Concept content of North China Pharmaceutical Co., Ltd.

(1) Merger and reorganization: On June 9, 2009, Huabei Pharmaceutical Company disclosed that it planned to acquire 77.84% equity of Huabei Pharmaceutical Group New Drug R&D Co., Ltd. held by Huabei Pharmaceutical Group Co., Ltd. in order to increase the company's new products, improve its R&D capability, reduce related transactions, straighten out the investment management relationship and enhance its business independence. After the acquisition is completed, the company will hold 97.93% of the shares of the new drug company.

(2) New energy concept: North China Pharmaceutical Group and China Offshore Oil Corporation (CNOOC), the controlling shareholders of North China Pharmaceutical, began to enter the new energy field. Bio-butanol produced by Huayao Group is a new excellent automobile fuel that can replace gasoline, and can be directly added to automobile fuel tank without changing the structure of internal combustion engine.

(3) Technical advantages: The company has a high level of research in the fields of immunosuppressants and new antibiotics, and has a good product reserve. Three products have passed FDA certification, and nine products are undergoing COS certification. The company is establishing a preparation workshop that meets the requirements of FDA, and is ready to pass the relevant certification to realize the export of preparations.

(4) Outstanding position in the industry: The company is the largest production base of antibiotic medicine products in China and one of the domestic vitamin production giants. The total output of antibiotic raw materials accounts for about 15% of the total national output, and the capacity of vitamin B 12 ranks first in Asia and second in the world. Hebei Weierkang Pharmaceutical Co., Ltd., a subsidiary, is one of the four major vitamin C producers in China, accounting for about 20% of the total domestic output, and the annual production capacity of powder injection reaches 22. Among them, the output of penicillin and vitamin B 12 ranks first in Asia and second in the world. The output of semi-synthetic penicillin and its intermediates ranks first in Asia; Streptomycin production ranks first in the world; The output of powder injection ranks first in Asia.

(5) Background of major shareholder: Huayao Group, the controlling shareholder of the company, is one of the largest chemical and pharmaceutical enterprises in China, ranking among the top 500 industrial enterprises in China and the industrial enterprises with the best economic benefits for many years, and one of the first batch of technological innovation pilot enterprises of the State Economic and Trade Commission, which has a strong influence in the pharmaceutical industry.