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Sihuan Pharmaceutical Announces 2012 Annual Results
Date:3/25/2013

, 28.8% and 64.6% to RMB13.7 million, RMB14.4 million, RMB52.8 million and RMB58.2 million, respectively.

Enhanced Sales and Marketing EffortsTo achieve a more balanced and diversified product portfolio, the Company rode on the expansion in medical insurance coverage to step up its marketing efforts for both its promising products and established products. During the year, the Company focused in strengthening the academic promotion for its promising products, boosting recognition of its key products through clinical trials, expanding the coverage of its established products in low-end market, as well as expanding its sales and marketing team. The Company also completed the integration of the sales team and distribution network of companies acquired after its listing into that of the Company.

Breakthroughs in Research and Development Projects ("R&D")With its unremitting efforts in R&D over the years, the achieved significant breakthroughs in a number of major projects during the year. For its generic drugs, Roxatidine Acetate Hydrochloride for Injection, an exclusive first-to-market generic drug, and Nalmefene Hydrochloride Injection, a Category 3.1 generic drug, obtained approval for production; for its innovative drugs, Benapenem and Imigliptin Dihydrochloride, Category 1.1 innovative drugs, received Approval for Clinical Studies in January and February 2013 respectively.

In a bid to enhance its R&D efficiency, the Company completed the restructuring of its innovative drug R&D team Xuanzhu Pharma Co., Ltd ("Xuanzhu Pharma", or known as KBP BioSciences Co., Ltd.) which made it a wholly-owned subsidiary of the Company. Under the Company's overall development strategy, Xuanzhu Pharma will focus its resources on developing innovative drugs in major therapeutic areas such as CCV, metabolism and oncology.

Forged Collaboration with International PlayerIn 2012, the Company entered into a collaborative agreement with NeuroVive
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SOURCE Sihuan Pharmaceutical Holdings Group Ltd.
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