The Group was established in May 1995, and is a fully integrated, profitable pharmaceutical group focusing on research development, manufacturing and marketing of pharmaceuticals. On 28 December 2006, China Medical System Holdings Limited was incorporated, becoming the current holding company of the Group.

Sales and marketing is one of the most important core competences of the Group. The Group has a sales and marketing force in about 30 provinces and major cities in China, consisting of over 700 full time staff, over 80 per cent. of which have professional backgrounds in medicine or pharmacy. The Group's portfolio has seven products with sole distribution rights in the PRC, three in-house developed products and a range of medical equipments. Our principal products are marketed by our sales and marketing professionals and sold by approximately 300 distributors to more than 3,000 hospitals in China. Through our sales and marketing professionals' efforts, the Group's revenue has grown by a compound average rate of 20 per cent. in the past three years, with gross profit and net profit margins at above 50 per cent. and 20 per cent. respectively.

The concerted effort of establishing the R&D platform and developing the Group's own patented products forms another most important core competence of the Group. Since the start of its R&D activities nearly 10 years ago, CMS Group has obtained 36 drug patents in the PRC and 12 patents overseas while it is in the process of applying for 55 drug patents in the PRC and 126 overseas. There are 7 projects under development in our pipeline. Among these are patented drugs for the treatment of primary liver carcinoma and non-small cell lung cancer, which have completed Phase IIb and Phase I clinical trials respectively in the PRC.

CMS will continue specializing in the medicine area especially in prescription pharmaceuticals, and maintain our competitive advantage through our integrated chain of R&D, manufacturing, sales and marketing, thereby maximizing our opportunity for profit.