SINPHAR — Investor Presentation 2020

Dec 29, 2020

SIN ~~PHAR PHARMACEUTICAL CO.,LTD~~ Investor Conference

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2020/12/29

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免責聲明

 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. Instruction

2. Important Events 3. Group Operation 4. 2020Q3 Financial Report 5. Social Responsibility

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Founded in Taiwan, Step Forward to The World

1977

2002

2012

Established Sinphar Invested Sinphar TianLi, He-Tian Tianli Merged ZuniMed Biotech Ilan, Taiwan Hangzhou ( CN ) 、 Xinjiang(CN ) Nantou,TW 、 、 、 、 Generic functional food Generic TCM Natural Resources Medical facilities cosmetic

1997 Established CanCap Vancouver, Canada Clinical control for New Drug of North 、 America spot of international business

2008 Co-found SynCoreBio Ilan, Taiwan New Drug Development

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Group’s Great Health Map

Multi-strength of Generic Drugs The R&D power of New Drug Strategi ~~c plan of Natural~~ Herbal Resources

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Full age and all-round protection

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Vision care Brain care Heart care
Immune Gastrointestinal
Bone health care
regulation care
Allergy
Beauty care Delay aging
regulation
Chronic health Nutritional
Improved sleep
care supplementation
Vitamin.
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Dermatology Ophthalmology Pediatrics
Oncology Otolaryngology Orthopedics
Obstetrics &
General Surgery Plastic Surgery
Gynecology
Metabolism Dental Gastroenterology
General
Psychiatry
Medicine
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launched in 2020: 11 items

launched in 2020: 3 items

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Sinphar Health Hall

Share relevant medical and health ： knowledge with the public

• The Facebook fan page has nearly a hundred professional shares that convey the right medicine and food knowledge.

• About 12,000 people have visited the plant in 2020 to know about the manufacturing process of pharmac ~~euticals, food and cosmetics.~~

• Establish real-time communication channels with 40,000 members and provide information sharing from time to time.

• From 2021, new fields will be added to provide a free rest area for people traveling to Yilan.

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S A

Intelligent Plant

 SAP PSI management  MES Manufacturing execution control  WMS Warehouse and inventory management  ASPROVA

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 Inbound ISO/IEC 27001
record Information
Purchase 進貨 IQC Inbound 入庫 Security
SA P Management
System, ISMS
Picking
 RFID picking P
 Automatic
tally
Weighing
MES WMS
Crushing
 Automatic
scr eening
Screening
Mix  Automatic  Automatic  Inspection  ESL
production packaging record collection
Filling PASS Deal PASS
inspection labeling Packaging inspection Inbound
pack
FAIL FAIL
Empty
capsule Eliminate Eliminate
ASPROVA
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ISO/IEC 27001 Information Security Management System, ISMS

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Information Security Management System, ISMS

ISO 27001 specification

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Compliance with international standards

System usage international standards permissions Compliance with Information usage external audit permissions re uirements q Risk control Security awareness

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Invest resources to protect enterprise resource management systems, manufacturing execution systems and facilities management.

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Quality System

1. We have obtained PIC/S license extension (PMDA cancer factory) at Nov. 12, 2020 by TFDA approval.

2. During COVID-19 epidemic, Sinphar has RT-PCR machine and was been invited to join the epidemic prevention team by the Ministry of Health and Welfare (MOHW).

3. For the purpose of go internationalization, we phased in Artificial Intelligence produce.

4. Completing data integrity is not only about "knowing", but also about "confirming" whether all production meets standards.

5. The problem of product expiry difference, the review was negligent. From now on, it will be tracked regularly and improved immediately.

6. Invited Taiwan Product Quality Research Institute (TPQRI) and Pharmaceutical Industry Technology Development Center (PITDC) for regular inspection.

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Energy Saving and Carbon Reduction

1. In 2016, the street light and electric light in the factory are changed from traditional lamps to LED lamps. Which can save 1% of electricity consumption every year.

2. In 2017, the air conditioning system phased in physical solution dehumidification equipment. Which can save 10% of electricity consumption every year.

3. In 2018, the air conditioning system phased out the old, and is equipped with a chain control system. Which can save 2% of electricity consumption every year.

4. In 2019, the air conditioning system increases the temperature of the cold water outlet and the wet bulb temperature of the cooling water tower by 3 ℃ . Which can save 1% of electricity consumption every year.

5. In 2020, the oil-fired boiler is replaced with a LPG boiler. The burning efficiency of LPG is better than fuel oil. After the impr ~~ovement, the operating tonnage can be reduced by 70%.~~

6. The LPG boiler is phased in the waste heat recycle system, which can save 5% to 7% of LPG usage per hour. Which improve energy efficiency, and reduce plant carbon emissions and air pollutants.

