Charmacy Pharmaceutical Has Obtained the Provincial Capital Support

Future Expected Rapidly Growth

HONG KONG,Aug. 16,2023 -- Charmacy Pharmaceutical Co.,LTD. (CharmacyPharmaceutical,stock code: 2289.HK),as a leading private pharmaceutical distributor in South China,has been actively seeking strategic cooperation and resource complementary from various parties in recent years,and is expected to benefit from the high-quality development process of the industry in the long run. At the end of 2022,the company announced that Jiangxi Jiangzhong Pharmaceutical Commercial Operation Co.,LTD. (hereinafter referred to as "Jiang TCM Shang") intends to become the largest shareholder of CharmacyPharmaceutical,and the company's performance has grown steadily.

Charmacy Pharmaceutical announced at the beginning of this year that Mr. Yao Chuanglong,the controlling shareholder,Chairman of the Board,executive director and group chief executive Officer of the Company,completed the share delivery with Jiang Chuanglong,and after the completion of the acquisition,Mr. Yao Chuanglong's shareholding ratio was changed to 31.94% and Jiang's shareholding ratio was 46.42%,according to which Jiang Chuanglong became the largest shareholder of Charmacy Pharmaceutical. At the same time,in the first half of the year,CharmacyPharmaceutical and Jiang Traditional Chinese Medicine Shang entered into a "Framework loan Agreement". The group applied for loans from this year to 2025,and authorized the general manager to apply for the maximum amount of loans of 500 million yuan each year.

According to the Statistical Analysis Report on the Operation of Drug Circulation Industry in 2021 issued by the Ministry of Commerce,Charmacy Pharmaceutical ranked 37th among the top 100 Main business income of drug wholesale enterprises in 2021. With the introduction of state-owned shareholders,the core competitiveness of CharmacyPharmaceutical will continue to improve,and the leading advantage will continue to strengthen,which will help it fully participate in the long-term high-quality development of the industry.

It is reported that Jiang Traditional Chinese Medicine business for the mixed ownership of state- owned enterprises in Jiangxi Province,the use of state-owned enterprises in the policy,resources and brand advantages,to build for the county and township market mono pharmacies,small and medium-sized chains and clinics (hereinafter referred to as the "non-bidding market") to provide professional solutions to the pure sales of pharmaceutical business platform as the entry point,Comprehensively expand pharmaceutical production,modern intelligent logistics,third party entrusted distribution,"Internet + finance" and "Internet + retail" and other strategic businesses. Together with Jiang TCM Merchants,CharmacyPharmaceutical will adhere to the market strategy of "deeply cultivating Guangdong and radiating the surrounding areas",and build a comprehensive pharmaceutical retail terminal network covering Guangdong province and its surrounding areas.

It is reported that with excellent software and hardware conditions,CharmacyPharmaceutical fully meets the needs of its own drug categories and the rapid growth of the quantity of warehousing,while using the remaining storage space and logistics distribution capabilities,actively expand the third-party pharmaceutical logistics entrusted business,to create new performance growth points. By the end of December 2022,the company has reached cooperation with nearly 100 customers such as manufacturers,commercial distribution and chain pharmacies on third-party pharmaceutical logistics commissioning business and other value-added services such as warehousing or transportation. At the same time,the company also grasped the trend of economic and social digital transformation,and enabled services through e-commerce platforms,and continued to inject incremental performance.

After the epidemic,the domestic pharmaceutical market has rebounded,Charmacy Pharmaceutical under the background of state-owned shareholders and the support of funds,to grasp the dividend of the pharmaceutical terminal market and record steady growth in pharmaceutical market.

About Charmacy Pharmaceuticals

Charmacy Pharmaceuticalswas established in 2000 and primarily distributes products to downstream distributors and retail endpoints. The company also provides third-party logistics services and pharmaceutical product consultation services. Focusing on the non-tender market,the company is one of the leading pharmaceutical distributors in South China. It operates five modern pharmaceutical distribution centers in Guangzhou,Foshan,Shantou,Zhuhai,and Huizhou. With advanced and efficient information management systems and logistics distribution capabilities,its business scope covers the entire Guangdong region and extends to surrounding areas such as Fujian,Guangxi,and Hainan.