Sichuan Kelun Pharmaceutical Co., Ltd.

Sichuan Kelun Pharmaceutical Co., Ltd. is a prominent Chinese pharmaceutical manufacturer founded in 1996 and listed on the Shenzhen Stock Exchange in 2010. The company operates through a structured platform that includes Kelun Pharmaceutical, Chuanning Biotech, and Kelun-BoTai, collectively valued at over 100 billion yuan. Kelun focuses on developing and producing a wide range of pharmaceutical products, with a strong emphasis on infusion solutions and antibiotics, leveraging its innovative capabilities and advanced manufacturing techniques. Kelun's main business lines include large-volume infusions, antibiotic production, and the development of high-tech drugs. The company has established a comprehensive responsibility system that encompasses research and development, production, logistics, and product usage, ensuring high quality and safety standards. Kelun has made significant advancements in the infusion market, including the development of the Keli Bag®, and has also expanded its antibiotic operations through Chuanning Biotech, which emphasizes sustainable practices and technological innovation. With over 1,300 invention patents filed, Kelun is positioned as a leader in the pharmaceutical manufacturing industry in China.

(1) Strategic Decision-making Ability and Execution Ability In the development process, the company's strategic decisions, formed by its keen insight into the development environment and its predictive ability of the industry development trends, have enabled the company to seize a series of historical opportunities: Firstly, the entrepreneurial opportunity in 1996 with low cost and low industry threshold; Secondly, the market opportunity in 2000 when hospital infusion preparation rooms were closed; Thirdly, the opportunity in 2003 when the upgrade and replacement of infusion products were forced by SARS; Fourthly, the opportunity in 2008 when the global financial crisis led to a major reshuffle in the antibiotic industry; Fifthly, the opportunity in 2013 when sterile drug production enterprises were required to be compulsorily certified through the new version of GMP; Sixthly, the R&D strategic layout of "driving innovation through generic drugs and driving the future through innovation" has led the wave of Chinese innovative drugs going global. At the same time, the company has actively responded to and participated in the centralized drug procurement with volume and the national medical insurance negotiations organized by the state and local governments. The company not only has strategic decision-making ability but also possesses extremely strong team execution ability. The corporate execution culture of "first inquiry responsibility system" and "24-hour feedback system" has taken root in the hearts of employees and is deeply embedded in every business activity. (2) Firm and Clear Development Strategy The company has a clear and firm corporate strategy at every stage of its development. In the initial stage of entrepreneurship in 1996, the company's development strategy was "cost leadership, market-driven"; On the occasion of the company's tenth anniversary, it put forward the development strategy of "two transformations" in a forward-looking manner, that is, "transforming from entrepreneurial operation to large-scale operation and from the mission of wealth to organizational inheritance"; After being listed in 2010, the company formulated the development strategy of "three engines driving". Over the past 14 years, the company has continuously strived to achieve the strategic goal of "three engines driving, innovation for growth". (3) Possessing Capital Conditions and Resource Strength Matching the Development Strategy In order to achieve the development strategy of "three engines driving, innovation for growth", the company has corresponding capital conditions and resource strength. Through continuous industrial upgrading and adjustment of product variety structure, the company has established the overall advantage of the injection product cluster including large-volume infusions, maintained its leading position in the infusion field, and continuously provided sufficient cash flow for innovative growth. In 2022, Chuanning Biotech was successfully listed on the Growth Enterprise Market of the Shenzhen Stock Exchange, and in 2023, Kelun-BoTai Biotech was successfully listed on the Main Board of the Stock Exchange of Hong Kong, marking the deep integration of industry and capital and a significant improvement in the overall capital strength. Relying on its strong capital conditions and resource strength, the company conducts research and development of high-tech drugs such as innovative small molecule drugs, biotech drugs, new drug delivery systems and excellent generic drugs through diversified technological innovation, expands international cooperation resources, and is accumulating the ultimate driving force for the long-term development of the enterprise. (4) The Combination of Talent and Technology, Highlighting the Innovative Advantage Innovation is the soul of enterprise competition. At the end of 2012, the company fully launched its innovative transformation, attracting thousands of doctors and masters to join. It has built a scientific research team with high scientific level, strong fighting will, reasonable talent structure and international standards, including leading talents with rich international research experience, as well as a R&D and innovation 承接 team in the production base mainly composed of doctors and masters. The company makes full use of excellent domestic and foreign research talents and other competitive resources, and has established a multi-technology category and full-function platform R&D system focusing on innovative research, with Kelun-BoTai Biotech, KLUS in the United States, Kelun Pharmaceutical Research Institute and its Suzhou Branch, and Shanghai Ruikang Biotech as the main bodies. It has formed a new R&D model that is mainly driven by domestic forward R&D and supplemented by foreign technology feedback, and is fully in line with international standards; Relying on innovative platforms such as the national-level enterprise technology center, post-doctoral research workstation, and the National Engineering Technology Research Center for Large-Volume Injection Preparations, the company conducts high-level cooperation across specialties, regions and ownership forms with relevant knowledge alliance institutions. Innovative ability has become the core competitiveness of Kelun. (5) Strong Team Inheritance and Innovation Ability The company's subsidiaries (branches) are located in 16 provinces (municipalities directly under the central government, autonomous regions) across the country, the Hong Kong Special Administrative Region, as well as countries such as the United States and Kazakhstan. In the initial stage of entrepreneurship, the company formulated the "long bench plan" for talent cultivation, that is, from team leaders at the grassroots level to the senior management team of the enterprise, each level must cultivate their own successors. This cultivation mechanism has provided efficient and useful human resources guarantee for the company's rapid expansion. At present, the company is not only rich in talents but also has carried out orderly generational handovers. High-quality management division of labor and cultural inheritance are important signs of a company's good governance. Currently, the company's organizational culture is transforming from power distribution to value flow. Hundreds of excellent professional managers are leading about 20,000 employees to turn Kelun's ideals into reality. The ability of the company's elite team to continuously replicate has contributed to the company's current stable and vigorous development trend, and is also a powerful driving force for its continuous development in the future.