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Sinochem Pharmaceutical 2020 Work Conference: Practicing Scientific Development Concept and Promoting Healthy Growth of the Company

On January 6, 2020, the 2020 Working Conference of Sinochem Pharmaceutical Co., Ltd. was successfully held in Nanjing. At the Conference, the Company comprehensively reviewed and summarized the the operating situation in 2019, and arranged and deployed the key work tasks in 2020.


Promoting Connotation to Help Increase the Company's Performance

Huang Yonghong, the CFO, firstly made a 2019 summary report of Sinochem Pharmaceutical.

Mr. Huang pointed out that although the operating environment in 2019 tends to be severe, but the Company's operating performance still maintains rapid development. The main assessment indicators such as EBITDA, total profit, ROIC and ROE in the current period have all achieved a significant year-on-year growth, and higher than that of the benchmarking enterprises. The profitability of the Company continued to rise, with responsible profits rising 45% year-on-year and reaching a new high, with a compound annual growth rate of 53% in the past five years and a more balanced profit structure.

The summary report also pointed out that the performance growth in 2019 was mainly due to the Company's implementation of the development concept of "Science is Sovereign" The proportion of high connotation businesses have increased significantly under the promotion of this concept.

Under the environment of changeable policies, our medical device business has always followed the pace of the national medical reform, continuously improving its comprehensive service capability to creat more value for manufacturers, hospitals and patients. The Company introduced high-quality product lines throughout the year, which further expanded the coverage rate of tertiary hospitals in Jiangsu province to 66%, and improved the distribution of storage and logistics in Nanjing, Jiangxi and other provinces. At the same time, the new information system was officially launched.

As regarding to the drug business, the Company has deepened its cooperation with Japan and other high-end customers in customized research and development in the business of bulk drugs and pharmaceutical intermediates. Also, we have strengthened cooperation with industrial units of the chemical division such as Shenyang Research Institute Of Chemical Industry. While for pharmaceutical business, the Company has strengthened its strategic layout in Southeast Asia and other markets, and has further improved its knowledge in pharmaceutical laws and regulations.

At the Conference, the Company also awarded the "Best Business Partner Award", "Scientific Development Practice Award" and "Strategic Promotion Award" to the individuals and teams that performed outstanding in 2019, so as to encourage the individuals and teams that continuously improved their business connotation and promoted the landing of the Company's strategic issues.


Win Future Competitiveness through Scientific and Technological Innovation

Xie Xianfeng, General Manager of Sinochem Health Company Ltd, attended the Conference. He laid out the work in 2020 and guided the future development direction around the topics of business model design, core commodity operation and connotation enhancement of drug business.

At the Conference, Dong Jianhua, member of the Party Committee of the Chemical Business Division and chairman of Sinochem Health, gave a report on 2020 development of the Company.

Firstly, Mr. Dong led the participants to learn the management policy of the Chemical Business Division in 2020 while highlighted Lianyungang Circular Economy Industrial Park, New Materials Project, New Energy Project and other key strategic issues of the Chemical Business Division.

Mr.Dong pointed out that the overall development direction of the Chemical Business Division is an innovative fine chemical enterprise driven by science and technology. Sinochem Pharmaceutical must carefully analyze the industrial chain of the Business Division, cooperate upstream and downstream in pharmaceutical intermediates and other links, and actively integrate into the main business of the Business Division. Judging from the international benchmarking, BASF, DuPont and other large chemical enterprises all take medical and health services into their business portfolios, which account for a relatively high proportion. Sinochem Pharmaceutical should learn from the development ideas of their pharmaceutical sector.

Based on the analysis of the internal and external environment, Mr.Dong further pointed out the strategic objectives for everyone. In 2020, the Company's primary task is to promote its own integration strategy of research, production and marketing by following the strategic thinking of the Chemical Business Division.

On the one hand, the Company should increase investment in science and technology, upgrade the software and hardware of the research and development center and the talent team in an all-round way, and cultivate the core R&D capabilities; On the other hand, it is necessary to continuously reserve higher quality industrial project resources, focus on the introduction and incubation of pharmaceutical intermediate projects, cooperate with the system resources such as SYRICI’s Pilot Test Base, and actively look for industrial opportunities. The Company should pay more attention to the innovation of management pattern of medical device business, establish an efficient operation and management system at the business level, build a strong platform for orthopaedic products, continuously cultivate potential varieties such as cardiology, and strengthen comprehensive service capabilities.

At the end of the Conference, Mr.Dong stressed that only by insisting on scientific and technological innovation can enterprises build their future competitiveness. The Company should unswervingly integrate into the mainstream industry of the Chemical Business Division, continuously accumulate industrial projects and seek breakthroughs, so as to insert the wings of science and technology into the traditional business and lay a solid foundation for the sustainable development of the medical and health business.