Chengdu Kanghong Pharmaceuticals Group Co.,Ltd., established in 1994, is a modern medicine consortium of seven wholly-owned subsidiaries headquartered in Chengdu, Sichuan, China.The Group of over 2500 employees is committed to the development, production and sales of natural medicine, chemical and biological drugs. Affiliate companies are:

• .Chengdu Kanghong Pharmaceutical Co., Ltd.,
• .Sichuan Jishengtang Pharmaceuticals Co., Ltd.,
• .Chengdu Hongda Pharmaceuticals Co., Ltd.,
• .Kanghong & Sagent (Chengdu) Pharmaceuticals Co., Ltd.,
• .Chengdu Kanghong Biological Science & Technology Co., Ltd.,
• .Sichuan Kanghong Medicine Trade Co., Ltd.,

Since the establishment of the Group, the goal of the enterprise, from which the name of the company is derived, has been ‘to contribute to the prosperity of society and the health of the people’. ‘Prosperity’ means to create greater value for the country and people. ‘Health’ meansto provide the best medical service and products possible. The consortium companies and staff concentrate all resources to engage in the development, preparation and distribution of medicines in cardiovascular, central nervous system, digestion, respiration, endocrinology and oncology. The Group and its staff strive to be one of the most outstanding pharmaceutical companies in China.

Currently, the Group has modern facilities covering an area of over 280,000 sq. meter (3,000,000 sq. ft) for the preparation and distribution of natural medicines, chemical, and biological drugs. Annual sales throughout China (including all provinces and autonomous regions) and southeastern Asia exceeds1 billion RMB (￥1,000,000,000) .

Since the establishment of the Group, it has received wide-spread support from all levels of government, clients and consumers from all walks of life. The Group has received the “Important Enterprise with Advantages” award at provincial and city levels in 5 successive years, and was presented the “Industrial Enterprise with Outstanding Contribution” award in Sichuan province in 2006.

Overview - Science and Technology

Kanghong Pharmaceuticals Group Co.,Ltd. has always maintained development strategy based on product and technology innovation and moved forward on the road of specialized development by concentrating on R&D, production and distribution of the drugs for cardiovascular system, central nervous system, respiration, digestion, endocrinology , oncology and more. As a result, the Group has gradually formed its core competitive edge. Currently, the Group holds 61 domestic and international invention patents, 4 class-1 in-research new drugs, which are independently developed, and a new comprehensive products marketing plan which has been projected to 2014.

The Konghong Technology Innovation Center, also named the Enterprise Group Technology Center (hereinafter shortened as the Technology Center), is a “National-level Enterprise Technology Center” accredited in October 2006 by five state ministries and commissions in China including the Development & Reform Commission of the State, Ministry of Science & Technology, Ministry of Finance, the General Taxation Administration of the State, and the General Customs Administration of the State. At that time it was the only such center recognized by these government entities, signifying that the Group had already been chosen for fast track development. In 2007 the Center successfully passed state reassessment. The Center has now established a number of technical platforms for Chinese, biological and chemical medicines to meet the demands of the research for new drugs. Regarding biological medicine innovations, the Center has established the technology platforms for protein genetic engineering, genetic therapeutic research & development, the analysis of disease-related genes, and the commercial scale production of biological medicines. The Center has successfully developed a number of new national Class-I drugs, including an anti-tumor medicine which is now in the clinical trial stage and an ophthalmological genetic medicine for diseases related to eye-ground blood vessels.Present research projectsprovide a solid foundation for the R&D of new drugs.

Regarding traditional Chinese and chemical medicines, the Center has set up advanced technology platforms for screening and selecting medicine sources for mid-phase clinical experiments of natural and herbal medicines, for standard preparation research, and for biological information research. As a result of these platforms, more than 20 new drugs have been successfully developed or marketed. Also, there are a dozen projects in the pipeline, including new Class-I chemical drugs with new chemical structures, some new Class-I biological drugs, formulation with new drug delivery system, some Chinese or natural medicines from herbal sources, and some herbal compound preparations. All projects now under researchare independently owned intellectual properties.

A Konghong research facility was approved by the State Ministry of Personnel in 2000. Since then a dozen post-doctoral researchers have engaged in the preliminary research, screening, and the evaluation of new drugs as well as the functional mechanism of the drugs.

Overview - Production

Presently, the group has four Good Manufacturing Practice (GMP) production facilities in the fields of natural medicines, chemical medicines, traditional Chinese medicines and chemical source medicines. The facilities produce 3 types of source medicine, 8 forms of drugs with 11 formulations. The products range in the areas of cardiovascular, central nervous system, digestive, respiratory and endocrinology.

The facility at the headquarters of the Group uses the most advanced technology in China to produce scatter pills and sustain release tablets, and is a leader in the fields of cardiovascular, central nervous system and digestive medicine.

The Group’s key products include the “Venlafaxine Hydrochloride Capsule”, the first of its kind in the world as a serotonin and norepinephrine reuptake inhibitor (SNRI),an anti-depressant drug; the sustain-release tablet of venlafaxine hydrochloride (Trade Name: Blossom); the world’s first Aripiprazole Orally DisintegratingTablet” (Trade Name: Brisking), an antipsychotic drug in the form of Drug Delivery System (DDS) ; the scatter tablet for promoting the peristalsis of the stomach and duodenum and accelerating the gastric dynamos (Trade Name: New Boronia). Blossom was rated as the National Key New Product in 1999 and listed into the National Catalogues of Basic Drugs of Medical Insurance. All products mentioned above have all been listed in the National Torch Project in China.

