Speech by Chairman Wu Yifang at the company's 2016 annual work meeting

Dear colleagues, good afternoon everyone!

First of all, I would like to convey to you the New Year’s greetings from Chairman of the Group Mr. Chen Qiyu and President Mr. Yao Fang to Hongqi employees: Thank you to all Fosun Hongqi employees for their contributions and hard work in 2015 under the leadership of the new team headed by Yang Bo. Hope In the new year, Hongqi Pharmaceutical has embarked on a new fast track of vigorous development! I wish all Fosun Hongqi employees and their families good health in the new year! All wishes come true!

Let me explain to you the in-depth meaning of the New Year greetings for Dong Chen and President Yao:

First, "Fosun Red Flag" is a leader in the field of tuberculosis, and emphasized that "Red Flag" is a red flag of "Fosun", and behind the Red Flag is a powerful Fosun Group;

Second, Mr. Yang Bo accepted the mission and took the post of 8-9 months. He basically completed the mission assigned by the group and laid a good foundation for the future development of Hongqi. These are the joint efforts of the new team;

Third, embark on a new fast lane of vigorous development. It means that Hongqi has turned a new page, and we are facing the future and developing Hongqi.

Today I will make three points:

1. Hongqi has opened a new page.

In 2015, Hongqi was under tremendous pressure. The four major raw materials except rifampicin were all under control, and the procurement was not in place within 5-6 months; when the raw material problem was a little more serious, it was subjected to other malicious attacks. The entire company has internal and external troubles, is facing a huge business crisis, and even suffered losses for several months! Employees of the company do not know the situation, but feel that the situation is turbulent, and many people have lost their confidence. And these should be made clear to all employees of the company, and employees have the right to know. Fortunately, the company has gone through so many crises, and so far they have been resolved one by one. Potential hidden dangers are eliminated and the shackles are opened. A lot of efforts have been made in production, quality, research and development, marketing and other systems. Hongqi will work hard for the future with a more open attitude, more passion and enterprising spirit. We should know that when Hongqi is faced with difficulties, Fosun Pharma will provide a solid backing. With the support of employees and teams who love Hongqi, we are not afraid. I am very pleased to see that the new team has been built, and everyone in the team has a red flag in their hearts. At the moment when the Red Flag opens a new page and faces the future with confidence, we must not forget the history, cherish the wealth left by history, and accept the experience and lessons of history. We should be grateful for everything left over from the past, and thank those who left precious wealth with a grateful heart. Without them, we would not have the red flag today. But we must accept the lesson and not repeat the same mistakes. Don't make irresponsible remarks about history and label anyone. All of us are grateful and thankful for history, because we are in the shade under the trees planted by our predecessors.

2. Sustained development in the future requires a healthy and harmonious environment.

Enterprise development requires a harmonious team. Looking back at all the members of the Red Flag team, does everyone put the safety of Red Flag first, especially when the company faces malicious attacks, is everyone the same? I saw that the quality system mentioned "together in the same boat" in the report. Do we all do this? So far, is our culture righteous enough? For example, when I was doing sales reform many years ago, some representatives threatened me and abolished the market if the goal was not achieved. At that time I told him: you account for 0.2% of my sales every year with 1 million yuan, and you use your 100% to bet my 0.2%. What can you affect me? If we move forward with the company, like a drop of water melted into rivers, seas and lakes, your value will be reflected. If a drop of water leaves the collective, it will evaporate to the invisible. Reforms are painful. Don't just look at the petty gains in front of you. We must treat the pains of reform with an open and developmental perspective. If you accept, you will get more. In addition, I have always advocated a harmonious environment, that is, to accept various informal organizations in the enterprise. Everyone has their own circle of life, their own circle of friends, as a leader, don't attack, but accept and guide. If these organizations are consistent with the company's goals and get along with you in harmony, your working environment is harmonious. We must resolutely crack down on office politics, and the information must be highly transparent; the roads must be unobstructed, otherwise the gossip will be rampant and credibility will be greatly impacted and challenged. In the future of team building, a healthy culture is the core goal. What is culture? Culture is a consistent behavior that everyone accepts, agrees with, and all consciously demonstrates. Culture is not a single style of action, but a tacit and common behavior is culture. Everyone encourages each other and supports each other to create a red flag culture. Confucius said: "If your body is upright, you do not order; if your body is not upright, you can't follow the order." We can interpret this sentence by saying: "If the culture is not correct, the profession is not good." A healthy culture creates an evergreen foundation.

Jianqing has talked a lot about EHSQ compliance. I emphasize that we should be an environmentally friendly enterprise to ensure the occupational health of employees, ensure safe production, and adhere to the bottom line of quality.

To improve the confidentiality mechanism of enterprises. R&D information and sensitive information of enterprise operation and management must be managed at different levels. The company must strengthen the construction of the system, and every employee must consciously protect the rights and interests of the enterprise and keep the enterprise secrets.

3. Clarify strategic development thinking and be the leader in the future restructuring of China's tuberculosis market.

1. Control the supply chain; to do this work, there must be methods, means, and strategies. Under the legal framework, guarantee the long-term competitiveness of enterprises.

2. Strategic product line planning; relying on the core advantages in the tuberculosis field, cooperating with Hongqi internal and external resources to broaden the product line. The first is internal collaboration, with the help of its own professional self-operated teams in tuberculosis hospitals and CDC and accumulated project resources to introduce products; with its own unique hormone soft capsule production capacity, it will develop new products. The second is external coordination and relay expansion. The African market can take advantage of Kelin to go out of existing products after passing the PQ certification; it can take advantage of the sales force of prostate products in the group to serialize such products. As long as the product line is well planned, our Hongqi can definitely do better. In the next five years, the scale of 1 billion can be expected.

3. Marketing capacity building; Marketing is a value realizer, but simply selling products at low prices is not what we are talking about. We should transform product power into value, and increase the value of low-priced products to create greater value.

4. Management upgrade; we must connect with international standards, according to the concept of QBD (Quality by Design), go out to learn from the group's advanced enterprises, and connect with the international market. The value of one step ahead is immeasurable. If we are the first to pass the consistency evaluation, if we get the first imitation, if we have a higher quality threshold and patent threshold, we will get higher value. High value must be achieved through management upgrades.

Finally, on behalf of the board of directors, on behalf of the industrial company and Chairman Wang Cheng, I would like to extend my sincere greetings to all Hongqi people, and wish everyone and their families safety and happiness! I believe Hongqi will have a better tomorrow!