 As a national pharmaceutical group headquartered in Shanghai, Shanghai Pharmaceuticals Holding Co., Ltd. (Shanghai Pharma) is the only integrated pharmaceutical company in the PRC that has leading positions in both pharmaceutical product and distribution markets.
Shanghai Pharma primarily operates in the following three business segments in the PRC: pharmaceutical business, pharmaceutical distribution and supply chain solutions and pharmaceutical retail. The company's vertically integrated business model enables its to benefit from major stages of the pharmaceutical industry value chain, as well as enjoy the potential synergies arising from the coordinated efforts across business segments.
Pharmaceutical business
Shanghai Pharma manufactures and markets a broad range of pharmaceutical products, spanning chemical drugs, modern Chinese medicines, biopharmaceutical products and other pharmaceutical products, including approximately 70.0% of the drugs on the National List of Essential Drugs. Many of our products are sold under well-known trademarks, such as 'Sine (信谊)', 'Leishi (雷氏)', 'Longhu (龙虎)', 'Qingchunbao (青春宝)', 'Huqingyutang (胡庆余堂)' and 'Cangsong (苍松)'. We also maintain stringent quality standards and control system, all of which either meet or surpass the mandated national standards.
Pharmaceutical distribution and supply chain solutions
We provide distribution, warehousing, logistics and other value-added pharmaceutical supply chain solutions and related services to pharmaceutical manufacturers and dispensers, such as hospitals, distributors and retail pharmacies. We operate a national distribution network comprising 41 subsidiaries and branches, as well as 32 logistics centers and warehouses located strategically across the Eastern China Region, the Northern China Region and the Southern China Region. As of December 31, 2010, we distributed over 18,600 pharmaceutical and healthcare products, encompassing prescription medicines, over-the-counter medicines, personal care products and medical supplies, with a focus on high-end pharmaceutical products, primarily comprising imported medicines and those manufactured by subsidiaries of international pharmaceutical companies in the PRC.
Pharmaceutical retail
We operate and franchise a network of retail pharmacies across nine provinces, municipalities and autonomous regions. As of December 31, 2010, our retail pharmacy network consisted of 1,682 retail pharmacies, of which 1,187 were directly operated retail pharmacies and 495 were franchise pharmacies.
Shanghai Pharma is the third largest pharmaceutical company and the second largest distributor of pharmaceutical products in the PRC in terms of revenue in 2009. The company is listing in Shanghai Stock Exchange (Code: 601607). The company's revenue and net profit in 2010 is RMB37,381.6 million and RMB1,368.3 million, respectively. |
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