About Tong Ren Tang Technologies

Tong Ren Tang Technologies Co. Ltd. (Tong Ren Tang Technologies or the Company) was incorporated as a joint stock limited company in Beijing, the People’s Republic of China (the PRC) on 22 March 2000. The Company controls the strategic operating, investing and financing policies of its subsidiaries that include TRT Hebei, TRT Nanyang, TRT Hubei and TRT Zhejiang. TRT WM, TRT Malaysia and TRT Canada are considered joint ventures of the company and their strategic operating, investing and financing activities are jointly controlled by the Company and the joint venture partners. The Group is principally engaged in the manufacturing and sales of Chinese Patent Medicine. Tong Ren Tang Technologies strives for the gradual modernization and internationalization of traditional Chinese medicine by improving the existing Chinese medicinal products and developing natural pharmaceutical products, while expanding the sales network and integrating modern Chinese medicine into the mainstream international pharmaceutical market. Its major products mainly fall into four forms, i.e. granules, pills, tablets and soft capsules. Main products include Ganmao Qingre Granule, Liuwei Dihuang Pill, Niuhuang Jiedu Tablet and Ganmao Soft Capsule. Development of new medicine The Company is currently conducting research and development of the following products: Research on new anti-influenza drug: The new anti-influenza medicine is developed in the form of effervescent tablet to tailor for the intake habit of the western people. The New Medicine Certificate has been obtained in 2001. Development of the new anti-cardiovascular system diseases drug: The new anti-cardiovascular medicine is based on clinically proved prescriptions that has been developed into three types of pure Chinese medicine to cure and prevent the cardiovascular diseases. Development of new anti-menopause syndrome drug: The anti-menopause syndrome medicine is based on clinically proved prescriptions and is developed into three main types of pure Chinese medicine to nourish liver and kidney, smoothing kidney and relieving “Yang” and releasing pressure. Its function is to regulate the central nervous system by a tranquillizing effect, as well as to raise oestrogen levels. Developing bio-pharmaceutical technologies: The Company entered into an agreement with WM Dianorm Biotech Co, Limited (Dianorm) on 10 May 2000 for the establishment of a joint venture, Beijing Tong Ren Tang WM Dianorm Biotech Co., Limited (Tong Ren Tang WM Dianorm Biotech). Tong Ren Tang WM Dianorm Biotech was incorporated in Beijing in 2001. By utilizing Dianorm’s advanced technologies in liposome and other bio-pharmaceutical areas, Tong Ren Tang WM Dianorm Biotech will be able to promote the technological level of Chinese medicine and will be able to develop other new bio-pharmaceutical products. Investment in Tong Ren Tang Hutchison (H.K.) Pharmaceutical Development Company Limited (Tong Ren Tang Hutchison Pharmaceutical Development): The Company entered into an agreement on 7 October 2000 with Hutchison Chinese Medicine Investment Limited, an indirect wholly owned subsidiary of Hutchison Whampoa Limited, and Beijing Holdings Limited, the majority shareholder of Beijing Enterprises Holdings Limited, to form an associated company, named Tong Ren Tang Hutchison Pharmaceutical Development in Hong Kong. The Company owns 40% equity interest of the associated company. Competition The Company faces direct competition with Beijing Tongrentang Company Limited and China Beijing Tong Ren Tang Group Co. Ltd.