Fosun Pharma released 2010 annual report on March 25,, which indicated that Fosun Pharma realized the prime operating revenue of RMB 4.485 billion in 2010, up 18.14% year on year; meanwhile, the company gained net profits attributable to the shareholder of the listed company of RMB 864 million, among which, the company’s recurring earnings account for RMB 374 million; moreover, deducting the dilution due to the listing of Sinopharm, Fosun Pharma’s recurring earnings grew 28% year on year, and its basic earnings per share was RMB 0.46. It is said that the outstanding achievement of company’s recurring earnings is mainly from the continues growth of Fosun Pharma’s key enterprises of pharmaceutical manufacturing and pharmaceutical distribution and retail segments.

Pharmaceutical Manufacturing and R&D:

In terms of pharmaceutical manufacturing, Fosun Pharma continued to strengthen its product management and marketing team building, so as to realize the rapid development of the pharmaceutical business. In 2010, the segment realized prime operating revenue of RMB 2.812 billion, up 23.61% year on year; meanwhile, we gains segment profit of RMB 324 million, up 44.52% year on year.

In 2010, the company’s core pharmaceutical enterprises, such as YaoPharma, Wanbang Biopharmaceuticals and Shine Star (Hubei) Biological Engineering Co., Ltd are continuously fast growing, their total revenue increased by 28.43%. Key products on Atuomolan, Insulin, Amino Acid and Artesunate have kept leading position in segment market. Meanwhile, by acquiring and controlling Hongqi Pharmaceutical, the most important anti-tuberculosis drugs manufacturer at present, Fosun Pharma introduced anti-tuberculosis drugs product line, which has further enriched and optimized its product portfolio.

In recent years, with company’s fast-growing, Fosun Pharma’s input in R&D has been increased. In 2010, the company invested RMB 272 million in R&D, filed 78 filings of patent application, and obtained the new drug certification and the authorization letter for production of the two products, including Alprostadil Dried Emulsion, etc.

Cheng Qiyu, the chairman of Fosun Pharma, repeatedly stressed the company’s resolution of investment in R&D; he said that although the input in R&D is current expenditure for Fosun Pharma and reduces the company’s current profits, R&D is the cornerstone of company’s sustainable growth. Combined generic and innovation drugs, Fosun Pharma has been continuously improving the drugs R&D system and strengthens its innovation capabilities and product competitive power, and actively follows up the latest technological frontier in global pharmaceuticals industry through R&D platforms from companies such as Chongqing Pharmaceutical Institute, Chongqing Fochon and Henlius Biotech. At present, Chongqing Fochon has submitted 5 filings of PCT application; Henlius Biotech has completed the construction and screening for two monoclonal antibody cell lines, the study of pre-clinical pharmacology for one of them has been deployed. Furthermore, Handa Pharmaceutical has obtained FDA’s tentative approval for Quetiapine Fumarate Extended-release Tablets, the first-to-file generic product; and it is the first time that Chinese pharmaceutical enterprises get FDA’s tentative approval for the first-to-file generic product.

While strengthening domestic business, Fosun Pharma has been continuously forward the internationalization strategy and has achieved a positive progress. In 2010, the subsidiaries of Fosun Pharma have passed certain certification for their products, such as YaoPharma had passed the Canada Health’s GMP certification for the oral solid dosage, Guilin Pharma had passed the prequalification certification of WHO for Artesunate injection, and Chongqing Pharmaceutical Research Institute had passed the FDA’s GMP audit for APIs including iron sucrose and pemetrexed disodium, as well as Chongqing Carelife Pharmaceutical had passed the FDA’s GMP audit for the new production line of clindamycin hydrochloride, an API, which build solid foundations for exploiting the international markets of company’s products. Yao Fang, the President of Fosun Pharma, said while further strengthened its leading position in Chinese pharmaceutical industry; the company took the innovative strategies as guide to cater to both domestic and international markets andbuild the international competitiveness.

Drugs Distribution and Retail:

In 2010, Fosun Pharma profit of prime operating revenue in drugs distribution and retail business reached RMB 1.13 billion, an 8.68% increase year on year, and the company realized RMB 428 million of segment profits, a 13.33% rise year on year. Sinopharm Group, the associated enterprise of Fosun Pharmaceutical, had strengthened its leading position in Chinese pharmaceutical distribution industry and accelerated the industry consolidation, its sales revenue reached RMB 69.2 billion, a 31.45% rise year on year. Meanwhile, Fosun Pharma had been further strengthening its drugs retail business. In 2010, the company had took control of Golden Elephant Pharmacy via capital increase and had established the regional structure of “Southern For Me and Northern Golden Elephant”, meanwhile, For Me Pharmacy and Golden Elephant Pharmacy had continuously taken leading roles in the drugs retail sector of their region respectively, the store numbers of Fosun Pharma and the profitability were both ranking on the top in the regional markets.

Medical Devices and Medical Diagnosis:

Fosun Pharma profit of prime operating revenue in businesses of medical devices and medical diagnosis reached RMB 394 million, a 24.36% increase year on year. Furthermore, at the end of 2010, Fosun Pharma and the Chindex International initiated the restructuring for medical devices business of both parties. It is expected that after the restructuring, the medical devices business scale will enjoy a top rank in the country. On the other hand, for medical diagnosis business, Fosun Pharma has been accelerating the development in medical diagnoses field further by holding leading Gene Chip enterprise Yaneng Bio.

Medical Services:

Fosun Pharma had increased the investment in Chindex International and became the single largest shareholder, the company was also supporting and promoting the development of hospitals and clinic networks under the brand of United Family, which is the leading brand of the high-end medical services of Chindex International. Moreover, Company’s management is very positive on the development opportunities for high-end health care services.

With its sustainable and rapid development, as a corporate citizen, Fosun Pharma continually strives to commit the social responsibility. During the report period, the company not only steadily increases the input in environmental protection but also optimizes the production process and promotes the utilization of manufacturing facilities to realize energy saving and emission reduction as well as environmental protection. In addition, Fosun Pharma has been building and perfecting the long-term mechanism and emergency plan for adverse drug reaction monitoring; meanwhile, Fosun Pharma creates jobs actively, the cumulative number of company’s recruiting is over thousand within the scope of consolidated accounts in 2010; besides, during the report period, sponsored by China’s Ministry of Commerce, the company has continuously held two antimalarial training seminars to help the developing countries, specially African countries in malaria high incidental areas to proceed the antimalarial protection and control works.

Furthermore, Fosun Pharma has been released the corporation social responsibility report for continuous three years and has entirely presented the commitments, practices and performance on carrying out their responsibilities in aspects of economic, environment, staff and society; due to the full and accurate strategic illustration and the plenty of case presentation of the corporation social responsibility in 2009, among the 471 A-share companies which released the corporation social responsibility in 2009, Fosun Pharma, ranked No. 3, gained the Audience Choice Award of The Best Social Responsibility Report and retained the Best Corporation Social Responsibility Report in Pharmaceutical and Biological products Industry of A-share Companies.

In the future, Fosun Pharma will continue the task of promoting human health and insist on the brand concept of Sustainable Innovation and Shared Health, as well as actively seize the development opportunities from both global and domestic pharmaceutical market, the company shall also persist in the strategies of Endogenous Growth, External Expansion and Integrative Development, maintaining the healthy enterprise development.