CR SANJIU

CR SANJIU Medical Co., Ltd. ("CR SANJIU" for short) is a large state-owned holding pharmaceutical listed company, mainly engaged in the research and development, production, sales of pharmaceutical products and related health services. Since its listing, the company has been repeatedly awarded as one of the "Golden Bull Top 100" and "Value Top 100" enterprises among China's main board listed companies. Up to now, CR SANJIU has been included in the Shenzhen Component Index, CSI 500, and FTSE Russell Index. The predecessor of CR SANJIU was Shenzhen Southern Pharmaceutical Factory, established in 1985. In 1999, a joint-stock company was founded by five companies including the Sanjiu Enterprise Group and Shenzhen Sanjiu Pharmaceutical Co., Ltd.; on March 9, 2000, it was listed on the Shenzhen Stock Exchange (stock code: 000999); in 2008, it officially joined the China Resources Group; in 2010, the company name was changed from "Sanjiu Pharmaceutical Co., Ltd." to "CR SANJIU Medical Co., Ltd." CR SANJIU’s core business is positioned in the CHC health consumer goods and prescription drug sectors, with products covering a wide range of fields and continuously enriching its product lines and varieties. The CHC health consumer goods business covers nearly 10 categories including colds, skin, gastrointestinal, cough relief, orthopedics, pediatrics, dietary supplements, etc., with core products occupying a high market share; the prescription drug business covers treatment areas such as anti-tumor, cardiovascular and cerebrovascular, digestive system, orthopedics, pediatrics, etc., owning multiple prescription drug varieties like 999 Lixu brand Tongmai soft capsules, Shenfu injection, Mitozantrone Hydrochloride Injection for tracing, Huachansu tablets and injections, Yixuesheng capsules, Wangbi capsules, enjoying high reputation in the medical field. In 2022, CR SANJIU had 28 varieties with annual sales exceeding 100 million yuan, such as "999 Cold Remedy", "999 Dermatitis Ointment", "Sanjiu Weitai", "999 Children's Cold Medicine", "999 Antiviral Oral Liquid", "Qizhiweitong Granules", "Tianhe Gutong Plaster", "Essentiale", "Aonuo Calcium Zinc Gluconate Oral Solution", which hold leading positions in relevant categories. The "999" brand enjoys high recognition among consumers and in the pharmaceutical industry. Over the years, CR SANJIU has consecutively ranked on the "Most Valuable Chinese Brands List" published by WPP Group; consistently ranked at the top in the comprehensive ranking of OTC enterprises released by the China Non-prescription Drug Association, with "999 Cold Remedy Granules/Capsules" winning the first place in the category of cold and cough medicines (Traditional Chinese Medicine) for many consecutive years. Additionally, CR SANJIU has several products ranking at the forefront. CR SANJIU has always placed high importance on R&D innovation, with scientific research projects on company products such as "Shenfu Injection", "Safflower Injection", "Shenmai Injection", "Xintailin", "999 Lixu brand Tongmai soft capsules" being awarded the Second Prize of the National Science and Technology Progress Award five times. Entering the "14th Five-Year Plan", CR SANJIU continues to increase R&D investment around strategic directions, improve the innovation system and mechanism construction, and enhance innovation development capabilities. While strengthening industry-university-research cooperation, three research institutes focusing on innovative drugs, traditional Chinese medicine, and health products were successively established and put into operation; deepened innovative cooperation with Shenzhen Bay Laboratory, vigorously promoting clinical research related to the anti-tumor innovative drug QBH-196 project. In 2022, CR SANJIU invested 736 million yuan in R&D, with a significant increase in the proportion of new product R&D investment, achieving positive progress in new product initiation, product development, and product strength enhancement. The company has 77 ongoing projects, adhering to a combination of generic and innovative approaches, primarily focusing on strategic fields such as anti-tumor, cardiovascular and cerebrovascular, orthopedics, dermatology, respiratory, digestive, gynecology and pediatrics, and anti-infective for product layout. CR SANJIU highly values the inheritance and innovation of traditional Chinese medicine, continuously paying attention to the research of classic prescriptions, standards of Chinese medicine formula granules, and medicinal resources, currently researching more than twenty classic prescriptions. By cooperating with well-known domestic scientific research institutions, it promotes the research and application of national standards for Chinese medicine formula granules. CR SANJIU continuously pays attention to high-quality resources both domestically and internationally, exerting efforts in strategic mergers and acquisitions. In 2022, the company completed a major asset acquisition of 28% shares of Kunming Pharmaceutical Corporation, with a total transaction price of 2.902 billion yuan. The share transfer was completed on December 30, 2022. Kunming Pharmaceutical Group and CR SANJIU have good synergy in brands, products, and channels, empowering each other in the development of the Notoginseng industry and the "Kunming Traditional Chinese Medicine 1381" brand, promoting Kunming Pharmaceutical Group to become the first stock in the silver economy health sector. Against the backdrop of continuous changes in the pharmaceutical industry environment, CR SANJIU leads "high-quality development" through innovation, adhering to the dual-wheel drive of brand and innovation, continuously undergoing innovative transformation and upgrading, strengthening brand and channel construction, increasing innovation investment, improving operational quality and efficiency, solidifying its industry position, and achieving sustained growth in operating performance. In 2022, the company achieved operating revenue of 18.079 billion yuan, an increase of 16.31% year-on-year; net profit attributable to shareholders of the listed company was 2.449 billion yuan, an increase of 19.16% year-on-year. During the "14th Five-Year Plan" strategic period, CR SANJIU will benchmark against world-class enterprises, improve business layout, expand its core business to cover all self-medication fields; focus on pipelines for developing businesses, empower core businesses, forming a "deep-rooted and flourishing" business model. Looking forward, CR SANJIU will always remember its original mission, strive hard, forge ahead, under the guidance of the mission "Caring for Public Health, Creating a Better Life", moving towards the goal of becoming the leader in China's mass pharmaceutical health industry; innovatively applying Chinese and Western medical science and technology, focusing on the innovative R&D and intelligent manufacturing of high-quality pharmaceutical and health products, serving every member of Chinese families, aiming to become the number one brand in China's pharmaceutical and health industry.