On December 17, SPH KDL Health (Shanghai) Pharmaceutical Co., Ltd.(“SPH KDL Health”) concluded a strategic cooperation agreement with Roche Diagnostics (Shanghai) Ltd. (“Roche Diagnostics”). It is the first contract renewal with Roche Diagnostics by SPH KDL Health after joining Shanghai Pharma, which is a significant moment for both Roche Diagnostics and SPH KDL Health and marks a new stage for their cooperation. During the cooperation in the past decade or so, both sides have worked closely and supported each other to promote the common progress and development of their undertakings. This Strategic Cooperation Agreement is not only an affirmation of the service provided by SPH KDL Health, but also a witness of the mutual trust and deep friendship between the two sides.

About Roche Diagnostics

In August 2000, Roche Diagnostics was incorporated as a wholly foreign-owned company in Shanghai Waigaoqiao Free Trade Zone to conduct business in Mainland China. Roche Diagnostics is committed to developing and providing innovative, cost-effective, timely and reliablediagnostic systems and solutions,covering early detection, prevention, diagnosis and monitoring of diseases. Those diagnostic systems and solutions enable medical staff to improve treatment effect on patients, improve living quality for the public and reduce social costs in medical care. Roche Diagnostics' product sales and service network has covered the whole China market. The Company has won a wide range of markets and a good reputation with its first-class technical products and perfect services.

Mr. Li Yongzhong, General Manager of Shanghai Pharmaceutical Co., Ltd., expressed a warm welcome to Roche Diagnostics delegation, and said that signing of this cooperation agreement was of great importance to SHAPHAR. ForSHAPHAR, 2018 had special meaning, by which time SPH KDL Health had joined Shanghai Pharma for almost one year. Both SHAPHAR and SPH KDL Health finally had this opportunity to conclude this cooperation agreement with a positive integration and progress of both sides. As Roche Diagnostics was the most important supplier and partner of SPH KDL Health, signing this agreement also signified positive attitude towards their cooperation by the customers of SPH KDL Health. 2018 was full of drastic changes, with the landmark event of "4+7"volume purchase affecting the pharmaceutical industry, which poses tough challenges to the pharmaceutical market. Roche Diagnostics can offer many opportunities in the coming years, for it holds abundant core intellectual property rights covering diagnosis, equipment and application of big data. We sincerely hope that both sides will focus on the great health industry in the future and work together to live up to the expectations of the public and to explore and improve the market, so as to benefit more people with the products of Roche Diagnostics.

Mr. Hong Kaiming, General Manager of Diabetes Care Department of Roche Diagnostics, said that both sides had been exploring opportunities to deepen their cooperation during the past year. He also extended his gratitude to SHAPHAR and SPH KDL Health for their continuous support to the Diabetes Care Department as well as for their attention to Roche glucose meter and for their assistance for Roche Diagnostics in exploiting markets and solving many problems. No growth could be achieved in business without support and help of its partners. Roche Diagnostics would continue to increase its investment in relevant business segments in the coming years. Roche Diagnostics hoped to maintain a good partnership with SPH KDL Health for joint development. The cooperation between the two parties was the result of close business relationship and mutual trust. 

The cooperation agreement will further fuel the joint efforts of SPH KDL Health and Roche Diagnostics in brand building based on smooth cooperation in the past years. Relying on the platform advantages of Shanghai Pharma and SHAPHAR, SPH KDL Health will adhere to the philosophy of "to be service-oriented" and actively cooperate with Roche Diagnostics to publicize the products of Roche Diagnostics among the public through available channels. It is hoped that SPH KDL Health and Roche Diagnostics can write a new chapter in their upcoming cooperation and achieve win-win development in 2019!