Pharmaceutical Industry

Genertec has sound resources to develop pharmaceutical business. One of its subsidiaries, the former China National Medicines & Health Products Import & Export Corporation, with over 20 years of history, holds a leading position in specializing and internationalizing medical products in China. In 2004, through massive asset reorganization, Genertec-controlled listed company, CNTIC Trading Co. Ltd, was merged with China National Medicines & Health Products Import & Export Corporation to complete the combination of capital platform and advantageous medical resources. The new corporation is named China Meheco Corporation.

Still taking the advantage of its specialization in pharmaceutical industry and internationalized business mode after asset reorganization, China Meheco Corporation engages in import and export, domestic trade, manufacturing and processing, and technical service relating to botanical medicines, pharmaceuticals, biological products, medical equipment and other products related to life and health. China Meheco Corporation owns more than 80 thousand mu planting bases for herbs and a GMP certified processing facility; it possesses a modern pharmaceutical company named China Meheco Hainan General Sanyang Pharmaceutical Co.,Ltd. with production lines for penicillin, cephalosporin, non-penicillin, non-cephalosporin powder injection, frozen and dry powder injection, capsule and granule etc.; it also possesses supplementary facilities such as medical equipment maintenance stations, public bonded warehouse, logistic center. China Meheco Corporation has established procurement system for pharmaceutical products and medical devices, and sales network all over China. As a listed company, China Meheco Corporation has built a sound capital platform for Genertec,s development in medical and health industry.

In order to further promote the development of the medicine and healthcare industry, Genertec established Genertec Pharmaceutical Holding Co., Ltd. and Pharmaceutical Business Development Centre specializing in developing the strategic pharmaceutical business to acquire quality pharmaceutical resources from outside by taking its capital advantage. In 2000, Genertec invested in Shanghai Fudan Zhangjiang Biomedicine Shareholding Company specializing in research and development of high tech medicines with proprietary intellectual property rights. The company has been successfully listed in the Growth Enterprise Market of the Hong Kong Stock Exchange. In 2004, Genertec successfully accomplished the partial equity acquisition of Xi,an Lijun Pharmaceutical Company. By the end of 2006, Genertec had successfully realized indirect share-control of Hubei Keyi Pharmaceutical Co., Ltd. and Hubei Liyi Pharmaceutical Technology Co., Ltd. by direct share-control of Hubei Xinyi, forming a business framework of integration of scientific research, manufacturing, and trade, and playing a leading role among the industrial peers in China in the fields of research, production, marketing, production technology, and quality control of antiviral medicines.

Genertec,s strategic objectives in the pharmaceutical and health industry are to move toward more specialized pharmaceutical and healthcare supply chain service and to identify appropriate projects and segments where its success can be duplicated. Genertec will let China Meheco Corporation be platform for developing medical industry,fully using the functions of the listed company for project investments and re-financing, to realize expeditious expansion in pharmaceutical industry. It will identify key healthcare segments to build an integrated chain from R&D, production, distribution to service, with a view to becoming a large integrated and world-class pharmaceutical group with its own patented and famous product lines, stable production and high market shares.