Corporate Presentation (1177.HK) - sinobiopharm.com

1 1 Corporate Presentation ( ) March 2017 Presented by Stephen Tse, Executive Director 2 Corporate Overview Business Profile Share Data Engaged in the R&D, manufacturing and marketing of a wide range of modernized Chinese medicines and chemical medicines Main therapeutic areas include hepatitis, cardio-cerebral diseases, oncology, diabetes, analgesia and respiratory ailments Corporate Awards Recent Developments HKEx Code 1177 Board Lot 4,000 shares Issued Shares 7,412,192,209 (as at 31 December 2016)

2 Market Cap HK$ billion (as at 13 Mar 2017) FY End Date 31 December Major Shareholder Mr. Tse Ping Has become a Constituent Stock of of the MSCI Global Standard Indices - MSCI China Index FY16: profit attributable to the Group (before accounted for unrealized fair value gains and losses of equity investments and financial assets) increased to approximately HK$2,006,088 FY15: profit attributable to the Group (before accounted for unrealized fair value gains and losses of equity investments and financial assets)

3 Increased to approximately HK$1,772,695,000 Disposal of CTF to Bausch & Lomb on 26 September 2005 to register a cash proceed of US$200 million CAPITAL Magazine Chinese Outstanding Enterprise Achievement Prize ForbesAsia Best under a Billion in 2005 Economic Digest Hong Kong Outstanding Enterprises 2005 Red Herring Magazine Red Herring Small Cap 100 Institutional Investor Magazine 1st position in the Best IR Company of Healthcare and 15th in the Most Honored Company in 2014 Fobes Magazine Asia's Fab 50 Companies in 2016 3

4 PRC Pharmaceutical Industry Industry Reforms / Challenges SB s Strengths/Opportunities Price pressure on generic products Stricter control on new product launch Market polarization. Small and domestic companies gradually extinct Government to grant more subsidies to rural areas Government clamp down on generic medicines Sino Biopharmaceutical is a Key Beneficiary of the Latest Industry Reform SB better position to resist price pressure: Majority of SB products are for prescribed medicines Exclusive technology and proprietary drugs SB strong R&D to ensure 2-5 new products launches each year.

5 Far ahead of other industry players Provides SB attractive M&A targets One of SB s long term strategy is to tap this huge mass market SB s patented products face less vicious competition brought by generic medicines 4 Market Leadership No. 1 in Hepatitis & Cadio-cerebral Medicines Significant Market Share Hepatitis Medicines 18% Tianqingganmei Injections Mingzheng Capsules Runzhong Dispersible Tablets Tianqingganping Enteric Capsules Ganlixin injections and capsules Tianqingfuxin Injections & Capsules Cardio-cerebral Medicines Target and sustained release injections 32% Kaishi Injections Sales Growth (Blockbuster products) (HK$ 000)

6 496,6541,069,2711,669,3342,339,4723,120, 7713,533,7911,353,6881,692,5111,611,0981 ,638,9611,566,6381,424,473295,934423,045 562675562,675748,663845,885220,896365,90 8416,565556,026764,540752,41366,249 252,329 545,527 616,985 672,125 644,833 710,000781,253778,596749,166657,060510,3 23850,6591,366,9421,748,3071,924,9952,25 6,4342,162,880634,209754,706962,9251,191 ,1371,396,0550500,0001,000,0001,500,0002 ,000,0002,500,0003,000,0003,500,00020112 0122013201420152016288,160 Runzhong tablets Kaishi injection New ossified estriol capsules Xinhaineng injections Mingzheng capsules Tianqingganmei injections Kaifen injections Tiance injections 5 Sales of Major Products FY2016 (HK$ 000) FY2015 (HK$ 000) Hepatitis Medicines Runzhong (Entecavir) Dispersible Tablets ( ) 3,533,791 3,120,771 Tianqingganmei (Magnesium Isoglycyrrhizinate) Injections ( ) 2,162,880 2,256,434 Mingzheng (Adefovir Dipivoxil) Capsules ( )

