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Jintian Pharma Becomes the General Distributor in Greater China for American High-End Infant Formula Benefiting from the Policy of "Milk-Powder Marketing through Pharmacies"

The Power Alliance Opens a New Horizon for Milk Power Marketing

Hong Kong, June 13, 2014 - (ACN Newswire) - Jintian Pharmaceutical Group Limited ("Jintian Pharma" or the "Company", stock code: 2211.HK) is authorized as the general distributor of McJayden in the Greater China Region, covering the channels of medical treatment, medicine, healthcare across PRC, Hong Kong, Macau, Taiwan, Singapore, as well as all state-approved points of sale in China's three northeastern provinces and non-pharmacy outlets directly operated by Jintian Group. As an authorized distributor, Jintian will now bring McJayden's organic milk powder products imported in original packaging from the US through all diversified channels and segments.

The new partnership is blessed with a recent government policy to support mild-powder marketing through pharmacies, and will likely unveil a new model for the sale of milk powder in mainland China. After Two-child policy fully implemented, of the infant formula market has huge growth potential.

McJayden-the pioneer of organic milk powder products imported in original packaging from the US

McJayden dairy products are the only organic milk powder products imported in original packaging from the United States into Greater China. The products of McJayden are well received in the United States, endorsed by approved by six international and national regulatory authorities (FDA, USDA, ISO9001, CNCA, Chinese Commodity Inspection and Quarantine Bureau and COFCC). McJayden's products are recommended in USDA's food export catalog, as well as the brand promotion campaign of the Food Export Association of the USA as a standard-bearer for food quality and safety dedicated to healthy growth of infants.

In addition, McJayden exercises extra caution when developing its distributor's system. In selecting the distributors, good reputation, dedication and integrity, strong strength and ample resources are the main conditions considered. Leveraging its good reputation, outstanding brand awareness and comprehensive sales network, Jintian Pharma has become the first choice for the strategic cooperation with McJayden in the Greater China Region.

Jintian Pharma-complete sales channels and unique direct-supply model

With retail pharmacies spreading across the Northeast China, the nationwide distribution network and effective direct-supply model, Jintian Pharma has laid the solid foundation for the marketing of McJayden milk powder. As of the end of 2013, the Company owned 794 retail pharmacies in Northeast China and another 3 in Hong Kong. The Company ranks first in terms of the number of retail outlets in the three northeastern provinces of China. It had about 3,800 distribution customers, ranking number one in terms of distribution sales amount among all private enterprises in the three northeastern provinces of China in 2012. In addition, the Group has established effective direct-supply model which enables the Group to streamline the supply chain by eliminating and reducing distribution intermediaries and enhance distribution efficiency and profitability.

Distributors and producers join hands, benefiting from the policy of "Milk-Powder Marketing through Pharmacies"

On 16 June 2013, the General Office of the State Council issued an Opinion on Further Improvement of Quality and Safety of Infant Milk Formula Powder. On 23 September 2013, AQSIQ released the Announcement on Strengthening the Management of Imported Infant Milk Formula Powder. On 30 April 2014, CNCA published the list of the first batch of 41 registered overseas producers of imported infant milk formula products, and PBM nutritionals, the producer of McJayden, is on the list. The promulgation of the policy of "milk powder to go on sale in pharmacies" indicates the national supervision of infant milk powder has been strengthened, which provided new development opportunities for more premium retail pharmacies. By virtue of the favorable policies, the win-win cooperation between Jintian Pharma and McJayden will be mutually beneficial and promote the joint development of the two enterprises.

Mr. Jin Dongtao, the Chariman of Jintian Pharma commented, "the strategic cooperation brings the organic infant milk powder products of McJayden into the pharmacies in China. The Group will spare no efforts to expand the market, ensure the quality and safety of products in circulation channels, in a bid to increasing the confidence of the consumers and providing safe and nutritious McJayden milk powder for more infants in China. Starting from this point, Jintian Pharma will introduce more overseas premium brands, optimize the product structure and strengthen the core competency of the Company."

About JINTIAN PHARMACEUTICAL GROUP LIMITED

JINTIAN PHARMACEUTICAL GROUP LIMITED ("Jintian Pharmaceutical" or the "Company", stock code: 2211) is one of the leading pharmaceutical retailers and distributors in Northeast China, and certified as the Top 10 of 2013-2014 China chain pharmacy stores by the State Food and Drug administration. As at 31 December 2013, The Company has the largest pharmaceutical retail chain in terms of the number of self-operating retail pharmacies (794 in Northeast China and three in Hong Kong as at the Latest Practical Date). With a nationwide distribution network, the Company has approximately 3,800 customers, and became the largest privately-owned distributor in Northeast China in terms of revenue in 2012. The Company has high net profit margin, which is attributable to the product mix with a focus on high-gross-margin products, the effective Direct-supply Model, the centralized procurement platform and low operation costs. The Company provides training programs to its employees and customers through Jintian Institute. The Company also has strong execution capability for acquisitions and integration which enables it to implement its product mix, advanced business model and sophisticated operation procedures in the acquired businesses. The Company has formed distinctive business model and core competitive strengths.




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