About CONSUN PHARMA Company

We are a pharmaceutical company mainly engaged in the 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, uremia tablets, is the leading modern proprietary Chinese medicine used to treat kidney disease in China. From 2008 to 2012, the product continued to rank first in the Chinese market for oral modern proprietary Chinese medicines for kidney diseases in terms of retail sales, while in 2012 it accounted for 24.1% of the market share. In terms of retail sales, it also ranked among the top three in the Chinese nephrology drug market between 2008 and 2012. According to a report by the Southern Institute of Pharmaceutical Economics, our other major product, gadoluamide injection, ranked third in the Chinese medical imaging contrast agent market in terms of retail sales in 2012, accounting for 17.1% of the market share. We set up our own nephrology 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, four of whom hold doctorates or master's degrees in pharmaceutical-related fields, and more than half of our researchers have over 10 years of experience in the pharmaceutical industry. We also cooperate with many research institutes, hospitals and universities in China to jointly develop new drugs, applications of 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 key unmet medical needs, with the aim of promoting improved public health, capturing a major market share in emerging markets, and expanding our product supply. As of the last feasibility date, we have seven products in development at various stages of development, including two potential kidney disease drugs, four potential medical imaging comparators, and one digestive medicine. As of 2013/6/30, we have established 31 contact points across 30 provinces, autonomous regions and municipalities directly under the Central Government of China. These points of contact enable members of our marketing team to provide immediate marketing services and support to customers. As of June 30, 2013, our marketing team included over 550 full-time marketing representatives, most of whom have professional backgrounds in medicine, pharmacy, marketing, or other related fields. Since pharmaceuticals generally require a higher level of knowledge from customers compared to general consumer goods, and since our main products are prescription drugs, we believe that sharing specialist knowledge and information and gathering feedback from medical practitioners in hospitals, medical institutions, and pharmacies is essential to promote our products. Through this, we aim to improve and update practitioners' knowledge of our specialty drugs and other information in related treatment fields. Through this interactive exchange, we directly promote our nephrology 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, host a number of academic conferences and invite renowned 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 Physicians' Association), we provide continuing education courses for practicing physicians on nephrology and contrast agents for medical imaging. Additionally, to achieve deeper market penetration in a more effective manner, we hire independent third party distributors to distribute our nephrology medicines and medical imaging contrast agents. These third party distributors are GSP certified companies and have a huge regional sales network with strong logistics support. They are only responsible for reselling and distributing products directly or indirectly to hospitals, medical institutions and pharmacies through other sub-distributors. This distribution arrangement allows us to concentrate resources for product development, manufacturing, and marketing because we don't have to maintain a huge GSP-certified distribution network with logistics coverage at our own expense.