In 2011, Fosun Pharma overcame the adverse macro-environment of external economy, through focusing on the core pharmaceutical business, persisting in product innovation and management promotion, as well as adhering to the strategic development pattern of “endogenous growth, extensive expansion and integrated development”, and its main business has remained fast growth trend.

During report period, Fosun Pharma’s main business income reached RMB6.486 billion, a year-on year increase of 42.37%. Along with the robust sale force, Fosun Pharma’s operating profit, total profit and net margin achieved major increase. The net profit of shareholders of its affiliated listed company totaled RMB1.166 billion, a year-on-year increase of 34.96%.

The fast growth of Fosun Pharma’s performance is mainly attributed to its rapid expansion over pharmaceutical manufacturing business. During the report period, the revenue of Fosun Pharma’s pharmaceutical business reached RMB3.867 billion, a year-on-year increase of 35.22%, and total profit of branches reached RMB746 million, a year-on-year increase of 50.32%, thanks to its years of pharmaceutical R&D and manufacturing development and also to the achievements of several successful mergers and acquisitions over recent years. Fosun Pharma’s major products in therapeutic areas, such as metabolism, alimentary canal, cardiovascular system, central nerve system, blood system, and anti-infective, have retained its leading position in each market segment in China. The sales of 9 of its major products in the above areas are over RMB100 million, including Atuomolan（Glutathione, GSH), Wansuping (Glimepiride Tablets), Wansulin (Isophane Insulin Injection), Xichang (Cefmetazole Sodium Injection), Adegold (deproteinized hemoderivative of calf blood injection, DHCBI), Bangting (Hemocoagulase injection), and Molodan (Traditional Chinese Medicine), and so forth.

Fosun Pharma has continued to improve the Research and Development System on the combination of innovative and generic drugs, as well as proactively followed up the cutting edge technology over global pharmaceutical industry. It also has constantly advanced the R&D of generic and patent drugs in the fields of patent challenging generic drugs(Paragraph IV ANDAs), Small Molecule Innovative Drugs，Monoclonal antibodies and so on, so as to strive to advance the core competitiveness for the company. In 2011, Fosun Pharma was awarded to Innovative Enterprise by Ministry of Science and Technology. Its accumulated annual investment on R&D totaled RMB 310 million, and the numbers of its new drugs and vaccine items under researching totaled 118; overall 5 product categories have obtained production approval within the year. The number of patent application amounted to 70. The new products put in the market recent years and the products going to be introduced into the market in near future will bring a new force to the performance development of the company.

Sinopharm continuous to speed up its industrial consolidation over pharmaceutical distribution sector to maintain and consolidate its dominant position, being the biggest distributor on medicine and healthcare products and the leading supply chain service provider. In recent years, as the second biggest shareholder of Sinopharm (1099.hk), Fosun Pharma has emphasized on reinforcing the strategy synergy with Sinopharm and by virtue of Sinopharm’s channel advantage to improve its sales layout. In 2011, the sales revenue of Sinopharm firstly went over hundreds of billions, gaining a year-on-year substantially increase in net profit, which further strengthened its leading place on pharmaceutical distribution sector. The main business revenue for corporate pharmaceutical distribution and retail business in 2011 reachedRMB1.44 billion, a year-on-year increase of 25.48%; as for pharmacies like For Me Pharmacy and Golden Elephant Pharmacy have continuous maintained their brand predominance and profitability advantage in their respective regions.

Meanwhile, when Fosun Pharma emphasizes on developing core pharmaceutical businesses, it proactively develops medical services sector and further strengthen the competitive edges on medical diagnostics and medical devices.. At present, Fosun Pharma has built strong base on domestic high-end medical services sector. The company continues to sustain and promote leading brand over high-end medical services under Chindex International, Inc., which gained an increase of 19.92% in 2011 over the same period of 2010. Fosun Pharma has also bought Anhui Jimin Cancer Hospital and Yueyang Guangji Hospital to discover a business model that not only has its own feature but applies to the developing direction of service industry in China.

As a front runner in china’s pharmaceutical and healthcare industry, Fosun Pharma has always been committed to build a more harmonious industrial ecosystem, and continuous to promote the strategy of sustainable development over products and services, and people. Meanwhile, it also constantly make advance in terms of corporate governance, economy, environmental protection, products quality , staff, society and undertakes the responsibility as a corporate citizen. In the corresponding period, Fosun Pharma also discloses 2011 social responsibility report.

Mr.Yao Fang, President of Fosun Pharma, indicated that “multiple important links in the industrial chain over pharmaceutical and healthcare, including R&D, manufacturing, distribution and retail, as well as terminal market and stuffs, have been strategically covered by Fosun Pharma. In the future, We shall increasingly uphold the concept of “Innovation for Good Health” and repeatedly pay attention to the opportunities brought by fast industrial growth, integration, healthcare reform, as well as policy adjustment, so as to become a globalized pharmaceutical enterprise with international competitiveness.