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Development Planning

Development goals and plans within three years

(I)Development goals within three years

Abiding by our purpose of "Human foremost,pursuing excellence", our faith of "to serve the cause of human health care", our principle of "social benefits first, economic profits second", innovation-based,we devote ourselves to improve Chinese children’s physical quality by sparing no efforts to supply innovative vaccines with high quality and low price for society.
Upholding to set market demand as the guidance, quality as the essence, benefit as the goal, innovation as the means in technology, institution, and management, by optimizing the product portforlio and technical structure constantly, and making full use of own advantages of development, marketing, brand and talent, we will strive to form a serial, intensive and modern business pattern step by step, and lay a solid foundation of being a industry leader within three years.
We will focus on the strategic target of "being a leading player within vaccine industry in China", continue to create the best social and economic benefits, promote our core competitiveness and brand value constantly to ensure the continued rapid sales growth and maximize our shareholders‘ profits. Based on vaccine industry, we will intensify our efforts on marketing to consolidate and enhance the market position of existing products; speed up the construction of investment projects by raised-funds to ensure timely introduction of new products; increase investment in R&D and further improve the marketing network to elevate the R&D level and marketing advantage.

(II) development planning within three years

Since the foundation, the Company holds the developing idea in belief that independent innovation makes progress and growth promotes independent innovation. Through continuous technical innovation, the vaccines we developed are technically mature and marketable, which has earned the trust of the market and clients and achieved outstanding benefits socially and economically. In order to guarantee the fulfillment of developing goals within 3 years, the Company has tailored specific measures to expand the developmental space, enhance the innovation capability and upgrade the core competitive advantages.
1、Business plan to expand the developmental space
With focus on both self and agent business, taking advantage of opportunities offered by distribution reform and rapid growth of the domestic vaccine market, the Company will introduce more vaccines with independent intellectual property rights by growing investment in R&D and increase the market share by continuous improvement of professional promotion to rank among the first-class vaccine enterprises in the next three years.
 
(1) Self business
 
Meningococcal meningitis vaccines
Within 3 years, the Company will establish industrialization bases of Meningococcal Polysaccharide Vaccine (Group A/C/Y/W135), Meningococcal Group A&C Conjugate Vaccine, and Meningococcal Group A&C polysaccharide vaccine with annual yield of 12 million doses respectively, which will make us the manufacturer and supplier of meningococcal meningitis vaccines with the largest scale and complete range in China.
Haemophilus influenza type b vaccine (Hib)
The newly established project will turn out annual yield of 12 million doses of Hib vaccine.
Vaccae(Mycobacterium vaccae for injection)
Vaccae will have a yield of 5 million doses yearly after the technical transformation project. The Company will make full use of its strong marketing advantage to guarantee the solid expansion of its market size.
 
(2) Agent business
 
The Company will add new agent vaccines timely and properly by means of years of strong marketing system according to the supply-demand changes of the overall vaccine market, the fluctuation trends of different products regarding geographical, seasonal or other needs, and the trends of prevalence of various infectious diseases, creating more value for shareholders.
 
(3) International business strategy
 
The Company will take active part in application for WHO pre-qualification  for export to be the first batch enterprises qualified by WHO and to be one of the glogally accepted vaccine operator. 
2、Business plan to enhance the innovation capability
(1) Introducing high level talent and forging first-class R&D echelon
 
The Company will keep introducing vaccine experts with a wealth of experience and top technical talents with respect to viral, bacterial vaccines and production to form a R&D team with high starting point and standards. The plan is designed to recruit around 10 leading reseachers from the industry and elevate the existing R&D capability by improving talents selection and training mechanism in the next 3 years. We would like to jointly cultivate promising core researcher with domestic reputable colleges and universities and institutes at the same time. As per the plan we will recruit about 30 potential graduates with Ph.D/ M.D./B.D. degree to infuse new life into our team for continued technical innovation every year. The vitality maintained by the above measures would be our "technological engine".
 
(2) Building a leading technology platform, and proactively deploying the vaccine development plan
 
The Company will make our vaccine R&D center out of the leading technology platform in China in researching on bacterial and viral vaccines and upgrading the technology of existing products, improving their qualities and production efficiency. Closely following the development trend of vaccine industry, we will combine the market demand with our own product features and research ability to deploy a scientific R&D program.
During the next 5 years, it is estimated that among the R&D pipeline, 2 candidate vaccines will obtain drug approval documents and market authorizations, 4 apply for the drug approval documents, 2 complete phase III clinical trials, 6 complete phase II clinical trials and 2 obtain approval for clinical trials. In addition, 3-5 new-developed projects will depend on the situations.
 
