HONG KONG, Feb. 27, 2016 /PRNewswire/ -- Sihuan Pharmaceutical Holdings Group Ltd. (HKEx: 0460) (the "Company", together with its subsidiaries, the "Group"), a leading pharmaceutical company with the largest cardio-cerebral vascular drug franchise in China's prescription market, announced that the Company has fulfilled all the Resumption Conditions to the satisfaction of the Stock Exchange, and has made an application to the Stock Exchange for the resumption of trading in the shares of the Company with effect from 9:00 a.m. on 29 February 2016.
During the period of suspension, a significant amount of work was done by the Company with a view to satisfying the resumption conditions imposed by the Stock Exchange as soon as possible, including engaging an independent forensic expert to conduct a forensic investigation, implementing the relevant remedial measures, and conducting an internal control review under COSO internal control framework. Findings made by the independent forensic expert have been properly addressed and the relevant remedial measures have been implemented by the Company. No material weaknesses were discovered by the internal control expert in its review.
Matters/ issues leading to the disclaimer opinion on the 2014 consolidated financial statements have been properly addressed and dealt with. So far as the impact of the 2014 disclaimer opinion on the 2015 audit is concerned, apart from the carry forward impact on the opening balances as of 1 January 2015, the Company does not expect that the new auditors would, by reason of the 2014 disclaimer opinion, have any qualified opinion on other aspects of the 2015 consolidated financial statements.
Dr. Che Fengsheng, Chairman of Sihuan Pharmaceutical, said, "On behalf of Board of Directors, I'd like to express our sincere apology to stakeholders, investors and business partners for inconvenience caused to them. I would also like to extend our gratitude to them for their understanding and support to our company. This incident provided an opportunity for us to reflect and enabled us to gain valuable experience and advice, which laid down a better foundation for our future development. In 2015, as a result of our strength in product resources, R&D and outstanding market expansion capabilities, the Company overcame various challenges and strengthened business capacity, especially in R&D, and secured a healthy and steady growth. In 2016, the pharmaceuticals industry is expected to face tougher challenges and a greater pressure for consolidation. The Company will fully exploit the market potential of current products, acquire new products resources through multi-channels and maintain a strong marketing capability. Furthermore, the Company will enhance its market competitiveness through cooperation or merger with, or acquisitions of, famous global and domestic pharmaceutical research institutions and pharmaceutical corporations. We are confident that the future development of the Company is positive and we will continue to achieve a better growth than our peers."
About Sihuan Pharmaceutical Holdings Group Ltd.
Founded in 2001, Sihuan Pharmaceutical Holdings Group Ltd. is a leading Chinese pharmaceutical corporation and the largest cardio-cerebral vascular drug franchise in China's prescription drug market by market share. The Company also became the fourth largest pharmaceutical company in terms of hospital purchase in China's hospital market by the end of 2014. The success of the Company can be attributed to its differentiated and proven sales and marketing model, extensive nationwide distribution network, young and diversified product portfolio, and strong R&D capabilities. The Company's current products encompass the top five medical therapeutic areas in China: cardio-cerebral vascular system, central nervous system, metabolism, oncology and anti-infectives. Its major products such as Kelinao, Oudimei, Yuanzhijiu, Qu'ao and Chuanqing are widely used in the treatment of various cardio-cerebral vascular diseases.