Preface
As winter plum blossoms bloom and the twelfth lunar month welcomes spring, Chiheal Group held its senior management business conference on January 24, 2025. The meeting was attended by Dr. Zhang Zhefeng, Chairman of the Group, Ms. Hou Wen, Vice Chairman, and senior executives from various subsidiaries.
Executive Management Meeting
This conference aimed to review and summarize the work of 2024 while also looking ahead to and planning the key tasks for 2025. It focused on discussing work plans, strategies, and measures to achieve the annual goals for 2025, striving toward the set objectives with determination and effort.
Summary Reports and Strategic Planning
Subsidiaries Present Their Summary Reports
Chiheal Aikang Pharma
Over the past year, Beijing Chiheal Aikang Pharma, as the core force of the registration and clinical business segment of Chiheal Group, has achieved remarkable results.
In the registration business, we successfully completed the post-marketing change registration for two imported drugs and obtained approval documents. Additionally, we completed multiple Pre-IND, IND, and NDA submissions for pipeline products on schedule, which have now entered the CDE review process.
The Clinical Medicine Department also delivered outstanding performance, completing clinical documentation, communication, and medical consulting services for over ten pipeline projects. Several clinical trial projects successfully reached key research milestones, with results meeting trial expectations, providing strong support for our clients in accelerating their regulatory submissions.
Furthermore, we successfully obtained certifications and honors such as Beijing High-Tech Enterprise Recognition, Technology-Based Small and Medium-Sized Enterprise (SME), Innovative SME, and the Beijing Science and Technology Program Expansion Award. These recognitions not only affirm our technical capabilities but also highlight our commitment to innovation.
Chiheal(Shandong)Pharma
The pharmaceutical industry in 2024 can be described as fraught with challenges and obstacles. Amidst this turbulent environment,Chiheal(Shandong)Pharma has stood firm, focusing on the present while achieving certain milestones. This year, we completed 33 process validation projects and established partnerships with 13 domestic pharmaceutical companies. We also handled the filing of 10 products with entrusted consent opinions, 13 production license amendments with C-class entrusted production, and conducted 5 site inspections. Notably, we completed the first project’s GMP dual inspection, marking a breakthrough and elevating us to a new level.
Additionally, the company successfully released 39 batches of entrusted products, achieving 100% pass rate for annual quality inspections and zero quality and safety incidents throughout the year. We also assisted in the registration acceptance of 17 products, with 10 expected to be approved in the coming year.
As we set sail for the future, we are determined to forge ahead and create brilliance. In this competitive landscape, we are working diligently to deepen our roots while striving for growth. With the correct leadership of the Group, all employees will remain focused on our annual goals, work steadily, and march forward to fully embrace a new chapter in the development of Chiheal(Shandong)Pharma!
Ruzhi Biomed
In 2024, Ruzhi Biomed focused primarily on its role as a Marketing Authorization Holder (MAH). Throughout the year, the company successfully expanded its B-license coverage to include 21 additional products. It passed GMP compliance inspections and obtained inspection notification letters for Penicillin Sodium for Injection, Lornoxicam for Injection, and Cefotaxime Sodium for Injection, covering three products and four registration numbers. Additionally, the company successfully underwent over ten inspections by provincial and municipal regulatory authorities.
Ruzhi Biomed also initiated production scheduling for three marketed products, supplying approximately 300,000 units of Lornoxicam for Injection across six batches, ensuring a 100% market supply rate. Drug vigilance efforts were carried out in an orderly manner, alongside several R&D projects. The company assisted Southwest Pharmaceuticals in obtaining the production approval for Oxacillin Sodium for Injection, submitted registration applications for five projects, and conducted supplementary research on two projects.
Thanks to these efforts, Ruzhi Biomed was successfully recognized as a Technology-Based Small and Medium-Sized Enterprise and a National High-Tech Enterprise in 2024. Looking ahead to 2025, the company will continue to push forward, overcoming challenges, strengthening its MAH operations, ensuring an effective and efficient quality system, and maintaining stable market supply.
Discovery Pharma
Discovery Pharma conducted a comprehensive review of the outstanding achievements made by various departments in 2024.