(3) Encouraging efforts to improve incentive and restraint mechanisms about independent innovation, and fully stimulating the enthusiasm of researchers
 
The Company will strive to build a positive competition platform which will make for the progress of R&D personnel, further improve incentive and restraint mechanisms which can fully stimulate the enthusiasm of researchers, and follow the rule of selecting the superior and eliminating the inferior, to creat a circumstance which can attract talents and make staff gain what they deserve for their outstanding performance. Through various incentive measures including payment rise, training program, and career development, we encourage product and technology innovation, intellectual property protection and patent application to maintain the cohesiveness and solidarity of the research team and strengthen the sense of belonging of the core workers.
3、Business plan to upgrade the core competitive advantages
(1) Enhancing the market development and marketing network construction
 
① Redoubling the construction of sales team, consolidating and strengthening the marketing network
Another core competitive advantage of the Company lies on its strong marketing network, none but which can turn "products" into "merchandise" efficiently. The Company has built a professional team for vaccine selling, with so far more than 400 members covering over 30 provinces (Autonomous regions / municipalities), 300 cities, 2300 counties, 12000 towns. What‘s more, the team will develop to staff of 496 members, each business manager on average responsible for 2.3 million people which was 3.3 million in the past.
Provincial offices of the Company all over China intends to increase from existing 22 to 47, expanding from provincial level towards key municipal level, towards metropolitan and western regions as to the coverage scope, and towards the second-class or third-class cities with solid foundation as to the coverage depth to increase the number of target CDCs and improve the product coverage. The overall network is provided with sound software and hardware facilities.
 
② More emphasis on market investigation
Through informationization construction the Company can further improve the collection and analysis system of market information, besides, establish and consolidate the connection with market research organizations, for the purpose of improving the capabilities of market research and forecast which make for guidance on the production and technology development and evidence-based support for differentiated marketing strategy.
 
③  International market exploitation timely
Apart from actively collecting useful information and mastering the dynamics trends of the international market, the Company will enter into the international market by growing cooperation with foreign leading enterprises and then set up offices abroad when the situation requires.
 
(2)Human resource planning
 
Talent is the first key for the Company to realize its self-development strategy and highly qualified human resource, which meet the needs of corporate strategy, make significant contributions for its rapid and sustained development. With the growing business scale and constructions of financing projects, the Company will conduct a planned and focused introduction and training of high level R&D talents and marketing or management talents with rich experience. The Company makes every effort to attract, cultivate, motivate the capable people and put their talents into best use, through competitive remuneration package, scientific and sound evaluation and incentive mechanism to optimize the personnel structure and improve their quality, for a talent group with complete labor division, reasonable echelon and relative stable personnel.  What’s more, the Company will intensify the training program and corresponding culture building for the purpose of enhancing the employees’ cohesiveness and sense of identity.
 
(3) Company governance planning
 
At the very time of IPO, the Company will deepen the reform of corporate governance and management. In strict accordance with relevant laws and  regulations like Company Laws, Securities Acts, we will strive to strengthen the corporate governance, promote the construction of modern corporate institution, regulate the terms of reference and rules of procedure of General Meeting of shareholders, Board of Directors, Board of Supervisors and senior management staff to form the corporate governance under which each can do its own jobs and  restrain each other and operate as per certain criteria. Meanwhile, significant investment decisions are to be made scientifically and systematically; in addition, the Company will maintain the information timely disclosure to improve transparency of corporate operation.
 
(4) Merger and acquisition plan
 
On the whole, the type II vaccine (vaccine excluded in EPI, to charge) market is in low concentration. With a view to add weight to mid- and long-term competitive advantages, the Company will, according to its development strategy, seek opportunities for steady expansion in type II vaccine market and conduct moderate merger and acquisition when the timing, condition and subject are pretty favorable for the purpose of greater scale effect of the Company.
 
(5) Refinancing planning
 
The Company will make every effort to explore new financing channels constantly,optimize the capital structure, and reduce financing costs based on the needs of different stages for development since relatively strong financing capability is of important guarantee for business development. The Company will  intensify the capital operation and utilization efficiency and raise short-term liquidity and long-term funds along according to different phases and by low cost to maintain a steady structure of balance sheet, support the company’s sustainable, stable and healthy development, and maximize shareholder value.
 
(6) Construction and planning of informationization
 
The plan is designed to complete the construction of OA system and video conference system in 2011 and initiate the construction of ERP system at proper time for the purpose of resource allocation optimization, cost cut, improvement of the abilities to operate and manage a company and to make rapid response, and ultimately the formation of a unified and standardized information technology platform.