Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) : summary of 2021 Annual Report

Securities Announcement No.: 0026

Bond Code: 127057 bond abbreviation: Panlong convertible bond

Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) 2021 annual report summary I. important tips the summary of this annual report is from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. Tips of non-standard audit opinions □ applicable √ not applicable to the profit distribution plan of ordinary shares or the plan of converting provident fund into share capital during the reporting period reviewed by the board of directors √ applicable □ not applicable whether to convert provident fund into share capital □ yes √ no the company’s profit distribution plan of ordinary shares reviewed and approved by the board of directors is: Based on 8554360000 shares, the company will distribute cash dividends of 1.80 yuan (including tax) to all shareholders for every 10 shares, 0 bonus shares (including tax) will be given, and the capital stock will not be increased with the accumulation fund. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile

Stock abbreviation Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) stock code Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864)

Shenzhen Stock Exchange

Contact person and contact information secretary of the board of directors securities affairs representative

Name: Wu Jie

Office address: No. 2801, Baliu Second Road, Baqiao District, Xi’an, Shaanxi

Fax: 02983592658

Tel: 029833388888832

E-mail [email protected].

2. Introduction to main business or products during the reporting period

The company’s industry is pharmaceutical industry, mainly pharmaceutical manufacturing industry (C27) (industry classification guidelines for listed companies (revised in 2012) issued by China Securities Regulatory Commission). Since its establishment, the main business of the company has not changed significantly.

(I) industry status

The company is a modern high-tech enterprise with standardized cultivation of medicinal materials, drug production, R & D, sales and pharmaceutical logistics as its core industries. The company was founded in 1997 and was listed on the Shenzhen Stock Exchange in November 2017. The company has 19 production lines such as tablets and capsules that have passed the new version of national GMP certification and supporting inspection and scientific research equipment. It has formed a strong product lineup dominated by Panlong seven tablets, a variety of “national exclusive patent and medical insurance class a”, covering 9 functional categories and more than 100 product specifications, including rheumatic bone injury, cardio cerebrovascular, digestion, tonic, heat clearing and detoxification, pediatrics, gynecology, hepatobiliary and so on.

Panlong Qipian, the leading variety of the company, is a national exclusive and Medicare class a variety, which has been selected as a protected variety of traditional Chinese medicine. It is composed of 29 Chinese herbal medicines, including 13 rare and genuine herbal medicines such as Panlong 7, mouse 7, frog 7, white hair 7, bamboo root 7 and sheep horn 7. They are unique natural and precious Chinese herbal medicines growing at an altitude of more than 1800 meters in Qinba mountain area. Panlong Qipian has strong market competitiveness in the field of Chinese patent medicine for rheumatic diseases of skeletal muscle system. The market share of Chinese patent medicine for rheumatic diseases of skeletal muscle system in urban and county-level public hospitals in H1, 2020 and 2021 is as follows:

Unit: 10000 yuan

20202021 H1

Ranking product name ranking product name

Sales market share sales market share

1 TGP capsule 364797.70% 1 TGP capsule 181427.62%

2 Biqi Capsule 301106.34% 2 Panlong seven tablets 172277.24%

3 Panlong Qipian 290236.11% 3 Biqi Capsule 144865.09%

4 Zhengqingfengtongning 248785.25% 4 Zhengqingfengtongning 135075.68%

5 Huli powder 218124.61% 5 Huli powder 105664.44%

Data source: Intranet

In 2020, in the Chinese patent medicine market in the field of rheumatic diseases of skeletal muscle system in urban and county-level public hospitals in China, the company’s leading product Panlong seven tablets ranked third in market share; In 2021, H1 company ranked second in the market share of Panlong seven tablets, with strong market competitiveness.

(II) products and business

At present, the company’s drugs in production include 15 dosage forms, 74 drug production approval numbers, 1 health food and 1 health products. Led by “Panlong seven tablets”, it has four exclusive varieties: Panlong seven tablets, Panlong seven medicinal wine, Jinyin Lidan capsule and kebire Extract Tablets, as well as compound gossypol acetate tablets and gossypol acetate API with independent intellectual property rights.

