About China SXT Pharmaceuticals

China SXT Pharmaceuticals, Inc., through its variable interest entity, Jiangsu Suxuantang Pharmaceutical Co., Ltd, focuses on the research, development, manufacture, marketing and sales of traditional Chinese medicine pieces (the TCMP) in the People’s Republic of China (China or the PRC). The company has a product portfolio of 19 advanced TCMPs, 10 Fine TCMPs, 235 Regular TCMPs and 4 TCMHS (traditional Chinese medicine (TCM) homologous supplements) solid beverage products that address various diseases and medical indications. Majority of its products are sold on a prescription basis across China. The company’s principal executive offices are located in Taizhou, Jiangsu province, China. Products The company sells three types of TCMP products, including Advanced TCMP, Fine TCMP, Regular TCMP, and TCMHS Solid Beverages. Advanced TCMP The company has two types of advanced TCMP depending on the way it is consumed, directly-oral TCMP and after-soaking-oral TCMP products. Directly-Oral TCMP: Directly-Oral TCMP is a novel advanced TCMP cataloged on Pharmaceutical Good Manufacturing Practice (GMP) (version 2010) and China Pharmacopoeia (version 2020) Parts I and IV. The products, unlike Regular TCMP, could be taken orally without decocting. Following the principle of Directly-Oral-TCMP, the company has established a new scientific and technological strategy and methods for the research and development of the direct-oral pharmaceutical TCMP products. Its products comply with the regulations of the National Medical Products Administration (NMPA) and provincial MPA, as well as keep the principles of TCM. After-Soaking-Oral TCMP: After-Soaking-Oral TCMP is another new type of Advanced TCMP, which could be taken after soaking with hot water without decocting. It is defined on China Pharmacopoeia (version 2020) Parts I and IV. Like the Directly-Oral TCMP, the company also has built a new scientific and technological strategy and methods for the research and development of the after-soaking orally pharmaceutical TCMP products. The products comply with the regulations of the NMPA and local MPA, as well as retain the principles of Chinese Traditional Medicine (TCM). Like Directly-Oral TCMP, its After-Soaking-Oral-TCMP provide the special features of being non-decocting, such as keeping NMPA-recognized TCM theoretic fundamental principles, preserving the quality of TCM original ingredients, increasing aqueous extracts to improve bioavailability for bioactive constitutes. Fine TCMP The company produces approximately 10 Fine TCMP products for drug stores and hospitals. Its Fine TCMP products are manufactured manually from authentic ingredients derived from their region of origin. Regular TCMP The company manufactures approximately 235 Regular TCMP products listed on China Pharmacopoeia (version 2020) Parts I and IV for hospitals and drug stores for the treatment of various diseases or serving as dietary supplements. TCMHS Solid Beverages The company developed and commercially launched four solid beverage products in April 2019, as part of the company’s TCM Homologous Supplements (TCMHS) products, a classification of health-supporting food used traditionally in China as TCM, but which are also consumed as food. The solid beverages are a kind of granules produced through extraction of TCMHS materials. The company has a product-developed portfolio of 19 Advanced TCMP products among which 17 Advanced TCMP products have been commercialized, 10 Fine TCMP products, and approximately 235 Regular TCMP products that address various diseases and medical indications. Its products have complied with dosage, safety and efficacy standards of Chinese Pharmacopoeia and have been granted permits issued by the Jiangsu MPA based on product manufacturing scope described in the Pharmaceutical Product Permit and GMP certification, and majority of its products are sold on a prescription basis. The company’s portfolio of products and its new product pipelines include products for high-incidence and high-mortality conditions in the PRC, such as cardiovascular, central nervous system, infectious, and digestive diseases. Suppliers, Customers and Distributors The company’s Chinese medicine product portfolio includes both prescription drugs and supplements. It has 5 major suppliers, such as Haoxiangni in Henan province, Qiansu, Haixin, Yishengyuan, in Anhui province of China, which is a major TCM market in China, Shilu Group in Jilin province of China, and other major suppliers in Anhui, Qinghai, Gansu and Yunnan Province. The company has long-term relationship with these suppliers, who supply raw materials of TCM for its production process. The company’s major customers are hospitals, primarily TCM hospitals primarily in the Jiangsu and Liaoning provinces in China and pharmaceutical wholesalers. The wholesalers distribute its products to hospitals and other healthcare distributors, such as Jiuzhoutong Pharmaceutical Co. Ltd. As of July 31, 2021, the company’s end-customer base included 70 pharmaceutical companies, 12 chain pharmacies and 59 hospitals in 10 provinces and municipalities in China, including Jiangsu, Hubei, Shandong, Guangdong, Liaoning, Anhui, Henan, Jiangxi, Heilongjiang and Hainan. The company has 4 sales offices covering 10 of China’s major provinces/municipalities, including Jiangsu, Hubei, Shandong, Liaoning, Anhui, Henan, Jiangxi, Guangdong, Hebei and Fujian, and approximately 68 sales representatives who assist in managing its relationships with its existing distributors and developing future distributors. Strategy The key elements of the company's strategy include promoting its existing brands to increase its national recognition; developing and introducing additional products to expand or strengthen its existing product portfolio; and expanding its distribution network to increase market penetration. Environmental Matters The company complies with the Environmental Protection Law of China, as well as applicable local regulations. Regulations The company operates its business in China under a legal regime consisting of the National People’s Congress, the State Council, and various ministries and agencies under its authority, including the Ministry of Industry and Information Technology, State Administration for Industry and Commerce, and their respective local offices. History China SXT Pharmaceuticals, Inc. was founded in 2005. The company was incorporated in the British Virgin Islands in 2017.