SINPHAR PHARMACEUTICAL CO.,LTDInvestor Conference

2018/11/05

SINPHAR’s Code ：1734

SynCore’s Code ：4192

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)

Index

3

1. Brief intro of Group2. Operation of Group3. Main project and

strategy in 20194. Grate Health Map5. Social Responsibility

Born in Taiwan, Step forward to World

4

1977

Established Sinphar

Ilan, Taiwan

Generic、functional food、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

2002

Invested Sinphar TianLi, He-Tian Tianli

Hangzhou (CN)、Xinjiang(CN)

Generic、TCM、Natural Resources

2012

Merged ZuniMed Biotech

Nantou,TW

Medical facilities

2002

R&D center

Ilan, Taiwan

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

biochemical functions

EPS and Dividends

5

Despite market condition and whether have New Drug

Investment, have earned shares and dividends annually.

。

1.1

0.6

0.8 0.8

0.9

1.15

1.3

0.5

0.64

0.33

0.90

0.65

0.35

0.6

1.6

0.8

0.6

0.1

0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

0.00

0.50

1.00

1.50

2.00

2.50

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EPS

股利

Recent group revenue

6

Term 2016 2017 2016 Q1-Q3 2017 Q1-Q3 2018 Q1-Q3

Therapeutic

drug1,481,598 1,470,125 1,071,321 1,071,522

Functional

Foods589,777 591,760 419,824 440,019

Others 62,136 72,278 48,964 54,170

Total 2,133,511 2,134,163 1,540,109 1,565,711 1,617,574

1,500,000

1,520,000

1,540,000

1,560,000

1,580,000

1,600,000

1,620,000

1,640,000

2016Q1-Q3 2017Q1-Q3 2018Q1-Q3

Revenue

NTD in Thousand

Profit and Loss in Recent

7

Term 2018Q2 2017Q2 2017 2016

Revenue 1,089,466 1,032,077 2,134,163 2,133,511

Gross Profit 37% 37% 38% 37%

S&M 160,971 137,893 280,681 319,519

G&A 118,332 110,119 229,112 229,947

R&D 160,396 181,607 363,493 382,605

Profit before Tax -41,412 -65,012 -90,166 -64,173

Net income (loss)

attributable to:

shareholders of

the parent

15,429 482 36,726 16,545

EPS(Basic) 0.09 - 0.22 0.1

NTD in Thousand

Main products of New Drugs

Pancreatic cancer

頭頸癌 (Taiwan)

實體腫瘤(製程開發中)

Veregen® 生殖器疣(全球20+國家已上市)

乾式老年黃斑部病變 (US, Taiwan)

Development by SynCoreBio

Ophthalmology

Dermatology

Oncology

Indication Total market value/year

Pancreaticcancer

From Market Research Engine, the global market value of Pancreatic Cancer will increase to

US$13 billion in the year of 2021.

Licensing of New Drug

Market Research Engine Report Id: PPCM417

The New Drug value is growing by the progress as well as licensing negotiation.

Preventive Medicine

10

Domestic Business• Continue to develop new functional food products. In

recent there are 5 products obtaining Health Food certificate and anticipate another one in 2019.

• In the same term there will have another 5 items launching in the market.

International Business• The plant has passed second tier of quality control

system, estimate to apply MUI Halal and sales certificate for abroad in December 2018.

• Getting business opportunities from China, Japan and SEA, in recent there are three food & drug items in preparing to get registration from Malaysia and Indonesia, it will contribute to the revenue in 2019.

Oncology dosages

11

1. Domestic Business：• Solid dosage form is the first plant which had passed TFDA audit in

Taiwan.• Have run pilots of ten products (Breast Cancer, Colorectal Cancer,

Lymphoma, Pancreatic Cancer, Gastric Cancer, Lung Cancer, Ovarian Carcinoma and Leukemia etc).

• Established Oncology dosage department in 2018 to meet instant demand from market.

• Product M(medicine for Gastric Cancer and Colorectal Cancer) is the first BE passed Generic Drug in Taiwan which will launch in 2019.

• Product G (NSCLC) anticipate to launch in Q4 2019.2. International Business：• Product A from OEM is in the registration process in Indonesia,

anticipate can contribute to the revenue in 2019; in the same year there will have another item Product L in registration in Philippine, soonest can contribute to the revenue in 2021.

• PMDA Japan will have a plant audit in November 2018,estimate Product G will obtain license in Q1 2019 and there already have three pharmaceutical companies from Japan are planning to sell.

Sinphar Counter

12

1. Enhance direct services to members：• Walk in to communities, provide services to

public and gaining relationships.• Offer on-time communication and after sell

consulting services.• Create more than 10,000+ members in 2018.2. Sharing medical knowledge to the public：• Organize Health Lectures from North to South

of Taiwan.• Provide field trip to public in the meaning of

understanding manufacturing process of drug, functional food and cosmetic. Numerous visitors have been signed up to visit in 2018 and so does 2019.

• Will expand to become a Tourism Factory for a profound services to members.

