Luye Pharma : A LETTER FROM CHAIRMAN LIU

Dear Luyers,

Hello!

Today on June 18, 2016, Luye is celebrating its 22nd birthday. On behalf of the Board of Directors of Luye Group, I would like to take this opportunity to extend my heartfelt gratitude to all Luye staff! Thank you for your hard work and significant contribution to the success of Luye Group!

On June 18, 1994, Luye's first founders sowed the seeds of a dream in Yantai, a beautiful city on the shore of the Yellow Sea. With the mission of 'Professional Technology Serves Human Health' and relentless efforts over the past 22 years, Luye has become a global group with businesses in multiple fields of healthcare industry across various countries and regions worldwide. Our subsidiaries, Luye Pharma, Luye Medical and Luye Investment, have flourished and made great achievements in their respective business fields.

Luye Pharma has established a research and development system up to the international standard; in particular, 5 innovative products are in different phases of clinical research with the U.S. FDA and have made breakthroughs. Luye Group is expected to be the first Chinese pharmaceutical company to obtain new drug approval in the U.S. Our injection production quality management has reached international levels and received recognition and approval from the European Union. Luye Pharma's core listed products continue to maintain leading market shares in each respective field.

With a global presence across China, Korea, Singapore, Australia etc., Luye Medical possesses a series of internationally renowned medical brands including Healthe Care, AsiaMedic, Ellium etc., and has successively opened new hospitals in Yantai, Chongqing, Chengdu, Shanghai, Nanjing and other cities in China and kept close cooperation with many global medical brands. Through the introduction of new technology, self-innovation and resource integration, our medical group has preliminarily established a network of global leading technology, operation, management and service which provides customers with patient-centered high-quality medical services.

Luye Investment has also accomplished gratifying achievements in the areas of biological medicine and precision medicine. Vela Diagnostics, a Singapore-based provider of integrated molecular diagnostics workflows that address individual testing needs under the group, has expanded its global footprint in Asia, Europe and the U.S. Moreover, in the field of developing fully human monoclonal antibody biological medicine technology, Vela Diagnostics also has made progress and established an advanced antibody technology platform with a unique value. The layout and achievements of our investment group in the field of big health industry provides strategic preparations for Luye Group to become a provider of 'total healthcare solution' in the future.

With a 22-year endeavor, we have succeeded in carrying out our mission. Looking back on the achievement and spectacular moments in the past 22 years, every Luyer should be filled with joy and glory. Let's proudly applaud and cheer for Luye, for ourselves!

We are also faced with many challenges as we stand on the new starting point of globalization. It requires us to be well-equipped with not only international products, but also international management and working standard. It means we must have global vision and operation capability to compete globally. Globalization is also reflected in our corporate culture, management and employee behaviors. In the rapid expansion stage of our group, every Luyer needs to continuously learn new things, improve professional skills, strengthen teamwork and follow the pace of the rapid progress. Consistent devotion creates excellence. I hope that we can continuously pursue professional innovation and self-breakthrough, and challenge high performance under the guidance of Luye's culture: 'innovation for excellence' and 'customer-oriented, efficient operation and employee achievement'. Together, we will make an even brighter future for Luye.

At present, Luye Group has 10,018 employees, which is our most precious treasure, working in 45 countries and regions across Asia, Australia, America and Europe. We hope that every Luyer can achieve personal full potential and gain a sense of pride and accomplishment along with the development of Luye. Furthermore, you are expected to not only create but also share value within the group for your own success and your family's happiness!

Dear Luye colleagues, no matter where we are and regardless of our complexions and languages, we are brothers and sisters of the same Luye family. The mobile Internet era is upon us in this global village; let us make concerted efforts towards Luye's vision to become the most respected leading medical group in the world!

Finally, I wish Luye a happy 22nd birthday, you and your loved ones good health, safety, and happiness!

Sincerely,

Liu Dianbo

Chairman of Luye Group