Tasly News

2019 New Year Message from Top Executives of Tasly Holding Group 

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As we bid farewell to the year of 2018 and ring in the New Year of 2019, we would like to wish our investors, partners, consumers and all the others who have supported us along the way a happy new year, and extend our sincere gratitude and best wishes to our colleagues for their dedication and contribution in the past year.New year greetings should be sent especiallyto colleagues, both home or abroad, who arestill actively engaged in research, production, operation, management or service duties while we relax and enjoy the holiday.

Last year, Tasly actively adapted to new circumstances and changes and adjusted our strategies and plans accordingly without hesitation. With a focus on five systems, four platforms and six capabilities, we refined our top-level design for the development of the Great Health industry. We convened a brainstorming meeting under the theme of “focusing on principal business, adjusting structures, introducing innovative models and preventing risks”, and pooled wisdom and strength in a bid to achieve high-quality development.

Our efforts at promoting technological innovations last year have been rewarding. We injected new energyinto the four-in-one technology innovation system, launched forward-looking research projects and optimized our project portfolio as well as extended and diversified our cooperation with prestigious universities, companies and research institutes both home and abroad. We reached a new milestone with regard to the launch of the confirmatory trial of Compound Danshen Dripping Pills (CDDP): the US Food and Drug Administration (FDA) has approved the Special Protocol Assessment(SPA)-based clinical trial plan. Meanwhile, the phase-II trial for the additional indication of acute mountain sickness (AMS) has been proceeding well. At home, CDDP has been approvedas a drug of special military demand for preventing and easing AMS.The US phase-III clinical trial for PXT3003, a new drug we co-developed with PHARNEXT in France to treat type 1-ACharcot-Marie-Tooth (CMT), has yielded positive outcomes, demonstrating the great potential of the gene network-basedmodels in compounddrug research. So far, we have 81 drugs on the National Essential Medicine List 2018. Technological innovation has been playing a growing role in driving company development.

Last year, great progress has been made in promoting precision management and intelligent manufacturing. We gained industry-wide recognition as a leading modern TCM manufacturer, won the bid for sponsoring the Industry Transformation and Upgrade Project commissioned by the Ministry of Industry and Information Technology and undertook the project of Public Service Capacity Building for Ensuring National TCM Supply. The so-called “Digital Herb Network”, a comprehensive digital platform that is consisted of subsidiaries likeAnguo Digital Palace, begins to take shape and serve an increasingly important function. We also demonstratedthe applicability of the Amoeba management mode. Our bio-pharmaceutical branch in Shanghai has been speeding uppreparations for its IPO in Hong Kong. The synergy among our modern TCM, chemical drugs and biomedicine branchesprovided strong growth momentum.

Last year, we overhauled our global marketing strategy, and had been actively promotingbettermedical services overseas by advocating the combination of western medical approaches with TCM. We partnered with ARBOR in the United States and obtained the first sales permission forcompound innovative TCM in the US market.

In the past year, we placed an equal emphasis on industrial growth and capital management, advocated the vision of “linkage, ecosystem, and reshaping –join hands to create a better healthcare ecosystem”, and focused primarily on precision R&D, intelligent manufacturing and smart healthcare. Via the Healthcare Industry Fund, we have developed a patient-centered four-dimensional investment portfolio covering segments like innovative medicine, diagnosis & screening, digital services, and medical equipment.

In the past year, we made distinctive progress in marketing and branding. We co-launched the Heart Health Campaign together withChineseAssociation of Medical Practitioners, Chinese Medical Association, Chinese Preventive Medicine Association, and China Association for Disaster & Emergency Rescue Medicine as well as mainstream media outlets such as People’s Daily and people.cn. The initiative is designed to benefit more community residents and patients withbetter medical services and improved health management, shift the focus of medical services from treatment to preventive care, and raise public awareness of the importance of preventive medicine. Sales of our core productsgrew steadily and market acceptance towards our health products in general is quite favorable. Planning for an IPO, Guizhou Guotai Liquor Co. Ltd.further refinedits shareholderstructure and reinvented marketing strategies. Deepure was aggressive in exploring new market niches.

Last year, we upgraded healthcare services and supporting systems with the help of digital technologies. We adjusted the organizational structure of the Digital Innovation Center and consolidated the healthcare service eco-system. While delivering chronic disease medicines to people in need and advocating smart chronic disease management outside Tianjin, we also tried to promote a standardized form of industrial-themed tourism. CathayFuture quickened the construction of its preschool education complex.

We are also glad to see progress in terms of Party affairs, trade union work, team building and corporate culture. The mentor and tiered training programsproduced impressive results. We also organized a variety of on-the-job training and skill competition programs for employees and promoted craftsmanshipfrom a grass-roots level.

In 2018 we grabbed titles and awards such as National Enterprise Technology Center, Tianjin Municipal Enterprise Technology Center, Model Industrial Enterprise of China, Pioneer Enterprise in Industrial Reform, Opening-up and Innovation Pioneer of China, Top 100 Pharmaceutical Companies in China, Top 100 National Pharmaceutical Brands of China, TCM Health-themed Tourism Demonstration Base, and the Golden Award of Integrated Brand Marketing Case. While committed to generating value for our shareholders, we never forgot our social responsibilities. This year, we was actively involved the government initiative of targeted poverty alleviation and won honorary titles such as National Model Private Enterprise in Targeted Poverty Alleviation and Humanistic Enterprise.

The past year has proved to be rewarding in terms of innovation and business transformation, which could not be possible without the concerted efforts of our colleagues or the support from all walks of society.

We followed the instructions by Chinese President Xi Jinping at the meeting with private entrepreneurs with concrete actions and produced a brilliant record to honor the 40th anniversary of China’s reform and opening up.

The year of 2019 is the 70th founding anniversary of the People’s Republic of China anda crucial year for the implementation of the 13th Five-year Development Plan and the building of a moderately prosperous society in all respects. The year will also mark the 25th founding anniversary of Tasly.

At the recently-concluded meeting with private entrepreneurs, President Xi called on “the new-generation private entrepreneurs to inherit and carry forward the spirit of frugality, perseverance and entrepreneurship, focus on the real economy and principal business, and strive for high-quality development,” showing the high expectations the Party and the government harbor for the new-generation private enterprises and entrepreneurs. In the upcoming year, we will continue to strengthen our core business in the Great Health industry, seek international expansion andstrive to achieve high-quality and transformative development while beefing up our intelligent manufacturingcredentials. We will on one hand continue to pursue innovations-driven development, improve our technology portfolios, increase technical support for intelligent manufacturing, promote transparency across plants, develop products that speak for themselves, and promote green, safe and low-carbon production; on the other, advocate smart services, build a digital and intelligent healthcare service network,as well as create and maintain a entrepreneurship platform as a way to generate greater value for shareholders, customers and employees. Let’s work together tocreate greater successin the lead up toTasly’s 25th founding anniversary and the 70th anniversary of the founding of our nation.

Last but not least, we wish you good health and happiness in the New Year.

 

December 31, 2018


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