Intelligent Manufacturing

13

2016Q1-Q3

2017Q1-Q3

2018Q1-Q3

GroupRevenue(Thousand)

1,540,109 1,565,711 1,617,574

Ave. employee of Group(person)

1,034 1,038 1,012

Ave. revenue per person(Thousand)

1,489 1,509 1,598

1,420

1,440

1,460

1,480

1,500

1,520

1,540

1,560

1,580

1,600

1,620

1,500,000

1,520,000

1,540,000

1,560,000

1,580,000

1,600,000

1,620,000

1,640,000

2016 Q1-Q3 2017 Q1-Q3 2018 Q1-Q3

集團營收

每人營收

From automatic manufacturing, the employee’s ability and caring are both lifting. Now it is considered to implement instant message system and auto-flow system to boost the work.

Employee’s welfare

2017Q1-Q2

2018Q1-Q2

% of growth

Salary(Thousand) 264,000 273,257 3.5%

NTD in Thousand

Natural Resources

14

NTD(Thousand) 2018Q2 2017Q2 2017

Operating Revenue 124,210 101,048 240,723

Net Income 20,948 2,121 37,020Attributable to:

shareholders of the

parent17,200 1,714 30,188

天力科研 Summary

2017

• The published patents and papers：21 patent

applications,1 authorization,11 reviews, 1 international

published, 2 papers published.

2018• Enrich research outcome of Natural Resources.

• Obtained 6 patents and 1~2 papers published.

運動營養Sports Nutrition

(3 international patents)

增強呼吸道健康Boost Respiratory Health

(4 international patents)

提升免疫力，對抗病毒感染

Upregulate Immunity & Against Virus infection(2 international patents)

促進營養吸收Enhance Nutrient

Absorption

(2 international patents)

Target field of Natural Resources

15

Memoregain® TLCT Plus

管花肉蓯蓉提取物(Cistanche tubulosa extracts)

核桃低聚肽(Walnut oligopeptide)

Prodemax™ Lipucan®

茯苓三萜菁萃物(Poria cocos triterpenoids)

The development of Natural Resources

16

1. New Plant：• The second plant of herbal extraction is finished, anticipate can

contribute to revenue in 2019.• New dosage forms are available (aqueous extract, alcohol extract

and enzymatic hydrolysates).2. New Market:• Aim to FMCG market：in the past, food supplement were selling

through drug store, cosmeceutical chain or multi-level companies. Based on the health trend in recent, enter FMCG market as food ingredient can gain more opportunities.

• Enter ASEAN and EU market：ASEAN and EU are two capital markets for Natural Resources, have applied 8 patents through 42 countries.

• Game changer:Natural Product Expo West(Anaheim, USA)；CPhI/NEX(Shanghai China) ；Vitafoods Asia (Singapore)；Supply Side West (Las Vegas, USA)；Hi Europe (Frankfurt, Germany).Bio Taiwan

Group’s Great Health Map

17

Multi-strength of Generic Drugs

The R&D power of New Drug

Strategic plan of Natural Herbal Resources

Recent Events

18

Year 2018

• Sinphar has signed a Technology Transfer cooperation with a Japanese ophthalmological dosage company; in future, ophthalmological dosage will be produced sterilized with special pack for customer-friendly use. This project will launch in Taiwan, Korea and other countries in South East Asia.

• MST(for Gastric Cancer and Colorectal Cancer) is the first BE passed Generic Drug in Taiwan, estimate in 2019 could launch in the market.

• Sinphar has imported an anti-hyperlipidemia product which is in a clinical trial now.

• SynCore Bio becomes general agent in Taiwan of EpiCAM from British company Epipole.

• The develop project SynCore SB05 （EndoTAG®-1）has won the Innovation Prize of 2018 Outstanding Company of the year.

• SynCore Bio SB05 PC gradually passed the application of clinical trial phase III in Taiwan, United States, France, Hungary, Russia, South Korea and Israel.

Year 2017

• Sinphar medicine and Kyowa Chemical Industry Co. ( KISUMA) signed registration contract to exclusively introduce sales of Sinphar counters.

• New drug SB05 (EndoTAG®-1) which developed by SynCore Biotechnology Co., Ltd. had obtained permission by US FDA and TFDA to execute Phase III human clinical trial for pancreatic cancer.

• SynCore Biotechnology SB01 published “A Phase I Dose Escalation Study of SCB01A, a Micro-tubular Inhibitor with Vascular Disrupting Activity, in Patients with Advanced Solid Tumors Refractory to Standard Therapy ” at American Society of Clinical Oncology, ASCO

• SB01 New Chemical Entity, NCE from SynCore Biotechnology for head and neck cancers had obtained R.O.C. patent.

• SB05_EndoTAG-1 from SynCore Biotechnology had obtained manufacturing patent from European patent office and indication patent from United States Patent and Trademark Office.

Corporate Social Responsibility

19

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. In long term to support educational activities and sports• 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 schloership

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(戴資穎).

• 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.

Q & A• Business development ：Chang, Chih-Chao。 (02-27603688 # 2304)

• Investor Services ： Chen, Shu-Hsia。 (02-27603688 # 2237)