History and background

Chi-Med was established by HWL in June 2000 to develop and coordinate different business opportunities related to TCM. Since this time Chi-Med has developed its three principal businesses through a combination of acquisitions and new business development with financial support and technical expertise of HWL. The principal investments to date have included:

• the establishment of Hutchison Healthcare in March 2001 as a joint venture with the Masson Group with a total committed investment of RMB 245 million, comprised of RMB 125 million in registered capital and RMB 120 million in shareholder loans. In December 2003 the registered capital of Hutchison Healthcare was increased to RMB 166 million, when Ningxia Dyne became a shareholder. In late 2009, we secured 100% ownership of HHL through the acquisition of our minority partner's 15% share in HHL at a total consideration, including share transfer price and current accounts payments of about $0.6 million, which was equivalent to a multiple of approximately 15 times the partner's share of 2008 EBIT;
• the establishment of Shanghai Hutchison Pharmaceuticals as a joint venture with the Shanghai Medicine Company Limited, in April 2001 with a total committed investment of RMB 220 million, comprised of RMB 88 million in registered capital and RMB 132 million in shareholder loans;
• the formal establishment of the Sen consumer products business in February 2002, after two years of incubation, with an investment formally approved by HWL of HK$ 100 million;
• the formal establishment of Hutchison MediPharma in September 2002, after two years of incubation with an investment approved by HWL of HK$ 209 million; and
• the establishment of Hutchison Baiyunshan as a joint venture with Guangzhou Baiyunshan, in April 2005 with a total committed investment of RMB 345 million, comprised of RMB 200 million in registered capital and RMB 145 million in shareholder loans.
• the establishment of Hutchison Hain Organic (HK) Limited a 50:50 partnership with the Hain Celestial Group (NYSE: HAIN), a leading US based organic and natural consumer products group.