Bloomage BioTechnology Corporation Limited (Stock code 963.HK) 2014 3Q Newsletter

Industry Information

1. The International Society of Aesthetic Plastic Surgery (ISAPS) released 2013 global cosmetic surgery statistics


According to the statistics released by ISAPS on 28 July, there were more than 23.47 million surgical and nonsurgical cosmetic procedures performed worldwide in 2013, with a three-year compound annual growth rate of 18.5%. There were about 11.87 million nonsurgical procedures, 43.3% of which were Botulinum Toxin, followed by the filler / resorbable of approximately 26%.

2. "Beijing doctors' multi-sited practice administrative measures" was amended and implemented, further lowering the barriers for multi-sited practice of doctors

Since August 2014, restriction for doctors' practice in other medical institutions was further reduced in Beijing. When doctors apply for multi-sited practice, they no longer need to obtain the approval from their employers and there will be no limits on the number of medical institutions for practice. As of May this year, there were 1993 doctors in Beijing registered for multi-sited practice, most of whom are from the large class three and class two public hospitals. The second practice places are mainly in private hospitals and community health service centers.

3. "Beijing medical institutions administrative measures" went into effect on 1 September 2014.

Since 1 September 2014, "Beijing medical institutions administrative measures" have been launched. It will be easier for qualified doctors to open private clinics. The measures will encourage qualified people to open private clinics legally and will

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regulate and shorten the approval timeline for the accepted applications. The approval department shall make a decision on granting a license to practice within 10 working days.

Business Activities

1. BioHyalux's first youth forum revealed the secret of healthy plastic surgery

On 1 August, the first BioHyalux youth forum was held in the Wukesong HI-PARK hall. Wang Zhongjie, injection department director, associate chief physician and anti-aging chief expert from the General Hospital of the Air Force, and Zhang Mei, doctor of injection department of the General Hospital of the Air Force, revealed the secret of plastic surgery. Healthy and correct plastic surgery patterns are an important condition in realizing beauty. The three key elements are: good products, good hospitals, and good doctors.

2. Chinese Association of Plastics and Aesthetics skin beauty technical training class held one day injection training using BioHyalux dermal fillers

22 August 2014 was the 7th day of the national skin beauty technical training hosted by the Chinese Association of Plastics and Aesthetics. The training focused on theory of dermal fillers and its application during cosmetic surgery. The training was in the form of an on-site operation and demonstration. It was chaired by Professor Zhou Zhanchao. Sun Zhong Sheng, chief physician of Guangdong No.2 People's Hospital plastic surgery department, and professor Chen Xiangdong from the Shanghai the 9th People's Hospital explained the dermal filler injection essentials. One of the volunteers received 12 syringes hyaluronic acid injection. Facial profile changed apparently and the aesthetic effect was remarkable, winning applause from the
trainees. The injectable fillers for the demonstration were sponsored by BioHyalux.

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3. Bloomage attended the 11th plastic surgeons conference, the international cutting-edge aesthetic feast

During 30-31 August 2014, the 11th Chinese Society of Aesthetic and Plastic Surgeons Conference was held. 1500 leaders in the aesthetic industry gathered in Harbin, to promote industry upgrades and new concepts, closely following the international first-class technology. The conference covered the top-tier products and the most advanced technologies in medical equipment, medical products, medical devices and healthy foods. BioHyalux skin care product series were displayed during the conference, and was praised by vast number of specialists, aesthetic surgeons and consumers. The North China sales director of Bloomage was interviewed by PCLady.com.

4. 2014 China aesthetic hospital healthy development white paper was released in Beijing

"2014 China aesthetic hospital healthy development white paper " was published by the world famous HA manufacturer Bloomage, together with Singapore K2W. During the six months study, the two companies interviewed the country's top 51 aesthetic hospital CEOs and performed an in-depth analysis. Highlights are:

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1) Market expectation tend to be optimistic; large institutions are still acquiring market share

90% of the CEOs' expect the growth rate to be more than 20%, 1/3 of the respondents

have established the growth rate target of more than 50%.

About 75% of respondents are planning to establish 2 new hospitals in the next 5 years

2) More than half of the hospitals do not consider beauty salons as good partners. Such opinion is more popular in the Putian background hospitals.

3) The biggest challenge: customer relationship management

4) The biggest opportunity to improve operating performance: combination therapy

5) When product manufacturers are moving towards the front line, they must possess industry leadership capabilities, obtaining the long-term mutual trust and forming strategic cooperation with hospitals, to jointly promote the development of the hospitals.

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5. Bloomage's Hengmei mall was officially launched

On 1 September 2014, Bloomage launched the medical skin care product sales platform, "Bloomage Hengmei mall". On one hand, consumers can place orders directly through the BioHyalux WeChat shop, and on the other hand they can also browse the Huaxi Hengmei mall and register as members to participate in limited promotional activities.

6. Bloomage Freda Biopharm Co., Ltd has been granted "China spice and fragrance cosmetics industry's most influential raw material suppliers and the technology innovation (invention) award"

On 12 September 2014, China spice and fragrance cosmetics industry association celebrated its 30th anniversary and announced during the ceremony that Bloomage Freda Biopharm Co., Ltd has won the "China spice and fragrance cosmetics industry's most influential raw material suppliers" and "China spice and fragrance cosmetics industry technology innovation (invention) award". This is not only a recognition by
the industry, but also a great encouragement for our future development and progress.

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7. "Beautiful Shandong, technology first" - The first science and technology innovation achievements exhibition in Shandong province successfully came to a close.


On September 12-14, The first science and technology innovation achievements exhibition in Shandong province was held in the provincial museum. Vice governor of Shandong Province Zhang Chaochao, along with the provincial science and technology department officials, visited our exhibition booth. The provincial officials affirmed the Company's technology and innovation achievements, and expressed their care and support.

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