[30 October, 2017, Hong Kong] On 30 October 2017, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma” or “the Company”, stock code: 600196.SH, 02196.HK) released its Q3 results, which demonstrated a sound performance.

In the first three quarters of 2017, Fosun Pharma recorded an operating revenue of RMB12.96 billion, representing an increase of 21.83% year on year; net profit attributable to equity holders of the Company was RMB2.419 billion, representing an increase of 11.13% year on year; net profit attributable to equity holders of the Company after deduction of non-recurring profit or loss was RMB1.856 billion, representing an increase of 11.70% year on year.

In the “organic growth” aspect, Fosun Pharm always regards innovation as the driving force for its business growth. During the reporting period, the Company continued increasing R&D investment in monoclonal antibody biological innovative drugs, biosimilars, small molecule innovative drugs and as well as consistency evaluation. R&D expenses amounted to a total of 700 million RMB, representing a 45.90% increase from the same period in 2016. The R&D outcome of Henlius, the biologics platform of Fosun Pharm, is remarkable during the reporting period. HLX02, a Recombinant Humanized Anti-Her2 Monoclonal Antibody Injection self-developed and manufactured by Henlius, has duly received the approval from the Pharmaceutical Registration Office of Poland, pursuant to which phase III clinical trial for indications for metastatic breast cancer could be carried out in Poland. Meanwhile, HLX02 project has simultaneously carried out clinical trial and R&D in the international multi-center in mainland China and Ukraine, which is expected to benefit both international and domestic metastatic breast patients with affordable innovative drugs. Moreover, Henlius received FDA approval for drug clinical test for HLX10 - Recombinant Humanized Anti-PD-1 Monoclonal Antibody Injection and recombinant Humanized VEGFR2 Monoclonal Antibody Injection (HLX06) that are mainly designed to treat the solid tumor.

In the "external expansion" aspect, during the reporting period, Fosun Pharma adjusted the acquisition scheme of Gland Pharma, a leading Indian pure-play generic injectable pharmaceutical products company, to establish a closer partnership with the management team for the purpose of jointly promoting the Gland Pharma’s steady and sustainable development; the acquisition has been completed in October 2017.

With Fosun Pharma's leading global provider of energy-based medical aesthetic treatment systems Sisram Med successfully listed in Hong Kong, as the first Israeli listed company in Hong Kong, the international advantages of Fosun Pharma’s medical device sector will be more obvious. In future, on the basis of actively integration, it is expected to vigorously expand cooperation with foreign enterprises, seek investment opportunities of excellent domestic and foreign medical device enterprises, and introduce high-end medical devices to achieve the scale growth of medical device business on the aim of precise medical care.

In addition, in the medical service sector, Fosun Pharma further responds to the call on private capital’s participation in the mixed ownership reform of public medical institutions. Shanghai Fosun Hospital Investment (Group) Co., Ltd., a subsidiary of Fosun Pharma, entered into an agreement with the Second People’s Hospital of Huai’an (the “Huai’an Second Hospital”) to make joint investments in establishment of a new hospital. The cooperation is conducive to integration of high-quality medical resources with Huai’an Second Hospital and Fosun Pharma’s professional medical investment management experience and technical resources, to jointly construct a modern hospital management mode and to establish first-rate healthcare service institution.

Fosun Pharma management stated that the company is dedicated to becoming a leading internationalized and intelligentized company in the medical healthcare industry, with the capability of reinforcing innovation and integration in pharmaceutical manufacturing sector and owning competitive edges in healthcare service sector. Base on it, the company has put forward 4 “IN” in its strategy this year, they are “Innovation”, “Internationalization”, “Integration” and “Intelligentization”. The company will continue to adhere to its strategies of “organic growth, external expansion and integrated development”, seize the development opportunities of healthcare services, focus on innovative and R&D and strengthen investment in pharmaceutical research. Meanwhile, Fosun Pharma will promote internal resources integration and business development, further enhance its core competence to create more value for shareholders.