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In the face of the complicated political and economic environment in China and overseas as well as the tough situation in the pharmaceutical industry, Kexing Biopharm proposed the working policy themed as "intensely licensing in new products, firmly promoting R&D and innovation, and proactively creating business in new industries" at the beginning of the year, and continuously followed and implemented the policy in the first half-year.

Focusing on the annual theme, with the joint efforts of all employees, Kexing Biopharm has reached the budget targets for the first half of 2022 and achieved great breakthroughs in a number of tasks. In order to clarify the key tasks and raise the business performance to a new level in the second half year, the Company held a conference for reviewing operation and management in the first half of 2022 and planning key tasks for the second half year on July 30.

Review of operation and management in the first half-year and plan report of key tasks in the second half-year - each business unit

In the first half-year, Kexing Biopharm, with work performance as the starting point and focusing on capacity building, has achieved great improvements in both efficiency and profits. In the second half-year, Kexing Biopharm will continue concentrating on work performance, empowering workforce and bettering management, as well as tapping potentiality and increasing efficiency, making the organization and individuals run in an orderly and effective manner to obtain more business achievements.

In the first half-year, the Business Development Center II has efficiently completed the incubation of subsidiaries for animal protection, with close integration of the synthetic biology technology platforms during the incubation. In the second half-year, the pipeline of animal vaccines will be accelerated to form an echelon and matrix composing of existing products and new products.

In the first half-year, the Business Development Center I has initiated the sales of infliximab in China, together with every effort to promote several other license-in projects. In the second half-year, the major license-in projects will be speeded up, and the commercial value of projects invested will be realized.

In the first half-year, the Research Institute has completed the first IND application in 2022, which has been already accepted by CDE, and also transferred the production technology for one (1) prokaryotic-cell project. In the second half-year, it is planned to complete clinical trial application and receive approval for at least 4 projects, finish project initiation for 4 new drugs, and submit at least 3 patent applications.

In the first half-year, Shandong Business Unit decisively implemented strategic stocking of key materials, greatly saving procurement costs, and actively promoted the substitution of imported materials with Chinese products. In the second half-year, it is planned to make every effort in three major projects: lean management, smart park and exhibition hall construction, together with the work on the transfer of interferon and the approval of Kehuang Capsule.

The Technology Center and Shenzhen Kexing have efficiently completed the preclinical study and IND application with clinical trial approval obtained for SHEN26 in the first half-year. The production bases in Shenzhen and Shandong have efficiently completed the pilot production, quality comparability study and registration dossier submission of for the interferon transferred between both bases. It is planned to carry forward two projects to achieve the preset goals in the second half-year.

As to the work of the marketing unit in the first half-year, the domestic market share of multiple products in China has been increased, the overseas registration of license-in products has been carried out in an orderly manner. In the second half-year, the team will better its ability to further expand the competitive advantages.

In the first half-year, the Finance & Economics Center and the Office of the Board of Directors increased the introduction of financial digital intelligence tools to enhance the systematicness, and frequently carried out capital market exchange activities. In the second half-year, it is planned to increase revenue combined with reducing expenditure based on budget, tap potentiality and increase efficiency, and better operational profits, as well as widen investment coverage and improve accuracy.

Other units, such as those for Organization, Brands, Processes, IT, Administration, Human Resources, and Performance Center, worked together, based on the needs of the market platform in the first half-year, to realize synergy and empowerment in multiple fields. In the second half-year, it is planned to sort out organizational performance indicators, optimize the life cycle management of company-level projects, and improve the core content and communication of the brands, so as to further raise organizational efficiency.

Review of operation and management in the first half-year and plan of key tasks in the second half-year - Kexing Biopharm

In the first half-year, Kexing Biopharm focused on improving performance, and synergized the organizing platform and market platform for efficiency, achieving positive results in operation, but with relatively cautious development. In the second half-year, it is planned to still follow the policy "scaling up the company's revenue", keep highly intensive product license-in, and booster R&D projects prudently and efficiently; and to reform for lean management, increase revenue and reduce expenditure, and tap potentiality and increase efficiency, as well as control the use of funds, and balance development and risks.

Deng Xueqin, Chairman of Kexing Biopharm, gave positive comments on the work of the Company in the first half-year, and put forward higher requirements for the work in the second half-year: Kexing Biopharm will expand its vision and horizon, continuously benchmark with larger competitors and strong ones, and concern team learning and methods, so as to further upgrade organizational ability and strive for greater business achievements.