7. In order to achieve the government's energy-saving policy, which are saving 1% of electricity every year and 5% of electricity for 5 years. We implement energy management and analysis to effectively monitor energy usage every year.

8. We plans to set up solar power generation and storage systems. Which use renewable energy to protect the environment and sustainable development.

9. Operating carbon rights trading creates multi-party revenue opportunities for enterprises and promotes the sustainable development of domestic industries. 11

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Growth

Therapeutic drug

• New products are expected to launch in 2021 for 4 items.

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• Co-develop and manufacture with Japanese pharmaceutical companies and attack the ASEAN market.

Functional Supplements

• New products are expected to launch in 2021 for 7 items.

• • Agent Japanese products into the domestic market.

Cancer trea ~~tment drugs~~

• Actively develop the research and development and manufacturing capacity of cancer needles.

• Product M1 (gastric cancer, colorectal cancer, pancreatic cancer) in the certification process, as well as product M2 (cancer-assisted treatment agent) in the investigation, is expected to serve the country in 2021.

• Freeze-dried manufacturing process investment in the construction, and actively strive to become pancreatic cancer needle production plant.

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International Market

Japan: Product G has been launched in 2020. Looking forward to continuous growth. Thailand : Product T has been submitted on Oct. 2020. Expected to be launch in 2021. Product G has been submitted on July 2020. Expected to get certificate in 2021. Product A has been BE assessment with local partners. Malaysia : Product T has been launched in 2020. Looking forward to continuous growth. Product S has been received approval. Expected to be launch in 2021. Product K already to get customer order. Expected to be launch in 2021. Indonesia : Product A & Product L has been launched in 2020. In contract with local pharmaceutical company. Looking forward to continuous growth. Philippines : Cooperate with local distributors, expected to be launch at least two products

in 2021. Product G has been submitted on May 2020. Product L has been submitted on Sep. 2020. Mongolia : Product L has been launched in 2020. Looking forward to continuous growth. Vietnam : Product G has been submitted on 2020. Expected to get certificate in 2022.

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COVID-19 Response

Emergency response:

• Sinphar Group and inter-departmental sharing of epidemic prevention information and communication platform.

• Promulgate and rehearse the phased contingency implementation plan for factories, offices and new work codes.

• Provide employee with anti-epidemic appliance and regular cleaning and disinfection.

• Split shift of work and work remotely information system completed.

• Temporary demand scheduling and remote operation methods, such as capital, sup ~~ply and demand, and distribution have been completed.~~

• • Assist stakeholders and neighbors to strengthen epidemic prevention.

Operational adjustment:

• Cooperate with government policy control and expropriation.

• • Control the sources and prices of APIs and raw materials.

• Supply chain management and supplier assistance.

• Import and export transportation records.

• Adjustment of product manufacturing package.

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Group resources integration

Sinphar & TianLi R&D achievement mutually benefit. Patents cooperation layout.

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

Sinphar & ZuniMed ISO15378 Class 100,000 15 clean room.

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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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Development of New Drug

Market value

From Market Research Engine, the global market value of Pancreatic Cancer will increase to US$13 billion in 2021.

According to GLOBOCAN,Pancreatic cancer mortality rate is almost equal to incidence, which is expected to increase by 40% b 2030. y

Market Research Engine Report Id: PPCM417

1. Ongoing Global Phase III Study (Pancreatic Cancer 2nd-Line ：

Therapy After FOLFIRINOX Failure ) DSMB recommends continuing trial without modification.

1. Clinical Studies: Phase III in China ： Received NMPA CTA Approval in June 2019.

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Target field of Natural Resources

Lipucan® 天力速康 ® (Poria cocos triterpenoids)

Protygold ® Memoregain® TLCT Plus 杏补宜 ® 天力再生 ® (Walnut oligopeptide) (Cistanche tubulosa extracts)

Sleep quality Proven by healthy study population

Sports Nutrition (3 multinational patents)

Boost Respiratory Health (4 multinational patents)

Anti-fatigue (1 multinational patent)

Upregulate Immunity & Against Virus infection (2 multinational patents)

Enhance Nutrient Absorption (2 multinational patents)

The application of raw materials in the field of health food tends to be daily life, and the dosage form is not limited to tablets or powders.

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Strengths and strategies

• In 2020, the main business market of Sinphar Tianli’s food Ingredients is in the China.

Market

• Food market demand trends in 2020: upregulate immune function, improve sleep quality, ant fatigue, help improve memory, gut health, sports nutrition, and beauty.

• Existing products: Combine market trends and customer needs to promote customers' existing product upgrades or new product applications.

Product

• New products: Refer to items that are in line with the long-term market trend, and turn the developed roducts into marketable items.

