Ready to Advance Strategic Leaps

Sinochem Pharmaceutical celebrated its 50th birthday with the sound of the New Year's bell. At the beginning of the New Year, Sinochem Pharmaceutical held the 2023 Work Conference in Nanjing to summarize and review the strategy promotion and operation & management in 2022, analyze the internal and external environment, and plan the operation & management in the New Year. All employees of Sinochem Pharmaceutical attended the meeting, which was presided over by Mr. Jin Shanliang, General Manager of Sinochem Pharmaceutical.

Looking Back 2022   Industrial Strategy Breakthroughs   Solid Business Performance Growth

—Sinochem Pharmaceutical Chief Financial Officer Huang Yonghong—

Sinochem Pharmaceutical's Chief Financial Officer, Mr. Huang Yonghong, presented the annual performance report of the company. In 2022, despite the severe business environment, the company's development was positive across the board, with operating results growing against the trend, the company's profits maintaining steady growth for the tenth consecutive year, the nutrition ingredients + CDMO industry platform project making a breakthrough, the quality of operation remaining good, and successfully completing the business targets set at the beginning of the year.

Completion of Key Tasks in 2022

R&D

Increase R&D investment, improve R&D hardware and software strength, and successfully complete various R&D tasks of industrial projects and customized marketing business.

Industrial projects

Nutrition ingredients + CDMO industry platform project has passed comprehensive technical demonstration, with the formation of the team and the approval of the superior department.

Pharmaceutical business

Continue to push forward three connotative improvement measures, namely R&D customization, registration and core product cultivation. The profit ratio of connotative business increased by 9%, and the gross profit of pharmaceutical business exceeded RMB 100 million Yuan for the first time, reaching a record high.

Device business

Actively resolve the risk of group purchase, constantly promote the independent marketing and cultivation of business increment, and maintain stable operation in the current period.

During the meeting, the company presented three awards, namely "Strategy Promotion Award", "Scientific Development Practice Award" and "Best Business Partner Award", to teams and individuals with outstanding performance in 2022 for their contributions in promoting breakthroughs in strategic matters, enhancing business contents and improving business quality and efficiency.

Looking Forward to 2023   Ready to Advance Strategic Leaps

Member of the Party Committee of Chemical Industry Division & Sinochem Pharmaceutical Executive Director Dong Jianhua

Dong Jianhua, Member of the Party Committee of Chemical Industry Division & Sinochem Pharmaceutical Executive Director, presented the Sinochem Pharmaceuticals 2023 Development Report. Mr. Dong pointed out that after the revision of the development strategy in 2022, the company has clarified the future development direction. 2023 is the key year for the company to fully initiate the transformation strategy of integration of research, production and marketing. The company should, on the one hand, pay attention to the current operation, promote and perfect the marketing improvement, and ensure the completion of the task of 8% growth in sales revenue and profit in 2023; on the other hand, the company should solidly promote the R&D and industrial strategy to ensure that all key tasks are carried out as planned.

Development Ideas for 2023

Industrial Strategy: Break ground and make a comprehensive breakthrough

Vigorously promote the project of nutrition ingredients + CDMO industry platform project, coordinate internal and external resources to complete various preparatory work before the project commences, and then commence within this year.

R&D Strategy: Coordinate production and marketing to enhance capacity

Focus on key technical fields such as synthetic biology and continuous processing, and supplement related hardware equipment and professionals to build a high-level R&D center. Complete the pilot test during the whole process of industrial projects, to ensure the needs of industrial projects; continue to do a good job of technology accumulation for timely delivery of R&D customized projects with satisfying quality.

Marketing Strategy: Improve the contents and add value to services

Maintain the stable performance of the current period, continue to strengthen the ability of R&D customization and registration support for pharmaceutical business, strengthen the cultivation of main commodities, accumulate product resources, and improve the market position in the segmented drug field; for device business, improve the technical service ability for the application of medical materials and value-added service ability for the circulation of medical devices, and build an integrated service provider from medical materials to medical devices.

Internal Management: Improve the quality & efficiency and enabling development

Guide by Party building, escort by discipline inspection and lead by HSE, improve the construction of compliance system and improve operation efficiency according to the requirements of the Group and business divisions; adhere to the concept of scientific development and maintain the momentum of development; strengthen the building of R&D industry team, and enhance marketing capabilities.

In the end, Mr. Dong reviewed the development history of the company with everyone. The company was founded in 1973, and it has been 50 years since then. It has experienced different stages of monopoly management, survival in chaos, and stable development. The company's development in the past ten years has been attributed to its persistent forward thinking and layout in development strategies and its corporate culture of pragmatism, diligence and good learning. In the future, the company will adhere to the development direction of integrating research, production and marketing, constantly optimize the corporate culture, improve the executive power of strategy and management, open up the future with hard work, and push the company's business performance and market position to a new height.