Company introduction

According to Frost & Sullivan's report, based on earnings in 2014, the company is the third largest marketing, promotion and channel management service provider to the Chinese pharmaceutical industry, accounting for 6.4% of the market share. The company is also the sole marketing, promotion and channel management service provider for plasma drugs in China. According to Frost & Sullivan's report, the Chinese marketing, promotion and channel management services market is part of the Chinese pharmaceutical distribution market. The market size in 2014 was RMB 14,959.8 million, accounting for about 1.0% of the Chinese pharmaceutical distribution market. The company's product portfolio consists of the Chinese plasma drug segment and other rapidly growing or imported drugs with a comparable market size.

As of 2012, 2013, the year ended December 31, 2014, and the ten months ending October 31, 2015, the company's revenue was divided into approximately RMB 26.17 million, RMB 532.48 million, RMB 950.08 million and RMB 850.80 million; over the same period, the company's net profit split was approximately RMB 0.14 million, RMB 36.54 million, RMB 69.37 million, RMB 69.37 million and RMB 51.08 million.

Assumed use of proceeds

Assuming that the over-allotment rights were not exercised, the net proceeds from the sale of shares were estimated to be approximately HK$324.8 million based on the median sale price of HK$0.96 per share. The Board of Directors proposes to use the net proceeds for the following purposes: