SINPHAR — Investor Presentation 2019

Dec 18, 2019

SINPHAR’S Code: 1734 SynCore’s Code: 4192

SIN ~~PHAR PHARMACEUTICAL CO.,LTD~~ Investor Conference 2019/12/18

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Disclaimer

 本簡報是建立於本公司從各項來源所取得之資 訊。有些資訊可能受未來不確定性因素影響， 致使與原先本公司對於未來前景的說明迥異。 未來若有變更或調整時，請以公開資訊觀測站 公告資訊為依據。

 This presentation is based on the information obtained from various sources which the company believes to be reliable. But at some point in the future, there are a variety of factors which could cause actual results to differ materially from those statements. Therefore, please refer to the information on MOPS website as the main basis if any adjustment has been made. (http://mops.twse.com.tw/mops/web/index)

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Index

1. Focus Y2020

2. Group Operation

3. Important Events and Social Responsibility

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Founded in Taiwan, Step Forward to The World

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1977 Established Sinphar Ilan, Taiwan

Generic、functional food、 cosmetic

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1997 Established CanCap Vancouver, Canada

Clinical control for New Drug of North America、spot of international

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2012

Merged ZuniMed Biotech Nantou,TW Medical facilities

business

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2002

R&D center Ilan, Taiwan

Various laboratories, Chinese medicine, microorganisms, and cellular and molecular biochemical functions

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2002

Invested Sinphar TianLi, He-Tian Tianli Hangzhou ( CN )、 Xinjiang(CN ) Generic、TCM、Natural Resources

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2008

Co-found SynCoreBio Ilan, Taiwan New Drug Development

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Preventive Medicine

1. Domestic Business：

(tablet, hard capsule, soft capsule, granule and powder, liquid(oral), jelly candy and pastilles.)

• Continue to develop new functional foods with currently 6 products having obtained health food certification licenses. (Delays aging, fights fatigue, improves immunity, regulate allergies, regulate blood lipids, blood sugar and cholesterol)

• 6 new products have been listed in 2019, 3 new products are expected to be listed in 2020.

• Inter ~~national Business：~~

• Factories have completed secondary quality control certification.

• We completed MUI‘s HALAL certification and product sales license.

• Malaysia: Product L has received approval and launched into the market; Product B is pending approval.

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Medicine Developments

(Tablet, ointment, liquid (external use), liquid(oral), eye drops, hard capsule, soft capsule, suppository, granule and injections for oncology)

1. Domestic Business：

• Have run pilots on ten products (Breast Cancer, Colorectal Cancer, Lymphoma, Pancreatic Cancer, Gastric Cancer, Lung Cancer, Ovarian Carcinoma and Leukemia).

• Product M (for gastric cancer and colorectal cancer) is the first generic drug that passed BE in Taiwan and Product G (for non-small cell lung cancer) are being registered. It is expected to be approved in 2020.

• Product C (for anti-inflammatory and antipyretic) has been launched in 2019.

• Product M (for gastrointestinal metabolism) and Product P (for hyperlipidemia) are being registered and are expected to be approved in 2020.

2. Internati ~~onal Business~~ ：

• Indonesia: Product A has received approval and launched into the market.

• Japan: Product G has received approval and launched into the market.

• Malaysia: Product T has received approval and launched into the market; Product K is pending approval, anticipate launch date in 2021.

• Mongolia： Product LA is pending approval, anticipate launch date in 2021.

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Sinphar Counter

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1. Strengthen direct communications with members

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• 30,000 customers joined as members in 2019.

• In-house nutritionists sharing constant informational updates on social media FB and Line.

• Personalized exclusive membership offers with above and beyond comprehensive service follow ups.

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1. Sharing extensive relevant medical timely messages ~~with the community.~~

2. Health Bio-tech Park established in Q4. The main purpose of the establishment is to convey correct medical and nutritional knowledge to the community.

3. • The public gets to understand the making of medicine, supplement, and cosmetic products via factory tours and face to face interactions. 7,000 visitors in 2019, visitors will estimate to exceed 10,000 in 2020.

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NTD in Thousand

Intelligent Manufacturing

				2019 Q1-Q3
		2017 Q1-Q3	2018 Q1-Q3
G	roup Revenue	1,565,711	1,617,574	1,723,050
Ave. employee of Group		1,038	1,012	988
Ave. revenue per person		1,509	1,598	1,744

ASPROVA: Advanced scheduling system, based on resource input, equipment status to create production schedule at high speed.

MES (Manufacturing Execution System): To control and monitor SOP, reduce failure rate, and ~~record all types of data, including production batch, to fully trac~~ k product qualities.

WMS (Warehouse Management System): Implementing advanced controls on product inventory levels, quality tracking, batch management and lower production waste and cost.

RPA (Robotic Process Automation): Increasing overall efficiency. RPA eliminates human errors and removes the burdens of working on repetitive tasks.

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Sustainable Management

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Energy Carbon Saving Reducing Reduced CO2 emissions by Annual electricity consumption 135 tons/year; decreased by Reduced total drainage by 5% ~~approx. 30%~~ Natural gas instead of heavy oil Reduced sludge removal by 2020Q2 Online approx. 70%

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Note: Compared from 2019 Jan. - Nov. with the same period in 2017.

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Group resources integration

Sinphar & TianLi R&D achievement mutually benefit.

Oncology Dosages

& Sinphar SynCore Drugs in R & D cooperation and manufacturing improve.

Patents cooperation layout.

Natural Medical Herbal Facilities Resources Sinphar & ZuniMed ISO15378 Class 100,000 clean room.

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Research results

2019 Product Innovation Award of Plant Extract TianLife SCI papers atents ranted in countries p g

Brain Health

Muscle Strengthen

Enhance nutrient absorption

1. Anti-amyloid aggregation & deposition

2. Promote neurotrophic factor release

3. Increase neurite outgrowth and connection

4. Turn on muscle protein synthesis 1. Increase absorption channels genes 2. Let nutrients are quickly absorbed into cells

5. Protect muscle from damages

6. Reduce muscle loss

7. Establish uniqueness of raw material market in 3 major areas

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Make a difference to push on international market

Functional Ingredients for living

Taiwan

• Combine with Government's policy.

• Trust sense of Sinphar Brand.  To meet the Taiwan market demand and growth.

• Southeast Asia

• According to local market demand to set up the marketing strategy.

• Cistanche tubulosa extracts is one of the highly demanded product in Southeast Asia market.

China

• One of the indispensable consumption market in Asia.

• Government developing an implementation strategy for health.

• Accumulation of scientific research and farm traceability are competitive tools ~~in the China market.~~ Europe

• Novel food registration is about to complete.  Take advantage of the 5 years exclusive sale period to develop the European market.

• North American market owns scientific research and basic application to provides strong support for European market development.

Northeast Asia

• Seeking market opportunities through distributor in Japan and South Korea.

• Looking for potential opportunities.

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Pipeline of New Products

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UNMET MEDICAL NEED

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UNMET MEDICAL NEED

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Develo ment of New Dru p g

Indication Total market value/year

From Market Research Engine, the global market value of Pancreatic Cancer will increase to US$13 billion in 2021. Pancreatic Cancer Up to 560,000 Pancreatic Cancer Patients Worldwide in 2025. ( WHO IARC GLOBOCAN, (World Health Organization, International Agency for Research on Cancer )

Pancreatic

Market Research Engine Report Id: PPCM417

• Second-line treatment of pancreatic cancer after failure of the FOLFIRINOX chemothera ~~py package:~~

• Global multi-national, multi-center phase III trials are performed in 67 clinical trial institutions in 7 countries, including the United States, France, Russia, South Korea, Israel, Hungary and Taiwan.

• It is expected to be submitted to the US Food and Drug Administration for approval in 2021.

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EPS and Dividends

0.00 0.50 1.00 1.50 2.00 2.50					EPS 股利 Dividends	EPS 股利 Dividends	EPS 股利 Dividends	EPS 股利 Dividends	0 0 0 0 0 1 1 1 1 1

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Recent Group Revenue

2019/11Rev. 2,143,271

cent Group Revenue NTD in Thousand	cent Group Revenue NTD in Thousand	cent Group Revenue NTD in Thousand
1450000 1,500,000 1,550,000 1,600,000 1,650,000 1,700,000 1,750,000 2019/11Rev. 2,143,271
1450000 1,500,000 1,550,000 1,600,000 1,650,000 1,700,000 1,750,000
,,		2017Q1-Q3 2018Q1-Q3 2019Q1-Q3
Term		2017 Q1-Q3 2018 Q1-Q3 2019 Q1-Q3 2017 Annual 2018 Annual
Therapeutic drug Functional Supplements Others Total		1,071,522 1,112,925 1,180,870 1,470,125 1,528,051 440,019 449,686 470,993 591,760 614,178 54,170 54,756 71,187 72,278 73,608 1,565,711 1,617,367 1,723,050 2,134,163 2,215,837

