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On November 2, Sino Biopharm (01177.HK) announced that in the third quarter of 2022, as the pandemic situation in China was under control and normal production and life order was restored, medical consumption and in-hospital treatment volume recovered significantly, and the Group timely seized the opportunity to accelerate the progress of research and development, production and sales, driving the Group to achieve rapid recovery growth in the third quarter of 2022. In the third quarter of 2022, the Group achieved revenue (unaudited) of approximately RMB 7.473 million, representing an increase of approximately 21.3% over the same period last year; from the first to the third quarter of 2022, the Group achieved cumulative revenue (unaudited) of approximately RMB 22.667 million, representing an increase of approximately 10.5% over the same period last year.

The Group has already made systematic layout from marketing system, production cost control and other aspects to cope with the normalization of centralized purchasing, and has played a positive role in stabilizing revenue and profit growth. In the future, the Group will continue to do a good job in traditional public hospital sales, increase the resources for new marketing channels and new marketing means, gradually expand the proportion of revenue from new marketing channels, and build a more healthy, diversified and sustainable revenue composition system.

In view of the potential impact of the national collection policy situation on generic drugs, the Group has re-evaluated and optimized its pipeline under development from the perspective of innovation and market value, focusing more on products with high innovation and market potential. The Group also continued to increase investment in innovative R&D facilities, personnel and projects. Innovation has become an important driver of growth for the Group, with the share of innovative drug revenue expected to reach 24% by 2022. Looking ahead, the Group plans to exceed the RMB 10 billion mark in revenue from innovative drugs by 2023 and further increase the share of revenue from innovative drugs. The Group aims to become a world-class innovative pharmaceutical group by 2030, reaching a revenue target of HK$100 billion, with innovative drugs accounting for over 60% of revenue. The Group will focus on four major therapeutic areas, including oncology, surgery/analgesia, liver disease and respiratory system, and strive towards the 2030 target by driving development with innovation through two parallel wheels of independent R&D and business development.