Dear colleagues:

How time flies. The year of 2021 is passing, and the new year of 2022 is coming. At the year beginning, I would like to express my heartfelt thanks to all my colleagues for your hard work and outstanding contribution in the past year, and extend my sincerest New Year wishes on behalf of the company!  

2021 is a year of harvest.

The industry situation was complicated and changeable, and the epidemic raged like fire. But we always adhered to the corporate culture of "harmony, innovation, integrity and dedication". We kept pace with the times, responded different situations positively, and achieved a lot in the drug and device sectors. In 2021, the Company's sales volume of medicines and devices reached 650 million and 100 million respectively.

With the emergence of various national and local medical policies such as volume-based procurement, medical insurance negotiation and catalogue selection of basic medicines, the competition on market access of medical device industry is becoming increasingly fierce. In 2021, we completed access coverage of medicines and devices in most provinces and cities in China; obtained the 2+N volume-based procurement of Calcitriol Soft Capsules in Jiangsu and Xinjiang, and won the bid of volume-based procurement of Budesonide Nasal Spray exclusively in Wuhan, Jinan and Anhui.   

Our Miconvey ultrasound knife won the bid in the centralized volume-based procurement project of ultrasonic cutter head in the 16-Province Area leaded by Guangdong. At this moment, all the employees of the sales team of our domestic business department are fighting in full swing at the front line of the "221 Campaign" in 16 provinces. On behalf of the Company, I would like to express my most sincere thanks and blessings to the colleagues who are far away from your hometown, and hope to hear the news of your triumphant return as early as possible.   

2021 is a year of transformation.

Excellent performance is inseparable from powerful strategy of organization. In 2021, each department performed brand new organization and construction on management. Business Department I introduced an internal promotion system and promoted a group of young cadres who have grown up in the Company. Business Department II gradually improved and established a professional marketing team to protect the broader market development. OTC Business Department got ready and further improved the quality of agent team and the order of terminal market through active measures such as agent comparison and selection, direct connection of business flow, promotion of cooperative marketing mode. Domestic Business Division of Devices carried out a large number of live surgery and clinical guidance by expert doctors throughout the country, which not only enhanced the brand awareness, but also improved the clinical satisfaction, and promoted the long-term and stable cooperative relationship between hospitals and the Company.

In 2021, the research and development team of the Company grew stronger and stronger. It explored a more integrated, coordinated and efficient R&D work mode and introduced several new medicines in focus areas, which successfully promoted the consistency appraisal of Calcitriol Soft Capsules. In terms of devices, it practiced the registration path in Hunan Province, and fully promoted the early launching of electric stapler. The Supply Chain Center of the Company was also trained and grown with the continuous development of business. It successfully completed the technological transfer of Calcichew D. The machining projects were performed one after another. All these have laid a solid foundation for the cost-reducing strategy of the Company's devices.

The management mode of the Company is also gradually becoming mature through continuous trials. With the comprehensive study of the "13+1" management system from up to down, the Company unified the management language, laying a foundation for building a sustainable and healthy organization. The Management and Operation Platform composed of General Manager Office, Administrative Risk Control Center, Human Resource Center, Operation Center, Finance Center and Public Service Center actively explored and promoted efficient management and operation mechanisms.

All these outstanding achievements cannot be separated from the sincere unity and joint efforts of all colleagues. It is precisely because of persistent following and dedication of every one in challenging difficult times that our cause can develop rapidly and steadily, and be more brilliant. Here, I would like to express my heartfelt thanks to all of you!

All the past is a prologue of the future.

2022 is going to come. At the beginning of the new year, we should know changes accurately, strive for progress steadily and promote stability by progress.

2022 is a crucial year for the Company to embrace change, conduct transformation and upgrading, and accelerate development. The Company will continue to work hard in marketing management mode, product pipeline layout, market access and other directions with more determined determination and bold actions. I hope that all employees will find your values on the great ship of the Company, implement the action plan in a down-to-earth manner, continue to fight for the blueprint of the Company with wisdom, sweat, diligence and courage and work with the Company to contribute to a better future!

Finally, I wish all the colleagues and your family a happy New Year, success, health and happiness!

Chairman: Lan Jianhua

December 31, 2021