Fosun Pharma realized the prime operating revenue of RMB 3.49 billion in the first half year of 2012, up 12.6% year on year. The company gained net profit attributable to the shareholder of the listed company reached RMB 702 million, which was due to the rapid growth of sales of Fosun Pharma’s key products of pharmaceutical industry and net profit of the Sinopharm Holdings, and the net profit deducting the non-recurring profit and loss reached RMB 401 million, up 38.0% year on year.

The Year 2012 is the tenth year that Fosun Pharma has stepped into the pharmaceutical manufacturing and R&D business, through years of M&A, integration, R&D and marketing, Fosun Pharma has core products occupying the leading market position in indications including the metabolism, alimentary canal, cardiovascular system, central nerve system, blood system, anti-infective and so on. In the first half year of 2012, the sales of the core products in the above therapeutic areas has obtained growth of different degrees, meanwhile, the sales of the new products such as You Di Er (Alprostadil Dried Emulsion for Injection), Xi Mei Xin(Ademetionine 1,4-Butanedisulfonate for Injection) also have good performance. During the report period, the revenue realized 2.18 billion in pharmaceutical manufacturing , up 23.2% year on year. Moreover, the company has also achieved good result in the developing of R&D and manufacturing quality system, and it has submitted the clinical application to the State Food and Drug Administration for a monoclonal antibody product, and has obtained production approval of 4 products, including pemetrexed disodium, meanwhile, another combination medication of the Artesunate series has passed the supplier qualification by World Health Organization (WHO).

In terms of distribution, Fosun Pharma’s associate company Sinopharm consolidated its leading position with total revenue of RMB66.56 billion and net profit of RMB959 million attributable to shareholders in the first half of 2012, up 38.7% and 22.3% respectively year on year and had distribution network that covers 178 cities with direct hospital clients accounting for 74% of the total in the country. Fosun Pharma will continue enhancing its strategic synergy with Sinopharm, seeking to distribute its pharmaceutical products through the channel of Sinopharm and making use of channel advantages of Sinopharm to improve its own distribution layout. In terms of retail sale of medicines, Fosun Pharma and Sinopharm had retail pharmacies of 670 and 1800 respectively throughout the country in the first half of 2012, taking a leading position in major cities such as Beijing and Shanghai.

In terms of healthcare service, Fosun Pharma embarked on the project in a number of hospitals, while fostering healthcare service segment. In the first half of 2012, the company started the transformation and upgrading of Jimin Cancer Hospital and Yueyang Guangji Hospital under its control and the cultivation and introduction of medical personnel. In the first half of 2012, the healthcare service segment generated revenue of RMB75.969 million, up 72.3% year on year. Meanwhile, the company kept on accelerating the development and layout of “United Family” hospitals & clinics, the high-end healthcare service brand of Chindex. In the first half of 2012, Chindex saw 33.5% and 29.6% year-on-year increase in revenue and operating profit, which reflected stable business growth of “United Family” hospitals in Beijing, Shanghai and Tianjin.

Through over-ten-year efforts of Fosun Pharma’s senior management and employees, pharmaceutical manufacturing and pharmaceutical distribution have become two major profit engines of the company. In the future, Fosun Pharma will continue expanding and strengthening these business segments through seizing the opportunities of industrial integration and business model transformation brought by healthcare system reform in China and vigorously build healthcare service into the third profit engine so as to become the leader in China’s healthcare industry.