North China Pharmaceutical Group Co., Ltd.

Company Overview: NCPC Group is one of the largest chemical pharmaceutical enterprises in China, located in Shijiazhuang, the capital city of Hebei Province. Its predecessor, North China Pharmaceutical Factory, was a key construction project during China's First Five-Year Plan, with preparation starting in June 1953 and production commencing in June 1958, pioneering the large-scale production of antibiotics in China and making significant contributions to alleviating the shortage of medicines. In 1992, North China Pharmaceutical Co., Ltd. was restructured, and in 1994 it was listed on the Shanghai Stock Exchange. In January 1996, North China Pharmaceutical Factory was formally transformed into a wholly state-owned company—North China Pharmaceutical Group Co., Ltd., completely ending the decades-old factory system. In June 2009, with the approval of the Hebei Provincial Government, Jizhong Energy Group implemented a restructuring of NCPC Group, making it a wholly-owned subsidiary of a Fortune Global 500 enterprise. Over the years, NCPC Group has continuously innovated, operated steadily, and gradually expanded its business scope, maintaining excellent development performance with major economic indicators consistently ranking among the top in the domestic industry. By the end of 2012, NCPC Group had total assets of 15.8 billion yuan, over 20,000 employees, and more than 40 subsidiaries (branches). Main products include antibiotics and semi-synthetic antibiotics, biotechnological drugs, biological veterinary and agricultural medicines, vitamins and nutritional health products, and formulations, covering over 700 varieties in 5 series. The completion and commissioning of new park projects represented by new cephalosporins and new formulations mark the beginning of a new chapter for NCPC Group in building a modern pharmaceutical group of the highest standard. Industry Position: With its scale, technology, quality, and brand advantages, NCPC Group has been ranked among China's top 500 largest and most profitable industrial enterprises and among the top 10 pharmaceutical manufacturers for many consecutive years, earning honors such as "16 Most Internationally Competitive Enterprises," "People's Trustworthy Pharmaceutical Enterprise," "National User Satisfied Enterprise," "China's Top Ten Integrity Enterprises," "National Quality Management Excellent Enterprise," "National Advanced Productivity Model Enterprise," "National Model Enterprise for Harmonious Labor Relations," and "National Advanced Employment Enterprise." The "NCPC" trademark was among the earliest recognized as a China Well-Known Trademark in the pharmaceutical industry and was selected as one of Forbes' five most valuable industrial brands in China. Technological Advantages: As one of the first six national pilot enterprises for technological innovation and a national "863" High-Tech Research and Development Program industrialization base, NCPC Group has a professional technical team of over 4,000 people, with independent R&D capabilities ranking among the top in the industry. It has a national-level enterprise technology center, the National Engineering Research Center for Microbial Drugs, and the State Key Laboratory for Antibody Drug Development. It is recognized as a "National Innovative Enterprise," one of the first six national new drug incubation bases for the National Major New Drug Innovation Program, an "International Science and Technology Cooperation Base," and an "International Cooperation Base for R&D of Innovative Drugs from Microbial and Biological Technologies." It has been awarded honors such as "National Enterprise Technological Progress Award," "China's Self-Independent Innovation Capability Top Industry for Two Consecutive Years," and "First China Industry-University-Research Cooperation Innovation Award." It pioneered the successful development of more than ten products in China, including bacitracin, kasugamycin, bleomycin, amphotericin B, lincomycin, clindamycin, clindamycin phosphate, norvancomycin, mecobalamin, and EPO, and has received 5 National Invention Awards and 19 National Science and Technology Progress Awards. Quality Advantages: NCPC Group regards quality as its life. Since the early 1980s, it has implemented Total Quality Management (TQM), establishing a comprehensive and effective quality management system. All production processes comply with GMP standards, gaining high quality credibility in domestic and international markets. In 1986, it was the first in the pharmaceutical industry to receive the "National Quality Management Award." It passed ISO9001 quality management system certification in 2000 and ISO14001 environmental management system certification in 2003. Five major products have received the National Quality Product Award, and 40 products have won awards in provincial-level or higher quality evaluations. Currently, 23 products have passed U.S. FDA certification or obtained EU COS certificates, 49 production lines have passed the new GMP certification, and 17 new GMP certificates have been obtained, positioning the group at the forefront of the industry. Development Strategy: In the coming years, NCPC Group will adhere to the scientific development concept, uphold the enterprise mission of "Human health first, quality forever foremost," follow the development strategy of "coordinated integration, focus on innovation, optimization and upgrading, refinement and strengthening," implement a "three-step" plan, and achieve the "one-two-three" goals (first step: sales revenue of 10 billion yuan by 2011; second step: sales revenue of 20 billion yuan by 2013; third step: sales revenue of 30 billion yuan by 2015). Through three to five years of effort, it aims to build the enterprise into a "new NCPC" that is innovative and leading, intensive and efficient, open and win-win, and harmonious and prosperous, and to become a compact, efficient, and sustainable modern pharmaceutical group of the highest standard.