Chongqing Kangheng Pharmaceutical Co., Ltd.

I. Company Profile Chongqing Kangheng Pharmaceutical Co., Ltd. was established in 2011 and is headquartered in Chongqing. It owns a self-owned administrative office building of 1,710 square meters and a self-owned drug warehouse (which has passed the new version GSP certification) of 1,316 square meters. The group has seven wholly-owned or controlled subsidiaries, with business scope including: pharmaceutical commerce, venture capital, high-end sauce-flavor baijiu, high-end green tea, and industrial hemp (cultivation/processing). Kangheng Pharmaceutical is a high-tech innovative enterprise engaged in new drug research and development and pharmaceutical sales. Its products include prescription drugs, over-the-counter drugs, and precision nutritional foods. The product lines are divided into two categories: 1. Agency products—currently acting as agent for high-end prescription drugs and over-the-counter drugs at home and abroad, covering categories such as cardiovascular, digestive system, gastrointestinal, and orthopedics. The main products include: dexibuprofen capsules, dalteparin sodium injection, rosuvastatin calcium tablets, capsaicin rheumatism gel, calcium carbonate dry suspension, and other products. 2. Independently developed generic new drugs—it has established long-term and stable industry-university-research cooperation with domestic pharmaceutical research institutions such as the Academy of Military Medical Sciences, Shanghai Institute of Pharmaceutical Industry, China Pharmaceutical University, Chongqing Third Military Medical University, and West China School of Pharmacy of Sichuan University. New drugs that have been filed include: clopidogrel bisulfate tablets, rebamipide tablets, dexibuprofen sustained-release tablets, vitamin D calcium chewable tablets, potassium sodium hydrogen citrate granules, ibuprofen famotidine tablets, ticagrelor tablets, dabigatran etexilate mesylate capsules, rivaroxaban tablets, silodosin tablets, and other new drug products. Kangheng Pharmaceutical adheres to the belief of being responsible to patients/consumers, doctors/distributors, shareholders/investors, and society. It is committed to and serves the health of Chinese people, actively innovates and actively expands, and continuously develops, introduces, and promotes innovative drugs. Kangheng Pharmaceutical follows the principle of integrity and is committed to long-term development. Since its integration and restructuring in 2011, relying on its own market advantages and integrity-based business philosophy, it has actively tried and promoted new market models. With modern management concepts, in today's highly competitive pharmaceutical field, it has maintained strong growth momentum and gradually formed an inimitable competitiveness. Its business scope covers nearly 150 cities nationwide, with offices established in 26 provinces and cities, more than 1,000 distributors, more than 1,500 commercial customers, and more than 10,000 hospitals, among which two drugs have annual sales exceeding 200 million RMB nationwide. II. Development Approach 1. Kangheng Pharmaceutical's mission: We produce one product, and that is multimillionaires. Whether this strategy can be successfully realized depends crucially on every member of the team. Therefore, Kangheng Pharmaceutical rejects employees who are not proactive, not enterprising, not agile, not fast, not serious, and not responsible. 2. Core values: Conquest and plunder are the main theme of our lives. We must conquer the world like Genghis Khan and plunder the world's wealth like pirates. III. Development Model Health industry investment, innovative drug research and development, domestic and international new drug agency. IV. Long-term Goals Development vision for the next 5 years (2016-2020) 1. Five things we need to accomplish: ① Push the innovative drug research and development company into the capital market; ② Wholly own, control, or hold shares in 1-3 pharmaceutical manufacturing enterprises; ③ Enter the big health industry and achieve this goal by producing and operating precision nutritional foods, functional beverages (such as 'pineberry' original juice), high-end sauce-flavor baijiu, and the 'Xiandao Shouyuan' series of premium teas; ④ Develop and build 'Shuhan Grand Canyon' into a 5A-level scenic area; ⑤ Cultivate rare Chinese medicinal materials and exotic high-end fruits. 2. Performance we need to achieve: ① Achieve annual profits and taxes exceeding 70 million RMB within 1-3 years; ② Achieve annual profits and taxes exceeding 100 million RMB within 3-5 years.