Our Company was formerly named Yichang Changjiang Pharmaceutical Company Limited (宜昌長(zhǎng)江藥業(yè)有限公司), a limited liability company incorporated in Yichang City, Hubei Province, the PRC on 8 August 2001, which was converted into a joint stock limited liability company in the PRC on 11 May 2015 and with a registered capital of RMB360,527,450, where located at No. 38 Binjiang Road, Yidu, Yichang,Hubei Province, PRC.
We are a PRC pharmaceutical manufacturing company that focuses on the development, manufacturing and sale of pharmaceutical products in the therapeutic areas of anti-virus, endocrine and metabolic diseases and cardiovascular diseases. We currently manufacture, market and sell a total of 33 pharmaceutical products in the PRC, and we have established an extensive distribution network within the PRC.
In March 2006, Oseltamivir Phosphate Licensor licensed the right to manufacture and sell oseltamivir phosphate products to institutions controlled by the PRC government in the PRC for pandemic prevention and control to one of our Controlling Shareholders, Shenzhen HEC Industrial. Shenzhen HEC Industrial is also entitled to extend the benefit of the licence agreement to our Company. The granules form of Kewei was introduced by the Group with a view to target the paediatrics market in the PRC and we are the only manufacturer of the patent-protected granule form oseltamivir phosphate in the PRC, which has allowed us to secure a strong position in the anti-influenza virus product market in the PRC.
According to PICO, our anti-influenza virus product, Kewei (oseltamivir phosphate) accounted for 0.5%, 3.8% and 8.2% of the market value of the PRC anti-influenza virus product market (based on retail prices, excluding traditional Chinese medicine products) in 2012, 2013 and 2014, respectively, ranking us amongst the top four pharmaceutical companies in the PRC anti-influenza virus product market in 2014. According to PICO, we were ranked first in the PRC in terms of turnover from the sale of oseltamivir phosphate products in each of 2013 and 2014. Over the longer term, our objective is to become a leading pharmaceutical company in the therapeutic areas in the PRC that are applicable to us. we also have a pipeline of competitive products in our key therapeutic areas (especially insulin type products) which we believe will allow us to achieve further growth to our business.
We have entered into the Strategic Cooperation Agreement with Shenzhen HEC Industrial. Under the terms of the Strategic Cooperation Agreement, we have a pre-emptive right to acquire the products being developed by HEC Research Group. By reference to the number of patents filed in the PRC, HEC Research Group is one of the leading pharmaceutical research institutions in the PRC, with over 1,200 research fellows, including four experts selected to the PRC Government’s “National 1,000 People Plan” (國(guó)家“千人計(jì)劃”)2 and one officer selected to the “Young Leadership Programme” (青年領(lǐng)軍人才). HEC Research Group also has a number of research collaboration with various research partners overseas, as well as in the PRC.