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NTD in Thousand

Recent Profit and Loss

	Term 2019 Q3 2018 Q3 2018 Annual Revenue 1,723,050 1,617,367 2,215,837 Gross Profit 38% 36% 37%
	S&M 240,151 237,862 316,068 G&A 182,781 179,315 252,234 R&D 377,543 258,528 376,376 Profit before Tax (105,734) (69,308) (87,681) Net income (loss) (143,984) (91,419) (123,005) Net inco~~me (loss)~~ attributable to parent company’s shareholders (20,807) 1,060 8,785 EPS (Basic) (0.12) 0.01 0.05

• At present, the R&D costs have increased significantly with the speed of clinical development of new drugs.

• In the future, the results of new drug licensing revenue and revenue growth will be presented simultaneously.

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2019 Events

• The latest research results of “How cistanche tubulosa extracts resist the accumulation of amyloid beta (Amyloid Beta)” were published in the International Molecular (Molecules, Volume 24, lssue 4 (Feb 02 2019)) and were selected as Cover article.

• Signed an exclusive agency agreement with Japanese partner DAITO for the registration of blood lipid regulating drug in Taiwan. It is the first time that Sinphar introduces a lipidlowering drug that manufactured in Japan.

• Sinphar was awarded the Model of Good Food Manufacturer 2019 by the Food and Drug Administration in June.

• Tianli‘s newly developed patented raw material “Walnut Peptide Powder” won the 2019 China Plant Extract Product Innovation Award in CPHI. In September, it obtained a patent on the process and effi ~~cacy of walnut oligopeptide in mainland China.~~

• New drug investment on SP05 has applied for pancreatic cancer first-line in China, and obtained The China National Medical Products Administration (NMPA) license in mid-June, and approved to run the phase III clinical trials at the same time.

• New drug investment on SB05PC: ”Paclitaxel combined with neutral and positive microlipids“ is now on global Phase III clinical trials, in pancreatic cancer as second-line treatment in Israel, Hungary, France, Russia, and the United States.

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Corporate Social Responsibility

1. Promote social care, medical prevention and health education

• Host health forum, biotechnology camp. Combined medical, academia, and biotechnology community to set up an interaction platform. Also, cultivate talented personnel.

• Continually to sponsor Breast Cancer Foundation, Taiwan Cancer Foundation, Taiwan Alzheimer’s Disease Association, Spinal Cord Injury Foundation, The Diabetes Association of the Republic of China (Taiwan), Taiwan Yilan Association of Diabetes Supporters, and Youngsun Culture & Education Foundation.

• 1,300 Sinphar Counters in Taiwan join Taiwan Alzheimer’s Disease Association’s Dementia Friendly Business.

• Donate to The National Health Research Institutes and Formosa Cancer Foundation, to provide subsidy for new drug development and medical supply.

• Co-found a “ R&D center of Age-related Macular Degeneration” with National Taiwan University Hospital, strive for the diagnosis of early stage of age-related macular degeneration and eye detection.

• In long term to protect and maintain street lights at Wanshan village, side walk in Zhongshan village and Renshan trail; also provide a free-use area for trip advisor center in Dongshan County.

2. Support sports and educational activities in long term

• Provide internshi ~~p for students from Kaohsiung Medical University, Taipei Medical University, National Defense Medica~~ l Center, China Medical University and Chia Nan University of Pharmacy & Science. Also provide scholarship for Kaohsiung Medical University and National Defense Medical Center.

• Sponsor musical instruments and international competition found for symphonic band from Dongshan Elementary School.

• Sponsor World Badminton Athlete, Tai Tzu Ying.

• Team up and anticipate in Yilan Toucheng Township’s and Pingtung Hengchung’s Cianggu (The Grappling with Ghosts) Competition.

• Sponsor Chinese Taipei Gymnastic Association, National Ilan University gymnastics team, Yilan High school’s soccer & basketball team and Yilan Chung Dau High School baseball team.

• Sponsor to set up Sinphar Hope Elementary School (China Xinjiang Yutian County).

• Sponsor supplement to Yilan County team in The National Games, donated NT$5 million to Yilan County sport development found.

• Internship opportunities for National Taiwan University pharmacy students

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Q & A

• Cooperation & Development: 張智超。 (886-2-27603688 # 2304)

• Investor Services: 陳淑夏。 (886-2-27603688 # 2237)

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