Message from Our CEO

We began our journey in plasma products research and production began in 1971 with the foundation of the Shandong Institute of Biological Products (“Shandong Institute”). In 2002, we established a joint venture with Shandong Institute, which became our major operating subsidiary. Through a number of successful strategic acquisitions and investments over the past 10 years, China Biologic Products, Inc. has become one of the largest non-state-owned plasma-based biopharmaceutical companies in China, with two majority-owned operating subsidiaries and one minority investee. Since December 2009, we have been a NASDAQ-listed company under the trading symbol of “CBPO.”

Today, through our two majority-owned operating facilities, we have 12 captive plasma collection centers located in Shandong, Guangxi and Guizhou. We are the second largest plasma collector in China in terms of 2012 collection volume with approximately 15% market share. Our plasma-based products, such as albumin and immunoglobulin for intravenous injection, are critical and essential in the treatment of medical emergencies and life-threatening diseases.

China’s plasma-based biopharmaceutical industry is in its infancy stage, and the plasma products market is still under-penetrated. Our expertise in the development and commercialization of plasma products has been the key driver for our success. We will continue to leverage our expertise to further solidify our market leadership. Building on our strong research and development position, we are committed to expanding our product portfolio and pipeline to include more technologically advanced, higher-margin products, many of which are used in the United States and other developed markets, but are not currently manufactured in China.

Healthcare spending in China continues to increase, driven by an aging population, accelerated urbanization, increased government spending, and higher disposable household incomes. The rising demand for modern healthcare products and services is further fueled by the unprecedented $124 billion healthcare reform, which will provide, among other things, universal coverage to China’s population of 1.3 billion. We expect our sales to grow as the demand rises for our current and future life-saving plasma-based products.

Critical to our success is our team, consisting of over 1,500 dedicated full-time employees as of December 31, 2013, which is focused on the single goal of maintaining our leading position in the plasma-based biopharmaceutical industry in China.

Whether you are an investor, employee, partner, or medical professional, I thank you for your interest in our company, and I invite you to learn more about us. We are confident about the potential for growth in China’s biopharmaceutical industry and look forward to delivering attractive results to our stakeholders in the years ahead.

Sincerely yours,

David Gao Chairmand and CEO, China Biologic Products Holdings,Inc.
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