Fosun Pharma Plans to Increase Investments to Beijing Golden Elephant Pharmacy

On Oct. 12th, 2010, Fosun Pharma announced that its wholly-owned subsidiary, Shanghai Fosun Pharma Investment Co., Ltd, will increase RMB 122 million investments to Beijing Golden Elephant Pharmacy Co., Ltd. After the capital increase, Fosun Pharma will hold directly as much as 55% shares of Beijing Golden Elephant Pharmacy Chain Store Co., Ltd. (hereafter refer to as Golden Elephant Chain Store ) , and then Golden Elephant Chain Store will become a chain store controlled by Fosun Pharma.

The signing ceremony was held solemnly in Beijing Xixi Youyi Hotel on 10th of October. Mr. Chen Qiyu, the Board Chairman of Fosun Pharma, Mr. Yao Fang, Vice Chairman and President, Mr. Fan Banghan, Senior Vice President, as well as some other senior management had witnessed the signing ceremony together with the business operation team of Golden Elephant Chain Store.

Beijing Golden Elephant Pharmacy Chain Store Co., Ltd. is a major chain pharmacy in Beijing city. It takes the development of chain pharmacy as its main business. At present, Golden Elephant Pharmacy has owned nearly 300 pharmacy stores which are operated in Beijing, Tianjin, Sichuan, Shandong, Hebei, Shanxi, Inner Mongolia as well as other provinces, municipalities and autonomous regions, and is one of Top Ten Business Brands in Beijing city.

According to 2009 Research Report on Competitiveness of China Medicine Retail Companies, released by Retail Medicine Development Research Center of China (MDC), Golden Elephant Pharmacy is ranked as twelfth in comprehensive competitiveness list and first in competitiveness list of North China (including Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia).

Besides, Golden Elephant Pharmacy has been ranked 26th in Top 100 of China Medicine Chain Retail Industry of 2009.

The Vice President of Fosun Pharma (also the Director of Commercial Management Committee), Mr. Hu Xuefeng said, after this capital increase, Fosun Pharma will own two platforms in the North and South separately for its retail chain business. They are For Me Pharmacy in Shanghai and Golden Elephant Pharmacy in Beijing.

Fosun Pharma will bring the advantages of these two platforms into full play. We will continue to promote the brand name of Golden Elephant Chain Store, adjust the structure to promote transformation, explore innovative profit-making model, and improve its core competitiveness in medicine retail business.

And then we try to success in enlarging and reinforcing our medicine retail business, and make our company be among the leading national companies in medicine retail industry!