ZHEJIANG LNT’L GROUP CO., LTD.

Zhejiang Int’l Group Co., Ltd. (SZ, 000411), indirectly held by Sinochem Group, is an enterprise listed on the Shenzhen Stock Exchange. Zhejiang Int’l Medicine Co., Ltd. (Int’l Medicine) is the core asset of Int’l Group.

Int’l Medicine is a leading enterprise in the pharmaceutical circulation industry in Zhejiang Province, with total assets of about RMB 2.4 billion, net assets of nearly RMB 800 million, a registered capital of RMB 126 million and tax-free sales revenues of over RMB 6.6 billion in 2010. The company has become a key provincial enterprise in pharmaceutical reserves, modern logistics and third-party drug logistics, and has claimed honors such as “China’s Top 100 Pharmaceutical Circulation Enterprises”, “Zhejiang’s Key Circulation Enterprises”, “China’s Top 500 Service Enterprises” and “China’s Top 500 Informatization Enterprises” for consecutive years.

Int’l Medicine has five centers:

I. Drug Distribution Center

The drug distribution center is the core business unit of Int’l Medicine.
In business network, Int’l Medicine has progressively established a market network covering Zhejiang and extending to the rest of East China. It serves various upstream and downstream customers, including the first terminal predominated by major drug manufacturers and suppliers, and high-end hospitals at or above the county level; the second and third terminals predominated by medical agencies below the county level, township medical agencies and drug retailers as well as commercial customers. In business varieties, Int’l Medicine boasts a wide range of varieties with “essential drugs as the basis, and famous, quality, new and distinctive drugs as the feature”. So far, the company has dealt in more than 20,000 varieties, and has established longstanding and stable partnerships with 36 of the world’s top 50 pharmaceutical enterprises and 93 of China’s top 100 pharmaceutical enterprises.

II. Traditional Chinese Medicine Industry Center

The traditional Chinese medicine industry center is the strategic business unit of Int’l Medicine.
Int’l Medicine owns autonomous brands “Int’l” and “Qianwang” traditional Chinese medicine health-care products and Chinese herbal medicine, and has supplied a number of famous traditional Chinese medicine enterprises with common medicinal materials as well as precious materials like ginseng and antler. The company is popular with consumers for quality natural medicinal materials. So far, “Qianwang” has contributed annual sales of nearly RMB 100 million and over 1,000 terminal customers in Zhejiang, thus enjoying a great reputation in the industry. At the same time, the company is the major agent of a multitude of famous brands in Zhejiang, such as Cheong Kwan Jang, Korea.

III. Biological and Appliance Development Center

The biological and appliance development center is the business development unit of Int’l Medicine.
The center has Zhejiang Medical Appliance Co., Ltd. and Zhejiang Int’l Biological Product Marketing Co., Ltd. The former mainly deals in imported and homemade medical appliances, health materials and dressings, chemical reagents and glass instruments. Now, it has become a regional or immediate agent of famous medical equipment brands such as Nihon Kohden, Olympus, Bayer, Aloka and Wandong. The latter is committed to professional promotion and distribution of biological products (including blood products, biochemical products, epidemic prevention products, genetic engineering products, etc.), and has established partnerships with a lot of famous domestic and overseas biological products manufacturers.

IV. Marketing Network Center

The marketing network center is the subsidiary business unit of Int’l Medicine. With the development of the pharmaceutical circulation industry, the company has adhered to the strategy move to “accomplish the connotative growth of business transformation and the extensive development of mergers, acquisitions and expansion”, and pressed ahead with industrial mergers, acquisitions and integration. In recent two years, the company has established subsidiaries such as Ningbo Int’l Medicine Co., Ltd., Wenzhou Int’l Medicine Co., Ltd., Zhejiang Int’l Health Medicine Co., Ltd. and Jiaxing Int’l Medicine Co., Ltd. through strategic investment, and built the marketing network center on this basis. These subsidiaries have become new growth points of the company’s business development, and laid a solid foundation for the company to perfect its provincial network layout and further expand its market share in the province.

Ⅴ. Strategic Support Center

The strategic support center is the company’s foundation support and business innovation unit. The center has Zhejiang Int’l Logistics Co., Ltd., the e-commerce department and the department of terminal retail and health management.

With Zhejiang’s largest and most advanced professional pharmaceutical logistics platform, Int’l Medicine is Zhejiang’s first professional pharmaceutical logistics enterprise with the qualification of third-party drug logistics. The “construction of Int’l Medicine official pharmaceutical logistics platform” was included in the key logistics projects recommended by the Zhejiang Provincial People’s Government. Int’l Logistics was listed among key enterprises for modern logistics development and cultivation by the provincial government, has passed ISO9001 quality management system certification, and is a 3A logistics enterprise in the country. The company’s logistics center integrates six functions such as drug storage, acceptance and maintenance, logistics processing, decoration and transport, centralized distribution with information service.

Int’l Medicine has the qualification of “online drug trading service”, launched its B2B site in May 2010, and currently plays a leading role in online turnover in the province.

In the future, Int’l Medicine will always be committed to the cause of human health, focus on consolidating the core business drug distribution, building a complete industry chain for the strategic business traditional Chinese medicine, expand other business such as biological and medical appliances, and develop e-commerce and modern logistics service systems, in an effort to rank among the country’s top ten integrated service provider in the chain of pharmaceutical circulation and supply in eight to ten years.