19 December 2014,Mr. LI Xinzhou, Chairman, Executive Director and Chief Executive Officer of China Pioneer Pharma entered into a license and distribution agreement with theGroup’s important long-term partner, Switzerland-based pharmaceutical companyPolichem S.A. (“Polichem”). According to the agreement, Polichem extend the expiry date of the Group’srights to market, promote, and sell Macmiror Complex® and Macmiror® in Chinaand Polimod® in eight provincesin China from 30 December 2014 to 31 December 2019. Meanwhile, Polichemgrants the Group rights tomarket, promote and sellCripar® in China. The terms of the Agreement commencefromthe date of signing the Agreement between the both parties and will last until 31 December 2019. The Agreement shall be furtherrenewed for three years period after the expiration.

MacmirorComplex® and Macmiror®are patented products from Polichem. According tothe Southern Medicine Economic Research Institute and MENET,in 2013, MacmirorComplex® and Macmiror®were the second best-selling nifuratel product in China.With intense and efficacious trichomonacidal, antibacterial and mycostatic action, the productis effective in the treatment of vaginitis of mixed aetiology.Polimod®is the originator of pidotimod, which stimulates and regulates cell-mediated immune response and is applied to patients with immune dysfunction,was the second best-selling pidotimod product in China in 2013. After extending the Agreement, the Group is grantedthe rights to market, promote and sell these three products in the long run, which is expected to help the Group to further implement the sales and marketing program of the three products, and to generate sustainable revenue for the Group. Nowadays, Cripar® is the only Dihydro-α-ErgocryptineMesylate Tablet product in China,which isimportant for the treatment of Parkinson's disease and senile dementia and vascular demential disease caused by nerve function degradation. Its salesin China grew at a CAGR of 40.35% from 2010 to 2013 and has huge market potential.The Group is expected to generate more profit after it is granted the rights to market, promote and sell the product in China.

Mr. LI Xinzhousaid: “With the obvious aging trend of Chinese society, there is an increasing outbreak of Parkinson's disease and syndrome of senile dementia and vascular dementia caused by nerve function degradation.Cripar®, as an important product for the treatment of these diseases has a broad market prospect. The signing of the Agreement with Polichem indicates the Group’s strategy of developing andoptimising product portfolio. The Group will carry out the marketing and promotion program in respect ofthe product as soon as possible, and actively increase the sales of the product, which serves to further enhance the Group’s status as one of the largest comprehensive marketing, promotion and channel management service providers dedicated to imported pharmaceutical products and medical devices in China.”