I would like to express my heartfelt gratitude to the shareholders and the community for your concern and strong support to the Group. The year 2020 was an extremely extraordinary year for Chinese society, the pharmaceutical industry and Sinopharm. Faced with the sudden outbreak of the COVID-19, all employees of the Group spared no effort to ensure the supply of medical supplies to fight the pandemic despite difficulties and hardships, making great contributions to the control of the pandemic nationwide and even worldwide, and fully demonstrating that staff of Sinopharm are great-minded and willing to take on responsibilities. Under the challenging economic situation, in the environment of the ever-changing industrial policies and in the face of increasingly fierce market competition, the Board of Directors, management and all staff of the Group always remained strategy alignment and timely adjusted our business strategies, optimized our business layout and enhanced its management and control, and as a result, the Group achieved good operating results for the year, and continued to reward our shareholders who care for and support the Group with long-term stable growth.
In 2020, the “13th Five-Year Plan” came to a successful conclusion. The year saw a steady growth of China’s economy with achievement of over RMB100 trillion of China’s GDP, a continuously optimizing economic structure and significant improvement in people’s living standards. A significant contribution was made by China to the global economic recovery. During this period, China has established the world’s largest health care system, with more than 1.3 billion people covered by basic health insurance and a continuous transformation and upgrading of its health care service model. The pharmaceutical industry continued to develop at a fast pace, with the industry progress driven by technological innovation and the industrial structure continuously diversified and optimized, laying a solid foundation for the industry’s continued transformation and upgrading.
In the past five years, Sinopharm continued to adhere to strategic guidance, fully stimulated the vitality of the enterprise, continued to consolidate the advantages of the network, and maintained its industry leading position. In the past five years, Sinopharm continued to optimize the business structure, improved the layout of the industrial chain with mutual empowering and synergistic development of the pharmaceutical distribution, medical devices and retail pharmacy. In the past five years, Sinopharm took solid steps and achieved a remarkable performance by doubling its sales revenue, total profit and total assets, and fully accomplished the objectives of the “13th Five-Year Plan”.
The year 2021 marks the start of the “14th Five-Year Plan” and the beginning of the visionary goal of building a modern socialist country and a “Healthy China”. China will adopt a “dual circulation” strategy, which dictates an economic development pattern that takes domestic development as the mainstay, with domestic and international development reinforcing each other. China will continue to deepen the reform of the medical and health system, accelerate the expansion of high-quality medical resources and the balanced regional layout, build a hierarchical diagnosis and treatment system and provide people with all-round and comprehensive health services.
Looking ahead, the Group will continue to remain true to its original aspiration and philosophy of “All for Health, Health for All”, further grasp the opportunities arising from the strategic industry transformation and follow the development trend of the health China. Meanwhile, it will improve the network layout, optimize resource allocation and continue to strengthen the core business. Moreover, it plans to promote digital transformation, increase investment in technological innovation, expand the industrial chain and ecosystem so as to cultivate steady long-term growth, enhance the Group’s core competitiveness, continually create corporate value, lead the industry trend and achieve high-quality development.
The Board of Directors of the Group is committed to providing sound corporate governance, continuously refining decision-making capabilities and supervisory wisdom, optimizing operational management efficiency, pursuing sustainable development and ensuring long-term stable performance. Once again, I would like to thank the shareholders, partners and people from all walks of life for your long-term support and help to Sinopharm. We look forward to working together with you towards a prosperous future.