About CONSUN PHARMA Company

We are a pharmaceutical company mainly engaged in research and manufacture of modern proprietary Chinese medicines and medical imaging contrast agents in China. According to a report by the Southern Institute of Pharmaceutical Economics, our leading product, uretoxin granules, is the leading modern proprietary Chinese medicine used in the treatment of kidney disease in China. From 2008 to 2012, the product continued to rank first in the Chinese modern proprietary Chinese medicine market for oral nephropathy in terms of retail sales, while in 2012 it accounted for 24.1% of the market share. In terms of retail sales, it also held the top three positions in the Chinese nephrology drug market between 2008 and 2012. According to a report by the Southern Institute of Pharmaceutical Economics, our other main product, gadoluene glutamine injection, ranked third in the Chinese medical imaging contrast market in terms of retail sales in 2012, accounting for 17.1% of the market share. We set up our own nephropathy drug research and development laboratory in 2006, which was recognized as the “Inner Mongolia Autonomous Region Enterprise R&D Center” by the Inner Mongolia Autonomous Region Government in November 2012. As of June 30, 2013, we have a dedicated in-house R&D team of 60 researchers, 4 of whom hold doctorate or master's degrees in pharmaceutical-related fields, and more than half of our researchers have more than 10 years of experience in the pharmaceutical industry. We also cooperate with many domestic research institutes, hospitals and universities to jointly develop new drugs, applications for existing products, product formulations, production methods or technologies, and benefit from their expertise, skills, resources and knowledge in these fields. We are committed to developing new drugs to address major unmet medical needs, with the aim of improving public health, seizing a major market share in emerging markets, and enriching our own product supply. As of the last practical date, we have seven products under development, including two potential nephropathy drugs, four potential medical imaging contrast agents, and a digestive system drug. As of June 30, 2013, we have established 31 contact points across 30 provinces, autonomous regions and municipalities in China. These points of contact enable our marketing team members to provide immediate marketing services and support to customers. As of June 30, 2013, our marketing team includes over 550 dedicated marketing representatives, most of whom have professional backgrounds in medicine, pharmacy, marketing, or other related fields. Since pharmaceuticals generally require customers to have a higher level of knowledge compared to general consumer goods, and since our main products are prescription drugs, we believe that sharing specialist knowledge and information with medical practitioners in hospitals, medical institutions, and pharmacies and collecting their feedback is essential for promoting our products. By doing so, we aim to improve and update practitioners' understanding of our specialty medicines and other information on related treatment fields. Through this interactive exchange, we directly promote our nephropathy drugs and medical imaging contrast agents to hospitals, medical institutions, and pharmacies. As part of our marketing activities, we sponsor and participate in national and international academic conferences, and host a number of academic conferences and invite well-known scholars to explain the efficacy of our specialty drugs and exchange views on future developments in related treatment fields. Furthermore, through cooperation with professional academic groups (such as the Chinese Medical Association and the Chinese Medical Doctors Association), we provide continuing education courses on nephrology and medical imaging contrast agents for medical physicians. Additionally, in order to achieve deeper market penetration in a more effective manner, we have hired independent third party distributors to distribute our nephrology medicines and medical imaging contrast agents. These third party distributors are GSP certified companies, have a huge regional sales network, and strong logistics support. They are only responsible for reselling and distributing products directly or indirectly through other lower-level distributors to hospitals, medical institutions and pharmacies. This kind of distribution arrangement allows us to concentrate resources for product development, manufacturing, and marketing, because there is no need to maintain a large GSP-certified distribution network with logistics coverage at our own expense.