National Pharmaceutical Group Dezhong (Foshan) Pharmaceutical Co., Ltd.

Registered Address: 89 Foshan-Ping Road, Chancheng District, Foshan

Legal Representative: Luo Ji

Registered Capital: 6.46 Million US Dollars

Company Type: Limited Liability Company (Hong Kong, Macau, Taiwan and Mainland Joint Venture)

Business Scope: Licensed items: Drug production; drug retail; collection (including harvesting, transplanting) of nationally protected wild plants; agricultural seed operations; drug contract production. (Projects requiring approval must be approved by relevant departments before commencing business activities; specific business items shall be subject to approval documents or licenses from relevant departments) General items: Traditional Chinese medicine extract production; collection of traditional Chinese medicines; cultivation of traditional Chinese medicines; purchase and sale of locally produced traditional Chinese medicines (excluding traditional Chinese medicine pieces); grain cultivation; legume cultivation; tuber cultivation; vegetable cultivation; initial processing of agricultural and sideline products; non-food plant oil processing; sales of agricultural and sideline products; food sales (pre-packaged food sales only); internet food sales (pre-packaged food sales only); non-main agricultural seed production; earthworm breeding; technical services, technical development, technical consulting, technical exchange, technical transfer, technical promotion; mechanical equipment research and development; mechanical equipment sales; general equipment manufacturing (excluding specialized equipment manufacturing); specialized equipment manufacturing (excluding licensed specialized equipment manufacturing).

Related Relationship: Under the same group company control

8. Shanghai Modern Pharmaceutical Preparation Engineering Research Center Co., Ltd.

Registered Address: 1111 Harley Road, China (Shanghai) Free Trade Zone

Legal Representative: Wang Jian

Registered Capital: 32 Million Yuan People’s Currency

Company Type: Other Limited Liability Company

Business Scope: General items: Technical services, technical development, technical consulting, technical exchange, technical transfer, technical promotion; manufacturing of specialized chemical products (excluding hazardous chemicals); production of chemical products (excluding specialized chemical products requiring permission); manufacturing of pharmaceutical specialized equipment; manufacturing of specialized packaging equipment. (Except as required by law to be approved, market entities independently choose to conduct business operations) Licensed items: Inspection and testing services; drug production; drug retail; pharmaceutical adjuvant production; pharmaceutical adjuvant sales; food production; food sales; cosmetics production; second-class medical device production. Self-display (distinctive) items: Research and development of mechanical equipment; research and development of new materials; sales of pharmaceutical specialized equipment; rental of non-residential real estate; cosmetics retail; conference and exhibition services.

Related Relationship: Under the same group company control

9. China National Pharmaceutical Foreign Trade Co., Ltd.

Registered Address: 4 Huixin East Street, Chaoyang District, Beijing

Legal Representative: Chang Zhen

Registered Capital: 28,050 Million Yuan People’s Currency

Company Type: Limited Liability Company (Sole Proprietorship by Legal Person)

Business Scope: Licensed items: Hazardous chemical operations; third-class medical device operations; drug wholesale; medical device internet information services; road freight transport (excluding dangerous goods); bonded warehouse operations; veterinary drug operations; drug import and export; third-class medical equipment rental. (Projects requiring approval must be approved by relevant departments before commencing business activities; specific business items shall be subject to approval documents or licenses from relevant departments) General items: Food sales (pre-packaged food sales only); information system integration services; technical services, technical development, technical consulting, technical exchange, technical transfer, technical promotion; software development; health consulting services (excluding medical consultation services); second-class medical device sales; first-class medical device sales; ordinary cargo storage services (excluding hazardous chemicals and other items requiring licensing approval); import and export of goods; sales of chemical products (excluding specialized chemical products requiring permission); sales of home appliances; sales of daily sundries; wholesale of cosmetics; sales of mechanical equipment; batch distribution of computer hardware and peripheral equipment; sales of electronic products; sales of communication equipment; repair of specialized equipment; general equipment repair; hospital management; bid and quote agency services; government procurement agency services; procurement agency services; rental of mechanical equipment; sales of special medical formula foods; sales of infant formula milk powder and other infant formula foods; sales of health food (pre-packaged); automobile sales; rental of non-residential real estate; sales of petroleum