In terms of corporate management, the company refined its daily operations, safety, environmental protection, and occupational health regulations while establishing the Government Affairs Department and Project Management Department. In 2024, the company was recognized as an "Innovative SME" and designated as a Hebei Province Biopharmaceutical Contract R&D Service Platform, while also obtaining ISO 9001 quality system certification.
On the project front, the Chemical Drug Team in Shijiazhuang completed 11 project registrations, with 2 currently under submission, 7 process validations finalized, and 5 projects under research. Additionally, the company successfully underwent multiple audits by various governmental authorities and completed four B-license expansion inspections.
Thanks to the joint efforts of the Group and all employees, Discovery Pharma successfully met its annual targets, making a significant contribution to the rapid development of the Group.
Rukang Biomed
As Chiheal Group’s MAH platform enterprise in the Hainan Free Trade Port, Rukang Biomed achieved significant milestones under the Group’s leadership in 2024. In July, the company successfully obtained its manufacturing license.
Over the year, 12 projects were initiated, with 4 projects completing MAH transfer applications, 2 projects completing registration acceptance, and 2 projects finalizing process validation and awaiting regulatory submission. Additionally, 5 projects underwent manufacturing license expansion and amendments.
Thanks to the dedication of all employees and the strong collaboration with the Group’s R&D team, Rukang Biomed successfully met its annual objectives.
Chihealbio
In 2024, Chihealbio actively advanced its business development, closely collaborating with subsidiaries such as Beijing Aikang to jointly carry out clinical trials, registration submissions, and other projects. Significant progress was made with projects like Benalafon and Azithromycin for Children, while the long-term strategic focus on innovative and modified drugs gradually began to yield results. The international expansion of innovative drugs emerged as a new growth driver for profitability.
In 2025, Chihealbio will continue to increase investment in the fields of innovative and modified drugs, driving more projects into the clinical phase. The company will focus on advancing the already-launched innovative drug projects, aiming for more clinical approvals and registration progress. Additionally, by leveraging subsidiaries such as Beijing Aikang, the company plans to further expand clinical services and CRO (Contract Research Organization) business, strengthen collaborations with external companies, secure more clinical contracts, and enhance the overall business scale of the Group.
The company will optimize contract management by clarifying contract terms, improving project execution efficiency, and establishing more effective communication mechanisms to address any cooperation issues in a timely manner. Moreover, Chihealbio will proactively respond to the impact of national procurement policies, optimize its product pipeline, explore new profit models such as international expansion of innovative drugs, and reduce reliance on the domestic procurement market. The company will also focus on market research and analysis to explore non-procurement and international markets, searching for new business growth opportunities. Simultaneously, Chihealbio will strengthen team development and talent training, optimize personnel structure, and enhance team professionalism to provide strong support for the company’s growth.
Chairman's Work Guidance and Planning
Dr. Zhang Zhefeng, Chairman of the Group, made a summary and review of the Group’s business development for 2024. He emphasized the need to "Sprint towards 2025 and make it a decisive year." He stressed that the entire Group should align with its goals, strive for excellence, and aim for progress.
Tasks must be executed effectively by recognizing the current situation and tackling challenges head-on. The team should be motivated to achieve tangible results and deliver on outcomes. The focus must be on ensuring that all objectives for 2025 are met successfully.
The entire Group should clearly understand the development trends by recognizing its strengths and weaknesses, demonstrate its capability through effective action, and assume responsibility with innovation and practical efforts.
With confidence, Dr. Zhang believes that the Group will further unify its thoughts, enhance its understanding, precisely align with work requirements and task timelines, take responsibility, define actionable steps, and gather momentum to tackle challenges. All efforts will be geared towards achieving the 2025 objectives with high quality and determination
Final Thoughts
2024 is a critical year for the Group's development, as we face both opportunities and challenges. This year, the Group will spare no effort in focusing on its core business, expanding into emerging markets, strengthening innovation capabilities, and optimizing resource allocation to achieve higher quality and more sustainable growth.
2025 will be a year of soaring development for the Group, as we aim to reach new heights. We look forward to a year where, through the collective efforts of the entire Group, we will propel the company to a new level and create even more brilliant achievements.