Sihuan Pharmaceutical (0460.HK) Obtained the Exclusive Distribution Right for LipiVage(R) Fat Collection System in Greater China and South Korea

HONG KONG,June 4,2021 -- Sihuan Pharmaceutical Holdings Group Ltd. (the "Company" or "Sihuan Pharmaceutical",together with its subsidiaries,collectively referred to as the "Group"; Hong Kong Stock Exchange stock code: 0460) is pleased to announce that Meiyen Laboratory Inc,an American subsidiary of the Group,has entered into a strategic cooperation with the American company Genesis Biosystems recently,and obtained the exclusive distribution right for its LipiVage® fat collection system in Greater China (mainland China,Hong Kong,Macau,Taiwan) and South Korea,which further expands the pipeline for medical aesthetic products of the Group.

The LipiVage® fat collection system is an innovative product with independent and ready-to use two-step fat collecting,cleaning and transferal system,which is easy to operate and has mild effects. It is safe and convenient as an equipment with aseptic packaging,and is the improved version of the conventional negative pressure liposuction technology. Under the extraction with low negative pressure,the fat tissue is extracted into the vacuum pipe,and the fat cells,tumescent fluid and lipids are separated directly through the defecator in the pipe. In such manner,the fat cells can be obtained in an enclosed and aseptic environment,while the time for processing the fat tissue can be reduced. The fat cells are under protection by avoiding destructive gravity effects of centrifugation,and the fat cells so collected can be transferred and injected immediately,which saves a lot of time.

Besides,LipiVage® provides a cleaning option. By putting the collection cannula into the selected washing solution and turning on the aspirator,the solution will wash the fat,leave the defecator and then enter the waste solution tank,with washed fat in the defecator ready for injection. This technology improves the survival rate of fat transplantation to 80% to 90%. Research shows that both the survival volume and the enzymatic activity of the fat cells extracted by LipiVage® system are higher than conventional methods. Research also found that,by comparing LipiVage® with the Coleman system (the "gold standard" for fat transplantation),the numbers of survived fat cells obtained through the two methods are same,while the fat cells obtained through LipiVage® possess higher enzymatic activity than those obtained through the Coleman system,demonstrating the correlation between the enzymes and the survival rate of fat cells after transplantation.

Liposuction is the first choice for Chinese female for body contouring. The proportion of liposuction surgery in the total medical aesthetic consumption in China is already higher than that of the United States. In 2020,liposuction consumption accounted for more than 80% of body contouring. Autologous fat transplantation is a minimally invasive autologous tissue filling technique. With the widespread application of tumescent anesthesia technique in liposuction,fat transplantation sites involve almost all body surface organs such as forehead,temples,nose,cheeks,nasolabial folds,chin,earlobes,breasts,hands,buttocks. Facial filling and breast augmentation in the field of medical aesthetic can not only shape breasts and the face,but also reduce excess fat in other areas,quickly achieving a slimming effect in one surgery.

The consumption data of medical aesthetic issued by So-Young shows that autologous fat filling has become one of the surgeries most popular with people who love beauty during the "Double 11 Festival" period in 2018. The utilization of autologous fat filling can ensure the inherent safety of materials,and the effect of autologous fat filling can be maintained for a long time as long as cells successfully survive after surgery. The survival rate for fat transplantation through traditional methods is only between 30% and 70%.

According to the Euromonitor statistics,the obesity rate among adults in China increased from 3% in 2002 to 7% in 2018,and given the large population base,The Lancet reported in 2016 that China has become the country of the largest population with obesity in the world. Furthermore,the Chinese are also willing to pay for weight loss. According to a survey of approximately 2,000 people conducted by iimedia in 2020,more than 90% of the respondents indicated willingness to pay for weight loss. The market size of China's body contouring market was approximately RMB10.5 billion in 2020,and the future growth rate is expected to be higher than that of the overall medical aesthetic market. The size of China's body contouring market is expected to exceed RMB100.0 billion by 2030,as consumers' increased attention to body contouring,the offering of more refined body contouring services and the expansion to potential consumers such as men will jointly drive the rapid development of the market in the future.

Dr. Che Fengsheng,Chairman and Executive Director of Sihuan Pharmaceutical Holdings Group,said: "In recent years,the Group has been committed to bring high-quality medical aesthetic products at home and abroad into the Chinese market,including the hyaluronic acid products of Hugel,which was the exclusive distributor of Letybo earlier. At the same time,the group also has more than 10 self-developed medical beauty products. We believe that these products will become an important support for Sihuan's medical and Sihuan's medical aesthetic sectors. This strategic cooperation between the Group and the American company Genesis Biosystems on LipiVage® fat collection system is expected to help the Group further expand its pipeline for medical aesthetic products,improve the Group's comprehensive strength in the surgical medical aesthetic field,and greatly enhance the Group's core competitiveness."

Sihuan Pharmaceutical Holdings Group Ltd.

Founded in 2001 and listed on the Main Board of the Hong Kong Stock Exchange Limited in 2010,Sihuan Pharmaceuticals Holdings Group Ltd. ("Sihuan Pharmaceutical" or the "Company",together with its subsidiaries the "Group") (HKSE: 00460.HK) is an international pharmaceutical company led and driven by both innovation and generic,with an independent and leading independent research and development ("R&D") technology platform,a rich global product pipeline and a mature and excellent sales system. Focusing on high-growth therapeutic areas such as oncology,metabolic diseases,medical aesthetics,anti-infectives,digestive system,cardiovascular and cerebrovascular,Sihuan Pharmaceutical is building a leading medical aesthetics and biopharmaceutical leader in China with a two-wheel drive strategy of independent innovation and research and incubation to cultivate high growth new businesses.

Genesis Biosystems

Founded in 2001,Genesis Biosystems,an American company,is an innovator in the field of aesthetic medical equipment and services. The company focuses on skin regeneration systems and is also a leader in autologous fat transplantation products. Its leading brand LipiVage® has been launched in the United States. It is an innovative product that is gentle on fat cells and can provide surgeons with delicate adipose tissue within several minutes.

For more information on Sihuan Pharmaceutical,please visit the company website https://www.sihuanpharm.com/