The Group will continue to implement its established strategies and strive to achieve better growth and results for next year and beyond. The details of the growth strategies are as follows:

1. Product mix enhancement - while increasing the revenue contribution from its core products, (namely Shen Mai, Wu Fu Xin Nao Qing and Qing Kai Ling) the Group will nurture emerging products (including Huang Qi, Shu Xie Ning, Huo Xiang and Qing Kai Ling soft capsule) to broaden its strategic growth product portfolio.
2. Rationalization of distribution channels - The Group will foster closer strategic cooperation with cross-regional distributors which have strong distribution capabilities and strong financial position to establish a distribution network backbone and further increase the efficiency of distribution channels.
3. Strengthening support at point of sales - The Group will continue to enhance the development of a professional team to support the point of sales of prescription medicines of hospitals and OTC, as well as the "Third Point of Sale Zones" (hospitals of factories and mining fields, public clinics and rural healthcare centres).
4. Implementation of regional expansion strategies - While utilizing its advantageous position in northern, northeastern and northwestern China markets, the Group will also explore opportunities in southern, central and eastern China emerging markets which have strong demand for Chinese medicines to broaden the growth of the Group. Key strategic development regions include economically developed regions such as the Pearl River Delta, the Yangtze River Delta, Huanbo Bay costal areas, Yangtze River costal areas and cities and regions along the Beijing and Guangzhou railway.
5. The Group will continue to execute its research and development strategies with increased investments in the development of products for the treatment of chronic diseases that commonly affect the middle and old aged, antiviral diseases and diseases that mostly affect children.
6. The Group will continue to evaluate acquisition opportunities in a prudent manner.

The Group expected that during the period of the Eleventh Five-Year Plan, the PRC government would commit more resources to develop the medical and healthcare industry, intensify the development of rural health care system so as to provide high quality medical service to the people, and will also strengthen health education to promote public health awareness.

Being one of the leading enterprises of the Chinese medicine industry, the Group will benefit from the growth trend of the industry.