Sinochem’s pharmaceutical business has strived to establish long-term and stable strategic partnerships with its suppliers and customers and extended to R&D and the production areas, which have shown strong growth potentials and subsequently become a significant profit source for the chemical business. We have built up a market-oriented development model for the pharmaceutical business and secured a leading domestic position in exporting pharmaceutical raw materials and products by optimizing market information and customer resources and establishing a series of programs and standards in terms of R&D, registration, production, logistics and after-sale services.

In 2006, Sinochem further strengthened its long-term cooperation with institutes of higher education and research institutions in order to develop the R&D capability. Sinochem has currently two pharmaceutical companies. One is located in Changzhou, Jiangsu Province, focusing on producing pharmaceutical intermediates. It consolidated its market share in India by attracting Indian strategic investors. The other is located in Tianjin and its main business is to produce pharmaceutical raw materials. The company possesses two patents of hormonal raw material zymolysis. On this basis, it completed the merging with another pharmaceutical plant in Zhejiang Province at the end of 2006, which further improved its production capacity of pharmaceutical raw materials and preparations.

In the recent years, our pharmaceutical business has been ranking No.1 nationwide. Sinochem Ningbo and Sinochem Jiangsu have secured the top positions on the Pharmaceutical Preparation Export Company List, issued by China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCMHPIE).