Jointown Pharmaceutical Group Co., Ltd. (hereinafter referred to as "Jointown" or "the Company"), a tech-driven full-chain pharmaceutical supply chain service provider based in the pharmaceutical circulation, logistics service, medical health, and other big health industries, specializes in five business fields, namely, pharmaceutical distribution and supply chain services, general agency sales and self-made business, digital retailing, digital logistics and supply chain solutions, and medical health and technology empowerment services. Since the successful listing on Shanghai Stock Exchange (Stock abbreviation: Jointown, Stock code: 600998) on 2 November 2010, Jointown has achieved continuous, stable, and high-quality development, and ranked the fourth among Chinese pharmaceutical business enterprises for years, taking the lead in the race among pharmaceutical business enterprises in China, and ranking the 93th place of Fortune 500 (China version) in 2021.

In the first three quarters of 2021, Jointown achieved operating revenue of RMB92094m with a year-on-year growth of 14.66% ; The net profit was RMB2405m, up 12.31% yoy; The non-net profit of the parent deduction was RMB1317m, up 5.21% yoy. By the end of September 30,2021, the total assets of the company was RMB86807m and the owner's equity attributable to shareholders of listed companies was RMB23359m.

In 2020, Jointown earned an operating income of RMB 110,860,000,000, with a year-on-year growth of 11.42%, among which there were RMB 3,075,000,000 net profits attributable to the shareholders of Jointown, RMB 1,866,000,000 net profits attributable to the shareholders of Jointown after deducting the non-recurring gains and losses, and RMB 3,444,000,000 net cash flows from operating activities, with a year-on-year growth of 78.10%, 22.33%, and 24.42%, respectively.

Since its successful listing, Jointown has been optimizing its management structure and vigorously exploring new development modes. While ensuring stable growth in economic performance, Jointown also completed all-channel and all-variety business deployments and expansions, initiated the incubation and rapid development of emerging industries like general agency sales, self-made industrial business, third-party logistics business, and ecosystem investments, and yield fruitful results in the transformation from traditional modes to platform-centered, internet-based and digitalized modes.

During the past ten years, Jointown completed all-channel and all-variety business deployment and expansion, accumulated a sea of client resources and business types, and built a rarely-seen all-scenario logistics supply chain service platform.In the first half of 2021，Jointown full-channel B2B customers continued to grow, including 11,500 city and county-level public hospitals, 177,600 chain pharmacies and monomer drugstores, 174,700 grassroots and private medical institutions; Jointown also engaged in the sales of 478,523 products, including 70,834 Chinese and Western patent medicines, 255,219 medical devices and 92,274 Chinese herbal medicines.

Jointown got involved in the incubation and rapid development of emerging businesses like general agency sales, achieved the linkage between emerging businesses and original distribution business platforms, expanded its market share, and constantly enhanced its profitability.In the first half of 2021，Jointown earned a sales revenue of RMB6685m from its general agency sales and self-made business，with a year-on-year growth of 145，and the gross profit margin is 13.02%；Jointown also earneda sales revenue of RMB206m from the third-party logistics business; moreover, Imeik Technology Development Co., Ltd., one of the ecological investments made by Jointown, got listed on the ChiNext of Shenzhen Stock Exchange successfully, contributing RMB1193m (measured at fair value) to Jointown's net profits in the first half of 2021.

By constantly exploring new platform-centered, internet-based, and digitalized modes, Jointown actively embraced internet opportunities and vigorously increased the inputs into information and logistics technologies to better serve upstream and downstream clients and satisfy their diversified needs; Jointown has now become an efficient tech-driven full-chain pharmaceutical supply chain service provider equipped with 1,048 technical developers, system maintenance and redevelopment talents.

In terms of the platform-centered transformation, Jointown has built a full-channel highway platform covering chain pharmacies, monomer drugstores/clinics, hospitals/grassroots medical institutions, county-level business alliance distributors (quasi-terminals), and internet-based pharmaceutical supply chain, and is making use of this platform to run different kinds of medicines, medical devices, TCMs, consumer goods, self-made goods, and products of general agency sales. As of the end of June 2021，Jointown has continuously invested in establishing the infrastructures for the largest pharmaceutical supply chain service platform in China, including business facilities containing 141 warehouses with a gross floor area of 3,990,000 m2 among which there're 2,570,000 m2 warehouse facilities conforming to GSP standards and 519 freezers (with an area of 44,900 m2 and a volume of 100,000 m3 )，over 430 refrigerated trucks. Jointown has also set up six nationwide platforms, including product marketing platform, logistics sharing platform, e-commerce and information platform, financial sharing platform, value-added supply chain service platform, and ecological investment and financial platform.

In terms of the internet-based transformation, Jointown has built the internet-based transaction platform and the internet-based tool kit that provides empowering services to Jointown's clients from the perspectives of pharmaceutical distribution and retailing. In the first half of 2021, Jointown achieved a sales revenue of RMB8178m with a year-on-year growth of 43.57%，sales accounted for 13.20%. E-commerce channel has become an important business channel of Jointown, highlighting the value of Jointown's supply chain platform.

Among them, Jointown sold RMB2368bn to external Internet platforms (fourth terminals) such as Ali Health, JD Health, Yihao, Dingdang and Yidong, with a year-on-year growth of 63.86%; The sales of Jointown e-commerce platform reached RMB581m, with a year-on-year growth of 36.67%.Meanwhile, the internet service tools launched by Jointown, including Zhiyaoyun, Smart Pharmacy, and Medical Helper, have empowered more than 200,000 hospitals, pharmacies, grassroots medical institutions, and other clients, providing cloud warehouse backend support services for pharmaceutical supply chain and internet-based medical prescriptions.At present, there are 2,328 effective order pulling suppliers on Zhiyao Tong platform, 140,000 supplier salesmen in daily use, 144,300 downstream terminal customers covered by effective order pulling, and the order conversion rate (orders actually completed/orders placed by customers) reaches 95%. Platform turnover reached RMB281.3m(including tax), up 40% year-on-year.