• p

• Marketing • Use the unique advantages of scientific research and

• service technology to provide technical support for the market application of customer products

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Summar of R & D achievement y

• Patent and article publication: 5 patents were obtained 2019 and 5 articles were ublished. p

• 2020 • 3 patents were obtained

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NTD in Thousand

Recent group revenue

1,500,000 1,550,000 1,600,000 1,650,000 1,700,000 1,750,000 1,800,000 1,850,000 1,900,000	1,500,000 1,550,000 1,600,000 1,650,000 1,700,000 1,750,000 1,800,000 1,850,000 1,900,000
	1 1,800,000 1,850,000
Term

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Profit and Loss

NTD in Thousand

Period 2020 Q1~Q3 2019 Q1~Q3 2019 Revenue 1,847,962 1,723,050 2,394,589 Gross Profit 38% 38% 39% S&M 239,222 240,151 324,733 G&A 160,773 182,781 234,056 R&D 344,107 377,543 527,805 Profit before Tax -33,298 -105,734 -86,706 ~~ss) attributable~~ to parent company’s 25,547 -20,807 13,961 shareholders 0.15 -0.12 0.08

Net income (lo ~~ss) attributable~~ to parent company’s shareholders EPS (Basic)

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

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Cash flows

NTD in Thousand

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Sinphar Syncore 2020 Q1~Q3 2020 Q1~Q3

Net Cash generated by operating activities Net Cash used in investing activities Net Cas ~~h generated by~~ financing activities Cash and cash equivalents, end of the period

82,520

-110,995

276,953

1,087,002

-245,618

-1,445

478,113

617,413

Steady growth step by step.

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Ratio

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2020Q3 2019Q3

Current ratio(%) 187.73 171.84 Cumulative revenue growth(%) 7.25 6.53 Operating expense ratio(%) 40.16 46.68 Employment costs (%) 27.09 29.02 Account receivable turnover 4.31 4.1 Account payable turnover 7.00 6.77 Inventory turnover 2.45 2.76 Fixed property and equipment turnover 0.75 0.69 The increase in inventory was mainly due to the advance stocking in response to the epidemic.

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2020 Events

1. Innovative research and development of "anti-fatigue unique formula" won the United States invention patent certification, and has been the national anti-fatigue health food certification.

2. Research and development and production ｢娘家好茯敏膠囊｣ won the Taiwan Health Food Society awarded the "Nutrition Health Food Innovation Award“

3. The introduction of Japan's best-selling new magnesium oxide constipation, to seize the domestic annual demand for more than 460 million constipation market.

4. The product recycling incident was held on October 7th at a press conference, which showed that 288 products had been fully compared with 755 specifications. For products that may have doubts, Sinphar will actively and completely recycle to avoid increased distress as a sign of responsibility.

5. Subsidiary Sinphar Tianli and Asahi GoDo inc. signed a distribution contract, authorized Asahi GoDo in ~~c. exclusive distribution of patented brain-wake factor (Protygold® ), to~~ expand the Japanese health food market.

6. SynCore SB05PC novel formulation of cationic liposomes embedded with paclitaxel is 。

awarded “Taipei Biotech: Innovation -Special Mention Award”

1. SynCore is selected to present the global phase III pancreatic clinical trial of SB05 at the 。

2020 American Society of Clinical Oncology (ASCO) Annual Meeting.

1. SynCore receives interim analysis results for its global phase III clinical trial, SB05PC (EndoTAG® -1). The Independent Data Monitoring Committee (IDMC) did not mention any 。

safety concerns and the trial can continue as planned, without any modifications.

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Corporate Social Responsibility

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-us ~~e area for trip advisor center in Dongshan County.~~

• Sponsored the Hualien Dental Hygiene Medical Service Team of the Department of Dentistry of National Yangming University and the Taipei Medical University Penghu Medical and Social Service Team, the regiment and the Green Cross Medical Service Team for free medical consultation.

• Sponsored medicine for the Nepalese group of the National Taipei University International Volunteer Association.

• Participate in the Su-Ao free clinic and donate nutritional products to the indigenous people.

• Sponsored the three-on-three basketball game in Sanxing Township.

• Donated NT$1,300,000 of nutritional products for hospitals and epidemic prevention medical staff in Yilan County.

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Corporate Social Responsibility

Support sports and educational activities in long term

• Provide internship for students from Kaohsiung Medical University, Taipei Medical University, National Defense Medical 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

• Sponsored the Taitung County Sports Association to host the Gengyuan Cup Little League Youth League Championship.

• Sponsor the activities of Dongshan Township in local primary and secondary schools (school celebrations, year-end party lottery activities).

• Donated NT$360,000 for the preparation laboratory equipment of the School of Pharmacy, Kaohsiung Medical University.

• Established 搶孤 Cultural Park, equipped with 搶孤 cultural relics room and training ground to inherit folk culture; Sinphar 搶孤 team participated in the 2020 Hengchun 搶孤 Competition to win the championship.

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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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