1. Leading product: Panlong Qipian

Panlong Qipian is an ancestral secret recipe presented by Mr. Wang Jiacheng, a famous Chinese orthopedic and traumatology expert whom Premier Zhou Enlai cordially met twice. It has been scientifically developed. It is an exclusive patented variety of the company, a category a variety in the national medical insurance catalogue, “Qin medicine” variety advantage Chinese patent medicine and a famous brand product in Shaanxi Province.

according to

According to the theory of “Chinese seven drugs” and “meridian inducing drugs”, Panlong seven tablets are made of 29 Chinese herbal medicines. They have the effects of promoting blood circulation and removing blood stasis, removing wind and dampness, reducing swelling and relieving pain. It has been selected as a protected variety of traditional Chinese medicine. It can be widely used in rheumatoid arthritis, knee osteoarthritis, lumbar muscle strain, fracture and soft tissue injury. It has significant curative effects on pain, swelling, numbness and activity limitation. Professor Lin Na, chief researcher of the Institute of traditional Chinese medicine of the Chinese Academy of traditional Chinese medicine, has carried out a number of topics and modern pharmacological studies, which have proved that Panlong seven tablets can significantly anti-inflammatory and analgesic, improve bone metabolism, promote local microcirculation, regulate immunity and have a comprehensive therapeutic effect. Due to its definite curative effect and high safety in the treatment of rheumatic bone injuries, Panlong seven tablets were collected and listed as recommended drugs by many national clinical diagnosis and treatment guidelines, clinical pathway interpretation and national key books in the eleventh five year plan, and were successively rated as the “brand of Chinese family standing rheumatic bone disease drugs” in 2019, 2020 and 2021, Won the award of “2021 recommended brand for consumption in traditional Chinese medicine market” at the China traditional Chinese medicine entrepreneur forum. 2. Other important products of the company (part)

Serial number product name product sample box function main product features

1. National exclusive patent medicinal liquor;

Promoting blood circulation and removing blood stasis, dispelling wind and dampness, reducing swelling and relieving pain. 2. It takes 30 minutes for external use. It can relieve pain in 3 days, reduce swelling in 5 days and function in 20 days. 1. Panlong seven medicinal wine is used for rheumatoid arthritis, traumatic injury and recovery;

Lumbar muscle strain, soft tissue injury 3 Combined with internal application and external application, it can dispel dampness and supplement health; 4. Pure color, crystal clear, mild entrance and pleasant fragrance.

Tonifying the kidney and activating blood circulation, strengthening tendons and bones. For bone flaccidity 1 Kidney tonifying + blood activating + calcium tonifying, Trinity, triple effect;

2 fracture and bone caused by Gusongbao tablet (osteoporosis) Tonifying the kidney without getting angry, natural calcium supplement;

3. Pain, osteoarthritis and prevention of menopausal bone The medicine is mild and can be taken for a long time.

Osteoporosis.

1. The project of National Natural Science Foundation of China, and it is an exclusive variety in China;

2. It is refined by pure extract extraction technology, which maximizes the heat and dampness of the drug huojinyin cholagogue, soothes the liver and gallbladder. It is applicable to the content of liver ingredients, so as to improve the curative effect of the product;

3. Hypochondriac syndrome caused by capsule depression and qi stagnation and liver and gallbladder damp heat 3 It does not contain diarrhea components, which overcomes the pain, stomach pain, lack of food and stupidity symptoms of other Western medicines and most Chinese patent medicines. Gastrointestinal tract irritation caused by multiple drugs;

4. The curative effect is definite, and a large number of clinical experiments show that the drug is safe and non-toxic, so it can be used safely.

1. National exclusive patented products

2. Directly kill pathogenic bacteria;

Clean blood for scabies, lymphadenopathy

4 g specific heat extraction tablets 3 Completely eliminate pathogens;

Anal fistula, various skin tinea, etc.

4. Restore blood health;

5. It is convenient to take and highly acceptable to patients.

1. Gossypol acetate API exclusive;

2. The mechanism is clear and does not contain hormones. It is the only chemical without hormones for the treatment of endometriosis, dysfunctional uterine bleeding and leiomyoma. Compared with hormone drugs, the side effects are narrow and controllable, and the curative effect is significant compared with Chinese patent drugs;

3. Wide indications and significant curative effect: a large number of clinical validation are aimed at female hysteromyoma, endometriosis and dysfunction

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