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Dermatology and Medical Aesthetic Business

CMS has been deeply engaged in the field of skin health for many years, and has deployed a number of dermatology products with competitive differentiation advantages, such as Hirudoid (existing exclusive product), Tildrakizumab (innovative drug at the registration trial stage in China); meanwhile, the Group has accumulated abundant sales and promotion resources in the dermatology field. As at 31 December 2020, the Group's sales and promotion network has covered about 57,000 hospitals and medical institutions, over 200,000 retail pharmacies, and about 12,000 dermatologists, and has approximately 700 professional dermatology promotion staff. In order to effectively utilize the sales and promotion channel resources and improve the efficiency in the dermatology field, the Group acquired Luqa Ventures (Luqa), a dermatology specialty company, on 1 February 2021, which has enriched the Group’s dermatology line and expanded the Group’s business boundary with its strengths to enter the medical aesthetic field.

The Group will continuously utilize its domestic and overseas channel resources to deploy professional dermatological products and cutting-edge medical aesthetic solutions globally to build a comprehensive skin health product matrix consisting of prescription medicines, medical devices, medical aesthetic solutions and dermatology-grade skin care products; in the meantime, the Group will leverage its extensive network resources in the dermatology, and integrate channels such as hospitals, retail pharmacies, e-commerce, medical aesthetic institutions, and distributors to build a leading skin management and high-end medical aesthetic brand in China with first-rate competitiveness, in order to fulfill the increasingly diverse needs for skin management and beauty of Chinese consumers.