7 510,323 657,060 Tianqingganping (Diammonium Glycyrrhizinate) Enteric Capsules ( ) 483,448 501,027 Tianding (Entecavir Maleate) Tablets ( ) 274,937 126,147 Ganlixin (Diammonium Glycyrrhizinate) Injections & Capsules ( ) 130,356 155,702 Cardio-cerebral Medicines Kaishi (Alprostadil) Injections ( ) 1,424,473 1,566,638 Yilunping (Irbesartan/Hydrochlorothiazide) Tablets ( / ) 628,524 546,497 Tuotuo Calcium Tablets ( ) 627,107 479,226 Beraprost Sodium Tablets 340,439 281,358 Tianqingning (Hydroxyethylstarch 130) Injections ( 130) 198,553 184,584 Analgesic Medicines Kaifen (Flurbiprofen Axetil) Injections ( ) 1,396,055 1,191,137 Zepusi Flurbiprofen Cataplasms 318,168 215,214 Anti-infectious Medicines Tiance (Biapenem) Injections ( ) 752,413 764,540 Tianjie (Tigecycline for injections) Tablets ( )

8 127,107 84,455 Orthopaedic Medicines New Ossified Estriol Capsules 845,885 748,663 Jiuli (Glucosamine Hydrochloride) Tablets ( ) 209,931 213,418 6 Sales of Major Products (Con t) FY2016 (HK$ 000) FY2015 (HK$ 000) Parenteral Nutritious Medicines Xinhaineng (Carbohydrate and Electrolyte) Injections ( ) 644,833 672,125 Fenghaineng Fructose Injections 239,017 230,406 Oncology Medicines Zhiruo (Palonosetron Hydrochloride) Injections ( ) 391,517 357,071 Saiweijian (Raltitrexed) Injections ( ) 347,206 292,862 Tianqingyitai (Zolebronate Acid) Injections ( ) 238,473 222,434 Shoufu (Capecitabine) Tablets ( ) 179,294 133,271 Qingweike (Decitabine for injections) ( ) 156,086 114,379 Gelike (Dasatinib) Capsules ( ) 155,010 107,341 Yinishu (Dasatinib) Tablets ( ) 86,672 53,296 Respiratory system medicines ( ) Tianqingsule (Tiotropium Bromide) Inhalation Powder ( )

9 369,575 297,489 Chia Tai Suke (Cefaclor and Bromhexine Hydrochloride) Tablets ( ) 188,665 147,308 Anorectal Medicines ( Getai (Diosmin) Tablets ( ) 225,871 183,907 7 Sales Mix By Therapeutic Categories Cardio-cerebral Medicines Hepatitis Medicines Anti-infectious Medicines Oncology Medicines Respiratory System Medicines Others Anorectal Medicines Orthopaedic Medicines Parental Nutritious Medicines FY2016 Revenue: HK$15,825,438,000 8 Blockbuster Medicines ( ) Tianqingganping (Diammonium Glycyrrhizinate) Enteric Capsules ( ) Tianqingfuxin (Marine) Injections & Capsules ( ) Ganlixin (Diammonium Glycyrrhizinate) Injections & Capsules ( ) Kaishi (Alprostadil) Injections ( ) Tianqingyitai (Zolebronate Acid) Injections ( ) Kaifen (Flurbiprofen Axetil) Injections ( ) Mingzheng (Adefovir Dipivoxil) Capsules ( ))

10 Tianqingganmei (Magnesium Isoglycyrrhizinate) Injections ( ) Runzhong (Entecavir) Dispersible Tablets 9 R&D Development R&D expenses estimated at 5-10% of annual sales Approximately 5-10 new medicines to be launched in 2 3 years Create strong growth momentum New clinical applications made Production application Production approvals Invention patent approvals New patent applications obtained Clinical approvals obtained Patent licenses received Obtained clinical approval, or were under clinical trial or applying for production approval Total 17 8 5 87 249 198 91 438 Strong Pipeline Commitment in R&D 2-5 new product launches each year (As at 31 December 2016) 10 Distribution Network Consumers or patients Target Hospitals Target Pharmacies Secondary Distributors Non-targeted Hospitals Non-targeted Pharmacies Sino Biopharmaceutical Distribution network spanning over 30 provinces, municipalities & autonomous regions Reinforce third-tier