Chengdu Kanghong Pharmaceutical Co., Ltd., a branch company of the Group, passed GMP certification assessment by the State Drug Supervision Administration (SDFA), and became the first pharmaceutical enterprise to gain GMP system certification in Sichuan province, and gained the first GMP certificate (No.A0001) issued by the SDFA since its formation.

The highlighted products of the Group, such as the ‘Songling Xiemaikang Capsule’(an antihypertensive), ‘Yiqing Capsule’(a cleansing agent), and ‘Zhengkening Capsule’(a cough suppressant) are listed in the National Catalogues of Basic Drugs of Medical Insurance and the National Catalogues for the Protected Chinese Medicine. Also, the ‘Songling Xiemaikang Capsule’ is listed in the National Catalogues of Basic Drugs, National Patented New Drug, and National Key New Product. It was the most prescribed Chinese medicinein hospitals to lower blood pressure. The ‘Yiqing Capsule’, and ‘Zhengkening Capsule’ are also widely used in hospitals to eliminate heat and suppress coughing. The former was awarded “the Well-known Brand of Sichuan Province” in 2009.

As a member company of the Group, the Sichuan Jishengtang Pharmaceuticals Co., Ltd. has maintained its traditional goal of “sparing no effort or resources in producing quality medicine” and has applied its 80 years’ experience in using the rich local resources of natural herbs, as well as modern production processes, to produce effective quality products.

The ‘Gankeshuangqing Capsule’ (the first highly effective and plant-based drug in China to be specially used in the treatment of acute upper respiratory infection and acute bronchitis) has owned the intellectual property right protection for 20 years. The Group’s ‘Danshu Capsule’ (an ideal medicine for gall bladder channel) was awarded the gold medal in the National Torch Project and listed in the National Catalogues of Basic Drugs of Medical Insurance.

A branch of the Group, Chengdu Kanghong Biological Science & Technology Co. Ltd. is a new high-tech enterprise specializing in the research and development of biotechnology drugs. The research of three Class-I nationally registered new medicines is in full operation, including personalized tumor vaccine (KH901), ophthalmologic genetic engineering drug (KH902) and tumor genetic engineering drug (KH903). At present the company has successfully established three nationalplatforms, namely, large-scale virus production and purification platform, large-scale protein and antibody production and purification platform, and tumor vaccine production technical platform. All these platforms maintain international standards. The personalized tumor vaccine (KH901) utilizes suspension cell-tissue culture processing equipment, making the productat the same production and quality level of overseas products, not to mention that it serves a number of overseas and domestic pharmaceutical enterprises in terms of the production of the related medicines. The CHO suspended cell and non-serum culture processing for protein medicines are leaders in the country in terms of the production scale and quality.

Overview - Service

Trading companies under the Group such as Sichuan Kanghong Medicine Trade Co., Ltd., utilizes a specialized marketing approach of “establishing its own sales network, practicing strict regulations, delivering quality, and gaining profits through quality service.” The Group considers quality and service as life and operates according to GSP standards to set up an accomplished quality assurance system. The Group’s effort has established a good reputation in the consumer market as well as in the industry, resulting in corresponding sales growth. Currently the sales network extends over 30 provinces, autonomous regions, metropolitans and even reaches into southeastern Asia. We are proud of having a highly specialized team of academic and industry experts, and an accomplished training system. In addition, we have also in place a high-quality, high-efficiency, and specialized professional marketing team.

Since its inception, the Group has accepted obligation to care for the people’s health and educate the public regarding healthy lifestyles and practices. In the operation process, client trust is paramount. Our staff has launched various academic exchanges and events and invited experts from China and abroad to help educate medical staff, patients and the general public about medicines and new drugs so that they can use the medicines safely and more effectively. Our marketing and education staff serves as a bridge between enterprise, doctors, patients and the general public.

Overview - Global Strategies

In December, 2006, a joint-venture Kanghong Sagent (Chengdu) Pharmaceuticals Co., Ltd. was established with a total investment of over 100 Million USD by Chengdu Kanghong Technology Industrial (Group) Corporation and US Sagent Pharmaceuticals, Inc., with each investing 50%. The company is locatedin the Export Processing Area of the West Park of Chengdu High & New Technology Industry Development Zone, covering an area of 113,000 sq. meters, with the first-stage covering 50,000 sq.meters. The state of the art facility was designed with end-to-end isolator technology according to UScGMP standards intended to pass SFDA certification and US Food and Drug Administration (FDA) certification.

On August 2, 2008, the Konghong-Sagent designmodel was reviewed in Washington, D.C., U.S.A by 6 FDA experts and officials. They commented this model was the first of its kind in Asian-pacific to adopt the end-to-end isolator production line. The FDA experts were impressed with the design’s conformity to the FDA’s standards for quality development of drugs and they looked forward to seeing the model come into full operation in China.

The Kanghong Sagent (Chengdu) Pharmaceuticals Co., Ltd. production base is targeted to be in full operation in 2012. Production will concentrate on three main categories of drugs, anti-cancer, anti-infection drug, and sterile injectables. The production scale is anticipated to exceed 300 million units annually, and generate a revenue ofUSD 1 billionannually. All products will be marketed globally.

The Kanghong Pharmaceuticals Group is dedicated to ‘contributing to the prosperity of society and the health of the people’. The Group is committed to developing new high-quality and high-tech drugs to better serve public health and to promote progress in pharmaceutical industry and the development of new drugs.