In terms of the digitalized transformation, Jointown is one of the few modern digital pharmaceutical circulation enterprises with an independently developed uniform ERP system and master data management system in China. Jointown's digital system not only enhanced internal management level and operating efficiency but also provided external value-added services, as well as the support for efficient and safe logistics supply chain services. In October 2020, Shenzhen No.1 Modern Intelligent Pharmaceutical Logistics Center (Version 3.0) independently planned and designed by Jointown was put into successful use in Zhengzhou, Henan. As a modern pharmaceutical logistics center on which the most innovative technologies are used, it represents the highest level of pharmaceutical logistics and occupies a leading position in the industry.

In 2020, in the face of the epidemic impact, Jointown gave full play to Jointown's all-channel, all-variety, and all-scenario pharmaceutical supply chain, took an active part in the campaign of "fighting against the epidemic and guaranteeing the supply", and became the largest anti-epidemic supplies provider in Hubei Province; during the fight against the epidemic, Jointown was entrusted with a mission at the critical and difficult moment to help Wuhan Red Cross manage anti-epidemic supplies. Relying on the independently developed "Jointown Cloud Warehouse" Management System and the big data platform, Jointown swiftly combed through the distribution processes of donated supplies and delivered them to the designated units within the shortest period of time, offering great support for the fight; commissioned by the Academician Zhang Boli, Jointown's subsidiary Jiuxin TCM Group prepared and delivered more than 4 million bags of herbal decoction for designated TCM-treated hospitals, mobile cabin hospitals, and isolation points, making outstanding contributions to the treatment of COVID-19 patients with TCM, and winning widespread praise from the government and the society. This event also became a hot anti-epidemic topic in 2020. Recently, Jointown has won multiple honorary titles, including "National AAAAA Logistics Enterprise", "The Most Influential Private Enterprise of Hubei Province", "China Trustworthy Enterprise Honoring Contracts and Keeping Promises", "Outstanding Chinese Enterprise with Social Responsibility", "Top 100 Enterprise of Hubei Province", "Top 100 China Private Service Enterprise", and "Top 500 Enterprise of China".

2021 is the first year of the country's 14th Five-Year Plan，it's also the first year after the change of the board of directors of Jointown，and the key year for the digital transformation of the enterprise. The achievements made in the first three quarters are gratifying.

On September 3, the General Office of the Ministry of Industry and Information Technology (MOIT) and the General Office of the National Health Commission (NHC) announced 987 5G+ medical and health application pilot projects after local applications, expert review and publicity, among which Jointown successfully selected the 5G-based Chronic Disease Management Platform construction project for Key Population. The selected projects include the establishment and improvement of smart health management platform, Internet hospital, special disease service management platform and other systems, and the construction of chronic disease health management platform.

On October 15, the medical practice license of Chengdu Shuangliu Jointown Internet Hospital was officially approved. Jointown Internet Hospital will provide online diagnosis and treatment services through the online platform, realizing online consultation, follow-up, chronic disease management and drug delivery, creating efficient and convenient new medical service experience, and is committed to building a professional Internet platform for the big health industry.

Jointown have increased information technology investment, continue to promote the digital strategy. The company has entered into strategic cooperation with Huawei Technologies Co., LTD. (referred to as "Huawei"). Both parties will give full play to their advantages in leading industry levels in their respective industries and fields to exchange and cooperate in "digital" transformation consulting, application of new ICT technologies, management training, win-win cooperation of new business models and other aspects. Jointly promote the business development of pharmaceutical circulation, medical health, ICT, cloud and terminal, promote the development and application promotion of digital-intelligent pharmaceutical industry chain, and create a new engine for innovation in the medical and health field.

At the same time, Jointown continues to introduce financial "living water" to help the enterprise development. On September 24, the company obtained a long-term loan of 60 million euro equivalent (about 450 million yuan) jointly provided by the Asian Development Bank (ADB) and German Investment & Development Co; (DEG). The loan will be used for the construction of pharmaceutical logistics centers in Haikou city, Hainan Province, Tangshan City, Hebei Province and Nanjing City, Jiangsu Province.

While focusing on development, Jointown practices ESG development concept and fulfills social responsibility actively . In 2021, floods occurred in many places in China due to extreme weather such as torrential rain. Jointown actively organized rescue and donated love. During the torrential rain disaster in Henan province in July, the company donated cash and medicine materials totaling 10 million yuan to the Charity Federation of Henan Province for the aid of the torrential rain disaster areas in Henan Province. In August 2021, the company donated a total of 1 million yuan of materials and cash to Suizhou, Hubei province to assist local flood relief. In October, Jointown donated 3 million yuan to help Shanxi fight floods and rebuild after the disaster.

The big health industry is a perpetual sunrise industry. Always upholding the corporate mission of "protecting people's health, providing customers benefits and creating a win-win cooperation platform", Jointown will seize national policy opportunities of vigorously developing the health industry, continue to propel the upgrading from a traditional enterprise to a platform-centered, internet-based, digitalized and innovation-driven enterprise, and fulfill and even outperform its three-year strategic planning goals, thus maintaining continuous, stable and high-quality development, and striving to be the most professional health service platform in China.