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CR Pharmaceutical is a leading provider of medicine supply chain solutions in China. We have a leading medicine distribution and retail platform with nationwide network coverage in China, providing highly specialized and efficient logistics distribution, marketing and other innovative value-added services of medicines for upstream suppliers and downstream customers.

Our medicine distribution network covers 28 provinces, municipalities and autonomous regions across the country, with more than 130,000 customers, including 9,421 secondary and tertiary hospitals and nearly 70,000 primary medical institutions. We have 208 logistics centers, and set general logistics warehouses in Beijing and Shanghai, which was responsible for medicine distribution during the Beijing 2022 Olympic Winter Games. Therefore, we have the ability to store and distribute the drugs with temperature-controlled requirements across the country.

We make constant efforts to seek international opportunities in strategic cooperation, product introduction and joint venture cooperation to rapidly enrich and optimize our product portfolios. Over the past one year, more than 30 newly launched innovative drugs have been introduced, and the acquisition rate of bulk-buying varieties exceeded 60%. At the same time, we actively cultivated our capabilities in port import services and registration inspection. In 2021, we established the Hainan port business, thus enhancing exchanges and cooperation with high-quality international partners, and strengthening the introduction of imported varieties. The annual sales of imported products amounted to approximately RMB 12.7 billion, and 17 new products were introduced (including the import and distribution rights of three varieties of medicines, seven varieties of equipment and five varieties of healthcare). We also established cooperation with Mitsui in cross-border e-commerce to continuously promote the development of international business.

At the same time, we also vigorously promote the specialized development of the medical device distribution business, and strive to build a specialized device headquarters. We have established independent medical device companies in 17 provinces with a focus on the development of professional product lines and service models, and focus on the development of intervention, IVD diagnostic reagents, orthopedics, equipment, comprehensive consumables and other product lines.