2016 Interim Results Presentation

Sihuan Pharmaceutical Holdings Group Ltd.

2016 Interim Results Presentation

Stock Code : 0460 0

Disclaimer

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Agenda

I II

III IV

V

Results Overview Business Review Financial Review Financial Review Future Strategies

Appendix

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Section 1 Results Overview

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Performance Overview in 2016H1

1

Revenue decreased by 21.8% y-o-y to approximately 1.39 billion

Profit attributable to was down 49.3% y-o-y to 740 million; excluding the one-off investment

income for the same period of last year, decreased by 18.6% y-o-y

2

Maintained market leadership

1st in CCV prescription market with a market share of 11.93% in terms of

hospital purchase

4th largest pharmaceutical company in Chinese hospital market

3

Phase I clinical trials of innovative patented drug Pirotinib achieved smooth progress

in US

CFDA granted approval of phase II/III clinical trials for Imigliptin Dihydrochloride

36 generics obtained clinical approval issued by CFDA

Cooperation with Japan's RaQualia Pharma in novel analgesic gained primary

achievement

4

Adjust marketing strategy, expanding market from high-end to low-end market

Online academic promotion made new progress and became a new way of academic

promotion

Marketing system reform of introducing talents, adjusting structure and enhancing

marketing capabilities has activated

5 After new GMP certification, the production management and quality control system was further optimized

Production quality management center strictly implemented systematic production quality management of the production facilities

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Section 2 Business Review

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Growth of Pharmaceutical Market Slows

China's Total Hospital Drug Purchases (RMB Bn)

645 614 551

485

366

343

313

257

203

China's Total Hospital Purchases of CCV Drugs (RMB Bn)

Growth of CCV drugs outpaced industry growth rate

101.3 94.6 82.7 71.3

52.3 46.3 37.9 30.4 23.4

2008 2009 2010 2011 2012 2013 2014 2015 2016H1

2008 2009 2010 2011 2012 2013 2014 2015 2016H1

The pharmaceutical industry continues to grow on the back of the accelerated pace of urbanization, aging population, environment pollution and increasing stress of modern society and expanded national medical insurance coverage

Facing with the increasing pressure brought by stronger control over excessive medical insurance expenditures, "Key Monitored Drug List" announced by various regions' governments, medical institution's budget control of drug costs, and the implementation of "Two-Invoice System", the growth of the industry slows.

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Leading Market Position

Top 5 Players in China's CCV Prescription Drug Market in 1H2016

11.93%

(Market share)

5.35%

4.93%

4.69%

3.47%

Sihuan

Pfizer

SANOFI

QILU

ASTRAZENECA

Rank

Top 10 Corporations in China's Hospital market in 1H2016

Top 10 Corporations

Shares in hospital market In H1 2016 (%)

1 PFIZER GROUP 2 YANGZIJIANG FTY

2.43% 2.34%

3 ASTRAZENECA GROUP

4 Sihuan Pharmaceutical

5 QILU PHARM GROUP 6 SHANGHAI FUSUN PH 7 KE LUN 8 SANOFI GROUP 9 JS.L.Y.G. HENGRUI

2.21%

2.02%

1.85% 1.62% 1.61% 1.58% 1.55%

10 C.T-TIANQING GP

1.45%

Source: IMS

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