Guizhou Bailing

I. Basic Information of the Enterprise (1) Overview Guizhou Bailing Enterprise Group Pharmaceutical Co., Ltd. (hereinafter referred to as "Guizhou Bailing" or "the Company") is a listed pharmaceutical company integrating the research and development, production, and sales of Miao medicines. Its registered capital is RMB 1.4112 billion, total assets are RMB 4.236 billion, and it has over 4,900 employees. In June 2010, the Company was successfully listed on the Shenzhen Stock Exchange under the reputation of "China's First Miao Medicine Stock" (stock code: SZ 002424). The Company has clearly set its strategic development goal as "strengthening its leading position in the Miao medicine field and striving to become an enterprise with core competitive advantages in the Chinese patent medicine sector", and has implemented the measures of "developing Miao medicine through science and technology, culture, and ecology". It has now become the largest Miao medicine research, production, and development enterprise in China and a backbone enterprise in the new pharmaceutical industry of Guizhou Province. In January 2007, the Company's trademark "Bailing Bird and Design" was recognized as a "China Well-known Trademark". The Company's brand "Bailing Bird" has won the trust of consumers and distributors, laying a solid foundation for the promotion and sales of the Company's products. In 2012, the Company was rated as a "National Key Leading Enterprise in Agricultural Industrialization" by the Ministry of Agriculture of the People's Republic of China. From 2002 to 2011, it was consecutively awarded the title of unit that "keeps contracts and values credibility" for ten years. Since 2012, it has been continuously selected for the "Top 100 Chinese Pharmaceutical Enterprises". In 2016, the Company won the highest government honor in quality development in Guizhou Province - the first "Provincial Governor Quality Award" of Guizhou, which highly affirmed the innovative achievements made in quality management models, methods, and systems. In 2016, the Company ranked 22nd among listed pharmaceutical companies by market value, and 11th among Chinese medicine enterprises. (2) Introduction to Subsidiaries Since its listing, the Company has continued to strengthen its competitiveness in an all-round way, with the enterprise scale continuously expanding. The core enterprise (parent company) is Guizhou Bailing Enterprise Group Pharmaceutical Co., Ltd., which owns wholly-owned subsidiaries: Guizhou Bailing Traditional Chinese Medicine Diabetes Hospital Co., Ltd., Guizhou Bailing Enterprise Group Zhengxin Pharmaceutical Co., Ltd., Guizhou Bailing Enterprise Group Purified Water Co., Ltd., Tibet Jinling Pharmaceutical Technology Development Co., Ltd., Yunnan Hongling Biotechnology Co., Ltd., and Guizhou Bailing Traditional Chinese Medicine Technology Co., Ltd. Its holding subsidiaries include: Guizhou Bailing Enterprise Group Hurentang Pharmaceutical Co., Ltd. (80% stake), Guizhou Bailing Enterprise Group Biotechnology Fertilizer Co., Ltd. (70% stake), Bailing Traditional Chinese Medicine Diabetes Hospital (Changsha) Co., Ltd. (70% stake), and Anshun Dashijian Pharmaceutical Sales Co., Ltd. (67% stake). (3) Main Products The Company has GMP production lines covering 12 dosage forms: tablets, capsules, syrups, soft capsules, granules, pills, powders, sprays, decoctions, tinctures, dropping pills, large-volume injections, and small-volume injections. It holds 167 drug approval numbers under the "National Drug Standard" and 17 approval numbers for Miao medicines, accounting for 11% of the national total, ranking first nationwide. The Company has developed a strong product structure and brand system dominated by Chinese patent medicines and Miao medicines, including the "Bailing Bird" brand cardiovascular and cerebrovascular drug Yindan Xinnao Tong Soft Capsules, cold and cough drugs such as Vitamin C Yinqiao Tablets, Kesuting Syrup and Capsules, Jin'gan Capsules, and gynecological drugs such as Kangfuling Capsules and Jingdaining Capsules. Kesuting Syrup and Capsules are the first Miao medicine product in Guizhou Province with sales exceeding 100 million yuan for a single product. Since Yindan Xinnao Tong Soft Capsules was selected as an exclusive product in the 2012 edition of the National Essential Drug List, it has become the highest-selling single product in the Company. (4) R&D Advantages Using scientific and technological innovation as a means to build a "Miao medicine through science and technology". Focusing on improving enterprise innovation capabilities, Guizhou Bailing has established two important research platforms within Guizhou University and Guiyang College of Traditional Chinese Medicine, namely the Guizhou Bailing Technology Center. The Company has established reasonable project approval procedures and management methods, widely utilizes external resources, introduces domestic and international intelligence and technological achievements, and establishes extensive cooperative relationships with domestic and foreign research institutions. It has created a "122" technological innovation system with a market-oriented, enterprise-led, and industry-university-research combined approach, which is distinctive of Guizhou Bailing. That is: "One" Technology Center: National Recognized Enterprise Technology Center. "Two" Hardware R&D Platforms: National and Local Joint Engineering Research Center for Modern Miao Medicine Creation Technology (Guizhou University) and Guizhou Provincial Ethnic Medicine (Chinese Medicine) Compound Preparation Engineering Technology Research Center (Guiyang College of Traditional Chinese Medicine). "Two" Software R&D Platforms: National Postdoctoral Research Workstation and Academician Workstation. Combining the enterprise's advantages in capital, production, and market, it has formed a complete technical chain covering GAP, GLP, GCP, GMP, and GSP, ultimately creating a first-class drug research and development platform serving the enterprise and the industry. A "Technology Center Management Committee" has been established with members from various cooperative units, responsible for the management of the technology center and its subordinate research platforms and the implementation of research projects. A "Technology Center Expert Committee" composed of well-known domestic experts and scholars has been invited to make technical decisions for large and medium-sized projects. The ongoing research directions for antiviral, anti-tumor, anti-hyperglycemia treatments, and the research and development of new traditional Chinese medicines, chemical drugs, and biological drugs will lay the foundation for Guizhou Bailing's development direction over the next twenty years, leading the leap from traditional Miao medicine to Miao medicine empowered by science and technology, and building an upgraded version of Guizhou Bailing.